The European helicopters market is expected to exhibit a growth rate of more than 2.5% during the forecast period (2020 - 2025).
- The increase in defense expenditure by countries, such as the United Kingdom, France, Germany, and Russia, in the region, is supporting the procurement and development of military helicopters for national security and military assistance in combat prone geographies and this factor is propelling the growth of the market in the region.
- The market for civil helicopters is also expected to show a significant growth rate owing to the collaborative and innovative programs in the region. Programs, such as DISRUPT (Development of an innovative and safe ultralight, two-seater turbine helicopter), aims at developing enhanced ultralight helicopters with parachute safety mechanisms. The currently manufactured ultralight helicopters are produced using old technology which has resulted in several casualties over the years.
- Technological advancements like implementation of common platform technology, such as European Geostationary Navigation Overlay Service (EGNOS), which is a satellite-based augmentation system operated by European GSA, are deployed in European helicopters and enhances the usage of Global Position System and other region-based satellite navigation systems. The aforementioned factors are propelling the growth of the market.
Key Market Trends
Military Helicopters to Exhibit the Highest Growth Rate
Factors, such as increased defense spending by prominent economies such as the United Kingdom, France, Germany, and Russia, military tensions in Eastern Europe, the presence of major aircraft manufacturers in the region, etc. are propelling the growth of the market in Europe. France, in February 2020, confirmed its procurement plan for CH-47F heavy-lift helicopters for its Air Force. France will also roll out the budget proposal for the up-gradation package of the fleet of Airbus H225M Caracal helicopters. Czech Republic is also planning to sign a USD 630 million deal with the US government for procurement of 8 multi-purpose and 4 attack helicopters from Bell. Germany is also planning to acquire more than 60 units of Airbus H145M helicopters from 2021 for its Army, Navy, and Air Force for battle utility and training purpose. Boeing and Sikorsky also bid for the German Air Force's requirement of heavy-lift helicopters and presented Chinook and Stallion helicopters, respectively. The order will be placed during late 2020 or early 2021 and the delivery is scheduled to be completed by 2030. Such procurement plans will propel the growth of the helicopter market in Europe during the forecast period.
Helicopters Market in Russia will Witness Significant Growth During the Forecast Period
Russia has the highest defense budget in the European region and a significant portion of the budget is dedicated to new aircraft and helicopter development. Russia is also a prominent exporter of defense equipment and generates heavy revenue through its worldwide sale of helicopter. Russian manufacturers are also collaborating with other major European manufacturers to expand their existing product lines of helicopters. Russian Helicopters, a subsidiary of ROSTEC, developed a new version of MI-8MTShVN helicopter with upgraded systems and the rotorcraft will be used for special operations. Russia is also investing in new manufacturing technology, such as 3D printing. In 2020, Russian Helicopters will re-engineer 30 different parts of helicopters and integrate their existing manufacturing processes with 3D engineering techniques to produce new parts with additive manufacturing techniques. These parts made of composites will be used to manufacture tail and main rotor assemblies of rotorcrafts under the Advanced Commercial Helicopter (ACH) initiative. The aforementioned factors are propelling the market growth for helicopters in Russia.
The European helicopter market is consolidated with a few players accounting for a major revenue share. Some of the prominent players in the market are Airbus SE, The Boeing Company, Leonardo SpA, and Rostec, among others. The players in the market generate revenue through the sale of helicopters to national defense forces in Europe and around the world, and strategic joint collaboration programs. The market is highly competitive and product innovation plays a vital role in receiving new contracts. The market companies constantly try to reap the benefits of the booming aviation industry in Europe, increased defense spending by governments, etc. by winning development contracts.
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