Tanker Aircraft Market Size
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 646.65 Million |
| Market Size (2028) | USD 881.82 Million |
| CAGR (2023 - 2028) | 6.40 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Tanker Aircraft Market Analysis
The Tanker Aircraft Market size is expected to grow from USD 646.65 million in 2023 to USD 881.82 million by 2028, at a CAGR of 6.40% during the forecast period (2023-2028).
- Despite the significant impact of the COVID-19 pandemic on the economy, the market for tanker aircraft market remained unaffected, as the procurement projects were on track, and the sales and revenues of the tanker aircraft market increased steadily for the manufacturing companies.
- The increasing military expenditure of developing economies is driving the modernization plans of various countries to replace the old tanker aircraft fleet. This is anticipated to propel the growth of the key aircraft market during the forecast period.
- The innovations in existing tanker aircraft, along with introducing the action of new tanker aircraft, are anticipated to attract new customers for the aircraft OEMs. Considering the new technology and innovation, the market is expected to grow in the coming year. However, the expensive installation of refueling systems is a restraining factor that might cause hindrance to market growth.
Tanker Aircraft Market Trends
This section covers the major market trends shaping the Tanker Aircraft Market according to our research experts:
Innovations in Aerial Refueling Aircraft
Each country across the world is increasing its defense expenditure and focusing on developing and strengthening the country's defense sector. In 2021 world military expenditure surpassed the two trillion US dollar mark for the first time, reaching USD 2113 billion. Global spending in 2021 was 0.7% higher than in 2020 and 12% higher than in 2012. Countries are also focusing and spending more on the research and development of military equipment. The companies are developing new variants of tanker aircraft. One of the areas of investment is the development of unmanned tanker aircraft. Boeing is currently developing the MQ-25 tanker drone. The company was awarded a contract worth USD 805 million to design, develop, test, and deliver four MQ-25 drones that can provide refueling services for the Boeing F/A-18 Super Hornet, Lockheed Martin F-35 Lightning II, and EA-18G Growler aircraft. The company was awarded a six-year development contract and plans the initial operational capability of the aircraft by 2024. The US DoD intends to acquire about 72 aircraft with an investment of USD 13 billion in the coming years. Such investments of the armed forces into developing advanced tanker aircraft in partnership with the aircraft OEMs are anticipated to propel the growth of the tanker aircraft market.
North America Held the Highest Market Share
North America is currently dominating the market. It is expected to continue its dominance during the forecast period. This is mainly due to the current plan of the US Air Force to replace approximately 30% of its aging fleet of KC-135 aerial refueling tankers. Currently, there are about 396 KC-135 aircraft in service. Under this plan, the Department of Defense (DOD) awarded the Boeing Company a contract worth about USD 35 billion to build and deliver 179 new KC-46A aerial refueling tankers.
The North American Aerospace Defense Command, known as the North American Air Defense Command, is a combined organization of the United States and Canada that provides aerospace warning, air sovereignty, and protection for Canada and the continental United States. NOARD is an organization that conducts Operations in the aerospace field. For instance, in June 2022, the North American Aerospace Defense Command’s continental US region (CONR) was expected to conduct Operation NOBLE DEFENDER, involving military aircraft from the US Air Force to do an aircraft fueling exercise.
In June 2021, Boeing, in collaboration with the US Navy, demonstrated air-to-air refueling using MQ-25 unmanned aircraft. In the demonstration, the unmanned aircraft (MQ-25 T1 test asset) refueled the Navy F/A-18 Super Hornet aircraft. Such robust procurement plans of the US armed forces are anticipated to propel the market's growth during the forecast period.
