US Department of Defense Military Helicopter Growth Opportunities

The Impact of the Top 3 Strategic Imperatives on the US Military Helicopter Industry

Disruptive Technologies

Why

Unmanned systems have disrupted the military market thanks to their application and domain versatility. The introduction of uncrewed rotorcraft in the US military will help make helicopters more autonomous, reducing the workload for pilots and the risk of casualties in hostile environments.

Frost Perspective

The concept of manned-unmanned teaming (MUM-T) will become more prominent in the US military, with unmanned aerial system swarms potentially operating alongside helicopters and optionally manned rotorcraft.

Geopolitical Chaos

Why

The military conflicts in Israel and Ukraine are playing out simultaneously and the US is an important provider of military and economic aid to both countries. Additionally, tensions with China have propelled the United States to become more involved in the Indo-Pacific theater through alliances and military drills.

Frost Perspective

These situations required a global defense spending boost, which will positively impact the military helicopter market by leading to new procurement, research, and contract awards. Additionally, the military aid that the United States is sending to Israel and Ukraine includes helicopters.

Industry Convergence

Why

AI intersects the military helicopter industry in various areas, such as avionic, training and simulation, and fly-by-wire technology. AI can introduce increased autonomy and smarter decision-making to helicopter platforms.

Frost Perspective

R&D funding will continue to be essential for exploring AI's military applications. The US Department of Defense (DoD) requested $1.43 billion for R&D programs related to helicopters, which may include AI and other technology development.

Research Scope and Overview

Content

• This US military helicopter market analysis highlights trends, challenges, drivers, restraints, and growth opportunities.
• The report lists the main competitors and relevant contracts. Note that inflation might affect the actual value of future spending and that contracts are usually multiyear.

Growth Drivers

Military Helicopter Growth Opportunities: Growth Drivers, United States, FY2024–FY2029

Driver: 

• Maintaining and upgrading legacy fleets ensures program stability over the years and creates enduring business opportunities through long-term contracts.
• Future Vertical Lift (FVL), the military’s biggest helicopter modernization program, will develop a new family of helicopters with upgrades such as a common mission system, an increased payload, and an improved range.
• The development of new helicopter platforms in the FVL program will lead to acquisitions and exports to US allies, mostly in Europe (despite the region having its own rotorcraft program).
• The increasing use of unmanned rotorcraft in MUM-T tactical operations creates growth opportunities for small businesses that can otherwise not participate in the market because they are not traditional helicopter manufacturers.

Growth Restraints

• The US Government Accountability Office (GAO) reported that some crucial equipment acquisitions for the FVL program have not met their deadlines, causing the initiative to decelerate.
• The retirement of legacy platforms and not winning an FVL contract of equal size can severely affect a company’s established industrial base. An example of this is Boeing and Sikorsky, which have built a complex manufacturing infrastructure around the Black Hawk platform.
• The complexity of new platforms will result in longer certification approval periods (e.g., the MH139 Grey Wolf program, which will replace the US Air Force’s Leonardo’s AW139 model).
• Upgrading platforms and incorporating new technologies into helicopters requires training pilots on these new features, which can be costly.