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

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%.

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

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.

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).

The global demand for Aerospace and Defense Market is presumed to reach the market size of nearly USD 1641.69 Billion by 2032 from USD 811.12 Billion in 2023 with a CAGR of 8.06% under the study period 2024 - 2032.

The Aerospace and Defense market size is anticipated to reach USD 1641.69 Billion by 2032. [https://vmrimages.s3.amazonaws.com/aerospace-and-defense-market-size-optimized.webp]

AEROS

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.

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

Global Aerospace And Defense Components market size is expected to reach $6.75 billion by 2029 at 4.3%, increase in number of air travelers drive the aerospace and defense components market

The global Aerospace & Defense market is projected to reach a valuation of approximately USD 1.2 trillion by 2033, growing at a compound annual growth rate (CAGR) of 4.5% from 2025 to 2033.

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

This graphic depicts the size of the aerospace and defense software application market worldwide from 2019 to 2025. In 2020, the global aerospace and defense software market was worth *** billion U.S. dollars, and it is projected to reach *** billion dollars by 2025. Dassault Systèmes was the largest software vendor in the market.

The Singapore Aerospace and Defense Market Report is Segmented by Industry (Manufacturing, Design, and Engineering, and More), Type (Aerospace and Defense), End User (Commercial, Military, and More), Platform (Fixed-Wing Aircraft, Rotary-Wing Aircraft, Unmanned Aerial Vehicles (UAVs), Land Systems, Naval Systems, and More). The Market Forecasts are Provided in Terms of Value (USD).

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.

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

The South Korea aerospace & defense market size was valued at USD 15.59 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 28.20 Billion by 2033, exhibiting a CAGR of 6.10% during 2025-2033. The growing number of space exploration activities, increasing focus on modernizing military forces with advanced technologies, and rising need for cybersecurity to protect critical military infrastructure and data from cyber threats represent some of the key factors driving the South Korea aerospace & defense market share.

IoT In Aerospace And Defense Market Size 2025: Report on Growth Factors, Current Trends, Market Size, Analysis, and Projection - 2033