Military Transport Aircraft Market Report 2025

This Military Transport Aircraft market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The military transport aircraft market size has grown rapidly in recent years. It will grow from $35.5 billion in 2024 to $39.13 billion in 2025 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to strategic airlift capability, humanitarian missions, tactical mobility, troop and cargo transport, aerial refueling.

The military transport aircraft market size is expected to see strong growth in the next few years. It will grow to $54.56 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to autonomous cargo handling, sustainability initiatives, medical evacuations, paratroop drops, joint operations. Major trends in the forecast period include electrification and hybrid propulsion, advanced avionics, modularity and payload flexibility, stealth and reduced radar signature, international collaborations and partnerships.

The rising global tensions between neighboring countries are anticipated to drive the growth of the military transport aircraft market in the coming years. Global tension refers to heightened political, economic, or social strains between nations or regions, often stemming from conflicts of interest, competition for resources, or ideological differences, which can lead to instability or conflict. Factors contributing to increasing global tensions include geopolitical conflicts, economic competition, resource scarcity, climate change, and rising nationalism, all of which intensify divisions and disputes among nations. Military transport aircraft play a vital role during such global tensions by facilitating the rapid deployment of troops, equipment, and supplies to conflict zones, enhancing logistical support, and ensuring operational readiness for humanitarian missions and defense strategies. For instance, in May 2023, a report from the Stockholm International Peace Research Institute, a Sweden-based nonprofit organization promoting the use of digital technology in academia, revealed that 64 multinational peace operations were conducted in 38 nations and territories worldwide in 2022, the highest number of operations in a single year over the past decade. By the end of 2022, there were 114,984 international personnel involved in multilateral peace operations globally, reflecting a 2.79 percent increase from the previous year. Thus, the rising global tensions between neighboring countries are fueling the growth of the military transport aircraft market.

The rise in military expenditure is projected to drive the growth of the military transport aircraft market in the future. Military expenditure refers to the financial resources allocated by a nation to support its armed forces and defense initiatives. Military transport aircraft play a vital role within a nation's military expenditure by facilitating the movement of troops and equipment. For example, in April 2022, the Stockholm International Peace Research Institute (SIPRI) reported that the top five countries with the highest military spending that year were the United States, China, India, the United Kingdom, and Russia, which together accounted for 62% of total global military expenditure. Thus, the increase in military expenditure is propelling the military transport aircraft market.

The rapid advancement of technology in air transportation services stands out as a prominent trend in the military transport aircraft sector. Major companies engaged in military transport aircraft are strategically focusing on the development of innovative technological solutions to reinforce their standing in the market. These companies are actively incorporating cutting-edge technologies, including Augmented Reality (AR), Virtual Reality (VR), Artificial Intelligence (AI), Big Data, Automation, Robotics, and other emerging technologies, to explore futuristic and alternative modes of travel. A case in point is Airbus SE, a prominent manufacturer and seller of civil and military aerospace products, which, in April 2022, introduced a next-generation systems-of-systems architecture called the Future Combat Air System (FCAS). This system features a sophisticated Multi-Domain Combat Cloud (MDCC), characterized by its high-tech, decentralized, cyber-resilient, and collaborative information network that leverages cloud-based technologies.

Major players in the military transport aircraft market are presenting advanced transport aircraft like the C-390 Millennium to showcase the enhanced capabilities of a modern, multi-mission tactical air transport aircraft. The C-390 Millennium, a next-generation military tactical transport aircraft, was featured by Embraer, a Brazil-based aircraft manufacturer and seller, at Aero India 2023 in February 2023. This 21st-century aircraft is known for its versatility, excelling in refueling, cargo and troop transportation, medical evacuation, and search & rescue missions. Embraer's exhibit at the event also highlighted their Defense & Security portfolio, which includes the A-29 Super Tucano, P600 AEW&C, and radar & border surveillance solutions.

In January 2022, Leonardo, an aerospace company based in Italy, completed the acquisition of Hensoldt for €606 million. Through this strategic move, Leonardo aims to establish a lasting presence in the rapidly growing German defense market, reinforcing their longstanding partnership and meeting the advanced requirements of international and domestic customers across air, naval, and land domains. Hensoldt, based in Germany, specializes in sensor technologies for protection and surveillance missions in the defense, security, and aerospace sectors.

Major companies operating in the military transport aircraft market include Airbus SE, Textron Aviation Inc., Rostec Corp., Lockheed Martin Corporation, Embraer SA, Boeing Company, Northrop Grumman Corporation, Leonardo S.p.A., Ukrainian Aircraft Corporation, Ilyushin Aviation Complex, Alenia Aermacchi SpA, Kawasaki Heavy Industries Ltd., Shaanxi Aircraft Corporation, United Aircraft Corporation, Hindustan Aeronautics Limited, Bombardier Inc., Antonov Corporation, China Aviation Industry Corporation, Israel Aerospace Industries Ltd., Chengdu Aircraft Corporation, Aircraft Industries Ltd., CNIM Air Space, Boeing Defense Space & Security, Taqnia Aeronautics, Collins Aerospace, Hellenic Aerospace Industry SA, Korea Aerospace Industries SA, Pakistan Aeronautical Complex, ST Engineering Aerospace.

North America was the largest region in the military transport aircraft market in 2024. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the military transport aircraft market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa. The countries covered in the military transport aircraft market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

Military transport aircraft are military-owned planes utilized to support diverse operations, including aerial refueling, intelligence-gathering, rescue missions, and the transportation of military cargo, troops, vehicles, and more. These aircraft boast extensive cargo storage capacity, enabling the transportation of a wide range of items. Notably, they are designed to efficiently transport military tanks, small trucks, and armed vehicles from military bases to specified locations without excessive human effort.

The primary categories of military transport aircraft are fixed-wing and rotorcraft. Fixed-wing aircraft, which are either propeller-driven or jet engine-powered, have wings that remain stationary during flight. They are particularly suitable for longer travel distances compared to rotary-wing aircraft, as they can cover greater distances before requiring refueling. These aircraft are classified based on their payloads, including below 50 tons, 51 to 100 tons, and 101 tons and above. The applications of military transport aircraft are diverse and encompass transportation, emergency services, combat operations, command and control, surveillance, intelligence, and reconnaissance.

The military transport aircraft market research report is one of a series of new reports that provides military transport aircraft market statistics, including military transport aircraft industry global market size, regional shares, competitors with a military transport aircraft market share, detailed military transport aircraft market segments, market trends and opportunities, and any further data you may need to thrive in the military transport aircraft industry. This military transport aircraft market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The military transport aircraft market consists of sales of military transport aircraft components such as airframe structure, mechanical system, engine, and avionics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.