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%.

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.

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).

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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

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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. Shortage of skille

Aerospace and Defense Market size is estimated to be valued at USD 846.94 Bn, 2025 and is expected to expand at a CAGR of 8.2%, reaching USD 1,470.43 Bn, 2032

The Germany Aerospace and Defense Market Report is Segmented by Industry (Manufacturing, Design, and Engineering and Maintenance, Repair, and Overhaul) and Type (Commercial Aviation, Military Aviation, and Space). The Report Offers Market Size and Forecast for all the Above Segments in 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 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).

Global military aircraft and aerospace manufacturers encompass an extensive range of countries, products, technological developments and operational capacities. The industry's unique correlation with national security ensures its continued growth and long-term success. Leading companies benefit from robust government spending, favorable contract terms and nearly impenetrable market shares. Recent conflicts have especially driven revenue, with European, Middle Eastern and East Asian allies stockpiling following the Russian invasion of Ukraine, the latest Israel-Hamas war and continued Chinese aggression in the South China Sea. US adversaries have also continued stockpiling, leading to robust sales trends across the globe. Major modernization efforts and ambitious air defense development - namely the US Sentinel modernization and Golden Dome alongside the European Sky Shield Initiative - have also driven massive growth in propulsion and missile markets. Even so, revenue has dipped slightly over the current period, falling at an estimated CAGR of 0.5% to $280.9 billion due to reduced US defense spending in 2021 and 2022 as funds were reallocated to the pandemic. However, revenue climbed an estimated 3.3% in 2025, where profit will reach 6.3% Massive innovation will drive growth through the outlook period. In particular, EU investment in defense capability will likely skyrocket, resulting from increased NATO spending requirements and new SAFE regulations. EU contractors, like Leonardo, MBDA and Airbus, may receive more robust opportunities as EU lawmakers attempt to reduce the union's reliance on the United States. Even so, the US and China remain technological leaders and will be able to flex this competitive advantage, leading to continued export dominance. Next-generation air dominance programs in the US and China will also drive robust investment totals, with an emphasis on technological integration and unmanned craft. This may give way to highly ambitious AI, drone and communications ventures, bolstering competitiveness. Space markets will also proliferate, with the US leading the multinational Artemis program, creating opportunities across US, Canadian, European, Japanese and UAE space markets. Companies may continue to invest in space and propulsion, furthering competition, especially as reusable rocket technology advances. Overall, revenue will climb at an expected CAGR of 5.3% to $363.8 billion through the outlook period, where profit will reach 7.7% of revenue.

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 Germany aerospace and defense market reached approximately USD 25.63 Billion in 2024. The market is estimated to grow at a CAGR of 4.30% in the forecast period of 2025-2034, reaching a value of around USD 39.05 Billion by 2034.

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.

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.

Airbus SE had the largest revenue out of all European companies within the aerospace and defense sector. As of 2024, the aircraft manufacturer generated more than ** billion U.S. dollars in revenue. That year, with **** billion U.S. dollars revenue Lockheed Martin Corp was the second largest company in the region.

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.

Saudi Arabia defense and aerospace market is driven by the increasing spending on the non-oil sectors and growing government focus towards expansion of defense and aerospace sector

Discover the explosive growth of the US Aerospace & Defense market, projected at $496.56 million in 2025 with a 5.76% CAGR. This in-depth analysis covers market drivers, trends, restraints, key players (Boeing, Lockheed Martin, etc.), and regional breakdowns. Explore the future of commercial aviation, military systems, UAS, and space equipment. Recent developments include: November 2023: The US Air Force signed a contract worth USD 2.3 billion with The Boeing Company for 15 KC-46A Pegasus refueling tankers. This would bring the total number of KC-46s Boeing has on contract to build for the United States and its allies to 153. The Air Force plans to buy 179 KC-46s., November 2023: The US awarded a contract worth USD 176 million to the Lockheed Martin Corporation that primarily focuses on exercising options for producing 61 Lot 8 Long Range Anti-Ship Missiles (LRASM) with containers and initial spares.. Notable trends are: The Space Sector is Expected to Witness the Highest Growth During the Forecast Period.

Aerospace and Defense Materials Market size was valued at USD 36.42 billion in 2021 and is poised to grow from USD 39.01 billion in 2022 to USD 67.42 billion by 2030, at a CAGR of 7.08% during the forecast period (2023-2030).

Aerospace And Defense Composites Market size was valued at USD 37.06 Billion in 2023 and is projected to reach USD 71.98 Billion by 2030, growing at a CAGR of 11.7% during the forecast period 2024-2030.Global Aerospace And Defense Composites Market DriversThe market for composite materials used in aerospace and defense is growing due to several causes. Among the principal forces shaping the market are:Weight reduction: Composites provide a lightweight substitute for conventional materials, improving defense system performance overall and helping aeronautical applications use less fuel.Strength and Durability: Due to their superior strength-to-weight ratios and exceptional durability, aerospace and defense composites are in higher demand for usage in military equipment, aircraft structures, and componentry.Fuel Efficiency: The aerospace industry looks for lightweight materials like composites to increase the fuel efficiency of aircraft with an emphasis on lowering fuel consumption and emissions.Technological Developments: Innovation in the aerospace and defense industry is fueled by continuous improvements in composite materials, production techniques, and design technologies, which encourages the use of composites in new applications.Demand for Commercial Aircraft: As air travel and the middle class rise, so does the demand for commercial aircraft, which in turn drives the need for innovative materials like composites in the aircraft manufacturing industry.Military Modernization Programs: To improve performance and lower maintenance costs, defense forces all over the world are investing in modernization projects that will eventually lead to the use of composite materials in military vehicles, equipment, and aircraft.Long-Term Cost Efficiency: Composites are an appealing alternative for both aerospace and defense applications, despite their higher initial prices. These advantages include lower maintenance costs and increased fuel efficiency.Environmental rules: Since composites help provide lighter, more environmentally friendly aerospace and defense solutions, their use is fueled by strict environmental rules and a focus on sustainability.