Helicopters Market By Type(civil & commercial, military helicopters), By Weight(Lightweight, Medium Weight, Heavy Weight), By Number of Engines(Twin Engine, Single Engine), By Application(Emergency Medical Service, Oil and Gas, , Homeland Security), by Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

The helicopter market was valued at USD 32.6 Billion in 2022. It is estimated to reach USD 71.6 Billion by 2032, with a CAGR of 8.4% during the forecast period.

The surge of requirements in military forces and air ambulance services are some of the main factors for the helicopter market expansion. The primary function of a helicopter is to shift the patients toward medical centers and keep them safe and away from accidental sites or areas.

Air ambulance helicopters provide special care and support at the accidental sites and transfer the victims and patients to the nearest medical hubs, especially for cases of serious traumas.

The equipment and the safety of the patients are the most vital factors to take into attention whenever deciding to shift a patient through the helicopter. Air ambulance operations are an important part of society as it is expanding their reach to many urban areas and just not limited to remote areas.

As per the Aero time hub article, in April 2022, metropolitan police and London ambulance services took the help of an air ambulance to rescue an 81-year-old man who was severely hit by a vehicle in the middle of Trafalgar Square. Moreover, at the time of the pandemic, air ambulances were embedded with modern medical technology to handle the severity of COVID-19.

Financial and insurance firm Allianz stated that from March to August 2020, air transport services have been boosted by 25% as compared to the same period in 2019. Additionally, EpiGuard, a Norwegian medical maker witnessed an increase of sales by 2,000% during the period of 2020 to 2021 for its Epishuttle isolation pods to shift the COVID patients.

Helicopters are widely used by military forces. It has a wide range of usages that make it an important asset in different military operations. Some of the main roles of helicopters are troop transport, medical evacuation, fire support, disaster rescue missions, logistics and transportation, search and rescue operations, and other military operations. The demand for helicopters will increase in the coming years which will contribute to market expansion.

Driving Factors

Fleet Modernization Accelerates Helicopter Market Growth

The need for the replacement of old helicopter fleets with modern, advanced rotorcraft is a significant factor driving the helicopter market's growth. As aging fleets reach the end of their service life, there is a heightened demand for newer models that offer enhanced safety, efficiency, and technological capabilities.

This trend not only reflects the ongoing renewal cycles within the industry but also indicates a shift towards more sophisticated, multi-role helicopters. The long-term implication is a market increasingly oriented towards innovation, with manufacturers focusing on advanced designs and features to meet the evolving demands of operators.

Advanced Technology Integration Boosts Market Revenue

The increased use of advanced technologies, such as electronic thrust in helicopters, is a key driver of market revenue growth. These technological advancements enhance the performance, control, and efficiency of helicopters, making them more appealing to a wide range of users, from the military to civilian sectors.

The integration of cutting-edge technologies signifies a market that is becoming increasingly sophisticated, with a strong focus on innovation and technological excellence. In the long run, this trend is expected to lead to a market characterized by high-tech, versatile rotorcraft catering to a variety of needs and applications.

Joint Ventures and Combat Helicopter Demand Propel Market Dynamics

Growing joint ventures between global manufacturers and the increased demand for technologically advanced combat helicopters are reshaping the helicopter market. These partnerships enable the pooling of resources, expertise, and technology, leading to the development of superior combat helicopters.

The growing demand for these helicopters, especially for close air support and attack operations, further stimulates market growth. This synergy between joint ventures and military needs creates a robust environment for innovation and development in the market. The anticipated long-term effect is a more collaborative and technologically advanced market, capable of producing cutting-edge military rotorcraft.

Combat Helicopters' Rising Demand Underlines Market Expansion

The increased demand for combat helicopters for close air support and attack operations is a pivotal factor in the market's growth. With global security concerns and military modernization initiatives, the requirement for combat helicopters equipped with advanced capabilities is on the rise.

This demand is not just driving sales but also encouraging advancements in technology, design, and multi-role functionality. The long-term implications include a sustained focus on developing combat helicopters that are more efficient, capable, and versatile, meeting the complex requirements of modern warfare and defense strategies.

Restraining Factors

High Acquisition and Maintenance Costs Restrain Helicopters Market Growth

The high cost of acquiring and maintaining helicopters significantly limits the growth of the market. The initial purchase price of helicopters, particularly those with advanced technology and capabilities, is prohibitively high for many potential buyers.

Additionally, the ongoing maintenance and operational costs, including parts replacement and labor, add to the financial burden. These expenses make helicopter ownership less feasible for smaller operators or organizations with limited budgets. The high-cost barrier restricts the customer base to a relatively small segment of affluent buyers or large corporations, thereby hindering broader market growth.

Rising Fuel Prices Adversely Impact Helicopters Market Growth Globally

Rising fuel prices pose a substantial challenge to the global helicopter market, affecting both commercial and private operators. Helicopters, being fuel-intensive vehicles, are significantly impacted by fluctuations in fuel costs.

