Global Fighter Jets Market: Trends, Forecasts, and Strategic Insights (2024-2030) 2025

Table of Contents

• Executive Summary
• Market Overview and Dynamics
• Key Market Drivers
• Technological Innovations
• Regional Market Analysis
• Competitive Landscape
• Major Players and Strategic Initiatives
• Market Challenges and Risks
• Forecasts and Growth Predictions (2024-2030)
• Future Outlook and Opportunities
• Sources & References

Executive Summary

The global fighter jets market is entering 2025 on a trajectory of steady growth, driven by ongoing geopolitical tensions, rising defense budgets, and continuous technological advancements. Governments worldwide are prioritizing fleet modernization and air superiority, catalyzing demand for both fifth and emerging sixth-generation platforms. The value of the global fighter aircraft market is projected to reach approximately $60 billion by 2025, with expectations of a compound annual growth rate (CAGR) of 4–5% through the late 2020s www.fortunebusinessinsights.com.

Several major acquisition programs continue to shape the competitive landscape. The U.S. maintains a leading position, with Lockheed Martin’s F-35 program remaining the world’s largest, supported by ongoing procurement from both domestic and allied customers. In 2024, the U.S. Department of Defense requested funding for over 80 new F-35s, signaling persistent momentum into 2025 www.defensenews.com. Meanwhile, Europe is advancing its own next-generation programs, such as the Franco-German-Spanish Future Combat Air System (FCAS) and the UK-led Global Combat Air Programme (GCAP), aiming for initial operational capability by the early 2030s www.janes.com.

Asia-Pacific remains a dynamic growth engine, as regional powers like India, China, Japan, and South Korea invest heavily in indigenous and imported fighters. India’s order for 83 HAL Tejas Mk1A and ongoing negotiations for additional Rafales and new-generation platforms illustrate this trend www.business-standard.com. China continues to expand its J-20 fleet and accelerate development of sixth-generation concepts, while Japan and South Korea push forward with their F-X and KF-21 programs, respectively.

Despite robust demand, the fighter jets market faces notable challenges in the near term. Supply chain disruptions, inflationary pressures, and the complexity of integrating advanced technologies such as AI-driven avionics and stealth materials are constraining production rates and escalating costs. Additionally, the growing emphasis on multi-domain operations and unmanned systems is prompting air forces to reconsider long-term force structure and procurement strategies www.flightglobal.com.

In summary, the fighter jets market in 2025 is characterized by active procurement, evolving technology, and intensifying competition among established and emerging manufacturers. The sector’s outlook remains positive, with sustained investments ensuring continued innovation and fleet renewal across key global regions over the next several years.

Market Overview and Dynamics

The global fighter jets market is poised for significant growth in 2025 and the ensuing years, driven by rising geopolitical tensions, modernization initiatives, and increased defense spending by both established and emerging military powers. As nations seek to maintain aerial superiority and adapt to evolving threats, demand for advanced multi-role combat aircraft is intensifying across regions.

According to a recent report by www.fortunebusinessinsights.com, the fighter jets market size was valued at approximately USD 55.48 billion in 2023 and is projected to reach nearly USD 70 billion by 2030, exhibiting a compound annual growth rate (CAGR) of about 3.4% during the forecast period. Key drivers include ongoing fleet modernization programs in the United States, Europe, and Asia-Pacific, alongside the induction of next-generation aircraft such as the F-35, Rafale, and J-20.

• North America remains the largest regional market, bolstered by the U.S. Department of Defense’s continued procurement of F-35s and upgrades to legacy F-15 and F-16 fleets. The 2025 U.S. defense budget proposal allocates over $17 billion specifically for tactical aircraft procurement, underlining sustained demand (www.defensenews.com).
• Europe is witnessing increased collaboration, with programs like the Future Combat Air System (FCAS) and Tempest advancing into critical development phases. These projects, led by France, Germany, Spain (FCAS), and the UK, Italy, Sweden (Tempest), are expected to drive substantial investment through the late 2020s (www.reuters.com).
• Asia-Pacific is rapidly expanding its fighter fleet, propelled by China’s deployment of the J-20 stealth fighter and India’s ongoing acquisition and development programs (e.g., HAL Tejas Mk2, AMCA). Regional security concerns—particularly in the South China Sea and Taiwan Strait—are stimulating further procurement and indigenous development (www.defensenews.com).

Technological advancements are shaping the market, with integration of artificial intelligence, network-centric operations, and enhanced electronic warfare capabilities becoming standard requirements. The rise of unmanned combat aerial vehicles (UCAVs) and loyal wingman concepts is beginning to complement, but not yet supplant, traditional manned fighters.

