The US Aerospace and Defense Market is Segmented by Sector (Aviation (Commercial Aviation and General Aviation), Defense (Army, Navy, and Air Force), Space, and Unmanned Systems) and Platform (Land, Air, Sea, and Space). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

Global Aerospace and Defense Market size was worth $750 billion in 2022 and is projected to grow in value to $1388 billion by 2030 at a CAGR of 8.2%.

The Aerospace and Defense Materials Market Report is Segmented by Material Type (Aluminum Alloys, Steel Alloys, Titanium Alloys, Super Alloys, Composite Materials, and Other Material Types), Aircraft Type (Commercial, Military, Business and General Aviation, and More), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Europe Aerospace and Defense Market Report is Segmented by Sector (Commercial and General Aviation, Military Aircraft and Systems, Unmanned Aerial Systems, and Space Systems and Equipment) and Geography (United Kingdom, France, Germany, Italy, Spain, and Rest of Europe). The Report Offers Market Sizes and Forecasts for all the Above Segments in Value (USD).

Global Aerospace And Defense market size is expected to reach $1102.16 billion by 2029 at 6.8%, segmented as by type, aerospace, defense

Snapshot img

Germany Aerospace and Defense Market Forecast 2024-2028

The Germany Aerospace and Defense market size is forecast to increase by USD 9.74 billion, at a CAGR of 4.2% between 2023 and 2028. The growth rate of the market depends on several factors, increasing demand for UAVs, the presence of a robust aerospace and defense industry base in Germany and an increase in investments in defense modernization. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Airbus SE provides cutting-edge aerospace and defense solutions, exemplified by the Future Combat Air System (FCAS), a sophisticated network integrating manned and unmanned platforms, ranging from fighter aircraft and drones to satellites. On the other hand, Altair Engineering Inc. contributes to the aerospace and defense sector with its innovative Altair HPCWorks suite. This suite empowers organizations to optimize, analyze, and accelerate high-performance computing (HPC), artificial intelligence (AI), and high-throughput workloads, playing a crucial role in enabling groundbreaking discoveries in the industry.

Market Forecasting and Size

Market Forecast 2024-2028

To learn more about this report, Request Free Sample

Market Dynamics

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Driver - Increasing demand for UAVs

UAVs, commonly known as drones, are increasing in both defense and commercial applications. The increasing demand for UAVs in Germany drives the development of the Germany aerospace and defense market. Factors such as an upsurge in military spending and the augmentation in demand for improved surveillance solutions are expected to drive the demand for UAVs during the forecast period. The development in the threat from terrorism and the increase in security in Germany lead to increased government expenditure for UAVs. Moreover, the advances in autonomy, artificial intelligence, and sensor technologies are the development of autonomous UAVs for surveillance, reconnaissance, logistics, and other missions.

Further, UAVs are increasingly integrated with other technologies such as artificial intelligence, the Internet of Things (IoT), big data analytics, and cloud computing to enhance their capabilities and functionality, which, in turn, surge the demand for UAVs in the country. Aerospace composites, known for their lightweight and durable properties, are pivotal in the manufacturing of UAVs, enabling enhanced performance and efficiency. Therefore, the growing adoption of aerospace composites in UAV production, coupled with advancements in integrated technologies, drives the demand for UAVs and propels market growth during the forecast period. These developments underscore the role of aerospace composites in meeting the evolving technological demands and operational requirements of modern unmanned aerial vehicles across various applications, including defense, surveillance, and commercial sectors.

Trends - Increase in technological innovation in aerospace and defense industry

Technological innovation in the market is one of the significant factors driving the development. Factors such as government investment and industry collaboration significantly contribute to the increase in technological innovation in such industries in Germany. The aerospace companies in Germany are increasingly developing advanced aircraft designs that focus on improving fuel efficiency, reducing emissions, enhancing aerodynamics, and increasing performance. Improved aircraft designs, advanced sensor systems, and autonomous technologies allow these platforms to accomplish missions more effectively, boosting the demand for these products and services.

