Global Share of Aerial Refueling Systems Market by System Type, 2021–2028
- Rishika Chavan
- 3 days ago
- 3 min read
According to Fortune Business Insights™, the global aerial refueling systems market size was valued at USD 535.8 million in 2020 and is projected to grow from USD 545.4 million in 2021 to USD 743.8 million by 2028, exhibiting a CAGR of 4.53% during the forecast period (2021–2028). The market is witnessing strong growth due to the increasing development and deployment of next-generation fighter jets, unmanned systems, and lightweight military aircraft.
North America Leads Global Market
In 2020, North America dominated the market, accounting for 51.31% of the global share, primarily due to high defense spending and the presence of major aerospace and defense companies such as Lockheed Martin, Eaton Corporation, and GE Aviation.
Key Players in the Global Market:
Airbus S.A.S (Netherlands)
Cobham Plc (UK)
GE Aviation (U.S.)
Lockheed Martin Corporation (U.S.)
Boeing (U.S.)
Eaton Corporation (U.S.)
Safran S.A. (France)
Israel Aerospace Industries (Israel)
Marshal Aerospace & Defence Group (UK)
Parker Hannifin (U.S.)
Source
Market Segmentation Insights
By Component:
The market is segmented into pods, refueling probes, hoses, boom, and drogues. The pod segment held the largest share in 2020, primarily due to the rising demand for high-performance fighter aircraft. Refueling pods provide enhanced stability and allow effective in-air fuel transfer, supporting long-duration operations. Meanwhile, refueling probes are expected to grow rapidly due to their integration into new-generation aircraft, offering benefits such as ease of maintenance and cost efficiency.
By System:
Based on system, the market is divided into probe & drogue, flying boom, and autonomous. The flying boom segment accounted for the largest share in 2020 due to its high-capacity, rapid fuel transfer capabilities, essential for military missions. The autonomous segment is projected to register the highest growth during the forecast period, driven by increased adoption of unmanned and operator-free systems that reduce labor and operational costs. The probe and drogue segment is anticipated to hold 45% of the market share by 2025.
By Application:
The aerial refueling systems market is categorized into military aircraft, commercial aircraft, helicopters, and unmanned aerial vehicles (UAVs). The military aircraft segment dominated the market in 2020 and will continue leading due to its widespread use in operations such as combat, surveillance, and transport. The commercial aircraft segment is expected to generate USD 88.7 million in revenue by 2025, showcasing growing interest in extended-range commercial aviation.
Growth Drivers
Increasing Defense Spending to Boost Market Growth
The growing investment in military modernization programs by global powers is one of the key factors fueling market growth. Nations are increasingly prioritizing air superiority through advanced aerial capabilities.
In May 2020, according to the Center for Strategic & International Studies (CSIS), China’s defense budget rose by 6.6% to USD 178.2 billion.
China aims to modernize the People’s Liberation Army (PLA) by 2035 and transform it into a world-class military by 2049.
Similarly, the U.S. Department of Defense allocated USD 704 billion for FY 2020–2021, while Japan announced over USD 51 billion in defense spending for 2021.
These substantial defense budgets are driving the procurement of new aircraft and supporting the demand for aerial refueling systems that extend mission range and operational flexibility.
Procurement of Next-Generation Military Aircraft to Propel Growth
The rising number of aging combat aircraft has accelerated the global need for next-generation fighter jets and warfare platforms. Many of these legacy systems are outdated and pose operational risks in modern combat environments. As a result:
Countries are modernizing their air fleets with technologically advanced, fuel-efficient, and combat-ready platforms.
This trend is directly contributing to the demand for aerial refueling systems, which are critical for long-duration missions, strategic surveillance, and air superiority operations.
Restraining Factors
High Installation and Maintenance Costs May Hamper Market Growth
Despite growing demand, the high cost of installation and maintenance remains a major barrier to widespread adoption of aerial refueling systems.
Military aircraft must be uniquely designed to withstand high air pressure and speed, requiring specialized refueling mechanisms.
These systems must enable precise mid-air fuel transfer, often requiring different setups for each aircraft type (probe and drogue, flying boom, etc.).
Tanker aircraft also require specialized modifications, which incur high upfront investment and long-term maintenance expenses.
These factors can deter budget-constrained countries from adopting or upgrading aerial refueling capabilities, especially during peacetime.
Regional Insights
North America:
North America is projected to dominate the market throughout the forecast period. This growth is attributed to high defense budgets and the presence of major industry players, including Lockheed Martin, GE Aviation, and Eaton Corporation.
Asia Pacific:
The region is poised for substantial growth due to rising tensions, cross-border conflicts, and increased defense budgets in countries like China and India. Investments in modern air fleets and aerial refueling capabilities will support market expansion.
Europe:
Europe is expected to show steady growth owing to established aerospace firms like Cobham, Safran, and Marshal Aerospace & Defence. Notably, in August 2020, Denmark began assembly of its first F-35 fighter jet at Lockheed Martin’s facility, with plans to acquire 27 jets by 2026.
Notable Development
In February 2021, the Israeli ministerial committee approved a significant procurement package from the United States, including F-35 fighter jets, munitions, and four new KC-series aerial refueling aircraft. This move aims to enhance the operational readiness and reach of the Israeli Air Force.
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