ID: MRFR/A&D/2593-CR | October 2021 | Region: Global | 99 pages
The civil helicopter market is predicted to reach USD 15,338.36 million by 2027 at a CAGR of 3.83% during the forecast period, 2020 and 2027. The global market for civil helicopters is highly competitive with the presence of large companies with a global presence, as well as companies with regional existence. Civil helicopters are designed as per end use, such as law enforcement, onshore & offshore transportation, forestry & wildlife conversation, helicopter emergency medical service, search & rescue, and training services. Furthermore, these helicopters can be owned or rented for use and are available in various configurations such as light, intermediate, medium, and large.
The civil helicopter market is expected to gain significant traction during the forecast period. The rapid growth in the demand for rotorcraft and the rise in per capita disposable income in developing countries are anticipated to drive the global civil helicopter market. Furthermore, the increasing demand for helicopters in law enforcement applications is projected to propel the market during the forecast period. However, factors such as complex regulations for civil aviation are expected to restrict the market growth.
According to MRFR, the current global civil helicopter market growth projections until 2027 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a devastating negative impact on the aviation industry across the world. In the aviation industry, due to a decrease in tax revenues with a reduction in GDP, it is also expected to decrease the investment in civil helicopters for research & development in the next few years.
Many governments across the globe are focused on controlling COVID-19 outbreaks in their countries. Hence, they are investing more in healthcare equipment and the development of vaccines. Therefore, the R&D expenditures on civil helicopters are expected to be slightly lower for the next few years. The aerospace expenditure is expected to increase gradually during the forecast period after the pandemic ends.
Moreover, due to a decrease in revenues of airline companies, it is also likely that there will be a setback for further investing in civil helicopters. However, the growing demand for helicopter emergency medical services is anticipated to drive the market once the global economy plunges back. Thus, the global civil helicopter market is projected to grow at a slower rate in 2020 and 2021; from 2022, it is expected to witness gradual growth.
In recent years, there has been a rise in the demand for helicopters for applications such as law enforcement, onshore and offshore transportation, tourism, wildlife conversation, and emergency medical services (EMS). The growing crime rate in various countries such as Brazil, Mexico, South Africa, and Afghanistan is expected to drive the demand for civil helicopters for law enforcement. According to the Small Arms Survey, in 2016, interpersonal and collective violence claimed the lives of 560,000 people around the world. For the first time since 2004, the global homicide rate increased, growing from 5.11 to 5.15 per 100,000 population between 2015 and 2016. Law enforcement agencies in developing countries are increasingly using helicopters for surveillance and search and rescue missions.
Helicopters are also widely used for tourism and wildlife conservation. Over the years, developing countries such as China, India, and South Africa have emerged as tourism hubs, creating demand for civil helicopters for transportation and leisure activities. According to the India Brand Equity Foundation, it is expected that international tourist arrivals in India will reach USD 30 million by 2028. Thus, the increase in crime rates, rising number of offshore oil rigs, and expansion of the tourism industry in developing countries are expected to drive the growth of the global civil helicopter market during the forecast period.
In several countries, helicopter operators and manufacturers are started working in partnership to simplify the maintenance process. Helicopter manufacturers can partner with end users/operators to provide maintenance and other required services. Establishing long-term contracts is beneficial to both parties as they help manufacturers offer customized services and increase revenue. At the same time, the operators are assured of timely maintenance at reduced costs. While manufacturers have the required maintenance, repair, and overhaul (MRO) facilities that can be used for aftersales services, they presently offer these services on a need basis to operators and charge accordingly. This increases the cost of running the facility and maintenance costs for operators. However, alliances between helicopter manufacturers and operators would be a cost-effective solution. Helicopter operators, such as airlines, can establish strategic relations with manufacturers for maintenance activities, which would considerably reduce operating costs and ensure the safety of flight operations. This is also a practical approach for helicopter manufacturers to understand the specific needs of operators. Thus, alliances and partnerships with helicopter operators could present lucrative growth opportunities for the players operating in the global civil helicopter market.
Civil helicopters comprise various systems and components such as engine components, airframes, cockpit display systems, and electronic systems. Moreover, the integration of new and advanced electronics such as navigation systems, airborne optronics, and flight control electronic systems is increasing, focusing on enhancing functionality. These factors result in high manufacturing costs. Furthermore, the manufacturing of helicopters for specialized applications requires specific equipment to test calibration. In addition, manufacturers are also using 3D printing to create lightweight airframes and other components that need minimal maintenance, which further increases costs. Similarly, the increasing use of composite materials for manufacturing helicopter airframes also tends to increase the overall cost of the helicopter. Hence, the high costs involved in manufacturing helicopters are expected to hinder the growth of the global civil helicopter market during the review period.
Cumulative Growth Analysis
The global civil helicoptermarket growth is expected to be at a rate of 3.83% over the study period (between 2021 and 2027) on account of the introduction of advanced civil helicopter systems.