Moreover, the development of sustainable aviation and defense solutions further enhances the aerospace artificial intelligence (AI) market. Innovations in alternative fuels, electrification, hybrid propulsion systems, and lightweight materials are pivotal in advancing sustainable technologies within the aerospace sector. These developments are particularly gaining traction in countries like Germany, where there is a strong emphasis on reducing carbon emissions, minimizing environmental impact, and enhancing energy efficiency in aviation and defense industries. Therefore, the integration of aerospace artificial intelligence (AI) technologies alongside sustainable advancements is expected to propel market growth during the forecast period, driving efficiencies, improving safety measures, and addressing environmental concerns in the global aerospace industry.

Challenge - Shortage in skilled labor in aerospace and defense industry in Germany

The shortage of skilled workers, engineers, and technicians in the country hamper the growth of the market. S

The US Aerospace and Defense market, a significant global player, is projected to maintain robust growth, driven by increasing defense spending, modernization of existing fleets, and technological advancements in areas like unmanned aerial systems (UAS) and space exploration. The market size of $496.56 million in 2025, with a Compound Annual Growth Rate (CAGR) of 5.76%, indicates substantial expansion through 2033. Key growth drivers include escalating geopolitical tensions necessitating increased military expenditure, the continuous demand for advanced aviation technologies in both commercial and military sectors, and the burgeoning commercial space industry. The commercial aviation segment, encompassing aircraft manufacturing, MRO (Maintenance, Repair, and Overhaul), and advanced avionics, is a major contributor, fueled by increasing air travel demand and the need for efficient and technologically superior aircraft. The military segment is equally significant, with substantial investments in next-generation combat aircraft, missile systems, and UAS, driven by national security priorities and technological competition. Growth within the space segment is expected to be fuelled by increasing demand for commercial satellite services, space-based internet infrastructure and government-led space exploration initiatives. While potential restraints such as supply chain disruptions and economic downturns exist, the long-term outlook remains optimistic, driven by consistent government funding and the ongoing technological evolution within the sector. The market's segmentation offers a granular view of growth opportunities. The Commercial and General Aviation segment benefits from advancements in airframe materials, engine technology, and avionics. The Military Aircraft and Systems segment displays strong growth potential due to upgrades in combat aircraft and the increasing adoption of unmanned systems. The Unmanned Aerial Systems (UAS) market is experiencing explosive growth across both commercial and military applications, driven by technological advancements and cost reductions. The Space Systems and Equipment segment is undergoing a period of significant expansion, largely driven by private sector investment in satellite constellations and increasing governmental focus on space exploration and national security initiatives. Major players, such as Boeing, Lockheed Martin, and Northrop Grumman, are strategically positioned to benefit from this growth, continuously innovating and consolidating their market share. Regional variations in growth rates will reflect the varying levels of defense spending and economic activity across different geographical areas, with North America consistently remaining a dominant market. This in-depth report provides a comprehensive analysis of the US Aerospace and Defense market, covering the historical period (2019-2024), the base year (2025), and a detailed forecast from 2025 to 2033. Valued at billions, this dynamic sector is examined across key segments, revealing growth opportunities and challenges for stakeholders. The report uses data collected from various sources including market research reports, industry publications, company financial reports, and government sources. Notable trends are: The Space Sector is Expected to Witness the Highest Growth During the Forecast Period.

Global Aerospace And Defense market size 2025 was XX Million. Aerospace And Defense Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

As of 2023, the revenue of the aerospace and defense industry amounted to *** billion U.S. dollars. This was an ** percent increase compared to the previous year and the highest figure registered in the given period.

In 2024, RTX Corp was the largest aerospace and defense manufacturer in the United States, with approximately ** billion U.S. dollars in revenue. That year, Boeing generated more than ** billion U.S. dollars, which made the company the second-largest manufacturer on the list.

The AI in Aerospace and Defense Market Report is Segmented by Offering (Hardware, Software, and Services), Application (Defense, Commercial Aviation, and Space), End-User (Defense Primes, Airlines and MRO Providers, Space Agencies and Commercial Operators, and More), and Geography (North America, Europe, Asia-Pacific, and More). The Market Forecasts are Provided in Terms of Value (USD).

The India Aerospace and Defense Market Size Was Worth USD 26.78 Billion in 2023 and Is Expected To Reach USD 48.41 Billion by 2032, CAGR of 6.8%.

