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).

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

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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

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 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 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).

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 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.

Discover Market Research Intellect's Cfd In Aerospace And Defense Market Report, worth 2.5 billion USD in 2024 and projected to hit 4.1 billion USD by 2033, registering a CAGR of 6.5% between 2026 and 2033.Gain in-depth knowledge of emerging trends, growth drivers, and leading companies.

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.

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).

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

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.

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

The global 3D printing in aerospace and defense market size was USD 2.71 billion in 2024 & is projected to grow from USD 3.41 billion in 2025 to USD 21.82 billion by 2033.
Report Scope:

The India aerospace and defence market is witnessing remarkable growth, driven by various government initiatives like 'Make in India' and increased defence budgets. As of 2024, the market size was estimated at USD 28.68 Billion and is projected to grow at a CAGR of around 7.10% through 2034. This growth is expected to propel the market to attain USD 56.95 Billion due to the heightened defence requirements, technological advancements, and the emphasis on indigenous manufacturing and self-reliance.

Directed-energy weapons and hypersonic missile systems have been successfully tested by the Defence Research and Development Organisation (DRDO), boosting the country's strategic ability. The Combat Air Teaming System (CATS) Warrior, an unmanned combat aerial vehicle designed by Hindustan Aeronautics Limited (HAL), showcases advancements in autonomous systems. The Aero India 2025 show featured the latest technologies, such as AI-based solutions and stealth aircraft, demonstrating India's focus on innovation and international cooperation. These technologies, combined with greater private sector involvement and international collaborations, establish India as an emerging leader in the international aerospace and defence sector.

The growth in defence exports and the development of two defence industrial corridors in Uttar Pradesh and Tamil Nadu are two main factors augmenting the demand for aerospace and defence innovations in India. The corridors are leading to the formation of clusters for manufacturing and innovation, attracting both indigenous and foreign firms. Defence exports increased to more than INR 16,000 crore in FY24, a sign of increasing international faith in India's capabilities, thus driving the growth of the India aerospace and defence market.

The Indian military is significantly advancing its electronic warfare and unmanned aerial vehicle (UAV) capabilities, focusing on enhancing border surveillance and tactical responsiveness. Simultaneously, the development of dual-use airfields and drone testing corridors in states like Andhra Pradesh and Gujarat is accelerating. These infrastructures are designed to support indigenous drone manufacturing, facilitate rapid deployment, and encourage private-sector innovation aligned with national security and self-reliance goals under the Make in India initiative.

Aerospace component and MRO (Maintenance, Repair, and Overhaul) service demand is also on the rise. India's commercial aviation industry is thriving with growth in fleet size by airlines such as IndiGo and Air India. In support of this growth, India is creating its own local MRO capacity, lowering reliance on global hubs and reducing operational costs for carriers. For example, Air India and Tata Advanced Systems signed an MoU in February 2024 to build a 35-acre MRO complex at Kempegowda International Airport, supporting wide-body and narrow-body aircraft maintenance, operational by early 2026.

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.

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.