The civil helicopter market has been segmented, based on engine type, into single and twin engine. The singleengine segment dominated the global market with a value of USD 7,470.52 million in 2020 and is projected to exhibit a 4.20%CAGR during the forecast period. Single-engine helicopters are used for operations that include flying at low altitudes as compared to fixed-wing aircraft. These are also operated in demanding environments. These helicopters are typically used for emergency medical operations, power line inspections, and search and rescue missions. For instance, the Airbus H125 and H130 are widely used single-engine helicopters for emergency medical service (EMS) missions in the US. They offer high performance, excellent visibility, mission flexibility, and low operating costs.
By System Type
The civil helicopter market has been classified, based on weight, into light helicopters, intermediate helicopters, medium helicopters, and large & heavy helicopters. The light helicopters segment accounted for the largest market share in 2020. Light helicopters are primarily used for tourism. As the weight-carrying limit for light helicopters is less than 3 tons, the wear and tear of components are limited, due to which these helicopters do not require frequent MRO services. Light helicopters may also be used for other applications as well. For instance, the Dhruv advanced light helicopter offered by Hindustan Aeronautics Limited has features such as a glass cockpit and digital video recording systems. The helicopter is used for various missions such as search and rescue, training, and public safety. Similarly, Ansat light multipurpose helicopters are also suited for multiple applications such as search & rescue, medical, training, and passenger/cargo transportation. The light helicopters segment was valued at USD 5,317.51 million in 2020 and is expected to reach USD 6,610.93 million by 2027 at a CAGR of 3.23% during the forecast period.
North America spearheaded the civil helicopter market in 2020 and is likely to continue to command during the assessment period. North America operates approximately 33% of the world's civil helicopter fleet. Many operators in the US are looking to expand the application scope of helicopters, making the country amore prominent contributor in the North American market than Canada. In North America, civil helicopters are used for various applications such as charter services, aerial tours, and search & rescue missions. Charter services are increasingly gaining popularity, with operators providing multiple services to promote tourism and air travel.
Furthermore, emergency medical services through helicopter operations prove to be effective in the US and Canada to ensure a quick emergency response. Many operators are also focusing on offering tours and aerial photography, along with utility and offshore transport services. The North American civil helicopter market is expected to exhibit a CAGR of 3.94% during the forecast period.
The civil helicopter market in Asia-Pacific is expected to witness the fastest growth among countries such as China, India, and South Korea, which are heavily investing in infrastructure development to support the growth of the civil helicopter market. EMS operations are also gaining importance in countries such as India, where the market for medical tourism is developing very fast. Fast transport, the ability to access remote areas, and increasing affordability are the primary reasons for developing the civil helicopter market in the region. In China, government funding and decreasing stringency in airspace restrictions are expected to support the adoption of helicopters for air medical and rescue operations. Areas in the country, such as Shandong, are launching a comprehensive road traffic accident and emergency rescue helicopter service system. In India, another major market, government initiatives such as ‘Make in India’ encourage civil helicopter manufacturers to set up operations in the country and increase their presence in the region.
The global civil helicopter market is anticipated to grow significantly in the coming years due to the growing demand in developing countries. The global civil helicopter market is characterized by the presence of several international and regional vendors. The market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense rivalry, and aviation regulations are the key factors that impact global market growth. The vendors compete based on cost, product quality, and reliability. It is crucial for the players to offer cost-efficient and high-quality civil helicopters to succeed in an intensely competitive market environment.
List of Key Companies Covered in this Report
Objectives of the Study
Scope of the Report
The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the global market. With easy-to-comprehend segmentation that includes engine type, weight, light helicopters, ownership, end user, and region, MRFR projections are based on historical and expected trends. In addition, major firms active in the global market have been profiled and paired with the top strategies employed by them to remain competitive in the industry.
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Engine Type, Weight, Light Helicopters, Ownership, and End User|
|Geographies Covered||North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America|
|Key Vendors||Airbus SAS, Aviation Industry Corporation of China, Textron Inc., Enstrom Helicopter Corporation, Hindustan Aeronautics Limited, Korea Aerospace Industries, Ltd, MD Helicopters,Leonardo SpA, Lockheed Martin Corporation, Inc., Robinson Helicopter Company, and Russian Helicopters, JSC|
|Key Market Opportunities||Alliances Between the Helicopter Manufacturers and Operators|
|Key Market Drivers||Growing Demand in Developing Countries Increasing Need for Helicopter Emergency Medical Services Increasing Demand for Lightweight Helicopters|
Frequently Asked Questions (FAQ) :
The regional market in North America is evaluated to guide the market.
By 2027, a USD 15,338.36 million earning level is appraised to change the market's trajectory
At a CAGR of 3.38%, the market is estimated to unlock considerable growth by2024.
Textron Inc. (US), Hindustan Aeronautics Limited (India), and Enstrom Helicopter Corporation (US) will define the next phase of growth in the market.
The demand from law enforcement agencies is estimated to provide a significant surge to the market.