The outlook for 2025 and beyond suggests robust demand, but the market faces challenges such as supply chain disruptions, high acquisition costs, and shifting export regulations. Nonetheless, with ongoing innovation and escalating security imperatives, the fighter jets sector is expected to remain a cornerstone of global defense procurement through the decade.

Key Market Drivers

The global fighter jets market is poised for significant growth in 2025 and the coming years, propelled by a combination of geopolitical tensions, technological advancements, and increased defense spending. Several key drivers are shaping the outlook for this sector, influencing both procurement and development activities worldwide.

• Escalating Geopolitical Tensions: Rising conflicts and security concerns in regions such as Eastern Europe, the South China Sea, and the Middle East are prompting governments to modernize their air forces. The ongoing Russia-Ukraine conflict has spurred NATO nations to accelerate investments in advanced fighter fleets, while heightened China-Taiwan tensions have led to increased orders and upgrades across Asia-Pacific air forces (www.flightglobal.com).
• Modernization and Replacement Cycles: Many countries are replacing aging fourth-generation fighters with fifth- and emerging sixth-generation platforms. The U.S. continues to ramp up its F-35 Lightning II deliveries, with Lockheed Martin projecting 156 aircraft deliveries in 2025 alone. European nations are advancing the Future Combat Air System (FCAS) and Tempest programs, while Japan, India, and South Korea are investing in indigenous fighter development (www.lockheedmartin.com; www.defensenews.com).
• Technological Advancements: The integration of artificial intelligence, sensor fusion, stealth, and network-centric warfare capabilities is driving demand for next-generation fighters. Developments in unmanned combat aerial vehicles (UCAVs) and loyal wingman concepts are also influencing procurement strategies, as air forces seek multi-role platforms capable of manned-unmanned teaming (www.airforce-technology.com).
• Rising Defense Budgets: Global defense expenditure is set to surpass $2.4 trillion by 2025, with a significant portion allocated to air power modernization. The U.S., China, India, and European allies are among the top spenders, underpinning a robust procurement pipeline for both new fighter jets and upgrades to existing fleets (www.sipri.org).
• Export Opportunities and Strategic Alliances: Nations with indigenous fighter programs, such as the U.S., France, and Sweden, are leveraging export sales to allies in the Middle East, Asia, and Eastern Europe. Joint development initiatives—such as the U.S.-Japan-UK Global Combat Air Programme (GCAP)—are fostering technological collaboration and expanding market reach (www.reuters.com).

These drivers collectively indicate a buoyant outlook for the fighter jets market through 2025 and beyond, with multi-billion-dollar procurement programs, rapid technological evolution, and shifting security priorities shaping the competitive landscape.

Technological Innovations

The fighter jets market in 2025 is witnessing a surge in technological innovations, driven by escalating geopolitical tensions, shifting defense strategies, and rapid advancements in aerospace engineering. One of the primary trends is the integration of artificial intelligence (AI) and autonomous systems into fighter jets, aiming to enhance situational awareness, decision-making speed, and overall mission effectiveness. Prominent manufacturers such as Lockheed Martin and Boeing are incorporating AI-driven sensor fusion and decision support systems into their next-generation platforms, notably the F-35 and the forthcoming NGAD (Next Generation Air Dominance) fighter jets www.defensenews.com.

Stealth capabilities continue to dominate R&D agendas, with significant investments in radar-absorbing materials, advanced coatings, and refined airframe designs. The U.S. Air Force’s NGAD program and Europe’s joint Future Combat Air System (FCAS) are leveraging these technologies to maintain air superiority in contested environments www.reuters.com. Meanwhile, the integration of directed energy weapons, such as high-energy lasers for missile defense, is transitioning from laboratory prototypes to flight testing and initial deployments, with expectations for operational readiness within the next few years www.aviationtoday.com.

Digital engineering and additive manufacturing (3D printing) are also reshaping the fighter jets market. These technologies enable faster prototyping, reduced production costs, and streamlined maintenance processes. For example, the U.S. Air Force’s recent digital twin initiatives allow for real-time simulation and monitoring of aircraft health, supporting predictive maintenance and extending fleet lifespans www.afmc.af.mil.

Looking ahead, global defense budgets are expected to prioritize multi-role and network-centric platforms that can seamlessly operate within joint and coalition environments. Enhanced connectivity, through secure data links and integration with unmanned aerial vehicles (UAVs), is anticipated to be a critical differentiator in future contracts and deployments www.flightglobal.com. Collectively, these technological innovations are poised to redefine the operational capabilities and competitive landscape of the fighter jets market through 2025 and beyond.