The Blockchain in the Aerospace and Defense Market is Segmented by End User (Aerospace and Defense) and Geography.

Recent fluctuations in US federal defense funding have created volatility within the defense industry. The US, as the largest defense market, significantly influences global trends. Though defense funding has generally risen, budget cuts in 2021 and 2022, partly due to the US's withdrawal from Afghanistan and a focus on pandemic response, resulted in industry declines. Despite slower growth in aircraft demand, rising geopolitical tensions and conflicts like those in Ukraine and the Middle East have driven significant increases in missile demand, resulting in overall industry growth. Missiles, due to their immediate and versatile response capabilities, have outpaced growth in aircraft demand. Overall, the industry is projected to grow at a CAGR of 2.7%, reaching $250.8 billion by 2024, with an anticipated 5.2% increase in 2024 alone. The war in Ukraine since February 2022 led to a surge in arms exports to Ukraine, although it still accounts for a minor percentage of global arms imports. Military aid to Ukraine includes air defense systems and precision-guided missiles from major donors like the US and Germany. Similarly, the Israel-Hamas war, initiated by Hamas’ attack on Israel in October 2023, increased arms transfers to the Middle East. The US and Germany have expedited pre-existing contracts, delivering precision-guided munitions, artillery and medical supplies to Israel, underscoring the ongoing demand for defense resources in response to regional conflicts. The industry is expected to grow due to rising global tensions. Militaries around the world are developing advanced missile systems, including Long-Range Anti-Ship Missiles (LRASM) and innovations for stealth fighters such as the F-35 and Next Generation Air Dominance aircraft. Persistent global tensions, especially in regions like Ukraine, the South Pacific and Africa, will drive continued demand and sustained profit for missile systems. Additionally, integrating artificial intelligence into military technologies is set to revolutionize capabilities by enhancing autonomous flight, accurate targeting and real-time data analysis for intelligence, surveillance and reconnaissance. Ultimately, the industry is projected to grow at a CAGR of 2.0%, reaching $276.6 billion by 2029.

The size of the Semiconductor Device Market in Aerospace & Defense Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.41% during the forecast period. The aerospace and defense industry is growing significantly in the semiconductor device market, due to the increased demand for advanced electronic systems in aircraft, satellites, and defense equipment. Semiconductors are an essential component in a wide range of applications, including avionics, radar and communication systems, GPS, and navigation equipment. The high-performance requirement of semiconductor devices arose in parallel with the increased emphasis laid on the improvement of aerospace and defense technology concerning performance, reliability, and efficiency. Such devices enable real-time data processing, advanced signal detection, and enhanced communication, which are indispensable for mission-critical operations. Increasing demand for electronic-component miniaturization as well as for low-power, high-performance lightweight solutions have augmented adoption in aerospace and defense semiconductors. Higher usage of unmanned aerial vehicles, smart weapons systems, and advanced military satellites that can withstand rough environments is the way to higher levels of specialty requirements for these components. North America, especially the United States, is the leading region in the market due to a major aerospace and defense manufacturers' presence and significant investment in defense technologies. The Asia-Pacific region is also emerging as an important region with rising defense budgets and growing technological advancements. Recent developments include: April 2023: National Instruments (NI) completed the acquisition of SET GmbH (SET), a prominent player in the development of test systems for the aerospace and defense industries and a leading expert in reliability testing for power semiconductors. This strategic move aims to expedite the convergence of semiconductor and transportation supply chains. The collaboration between NI and SET is poised to harness power electronics components like silicon carbide and gallium nitride, facilitating the swift introduction of essential and highly innovative products to the market., September 2022: Collins Aerospace was awarded a substantial multimillion-pound contract to create a navigation-grade inertial measurement unit (IMU). This IMU is intended for deployment in cutting-edge weapon platforms as part of the United Kingdom's Weapons Sector Research Framework (WSRF). Collins Aerospace will partner with the UK's Ministry of Defence (MOD) to enhance their projects by leveraging their industry-leading expertise to develop a tactical-grade or "Class A" IMU employing micro-electro-mechanical systems (MEMS) technology.. Key drivers for this market are: Increasing Aircraft Modernization and Upgrade Programs, Growing Investments by Governments and Space Agencies. Potential restraints include: The Shortage of Semiconductors would Limit Market Expansion. Notable trends are: Sensors Segment to Grow Significantly in Aerospace & Defense Sector.

