Analysis of the US DoD and Civil Helicopter Markets

The Civil Market Flourishes as the Defense Market Suffers from Budget Pressures


Click Here for Research Overview and TOC

Research Overview

The modeling tools and services market is a diverse and disparate market. A considerable number of modeling and simulation (M&S) tools are used for different reasons and objectives. The research enclosed will review the U.S. DoD fiscal year 2013 Research, Development, Evaluation, and Test (RDT&E) program projections that make use of modeling tools and services. Specific tools and services are not listed as most are either designed by the government or are subcontracted by larger companies. Drivers and restraints data will be based on general modeling tools and services market dynamics. Select projects are highlighted where modeling tools and services are specifically implemented.

Market Overview

This research highlights defense programs that utilize M&S in some form or fashion. The budget data and the spending forecast are both based on total program or total project budget requests.
The following reasons indicate why costs for specific modeling tools and services are not isolated in this research:

  • Some expenditures are embedded within other cost categories.
  • Tools and services may be customized in phases.
  • The government may design and produce tools and services for single-purpose efforts.

Table of Contents

  1. Executive Summary

  2. Market Overview

  3. DoD Modeling Tools and Services
    1. External Challenges: Drivers and Restraints
    2. Forecasts and Trends
    3. Market Share and Competitive Analysis
  4. Army Segment Breakdown

  5. Navy Segment Breakdown

  6. Air Force Segment Breakdown

  7. Joint Segment Breakdown

  8. The Last Word

  9. Appendix

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Frost & Sullivan: Military Helicopter Industry to Decline by Almost Half while Civil Market Flourishes

While DoD budgets are slashed, civil helicopter purchases will grow to support a broader range of industries

MOUNTAIN VIEW, Calif. - Dec. 17, 2013 - As Department of Defense (DoD) budgets tighten, military services will be forced to spend less on helicopters. The declining budget is also driving trends of upgrading and remanufacturing existing platforms rather than funding new helicopter programs. Conversely, the civil helicopter market has rebounded after the 2008-2009 recession that resulted in a lack of financing to support civil helicopter purchases. The improving U.S. economy has allowed for recapitalization of old aircraft as well as new purchases to support growing demand from industries such as emergency medical services, oil and gas.

Frost & Sullivan finds the DoD spent $12.41 billion on military helicopters in 2012 and estimates this to decrease to $6.70 billion in 2018. The U.S. civil helicopter purchases, on the other hand, generated about $0.89 billion in 2012, and this is estimated to increase to $1.07 by 2020.

For more information on this research, please email Jennifer Carson, Corporate Communications, at jennifer.carson@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

The need to replace equipment that is worn from years of constant deployment and harsh environments is the top driver in the military helicopter market, while recapitalizing a fleet with an average age of 24 years is what is driving the U.S. civil helicopter market.

"Due to constant use in combat, combat support operations, and humanitarian missions, many existing military airframes will reach their service lives between 2030 and 2040. Some Vietnam Era aircraft, like the CH-47 Chinook and the UH-1 Huey fleets, are nearly 50 years old," said Frost & Sullivan Senior Industry Analyst Michael Blades. "The civil fleet is not nearly as old as the military fleet, but a lack of used aircraft is driving the sales of new platforms."

The most significant challenge the U.S. DoD helicopter market faces is future budget constraints and threat of a prolonged period of sequestration. Likewise, though the market is projected to grow, overall uncertainty in the U.S. economy is restraining the country’s civil helicopter market.

”Upgrades and remanufactured platforms will continue to dominate spending for the military helicopter market, and new programs will favor modifying commercial-off-the-shelf aircraft rather than developing aircraft from the ground up,” observed Blades. “In both the civil and military markets, end users will stress on total life cycle costs rather than acquisition costs.”

Therefore, helicopter manufacturers are focusing more on efficiency and ease of maintenance in order to reduce repair costs and logistical tails.

Analysis of the US DoD and Civil Helicopter Markets is part of the Aerospace & Defense Growth Partnership Services program, which provides global Mega Trends, information on emerging markets and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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 Analysis of the U.S. DoD and Civil Helicopter Markets

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Jennifer Carson
Corporate Communications – North America
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E: jennifer.carson@frost.com

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