Tanker Aircraft Industry Overview
The tanker aircraft market is consolidated with a few tanker aircraft manufacturing companies. Some prominent players in the tanker aircraft market are BAE Systems PLC, the Boeing Company, Airbus SE, Lockheed Martin Corporation, and United Aircraft Corporation. The introduction of new aircraft models and current investments in the development of unmanned air-to-air refueling technologies are anticipated to help the companies increase their share in the market. For instance, in November 2022, BAE Systems was contracted to continue delivering support and services for the Eurofighter Typhoon aircraft in service with the air forces of founding nations. The countries include the United Kingdom, Germany, Italy, and Spain.
Tanker Aircraft Market Leaders
BAE Systems plc
The Boeing Company
Airbus SE
Lockheed Martin Corporation
United Aircraft Corporation
*Disclaimer: Major Players sorted in no particular order
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Tanker Aircraft Market News
- In November 2021, Airbus received an order for two additional Airbus A330 Multirole Tanker Transport (MRTT) aircraft from the UAE Air Force & Air Defence to increase its MRTT fleet up to five aircraft. The agreement also includes an upgrade of the country’s existing A330MRTT fleet to the latest enhanced version. The delivery of aircraft is scheduled to begin in 2024.
- In September 2022, Israel was expected to buy four Boeing Co (BA.N) KC-46A refueling tankers for its air force. The Israeli government and the US defense contractor announced a USD 927 million deal, with the delivery of the first planes expected in 2025.
Tanker Aircraft Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By System
5.1.1 Probe & Drogue
5.1.2 Boom Refueling
5.1.3 Autonomous
5.2 By Aircraft Propulsion Type
5.2.1 Turboprop
5.2.2 Turbofan
5.3 By Type
5.3.1 Manned
5.3.2 Unmanned
5.4 By Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia-Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
5.5 Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Russia
5.5.2.5 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 India
5.5.3.2 China
5.5.3.3 Japan
5.5.3.4 South Korea
5.5.3.5 Rest of Asia-Pacific
5.5.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share**
6.2 Company Profiles*
6.2.1 BAE Systems PLC
6.2.2 The Boeing Company
6.2.3 Airbus SE
6.2.4 Lockheed Martin Corporation
6.2.5 United Aircraft Corporation
6.2.6 Northrop Grumman Corporation
6.2.7 Israel Aerospace Industries Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Tanker Aircraft Industry Segmentation
The tanker aircraft provides air-to-air refueling, the process of transferring aviation fuel from one military aircraft to another during flight.
The tanker aircraft market is segmented by the system, aircraft propulsion type, type, and geography. By System, the market is segmented into Probe and Drogue, Boom Refueling, and Autonomous. By aircraft propulsion type, the market is segmented into Turboprop and Turbofan. By Type, the market is segmented into Manned and Unmanned. By Geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. The report offers the market size and forecasts for all the above segments in value (USD billion).
| By System | |
| Probe & Drogue | |
| Boom Refueling | |
| Autonomous |
| By Aircraft Propulsion Type | |
| Turboprop | |
| Turbofan |
| By Type | |
| Manned | |
| Unmanned |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
| Geography | |||||||
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| Rest of the World |
Tanker Aircraft Market Research FAQs
How big is the Tanker Aircraft Market?
The Tanker Aircraft Market size is expected to reach USD 646.65 million in 2023 and grow at a CAGR of 6.40% to reach USD 881.82 million by 2028.
What is the current Tanker Aircraft Market size?
In 2023, the Tanker Aircraft Market size is expected to reach USD 646.65 million.
Who are the key players in Tanker Aircraft Market?
BAE Systems plc, The Boeing Company, Airbus SE, Lockheed Martin Corporation and United Aircraft Corporation are the major companies operating in the Tanker Aircraft Market.
Which is the fastest growing region in Tanker Aircraft Market?
North America is estimated to grow at the highest CAGR over the forecast period (2022-2028).
Which region has the biggest share in Tanker Aircraft Market?
In 2022, the North America accounts for the largest market share in Tanker Aircraft Market.
Tanker Aircraft Industry Report
Statistics for the 2023 Tanker Aircraft market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tanker Aircraft analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