The increase in fuel prices leads to higher operational costs, which can result in reduced usage and lower purchases of helicopters, as operators and potential buyers reassess their budgets and operational efficiencies. This issue is particularly pressing in regions with volatile fuel pricing, where budgeting for helicopter operations becomes increasingly challenging. The consequent reduction in demand due to high fuel costs adversely affects the global market growth for helicopters.

Segmentation Analysis

By Type

Military helicopters are the predominant segment in the helicopter market. This dominance is driven by their critical role in defense operations, including transportation, reconnaissance, and combat missions. The demand for military helicopters is fueled by global security concerns, technological advancements, and the need for modernized fleet replacements. The trend towards multi-role helicopters, capable of performing various missions, is a significant driver of this segment's growth.

The civil and commercial segment, while smaller than the military sector, plays a vital role in the helicopter market. This segment includes corporate transport, emergency medical services, and tourism. The growth in this segment is driven by the increasing demand for air ambulance services and the rising use of helicopters in urban mobility solutions.

By Weight

In the helicopter market, weight categories play a pivotal role in determining the suitability of helicopters for various applications. Lightweight helicopters, known for their agility and economical operation, are often the preferred choice for tasks that demand maneuverability and cost-efficiency, such as pilot training, aerial surveillance, and light transport duties. These helicopters are particularly valued in sectors where speed and flexibility are more critical than payload capacity or range.

Medium-weight helicopters strike an optimal balance between performance capabilities and operational costs. This category is versatile, making these helicopters well-suited for a diverse range of applications, both in civilian and military contexts. They are commonly used for passenger transport, emergency medical services, and medium-lift tasks, offering a good compromise between the lightweight and heavyweight categories.

By Number of Engines

The helicopter market is segmented by the number of engines, with twin-engine helicopters being the preferred choice for safety-critical missions. These include offshore oil and gas operations and emergency medical services, where the added reliability of two engines is crucial for safe operations in challenging environments.

Conversely, single-engine helicopters are favored in less demanding applications, such as training, private transport, and light commercial use. Their popularity in these sectors is driven by their lower operating and maintenance costs, making them a cost-effective solution for operators who do not require the added safety and performance features of twin-engine models. This segmentation reflects the diverse needs and priorities of different users in the helicopter market.

By Application

In the helicopter market, the application segments play a critical role in shaping demand and technological advancements. Emergency medical services (EMS) heavily rely on helicopters for their unrivaled speed and agility, which are essential for providing rapid medical assistance in remote or inaccessible locations.

Additionally, Emergency Medical Services (EMS) benefit from the advanced onboard medical equipment that helicopters can carry, transforming them into airborne ambulances capable of providing critical care in transit. This capability significantly enhances survival rates in emergencies, making helicopters an invaluable asset in the healthcare and emergency response infrastructure.

Defense and homeland security represent another substantial market segment, utilizing helicopters for a wide range of national security tasks, including surveillance, search and rescue, and combat missions.

These sectors value helicopters for their ability to provide exclusive, efficient transport and unique aerial experiences, thereby contributing to the overall growth and dynamism of the helicopter market.

Helicopter Industry Segments

By Type

• civil & commercial
• military helicopters

By Weight

• Lightweight
• Medium Weight
• Heavy Weight

By Number of Engines

• Twin Engine
• Single Engine

By Application

• Emergency Medical Service
• Oil and Gas
• Defense
• Homeland Security
• Others

Growth Opportunities

Replacement of Aging Commercial Helicopters Offers Growth Opportunity

The need to replace aging commercial helicopters is a significant driver for market growth, opening avenues for new opportunities. As older models become obsolete or fail to meet current efficiency and safety standards, there's an increased demand for newer, more advanced helicopters.

This replacement cycle is supported by recent trends showing heightened investment in next-generation helicopters by commercial operators. These investments are not only motivated by the need for modernization but also by regulatory pressures and the pursuit of operational efficiency. Consequently, this key trend is likely to stimulate growth and innovation in the helicopter manufacturing sector.

Increased Demand for Lightweight Helicopters in Medical Applications Offers Growth Opportunity

The escalating demand for lightweight helicopters, particularly for air ambulances and medical purposes, propels market growth and innovation. Lightweight helicopters offer advantages like greater maneuverability and fuel efficiency, making them ideal for emergency medical services.

The recent spike in healthcare emergencies and the need for rapid medical response have highlighted the importance of these helicopters. This demand is driving manufacturers to innovate and produce helicopters that are not only lighter but also equipped with advanced medical facilities, thereby expanding the market's scope and potential.

Regional Analysis

North America Dominates with a 50% Market Share

North America's commanding 50% share in the global helicopter market can be attributed to several key factors. The region is home to some of the world's leading helicopter manufacturers, such as Bell and Sikorsky, driving innovation and production. Additionally, there is a high demand for helicopters in both civilian and military sectors, spurred by vast geographical expanses requiring efficient aerial transportation and a strong defense budget supporting advanced helicopters In military rotorcraft development.

The dynamics of the helicopter market in North America are influenced by diverse applications, including emergency medical services, law enforcement, and corporate travel, alongside military usage. The region's advanced technological ecosystem fosters continuous innovation in helicopter design, including the integration of new navigation systems and an emphasis on safety and efficiency. The robust economic conditions further support market growth, allowing for substantial investments in helicopter infrastructure and services.