The Japanese Aerospace and Defense Market Report is Segmented by Sector (Aerospace and Defense), Service Type (Manufacturing and MRO), and Platform (Airborne, Terrestrial, and Naval). The market size and forecast are provided in terms of value (USD) for all the above-mentioned segments.

CAD in Aerospace and Defense Market Outlook

The CAD in Aerospace and Defense market is poised for significant growth, with the global market size estimated at USD 8.69 billion in 2023 and projected to reach USD 14.63 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.0%. This growth is driven by advancements in technology, increasing demand for innovative and efficient design solutions, and the growing complexity of aerospace and defense projects. The integration of CAD software enhances precision, reduces time to market, and minimizes errors in designing sophisticated aerospace and defense equipment, showcasing its indispensable role in this sector.

Several factors contribute to the robust expansion of the CAD in Aerospace and Defense market. Primarily, the increasing complexity of aircraft and defense systems requires advanced technological solutions like CAD for effective design and development. With the aerospace and defense industries embracing digitization, CAD solutions provide the necessary tools to create, modify, analyze, and optimize designs. These solutions reduce the risk of errors and facilitate efficiencies by allowing for simulations and analyses before physical prototyping. Moreover, CAD software helps in managing large datasets and maintaining the integrity of designs, which is crucial in the highly regulated aerospace and defense sectors.

Additionally, the push towards sustainability and fuel efficiency in aviation is a significant growth driver for the CAD market. Aerospace companies are under constant pressure to reduce emissions and improve performance, which necessitates innovative design solutions and materials. CAD software aids in optimizing designs for weight reduction and fuel efficiency, thereby helping manufacturers meet stringent environmental regulations. Furthermore, the adoption of CAD technology is bolstered by the increasing use of lightweight materials and advanced composites that require precise engineering and design capabilities, making CAD an essential tool in achieving these objectives.

The expansion of the defense sector also plays a crucial role in the growth of the CAD market. With global defense budgets on the rise, the demand for sophisticated defense equipment and technologies is escalating. CAD software is critical in the design and development of complex defense systems, including drones, missiles, and surveillance equipment. The ability to simulate and test these systems in a virtual environment before actual deployment significantly enhances their performance while minimizing costs. This capability underscores the strategic importance of CAD solutions in meeting defense requirements efficiently and effectively.

Regionally, North America dominates the CAD in Aerospace and Defense market, driven by the presence of major aerospace and defense companies and continuous technological innovations. The region's focus on modernizing military equipment and aircraft further fuels this market's growth. Meanwhile, Asia Pacific is anticipated to exhibit the fastest growth, bolstered by increasing investments in defense and aviation infrastructure, along with the burgeoning aerospace sector in countries like China and India. European nations are also significant contributors, with ongoing advancements in aerospace technologies and defense modernization programs. These regional dynamics are essential in shaping the overall market trajectory.

Component Analysis

The CAD in Aerospace and Defense market is segmented by component into Software, Hardware, and Services. The software component dominates the market due to its indispensable role in design and simulation processes. It encompasses a range of applications from 2D drafting to 3D modeling and simulation, providing engineers and designers with the tools necessary to create complex aerospace and defense structures. Advanced software solutions facilitate real-time collaboration, enabling teams to work concurrently on projects, thereby speeding up the design process. The continuous evolution of software capabilities, such as improved user interfaces, integration with other systems, and enhanced analytical tools, further drives its adoption across the industry.

Hardware components, though smaller in proportion compared to software, are critical in supporting the functioning of CAD systems. These include high-performance computers, graphics processing units, and other specialized equipment that ensure smooth operation of CAD software. The demand for upgraded hardware is linked to the increasing complexity of designs and the need for faster processing spe

Global Big Data in Aerospace and Defence market size 2025 was XX Million. Big Data in Aerospace and Defence Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

The U.S. defense market, a significant global player, exhibits robust growth potential. With a 2025 market size of $309.77 billion, a projected Compound Annual Growth Rate (CAGR) of 3.58% from 2025 to 2033 signals continued expansion. This growth is fueled by several key drivers. Increased geopolitical instability and the ongoing need for modernization of military capabilities across various domains—land, air, sea, cyber, and space—are primary factors. Technological advancements, particularly in areas like artificial intelligence (AI), unmanned systems, and hypersonic weapons, are driving demand for sophisticated defense technologies. Government spending on research and development (R&D), coupled with increased defense budgets, further contributes to market expansion. Competition among major players like Lockheed Martin, Boeing, and Northrop Grumman, while intense, also fosters innovation and efficiency within the sector. However, market growth is not without its challenges. Budgetary constraints, though less pronounced than in previous years, remain a potential restraint. The prioritization of specific defense programs over others can also influence the market dynamics, leading to uneven growth across different segments. Furthermore, evolving global partnerships and alliances will shape the future trajectory of the market, potentially leading to both opportunities and challenges for industry stakeholders. Understanding these interconnected factors is crucial for navigating the complex landscape of the U.S. defense market and capitalizing on emerging opportunities. The ongoing demand for cybersecurity solutions, in particular, is creating a rapidly expanding segment within this market. Sustained investment in advanced technologies coupled with careful risk management strategies is key for companies seeking to thrive in this dynamic environment. Key drivers for this market are: Increase in Internet of Things (IoT) and Autonomous Systems, Rise in Demand for Military and Defense Satellite Communication Solutions. Potential restraints include: Cybersecurity Threats to Satellite Communication, Interference in Transmission of Data. Notable trends are: The Air Force Segment to Exhibit the Largest Market Share During the Forecast Period.

Aerospace And Defense Parts Manufacturing Market size was valued at USD 643.31 Billion in 2024 and is projected to reach USD 961.38 Billion by 2031, growing at a CAGR of 5.15% during the forecast period 2024-2031.

Global Aerospace And Defense Parts Manufacturing Market Drivers The market drivers for the Aerospace And Defense Parts Manufacturing Market can be influenced by various factors. These may include:

Growing Defence Budgets: As a result of governments all over the world increasing their defence budgets in an effort to modernise their armed forces, there is a greater need for aerospace and defence parts production as well as for new and sophisticated military aircraft, helicopters, and drones.

Expanding Commercial Aviation Sector: The need for aircraft parts and components is fueled by the growing demand for air travel, as well as by the necessity for airlines to expand and modernise their fleets.

Technological Advancements: The efficiency, performance, and durability of aerospace and defence parts are improved by innovations in materials (like composites and advanced alloys), production techniques (like 3D printing and additive manufacturing), and design technologies. These developments propel the market expansion.

Programmes for Fleet Modernization: To replace outdated aircraft with newer, more efficient ones, both commercial airlines and the armed forces are implementing programmes for fleet modernization. This is driving up demand for aerospace parts and components.

Unmanned Aerial Vehicles (UAVs) are in greater demand: A growing number of UAVs and drones are being used for commercial, military, and surveillance purposes, which is driving up demand for specialised parts and components for these aircraft.

Economic development in Emerging economies: As a result of increased air travel, airline fleet expansion, and higher defence spending, emerging economies are experiencing economic development and rising disposable incomes, which is boosting demand for the manufacturing of aerospace and defence products.

Tight Safety and Quality standards: In the aerospace and defence industries, strict safety and quality standards demand the creation of dependable, high-quality parts and components, which in turn drives demand for specialised manufacturing capabilities.

Partnerships and Collaborations: Innovation, manufacturing capacity, and market reach are all improved by strategic alliances, joint ventures, and collaborations between aerospace and defence manufacturers, suppliers, and technology providers. These factors all support market expansion.

Sustainability Initiatives: The need for lighter, more fuel-efficient parts and sophisticated production processes that lessen their negative effects on the environment is fueled by the desire for more ecologically friendly and sustainable aircraft and defence systems.

Growing MRO Activities: The requirement to maintain safety, performance, and regulatory compliance is driving an increase in maintenance, repair, and overhaul (MRO) activities for existing aircraft fleets, which in turn is driving up demand for replacement parts and components.