Regional Market Analysis

The global fighter jets market in 2025 is experiencing dynamic regional trends, shaped by evolving geopolitical landscapes, defense modernization programs, and shifting security priorities. North America remains the largest regional market, driven predominantly by the United States, which continues to invest heavily in next-generation platforms such as the F-35 Lightning II and upgrades for legacy fleets. The U.S. Department of Defense’s FY2025 budget proposal allocates significant funding for 68 new F-35s and ongoing development of the Next Generation Air Dominance (NGAD) program, underlining a sustained commitment to air superiority (www.defensenews.com).

In Europe, the fighter jet market is characterized by collaborative development efforts and modernization initiatives. The Future Combat Air System (FCAS), a trilateral project among France, Germany, and Spain, is advancing through key milestones in 2025, with demonstrator flight tests scheduled for 2027. Meanwhile, the UK-led Global Combat Air Programme (GCAP), involving Italy and Japan, aims to field a sixth-generation fighter by 2035, and the Eurofighter Typhoon continues to receive upgrades and new orders from European air forces (www.flightglobal.com).

The Asia-Pacific region is projected to be the fastest-growing market segment for fighter jets through the mid-2020s. China continues to expand its indigenous capabilities, with the Chengdu J-20 now operational in larger numbers and the Shenyang FC-31 expected to enter service soon. India is progressing with its Tejas Mk2 and fifth-generation Advanced Medium Combat Aircraft (AMCA) programs, both of which have received increased budget allocations in 2025. Japan is also advancing its F-X stealth fighter project, aiming for an operational prototype within the decade (www.janes.com).

The Middle East remains a significant market, with countries like Saudi Arabia, the UAE, and Qatar investing in advanced fighters to bolster regional security. Ongoing negotiations for F-15EX and Rafale purchases are expected to influence market dynamics through 2027. Latin America and Africa, while representing smaller market shares, are pursuing selective modernization, primarily through secondhand acquisitions and upgrades rather than new-build fighters (www.shephardmedia.com).

Overall, the regional fighter jets market outlook for 2025 and the next several years is shaped by a combination of technological advancement, strategic alliances, and persistent security threats, with global spending projected to exceed $700 billion by 2033.

Competitive Landscape

The competitive landscape of the fighter jets market in 2025 is characterized by intense rivalry among established defense contractors, rising investments from emerging economies, and a shifting balance of technological power. The global market is dominated by a handful of leading aerospace manufacturers such as Lockheed Martin, Boeing, Northrop Grumman, Saab, Dassault Aviation, and Sukhoi, each vying for lucrative government contracts and export deals. According to www.fortunebusinessinsights.com, the fighter jet market is projected to reach $70 billion by 2029, with a compound annual growth rate (CAGR) of approximately 5% between 2023 and 2029, reflecting ongoing modernization programs and heightened geopolitical tensions.

• Lockheed Martin remains the market leader, powered by the continued global adoption of its F-35 Lightning II, which is expected to see further deliveries in 2025 to NATO allies and Indo-Pacific partners. The U.S. Department of Defense recently approved expanded F-35 procurement, while new customers such as Switzerland and Finland have finalized contracts for the model over the past year (www.defensenews.com).
• Boeing is maintaining its market share with the F-15EX and F/A-18 programs, both of which have seen renewed interest from the U.S. Air Force and foreign militaries. Boeing’s modernization of its fighter jet offerings is aimed at countries seeking advanced yet cost-effective alternatives to fifth-generation platforms (www.reuters.com).
• Dassault Aviation and Saab continue to strengthen their positions in Europe and Asia. Dassault’s Rafale has secured new orders from India, Indonesia, and the UAE, while Saab’s Gripen is under consideration in several Latin American and Eastern European tenders (www.flightglobal.com).
• Russia’s Sukhoi and China’s Chengdu Aircraft Corporation are expanding their export footprint, with the Su-57 and J-20 respectively. These platforms are at the center of modernization efforts in their domestic militaries and are being pitched to non-Western markets facing procurement restrictions from Western suppliers (www.janes.com).

Looking ahead, the competitive landscape is expected to further intensify as sixth-generation fighter programs, including the U.S. Next Generation Air Dominance (NGAD) and the UK-Japan-Italy Global Combat Air Programme (GCAP), progress toward demonstrator phases in the late 2020s (www.aerotime.aero). Increased focus on stealth, network-centric warfare, and artificial intelligence will likely disrupt traditional market dynamics and create new opportunities for both established players and innovative newcomers in the years ahead.

