Back to news

October 16, 2018 | International, Aerospace

Geopolitical Instability and the Need to Refresh Obsolete Fleets will Drive Recovery of Military and Public Services Helicopters Market

NEWS PROVIDED BY

Frost & Sullivan

Commercial off-the-shelf solutions and modernisation strategies will ignite fresh growth opportunities, finds Frost & Sullivan

LONDON, Oct. 16, 2018 /CNW/ -- After almost 10 years of stagnation and delayed programmes in key regions, the global market for military and public services helicopters is facing recovery. Growth is primarily driven by geopolitical tensions, replacing and upgrading obsolete helicopters, new development programs such as rotary unmanned aerial systems (UAS), and manned-unmanned teaming (MUM-T) of operations to strengthen battlefield readiness.

"Ongoing deployment overseas and rising threats will drive market recovery and fuel demand for additional helicopters," said Alix Leboulanger, Senior Industry Analyst, Defence at Frost & Sullivan. "There will be a focus on commercial off-the-shelf (COTS) solutions to minimise training, sustain costs and improve adoption timeframes with modernisation plans preferred due to budget sensitivity and operational readiness requirements."

For further information on this analysis, please visit: http://frost.ly/2uq

Leboulanger recommends helicopter original equipment manufacturers (OEMs) look towards recent developments in the rise of UAS and their increasing operational usage on front lines. The development of rotary UAS has generated new opportunities for helicopter OEMs in terms of new platform developments and designs and is one of the most promising growth areas within this market.

Five key trends creating growth opportunities in the market include:

  1. North America remains the biggest market for military helicopters;
  2. Operators are increasingly looking at optimising their fleets with fewer types and more operational capabilities;
  3. Global renewal cycles hold billions of dollars' worth of planned and forecasted opportunities in new procurements and modernisation programmes;
  4. Significant investment in MUM-T as joint deployments of manned and unmanned assets become the new standard; and
  5. Collaboration with non-traditional military players and start-ups involved in robotic fields to refine and improve UAS.

"Despite stringent replacement requirements and operational readiness objectives pushing forward military helicopter replacement plans, financial recovery remains very fragile," noted Leboulanger. "Political uncertainty over international trade agreements and the reissuing of trade barriers could impact helicopter production lines and exports. Original equipment manufacturers need to consider new strategies for international competition and to retain traditional export customers."

Frost & Sullivan's recent analysis, Global Military and Public Services Helicopters Market, Forecast to 2026, assesses disruptive trends, drivers and restraints, market share and the competitive environment for players such as Boeing, Sikorsky Aircraft, Airbus Helicopters, Bell Helicopters, Leonardo Helicopters, Hindustan Aeronautics, Russian Helicopters, MD Helicopters, and AVICOPTER, L-3 Technologies, and Lockheed Martin. Spending forecasts, key findings, and engineering measurements for segments such as attack, maritime, utility, transport, and public services helicopters are provided. Regional analysis includes Africa, Asia-Pacific, Central and South America, Europe, Central and South Asia, Middle East, and North America.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Global Military and Public Services Helicopters Market, Forecast to 2026
MD6A_16

Contact:
Jacqui Holmes
Corporate Communications Consultant
E: jacqui.holmes@frost.com

Twitter: @FrostADS
LinkedIn: Frost & Sullivan's Aerospace, Defence and Security Forum

http://ww2.frost.com

SOURCE Frost & Sullivan

https://www.newswire.ca/news-releases/geopolitical-instability-and-the-need-to-refresh-obsolete-fleets-will-drive-recovery-of-military-and-public-services-helicopters-market-697658971.html

On the same subject

  • Eurodrone program bags fresh round of EU  subsidies

    March 25, 2024 | International, Naval

    Eurodrone program bags fresh round of EU subsidies

    The four-nation effort, which aims for a maiden flight in 2027, is in line for €100 million from the European Defence Fund.

  • With billions of dollars at stake, let’s responsibly and deliberately spend America’s funds

    August 7, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    With billions of dollars at stake, let’s responsibly and deliberately spend America’s funds

