European Helicopter Modernization Program Growth Opportunities

Growth Strategies Fueled by Need to Replace Legacy Aircraft Fleets as They Reach Maturity

This study highlights the European military helicopter market and the latest European modernization needs for short- and long-term legacy platforms. Europe needs a new generation of helicopters, and the region is starting a massive modernization program to develop new employment and technology concepts. This new program, the Next Generation Rotorcraft Capability (NGRC), could compete with or incorporate the more advanced US military helicopter program, the Future Vertical Lift (FVL). The NGRC has a potential market size of $35 billion. The program is nascent, and 5 countries are currently integrating it (France, Germany, the United Kingdom, Italy, and Greece). Spain and the United States are also interested in the program.

Among the 3 helicopter markets by type, 2 show interesting growth potential: the attack helicopter market and the heavy-lift helicopter market. These 2 markets lack modern platforms or acceptable fleet availability rates. Regarding the modernization of military helicopter fleets, European countries’ most significant challenge is building the political will to consolidate their fleets into common models to reduce their logistical footprint.

The 2 leading European military helicopter companies have to integrate each other and consider the possibility of integrating with US military helicopter companies if they want to keep up with cutting-edge technologies during the next 2 decades.

The market size for new modernization programs in the next 5 years will reach approximately $60.00 billion, at $12.0 billion per year. Some military development projects involve sensitive information that is classified and not available to the public; therefore, the number of current contracts may actually be higher than depicted in the forecasts. The competitive landscape shows a high market concentration among two major players. Drivers and restraints are cited within this analysis that primarily focuses on industrial, political, and foreign challenges affecting future NATO Europe scenarios that will impact current modernization efforts.

Finally, the analysis offers growth opportunities for companies currently in or considering entering the military helicopter market or vertical take-off and landing aircraft market.