Major Players and Strategic Initiatives

The global fighter jets market is witnessing robust activity in 2025, driven by escalating geopolitical tensions, modernization of air forces, and rapid advancements in aerospace technology. The sector is dominated by a handful of major players, each leveraging strategic initiatives to secure market share and long-term contracts. Key companies include Lockheed Martin, Boeing, Northrop Grumman (United States), Dassault Aviation (France), Saab AB (Sweden), and Sukhoi (Russia), with emerging competition from China’s Chengdu Aircraft Corporation and Shenyang Aircraft Corporation.

Lockheed Martin maintains a leading position, particularly with its F-35 Lightning II, which continues to attract orders from both NATO and non-NATO allies. In early 2025, the U.S. Department of Defense announced a multibillion-dollar contract extension for the F-35 program, alongside new procurement by Germany, Finland, and Switzerland, confirming the aircraft’s status as the backbone of Western airpower (www.lockheedmartin.com). The company’s focus on software upgrades, interoperability, and stealth enhancements remains central to its strategy.

Boeing continues to compete with its F-15EX and F/A-18 Super Hornet platforms, securing recent deals with the U.S. Air Force and international customers such as Indonesia and Poland. Boeing’s strategic initiatives include digital engineering and open mission systems, enabling rapid upgrades and multi-role flexibility (www.boeing.com).

European manufacturers are also advancing. Dassault Aviation, in collaboration with Airbus, is pushing forward the Future Combat Air System (FCAS), a next-generation stealth fighter. The program secured critical funding in 2025, with commitments from France, Germany, and Spain, aiming for operational capability in the early 2030s (www.airbus.com). Saab AB’s Gripen E has seen renewed interest in Latin America and Eastern Europe due to its cost-effectiveness and adaptability (www.saab.com).

Russia’s United Aircraft Corporation is promoting the Su-57 Felon and has announced new export discussions with Middle Eastern and Asian countries. Meanwhile, China’s Chengdu Aircraft Corporation is scaling up production of the J-20 Mighty Dragon, with export ambitions to regional allies (www.janes.com).

Strategic initiatives across the board include the integration of artificial intelligence, digital twin technologies, and enhanced sensor fusion. The next few years will see intensified competition for export markets, collaborative programs for sixth-generation fighters, and the evolution of unmanned loyal wingman systems as adjuncts to manned fighters. These efforts are expected to reshape the competitive landscape and drive technological innovation in the fighter jets market through the latter half of the decade.

Market Challenges and Risks

The fighter jets market in 2025 faces several significant challenges and risks impacting both manufacturers and operators. Geopolitical instability and shifting defense priorities are key concerns. While heightened tensions in regions such as Eastern Europe and the Indo-Pacific are boosting demand, defense budgets are under pressure due to global economic uncertainties and inflation, prompting some governments to reconsider or delay high-ticket purchases of advanced fighter aircraft (www.defensenews.com). For example, some NATO members have postponed or scaled back orders for next-generation jets as they grapple with competing fiscal demands.

Supply chain disruptions remain a persistent risk in 2025. The fighter jet industry relies on complex and globalized supply networks for advanced materials, electronics, and propulsion systems. Ongoing shortages of critical components—such as semiconductors—continue to delay production schedules and raise costs for programs like the F-35 and Eurofighter Typhoon (www.flightglobal.com). In addition, the limited pool of specialized suppliers makes the sector vulnerable to single points of failure, with ripple effects across multiple programs.

Technological risks are also notable. The rapid evolution of military technologies—including stealth, electronic warfare, and autonomous systems—demands continuous upgrades for new and existing platforms. However, integrating cutting-edge capabilities often leads to developmental delays, cost overruns, and performance shortfalls. The U.S. Next Generation Air Dominance (NGAD) and Europe’s Future Combat Air System (FCAS) are illustrative, with both programs facing technical complexity and uncertain delivery timelines (www.reuters.com).

Additionally, the fighter jets market is encountering political and regulatory risks. Export controls, shifting international alliances, and concerns over technology transfer can complicate deals, especially with the proliferation of advanced fighters to new operators. U.S. congressional scrutiny over foreign sales and technology leakage, for instance, has delayed or blocked several high-profile transactions in recent years (www.brookings.edu).

Looking forward, these challenges are expected to persist into the late 2020s, possibly leading to further consolidation among manufacturers and more collaborative international development efforts. Market participants must navigate an environment of volatile demand, technological uncertainty, and complex regulatory landscapes to remain competitive and resilient.

