Research Overview

This Frost & Sullivan research service on the United States (US) Department of Defense (DoD) helicopter market provides detailed revenue forecasts, drivers and restraints as well as market shares and competitive analyses of participants from 2014 to 2020. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments:

• assault/transport helicopters
• attack/recon helicopters
• executive transport helicopters
• heavy lift helicopters
• maritime helicopters
• search and rescue helicopters
• special operations helicopters
• miscellaneous parts/services

Market Overview

Upgrades and service life extension to drive revenues in the US DoD helicopter market

Helicopter procurement by the DoD will decrease significantly over the next five years due to military budget constraints. Instead, focus will increase on the service life of new and existing rotary-winged weapons systems. The cancellation of the Army Aerial Scout (AAS) program and the delay of Future Vertical Lift (FVL) procurement are further compelling the army to invest in servicing and modernization to keep its aging helicopters operational. Military helicopter training-as-a-service will also gain traction, as it is more cost effective than the purchase and maintenance of a new fleet. As such, upgrades, service life extension programs (SLEPs), and maintenance repair and overhaul (MRO) contracts will drive the market as procurement of expensive helicopter weapon systems will steadily decrease.

Global conflicts create demand for helicopters

Due to reduced funding, the US market will focus on helicopter exports through the Foreign Military Sales (FMS) program, which facilitates sales of U.S defense equipment to foreign governments. Global conflicts and border protection are creating demand for helicopters in many global hot spots. While the European market may be difficult to sell into due to its shrinking defense budgets, regions such as the Middle East and Asia-Pacific hold promise. Saudi Arabia, South Korea, Indonesia and Qatar are purchasing more helicopters to equip special operations forces. This is contributing significantly to US DoD helicopter revenues.

Currently, Boeing is the top company in the DoD military helicopter market. The only all-new platform program on the horizon is the FVL, which aspires to replace OH-58, AH-64, UH-60 and CH-47. FVL also aspires to provide a new ultra-size vertical lift platform that can accomplish the missions of current C-130 aircraft. The company that wins this FVL contract will easily be the industry leader, but the program is not likely to receive considerable funding until 2020.