Rolls-Royce forecasts world demand for 16,400 new turbine helicopters during next ten years

Houston, Texas -- Rolls-Royce, the global power systems company, which offers one of the broadest power ranges of helicopter turboshaft engines in the world, today forecast a market characterized by emerging near-term recovery followed by long-term growth. Over the ten year period, total helicopter deliveries are predicted to be more than 16,400 units as the market responds to improving civil market fundamentals and the world’s military operators address a growing call for more vertical lift capability. In both segments, demand for replacement of retired and aging helicopters will supplement civil and military market growth.

Ken Roberts, President of the Rolls-Royce Helicopter Engine business, said: “The industry did not escape the economic downturn in 2009, but we think emerging conditions set the stage for modest growth in the near-term followed by solid long-term demand. The rotorcraft market will continue to be counterbalanced by offsetting civil and military requirements, and stronger macroeconomic conditions are expected to result in increased demand in the future.”

Rolls-Royce projects deliveries of more than 16,400 new turbine helicopters valued at $146 billion during the 2010-2019 forecast horizon. These helicopters will require approximately 26,000 new turbine engines valued at around $12 billion.

The civil market will experience modest unit growth, especially in new entry-level turbine helicopters. Rolls-Royce forecasts around 10,300 civil helicopters to be delivered during the ten year period with an overall airframe value estimated at $38 billion and associated engine value of $4.2 billion.

Military original equipment manufacturer (OEM) deliveries are predicted to total approximately 6,100 new military helicopters during the ten year period, with an airframe value of approximately $108 billion and an associated installed engine value of around $7.7 billion.

1. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established strong positions in its four global markets - civil aerospace, defense aerospace, marine and energy.
2. The company has a broad customer base including more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries. With facilities in 50 countries, Rolls-Royce employs more than 38,000 people worldwide and has businesses headquartered in the UK, US, Canada, Germany, Scandinavia and China. This global presence allows the Group to access long-term international growth opportunities with its technology, presence, partnerships and people.
3. In 2009, Rolls-Royce and its partners invested $1.4 billion in research and development, two thirds of which had the objective of further improving the environmental aspects of its products, in particular the reduction of emissions.
4. Rolls-Royce is the world-leading producer of light turbine engines in the helicopter market. The M250 line has produced over 30,000 engines, more than half of which are still in service with approximately 4,500 operators in 150 nations. The M250 family has accumulated over 200 million flight hours, providing an unmatched level of expertise in every conceivable operational condition.
5. Rolls-Royce has broadened its small engine range with the introduction of the RR300 and has launched the development of the RR500 turboshaft and turboprop. These new products will meet emerging market requirements in the 300 to 500 shaft horsepower range. Multiple applications have been secured for these new products, and the RR300 has entered serial production as powerplant for the Robinson R66 helicopter.