Forecasts and Growth Predictions (2024-2030)

The global fighter jets market is expected to experience robust growth from 2024 through 2030, driven by increasing defense budgets, escalating geopolitical tensions, and rapid advancements in aerospace technology. According to recent industry analyses, the market size for fighter jets is projected to grow at a compound annual growth rate (CAGR) of approximately 6% to 8% during this period. In 2025, the market is estimated to be valued at around $70 billion and is poised to reach between $95 billion and $110 billion by 2030, depending on procurement cycles and emerging defense needs www.marketsandmarkets.com, www.fortunebusinessinsights.com.

Major defense powers, such as the United States, China, Russia, India, and European nations, are fueling this growth as they modernize air fleets and invest heavily in next-generation platforms. The introduction of the F-35 Lightning II, developments around the Franco-German-Spanish Future Combat Air System (FCAS), and the UK’s Tempest program represent significant procurement drivers through the forecast period. For instance, the U.S. Department of Defense continues to allocate substantial funding for F-35 procurement, with over $11 billion in FY2025 alone, and plans to acquire hundreds of additional units before 2030 www.defensenews.com.

• Asia-Pacific is expected to be the fastest-growing regional market, buoyed by China’s J-20 program, India’s Tejas Mk2 and AMCA projects, and increasing defense spending across Southeast Asia.
• Europe is seeing renewed investment in indigenous platforms, with the FCAS and Tempest programs likely to drive procurement activities in the latter half of the decade.
• The Middle East continues to invest in advanced fighters to maintain regional security balances, with new contracts for F-15, Rafale, and Eurofighter Typhoon jets.

Technological advancements, such as the integration of artificial intelligence, stealth, hypersonic weapons, and network-centric warfare capabilities, are also shaping procurement strategies and market expansion. Additionally, ongoing geopolitical conflicts—such as the war in Ukraine and rising tensions in the South China Sea—are prompting accelerated modernization efforts and increased fighter jet orders globally www.reuters.com.

Despite supply chain disruptions and inflationary pressures, the outlook for the fighter jets market remains positive through 2030. Industry experts anticipate that both established manufacturers (Lockheed Martin, Boeing, Dassault, Sukhoi) and emerging players will benefit from sustained demand, ongoing fleet renewals, and the push for technological superiority in air combat platforms www.statista.com.

Future Outlook and Opportunities

The global fighter jets market is poised for significant evolution through 2025 and the following years, driven by intensifying geopolitical tensions, rapid technological advancements, and the modernization cycles of air forces worldwide. The market, valued at approximately $74.4 billion in 2024, is projected to grow at a CAGR of 5-6% over the next five years, reaching nearly $100 billion by 2030, according to industry analysts www.marketsandmarkets.com.

The demand for next-generation fighter jets—such as the Lockheed Martin F-35, Dassault Rafale, and Sukhoi Su-57—is expected to surge, fueled by large procurement programs in the United States, Europe, and the Asia-Pacific region. The U.S. remains the dominant market, accounting for a major share of global orders, with ongoing investments in the F-35 and the development of sixth-generation platforms under the Next Generation Air Dominance (NGAD) program www.flightglobal.com.

Europe is witnessing renewed focus on indigenous capabilities, with collaborative projects like the Future Combat Air System (FCAS) and the Tempest program expected to shape the region’s defense industry through the late 2020s. These programs are designed to deliver stealthier, more networked, and unmanned-capable fighter aircraft, presenting opportunities for suppliers across avionics, propulsion, and weapons integration www.janes.com.

Asia-Pacific is a hotspot for new opportunities, as countries like India, South Korea, and Japan accelerate their indigenous fighter programs and bolster imports to counter regional threats. India’s procurement of the Rafale and development of the HAL AMCA, Japan’s F-X program, and South Korea’s KF-21 Boramae are expected to contribute substantially to market growth www.defensenews.com.

Looking ahead, the integration of artificial intelligence, advanced sensors, and network-centric warfare capabilities will create new market segments and competitive dynamics. Additionally, the increasing use of unmanned wingmen and loyal wingman concepts will open avenues for collaboration between traditional aerospace giants and emerging tech firms. These trends, combined with rising defense budgets in response to global security challenges, position the fighter jets market for robust expansion and innovation through 2025 and beyond www.pwc.com.

Sources & References

• www.fortunebusinessinsights.com
• www.defensenews.com
• www.janes.com
• www.business-standard.com
• www.flightglobal.com
• www.reuters.com
• www.lockheedmartin.com
• www.airforce-technology.com
• www.sipri.org
• www.aviationtoday.com
• www.afmc.af.mil
• www.shephardmedia.com
• www.aerotime.aero
• www.boeing.com
• www.airbus.com
• www.saab.com
• www.brookings.edu
• www.marketsandmarkets.com
• www.statista.com
• www.pwc.com