Refueling Aircraft Market - By Aircraft (Commercial, Military, Helicopter), By Component (Aviation Refueller, Dispenser, Refueling Pods, Probe & Drogue), By Medium (Air-to-Air Refueling, Tanking Method) & Forecast 2024 – 2032

Refueling Aircraft Market Size

Refueling Aircraft Market was valued at USD 13.2 billion in 2023 and is anticipated to register a CAGR of over 2% between 2024 and 2032. Increasing government investments in the procurement of refueling planes are driving growth in the market.

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The rising financial support underscores a strategic focus on enhancing military capabilities, particularly in air-to-air refueling. For instance, in August 2023, Brazil announced its intentions to allocate USD 10.6 billion to military research, development, and equipment acquisition initiatives. This funding will encompass various aspects including the Gripen fighter fleet and the financing of projects by Embraer, a local aircraft manufacturer, specifically targeting aerial refueling planes.

The demand for extended operational ranges, driven by the critical role air-to-air refueling plays in strategic military missions, is boosting the refueling aircraft industry. With the necessity for global reach and rapid response capabilities, countries seek aircraft capable of refueling in-flight, allowing fighter jets, bombers, and reconnaissance planes to operate over longer distances without returning to the base. This capability enhances the agility and effectiveness of military forces in addressing evolving geopolitical challenges and diverse operational scenarios.
 

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Global economic uncertainties pose a challenge to the refueling aircraft market as defense budgets are susceptible to fluctuations. Economic downturns, recessions, or financial crises may prompt governments to reassess spending priorities, potentially leading to reductions in defense expenditures. This uncertainty can hinder long-term planning for military modernization programs, affecting investments in refueling aircraft. Adapting to changing economic conditions and advocating the strategic importance of air-to-air refueling capabilities become crucial in mitigating the impact of global economic uncertainty on the refueling aircraft industry.

Refueling Aircraft Market Trends

Collaborative partnerships focused on scaling Cryo-compressed Hydrogen (CcH2) storage and refueling infrastructure are fostering lucrative growth in the refueling aircraft industry. By addressing the technological and logistical challenges associated with CcH2, these alliances enhance the viability and efficiency of in-flight refueling. For instance, in January 2024, ZeroAvia and Verne entered into a Memorandum of Understanding (MoU) to collaboratively assess the possibilities of employing CcH2 as onboard aircraft fuel. Additionally, they aim to explore CcH2 refueling methods, considering sources such as Gaseous Hydrogen (GH2) and Liquid Hydrogen (LH2).

The global market is experiencing lucrative growth due to the increasing focus on green aviation initiatives. With the rising global awareness of environmental sustainability, there is a heightened demand for fuel-efficient and eco-friendly solutions. This trend propels the development of refueling aircraft that align with cleaner energy practices, contributing to reduced emissions and a more environmentally conscious aerospace industry. Governments and aerospace companies are investing in technologies that enhance fuel efficiency and decrease the carbon footprint of in-flight refueling operations.

Refueling Aircraft Market Analysis

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Based on component, the market is categorized into aviation refueller, dispenser, refueling pods, and probe & drogue. The refueling pods segment held a major market share of about 31% and is expected to grow significantly. Government acquisitions of refueling aircraft featuring wing air refueling pods are propelling segment growth in the market. These advanced systems offer enhanced efficiency by enabling simultaneous refueling of multiple aircraft. For instance, in December 2021, the Israeli Ministry of Defense announced that Israel and the U.S. finalized an agreement for the acquisition of 12 Lockheed Martin Sikorsky combat helicopters along with two Boeing KC-46 refueling aircraft. The KC-46, equipped with wing air refueling pods, can simultaneously refuel three planes within three to four minutes. As governments prioritize such capabilities for strategic and defense purposes, the demand for refueling aircraft with wing air refueling pods increases, contributing to the expansion of this segment.

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Based on aircraft, the market is divided into commercial, military, and helicopter. The military segment held around 43% market share in 2023 and is poised for significant growth over the forecast period. The growth of military aircraft is driven by their ability to enhance mission capabilities. In-flight refueling significantly extends the operational range and loiter time of various military aircraft including fighter jets, bombers, and reconnaissance planes. This increased endurance enables military forces to conduct longer & more complex missions, providing flexibility and adaptability in response to evolving threats and strategic objectives. As a result, refueling aircraft play a crucial role in optimizing the effectiveness of modern military operations.

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Europe dominated the global refueling aircraft market with a major share of over 35% in 2023. The strategic importance of in-flight refueling capabilities propels the Europe market. European countries recognize the critical role these aircraft play in extending operational ranges, enabling rapid response to security challenges. This strategic advantage enhances military flexibility and responsiveness. As a result, these countries prioritize the acquisition of advanced refueling aircraft to fortify their air forces, ensuring a robust defense posture and the ability to effectively address evolving security dynamics within the region & beyond.

Refueling Aircraft Market Share

Airbus holds around 7% of the total market share, as it has gained prominence in the air-to-air refueling market due to its versatility, capabilities, and global adoption by various air forces. The refueling aircraft industry features a competitive landscape characterized by established aerospace manufacturers competing to provide advanced tanker aircraft equipped with cutting-edge in-flight refueling technologies. These companies vie for government contracts and collaborate on multinational defense projects, fostering innovation and technological advancements in the industry.
 

Refueling Aircraft Market Companies

Major players operating in the refueling aircraft industry are

• Airbus
• Antonov
• Boeing
• Cobham plc
• Eaton
• Embraer
• L3Harris Technologies, Inc.
• Lockheed Martin Corporation.
• Northrop Grumman
• Omega Aerial Refueling Services

Refueling Aircraft Industry News

• In February 2023, Stratom and Imenco entered a strategic partnership to offer top-tier robotic refueling systems to a global customer base. This collaboration provides access to established, cutting-edge systems that ensure the safe and sustainable implementation of autonomous refueling across various sectors including industrial, aviation, defense, and offshore. The partnership aimed to enhance business value by delivering reliable and advanced autonomous refueling solutions.

The refueling aircraft market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and shipments (Units) from 2018 to 2032, for the following segments

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Market, By Aircraft

• Commercial
• Military
• Helicopter

Market, By Component

• Aviation Refueller
• Dispenser
• Refueling Pods
• Probe & Drogue
• Others

Market, By Medium

• Air-to-Air Refueling
• Tanking Method

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA