Business

February 26, 2014

Forecast International sees a slowing, but still lucrative medium/heavy military rotorcraft market

Forecast International projects that 5,213 medium/heavy military rotorcraft will be produced between 2014 and 2023, according to the company’s “The Market for Medium/Heavy Military Rotorcraft.”

The value of this production is $127 billion in constant fiscal 2014 U.S. dollars. The Connecticut-based market research firm defines a medium/heavy military rotorcraft as one having a gross weight of 6,804 kilograms (15,000 pounds) or greater.

Annual production of medium/heavy military rotorcraft grew for nine consecutive years from 2005 through 2013, increasing by nearly 300 percent over this timeframe.  However, due to a number of factors working in combination, production in the segment is now poised to enter a period of decline. The Forecast International study indicates that yearly output in the segment will decline from 653 rotorcraft in 2014 to only 437 in 2023.

The medium/heavy military rotorcraft market is being impacted by decreasing defense spending on the part of many countries throughout the globe.  This notably includes the United States, which accounts for a disproportionately large share of demand in this market.

In the United States, military rotorcraft acquisition programs are being stretched out, resulting in smaller annual production lots.  The military drawdown in the wake of the Iraqi and Afghan conflicts is one reason for this situation. Other reasons include competing domestic budget priorities and ongoing efforts to reduce the U.S. budget deficit.  And even without these pressures, the current modernization cycle in U.S. military rotorcraft procurement would still be nearing an end.

In many other nations as well, once robust military rotorcraft procurement programs are being stretched out, reduced in scope, or even terminated.  In addition, as in the U.S., few new procurement programs are emerging to help keep military rotorcraft build rates up at the world’s manufacturers.

Despite the anticipated market decline, however, the medium/heavy military sector will remain a lucrative market for manufacturers, generating more production value than any other segment of the rotorcraft market.   Indeed, during the 2014-2023 timeframe, the medium/heavy military segment will generate more than twice as much production value as the light commercial rotorcraft sector, the next most lucrative segment.  According to Forecast International’s senior aerospace analyst Raymond Jaworowski, “Even though it will decline in size over the next 10 years, the medium/heavy military rotorcraft market is where rotorcraft manufacturers will play for the biggest stakes and hope for the biggest payoffs.”




All of this week's top headlines to your email every Friday.


 
 

 

President proclaims Memorial Day as ‘Day of Prayer’

President Barack Obama May 22 saluted the service and sacrifices of America’s military members–past and present–and proclaimed Memorial Day, May 25, 2015, “as a day of prayer for permanent peace, and I designate the hour beginning in each locality at 11 a.m. of that day as a time during which people may unite in prayer....
 
 

Air Force leaders’ Memorial Day message

Secretary of the Air Force Deborah Lee James and Air Force Chief of Staff Gen. Mark A. Welsh III send the following Memorial Day message to the Airmen of the Air Force and their families: To the Airmen of the United States Air Force and their Families: On Memorial Day, Americans pause in solemn remembrance...
 
 

Headlines May 22, 2015

News: Second Marine killed in Hawaii Osprey crash identified - Marine Corps officials have identified the second Marine to die as a result of the May 17 MV-22B Osprey crash as Lance Cpl. Matthew J. Determan of Maricopa, Ariz.   Business: Israel defense exports plunge to seven-year low - Israeli defense sales last year plunged to their...
 

 

News Briefs May 22, 2015

Ukrainian officer hit with third charge in Russia A third charge has been filed against a Ukrainian military officer who has been behind bars in Moscow for nearly a year over the deaths of two Russian journalists in Ukraine. Nadezhda Savchenko, who worked as a spotter for Ukrainian troops fighting separatist rebels in eastern Ukraine,...
 
 
Army photograph by C. Todd Lopez

Smart-mortar will help Soldiers more effectively hit targets

Army photograph by C. Todd Lopez Nick Baldwin and Evan Young, researchers with the Armament Research Development and Engineering Center at Picatinny Arsenal, Pennsylvania, discuss the 120mm Guided Enhanced Fragmentation Mortar ...
 
 

Air Force assigns new chief scientist

The Air Force announced the service’s new chief scientist to serve as a science and technology adviser to the secretary of the Air Force and the chief of staff of the Air Force, May 21. Dr. Greg Zacharias will be the 35th chief scientist and is ready to “dive in” to his new role. “I...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>