Embraer Accelerates Entry into Global Defense Market with Surge in KC-390 Overseas Orders

Report Content

According to a report by Reference News on July 24, the Japan Economic News website reported on July 22 that Embraer, as the world's third-largest aircraft manufacturer in the civil aviation sector, is experiencing rapid growth in the defense equipment market. NATO member countries, South Korea, and Middle Eastern nations have successively decided to procure military transport aircraft produced by the company. Against the backdrop of increasingly tense international situations, an expanding arms market, and countries seeking to diversify their procurement sources, Brazilian companies are becoming a new choice to meet these demands.

“Countries that traditionally purchased American aircraft are now choosing us. This is definitely a bold decision.” Márcio Monteiro, Chief Marketing Officer of Embraer's Defense and Security business unit, is confident about the sales prospects of the company's flagship product, the KC-390 transport aircraft (as shown), which is now widely used in several countries.

Influenced by the Russia-Ukraine conflict, European countries have been increasing their defense spending, driving demand for discussions about the KC-390. Since 2024, Austria and NATO member countries such as the Netherlands and Sweden have successively procured this transport aircraft. In 2026, Embraer received an order for 10 KC-390s from the UAE. From 2019 to 2023, the cumulative order volume for this model was only 10 aircraft, but as of July this year, the cumulative order volume has increased to about 40 aircraft.

According to Embraer, since 2019, the KC-390 has captured about 60% of the new contracts in the medium military transport aircraft procurement market, surpassing its competitors, Lockheed Martin's C-130J and Airbus's A400M.

Embraer is an aviation giant that has long focused on the production of regional jets and business jets. As of the end of March 2026, its backlog of orders reached a record $32.1 billion, of which $4.4 billion is related to defense and security orders.

The main driving force behind the growth in orders is its high-speed performance and excellent cost control. Its advantages lie in the ability to perform multiple tasks simultaneously, including troop transport, aerial refueling, medical transport, and humanitarian assistance.

In many countries, the demand to replace similar aircraft that have been in service since the 1960s and 1970s is continuously growing. Monteiro stated, “In the next decade, more than 200 aircraft will need to be updated.” This indicates that there is still significant room for growth in KC-390 orders.

Embraer's unique sales strategy has also been successful. They enhance the competitiveness of their solutions through technology transfer and localized production, such as establishing parts production and maintenance bases in South Korea. They also provide support for NATO member projects at their European base in Portugal.

Reports indicate that Brazil traditionally pursues an equidistant foreign policy and is not affiliated with military alliances in the U.S. and Europe. As a Brazilian company, Embraer's order growth also benefits from this. Currently, the company is expanding its sales to countries such as Uzbekistan and the UAE. (Translated by Liu Lin)

Classification
Region
Europe, Russia & CIS, West Asia
Analytical Domain
Strategic
Primary Category / Secondary Categories
Political-Military / Weapons & Equipment
SALUTE Report
Size
40 aircraft
Activity
Brazilian aircraft manufacturer Embraer is rapidly increasing its presence in the defense equipment market with significant orders for the KC-390 military transport aircraft from NATO member countries, South Korea, and Middle Eastern nations.
Location
Austria · Netherlands · Sweden · United Arab Emirates · Uzbekistan
Unit
Embraer
Time
2024-2026
Equipment
KC-390 military transport aircraft
Summary

Embraer is rapidly expanding its defense market presence with significant orders for the KC-390 military transport aircraft from NATO member countries, South Korea, and Middle Eastern nations. Orders have surged to approximately 40 aircraft as of July 2023, driven by increased defense spending in Europe due to the Ukraine conflict. The KC-390 now holds a 60% market share in the medium military transport aircraft sector, with ongoing efforts to penetrate markets in Uzbekistan and the UAE.

Key Facts
  • Embraer has received orders for approximately 40 KC-390 aircraft as of July 2023, up from 10 orders between 2019 and 2023.
  • Countries like Austria, the Netherlands, and Sweden have decided to procure the KC-390.
  • The KC-390 accounts for about 60% of the medium military transport aircraft market since 2019.
  • Embraer is expanding its market reach to countries like Uzbekistan and the UAE.
  • The demand for replacing older aircraft from the 1960s and 1970s is increasing.