Looking ahead, the future influence of North America's market presence in the global helicopter industry remains strong. Initiatives in sustainable aviation and the exploration of electric vertical take-off and landing (VTOL) aircraft may further revolutionize the market, maintaining North America's leadership position.

Europe: A Focus on Innovation and Safety

Europe’s helicopter market is characterized by a strong emphasis on safety standards and technological innovations. The region benefits from the presence of key players like Airbus Helicopters, driving market competitiveness. Europe's strict regulatory environment ensures high safety and environmental standards, fostering trust and reliability in the market. The region's focus on incorporating advanced technologies such as AI and IoT in helicopter systems is set to bolster its position in the global market.

Asia-Pacific: Rapid Growth and Expansion

Asia-Pacific region helicopter market is experiencing rapid growth, driven by increasing demand in emerging economies like China and India. The region's expanding tourism industry, along with growing investments in infrastructure and defense, significantly contributes to this surge. The increasing need for helicopters in disaster management, medical evacuation, and urban air mobility in densely populated cities is also propelling market growth. Asia-Pacific's strategic focus on expanding its helicopter fleet and services indicates a significant potential for increased share in the future.

Key Player Analysis

The helicopter market, characterized by the companies listed, represents a diverse array of strategic approaches and influences. Airbus and Bell Textron Inc., with their broad portfolios, lead in innovation and versatility, catering to both commercial and military sectors. Their expansive global presence underscores the importance of adaptability and breadth in product offerings.

Helicopters Guimbal and MD Helicopters Inc., though smaller in scale, make significant contributions through specialized designs, appealing to niche markets such as training and light utility services. Kaman Corporation and Kawasaki Heavy Industries Ltd, known for their technological advancements, highlight the industry's focus on enhancing performance and safety.

Leonardo SpA, with its strong European presence, and Mitsubishi Heavy Industries Ltd, a key player in the Asian market, illustrate the importance of regional expertise and strategic positioning in global competitiveness. Robinson Helicopter Company, renowned for its cost-effective and popular light helicopters, underscores the market's demand for accessible and reliable civilian helicopters.

The Boeing Company and Lockheed Martin Corporation, giants in aerospace, demonstrate their prowess in the military helicopter segment, emphasizing advanced technology and defense contracts' significance. Rostec and Hindustan Aeronautics Limited, with their state-backed operations, reflect the role of national defense agendas and indigenous manufacturing capabilities in shaping market dynamics.

Collectively, these companies not only influence the global helicopter market size but also showcase a spectrum of strategies - from focusing on niche segments to leading in comprehensive offerings and technological innovations - vital in steering this multifaceted industry.

Key Players

• Airbus Helicopters Inc.
• Bell Textron Inc
• Helicopters Guimbal
• Kaman Corporation
• Kawasaki Heavy Industries Ltd
• Leonardo SpA
• MD Helicopters Inc
• Mitsubishi Heavy Industries Ltd
• Robinson Helicopter Company
• The Boeing Company
• Lockheed Martin Corporation
• Rostec
• Hindustan Aeronautics Limited

Recent Development

February 2023 Hindustan Aeronautics Limited (HAL), an India-based state-owned aerospace and defense company, unveiled a new manufacturing unit in Karnataka, India. HAL intends to manufacture more than 1,000 rotary-wing aircraft with different load capacities, generating a total revenue of over USD 4 billion over the next two decades.

December 2022 Bell Textron Inc. has been awarded a contract by the U.S. Army to construct a new long-range assault aircraft. Valued at up to USD 1.3 billion, the contract was won against a joint team from Lockheed Martin Corp. and Boeing Co. and will involve the replacement of the famous Black Hawk helicopters by 2030

In July 2021, MD Helicopters Inc. signed new contracts with Unitech Composites and ACT Aerospace to improve production and spare parts availability for the MD 902, MD 520N, and MD 600N aircraft.

In April 2021, Airbus announced that New Zealand VIP and charter operator Advanced Flight had become the launch customer for the new Airbus ACH145 with five rotor blades. It has also taken delivery of the first five-bladed ACH145 helicopter.

Recent Development

• In 2022, a team of researchers from the University of California, Berkeley developed a new method for producing aniline from biomass. The method uses a catalytic process to convert sugars from biomass into aniline in high yields.
• In January 2022, Maire Tecnimont's subsidiary, Tecnimont, has secured a €250 million EPC contract from Covestro to build a new aniline plant in Antwerp, Belgium. The project will boost aniline production at Covestro's Antwerp site, focusing on high-tech polymer materials and sustainable solutions. Completion is expected by 2024, featuring cutting-edge technologies for safety and energy efficiency.
• In 2022, A team of researchers at the Chinese Academy of Sciences discovered how to use lithium hydride to facilitate the hydrogenolysis of anilines to arenes.This work provides a new strategy for C-N bond activation and may help the design and development of new materials or catalysts for HDN as well as other important chemical transformations.

Report Scope