    By: Sen. Dick Durbin and Rep. Adam Smith This week we broke a record: In the second quarter of 2020, the U.S. economy fell at an annual rate of 33 percent. As the largest annualized drop in our history, this staggering statistic underscores the breadth and depth of the coronavirus' effect across all industries, including the defense industrial base. As Congress considers competing proposals for COVID-19 relief, we must ensure that any additional funds provided to the Department of Defense are targeted to protecting jobs and strengthening our industrial base. But we owe it to taxpayers to apply oversight and negotiate on their behalf. We cannot panic and hand out blank checks to defense contractors. To do so would set an irresponsible precedent for years to come. Congress has acknowledged that our industrial base needs help during this pandemic. In March, the Coronavirus Aid, Relief, and Economic Security Act included a provision, Section 3610, to allow employees of federal contractors with critical skills to remain paid if the federal facilities where they work closed due to the pandemic. This additional flexibility would keep workers ready to return as soon as conditions allowed. Since then, Section 3610 has taken on a life of its own, with senior administration officials estimating that agencies across the federal government could be on the hook for billions of dollars to carry out this law. With debate on the next coronavirus supplemental bill upon us, the calls for new funding are growing louder. We must explain to American taxpayers and workers what is, and is not, at stake. The confusion stems from two separate issues: whether to use the generous funding already provided to the Department of Defense to pay contractors for the time they were locked out of their workplaces; and to what extent the pandemic and economic shock will make it more expensive to build weapons and perform research now and in the coming years. The Department of Defense has unofficially asked Congress for nearly $11 billion in emergency funds to cover these costs for this year alone, split between these two purposes. The lack of detail in this request raises serious questions. For example, why are other federal agencies finding money in their regular budget to pay for their 3610 contractor pay claims, but the Pentagon cannot? Americans should know that the CARES Act appropriated $10.5 billion for defense needs, with nearly unlimited flexibility for the Department of Defense to reprogram these funds to address urgent priorities. In addition to that infusion of money, the department has numerous other ways to support defense contractors. At the outset of the coronavirus, the department worked with states and localities to deem defense contractors as essential and therefore able to continue working. In April, the department issued a regulatory change on progress payments for existing contracts, increasing the cash flow to the defense industrial base and encouraging major contractors to advance cash to the supply chain, infusing billions of dollars in cash to companies that needed near-term cash flow. And this brings us to our real problem with the $11 billion set aside for contractor reimbursements in this latest emergency appropriations bill: We do not know what it is for, what problems it will and will not fix, and why other funding and tools are not working. We also suspect that the Pentagon has not done its homework on behalf of American taxpayers before asking for this money. The proposal appears to be based on contractor requests, in the midst of a rapidly changing situation, without asking tough questions about how the funds would be used to prevent American job loss and what the long-term budgeting and recovery strategy may be. Before Congress provides many billions of dollars to make up for the work that has been lost due to coronavirus closures, we should know which programs have been impacted, how much each program may need to recover and whether taxpayers will be on the hook for more money if the disruptions continue. The Department of Defense, in particular, has a weapons budget that exceeds the highest levels of the Reagan-era defense buildup — even when adjusted for inflation. Given the amount of base and supplemental funds already at the department's disposal, Congress needs more thorough justification for additional spending, both for Section 3610 and for other needs. Generally speaking, it might make sense to appropriate additional funds to make sure that a shipbuilding program or airplane is completed on time. In other cases, however, taxpayers may reasonably question whether it is worth paying more money in light of other priorities. We have before us a unique opportunity to think strategically about future readiness risks and make the defense industrial base more resilient. Hastily throwing money at the problem is simply not the solution to a complex problem. We appreciate the hard work of the hundreds of thousands of companies, of all sizes, that make up the defense industrial base. When the Pentagon spends CARES Act dollars, or any appropriations, we depend on senior leaders to negotiate hard with defense companies to get the best deal for the taxpayers. There is nothing wrong with tough negotiating when billions of dollars are at stake; as public servants, it is our duty. Sen. Dick Durbin, D-Ill., is the Democratic whip and the ranking member on the Senate Appropriations Committee's Defense Subcommittee. Rep. Adam Smith, D-Wash., is the chairman of the House Armed Services Committee. https://www.defensenews.com/opinion/commentary/2020/08/06/with-billions-of-dollars-at-stake-lets-responsibly-and-deliberately-spend-americas-funds/

  • Could these 5 projects transform defense?

    June 25, 2019 | International, Aerospace

    Could these 5 projects transform defense?

    By: Kelsey Reichmann The Defense Innovation Unit — the Department of Defense's emerging technology accelerator — is working on several projects aimed at improving national security by contracting with commercial providers: According to the DIU annual report for 2018, using AI to predict maintenance on aircraft and vehicles could save DoD $3 billion to $5 billion annually. DIU determined maintenance on aircraft and vehicles was often done too early, removing parts that still had a working life ahead of schedule, so, using AI, DIU analysts found they could predict 28 percent of unscheduled maintenance on the E-3 Sentry across six subsystems and 32 percent of on the C-5 Galaxy across 10 subsystems. DIU found deficiencies in the commercial drone industry, resulting in a lack of smaller options for war fighters. Through partnership with the Army's Program Executive Office Aviation, it was able to build an inexpensive, rucksack-portable VTOL drone fit for short-range reconnaissance, according to the report. DIU launched a project, VOLTRON, to discover vulnerabilities in DoD software. This follows a 2018 Government Accountability Office report that found $1.66 trillion work of weapons systems at risk for cyberattack. Using this automated detection and remediation system, DIU will be able to provide DoD software with more secure networks. DIU is also working to secure networks on the battlefield through its Fully Networked Command, Communications & Control Nodes, or FNC3N, project. This project wants to create wearable technology that will provide data to users in a secure interconnected tactical network, according to the report. Using commercial satellite images, DIU is filling gaps in space-based reconnaissance. The peactime indications and warning project has completed the launch of the first commercial, small synthetic aperture radar (SAR) satellite. The use of commercial data will allow the department to easily share the data it receives with allies and partners because it is unclassified. In August 2018 DIU was solidified within the Defense Department when “experimental” was removed from the office's original name, according to the report. It also received a large funding increase, from $84 million in 2017 to $354 million in 2018. https://www.c4isrnet.com/battlefield-tech/2019/06/21/could-these-5-projects-transform-defense/

All news