Aerospace and Defence Market Report 2025 (Global Edition)

Aerospace and Defence Market Overview

The aerospace and defense market is undergoing substantial growth and transformation as a result of the resurgence of commercial air travel post-pandemic, increased defense expenditure, and advancements in technology. The global aerospace and defense market size was USD 742 billion in 2023, and it will be USD 800 billion in 2024. This expansion corresponds to a compound annual growth rate (CAGR) of 4.5%. Passenger traffic is anticipated to increase by 7.8% in 2023 and 6.1% in 2024 as the commercial aerospace sector is experiencing a robust recovery.

The demand for fuel-efficient models is expected to drive aircraft deliveries to surpass 1,800 units in 2023 and 1,900 units in 2024. The global defense budget is increasing, with a USD 2.1 trillion in expenditures in 2023, a 3% increase from the previous year. It will persist into 2024, with a growth rate of 2.5%. The United States continues to be the largest defense spender, with a market size of USD 858 billion in 2023, which will increase to USD 875 billion in 2024. China's defense budget increased to USD 260 billion in 2023 and it will be USD 275 billion in 2024, among other notable increases. The market is undergoing a revolution as a result of the incorporation of digital technologies, such as artificial intelligence (AI), machine learning, and big data analytics.

In 2023, around 45% of aerospace and defense companies reported having implemented AI solutions, and this figure will increase to 55% by 2024. The aerospace and defense 3D printing market size is USD 2.8 billion and will increase to USD 3.5 billion in 2024,as the adoption of 3D printing technologies is accelerating. The investment in electric and hybrid-electric aircraft technologies is increasing. In 2024, the electric aircraft market size will be USD 23 billion and will expand at a compound annual growth rate (CAGR) of 12% in 2024.

Top Countries countributing to Aerospace and Defence Market

United States (2024 Market Size: USD 875 billion)

The United States defence market size was USD 858 billion in 2023, as it maintained its dominance in the aerospace and defense sector. This represents a substantial increase from the previous year, which is indicative of the nation's ongoing emphasis on strategic capabilities and defense modernization. The commercial aerospace market also experienced growth, with aircraft deliveries surpassing 1,800 units. The United States defence market size will be USD 875 billion in 2024, further solidifying its status as the world's largest defense spender. The utilization of aerospace and defense capabilities is primarily driven by the following sectors: military aircraft, missile defense systems, space exploration, and satellite technologies. The United States is responsible for over 40% of the total expenditure in the global aerospace and defense market, which is a significant portion. Furthermore, the United States is a leader in the development of advanced armament systems, uncrewed aerial vehicles (UAVs), and artificial intelligence. The aerospace and defense sector employs a highly skilled workforce that is concentrated on cybersecurity, engineering, and research and development.

Russia (2024 Market Size: USD 70 billion)

According to cognitive market research, the aerospace and defence market in Russia was USD 65 billion in 2023. The nation's defense industry is renowned for its proficiency in the fields of electronic warfare, space technologies, missile systems, and military aircraft. The Russia aerospace and defence market size will be USD 70 billion in 2024, is a reflection of the ongoing modernization efforts and strategic priorities. Russia holds a substantial portion of the global aerospace and defense market, with a particular emphasis on satellite technologies, advanced armaments, and space exploration. Space exploration, missile defense systems, and military aviation are the primary sectors that drive utilization. Hypersonic missile systems, satellite launch capabilities, and advanced radar technologies are among the technological advancements that have been made in Russia. The aerospace and defense workforce in Russia is highly competent, with a strong emphasis on innovation and research in defense technologies.

China (2024 Market Size: USD 275 billion)

The China's aerospace and defence market size was USD 260 billion in 2023. The nation's defense industry is concentrated on the development of military aircraft, naval capabilities, missile systems, and space technologies. The market size of aerospace and defence in China will be USD 275 billion in 2024, further solidifying China's status as one of the world's largest defense spenders. Driven by its substantial investments in research, development, and production, China holds a 15% of the global aerospace and defense market. Military aviation, naval defense systems, and satellite technologies are among the primary sectors in China that employ aerospace and defense capabilities. Technology advancements in China encompass the development of unmanned systems, satellite technologies, and hypersonic weapons. China's aerospace and defense workforce is expanding, with an emphasis on attaining self-sufficiency in defense technologies and improving domestic capabilities.

France (2024 Market Size: USD 58 billion)

In 2023, France's aerospace and defense market size was USD 55 billion and will be USD 58 billion in 2024. The nation's defense market is distinguished by its proficiency in cybersecurity, missile systems, aerospace technologies, and military aircraft. France holds a substantial portion of the global aerospace and defense market, with a particular emphasis on aerospace technologies, defense electronics, and space research. In France, military aviation, space exploration, and cybersecurity are among the primary sectors that employ aerospace and defense capabilities. Next-generation fighter aircraft, cybersecurity solutions, and satellite launch capabilities are among the technological advancements that have been made in France. The aerospace and defense workforce in France is highly trained, with a strong emphasis on research, development, and collaboration with international partners.

United Kingdom (2024 Market Size: USD 65 billion)

The defence market in United Kingdom was USD 60 billion in 2023, indicating that the aerospace and defense sector remained robust. The nation's defense industry is renowned for its proficiency in the fields of military aircraft, naval capabilities, cybersecurity, and space technologies. The United Kingdom defence market size will be USD 65 billion in 2024, as a result of ongoing strategic alliances and modernization initiatives. The United Kingdom holds a substantial portion of the global aerospace and defense market, with a particular emphasis on satellite communications, defense electronics, and aerospace engineering. Military aviation, cybersecurity, and space exploration are among the primary sectors in the United Kingdom that employ aerospace and defense capabilities. Next-generation fighter aircraft, satellite constellations, and green aviation initiatives are among the technological advancements that have been made in the United Kingdom. The aerospace and defense workforce in the United Kingdom is highly competent, with a strong emphasis on innovation and collaboration within the industry.

Germany (2024 Market Size: USD 48 billion)

According to cognitive market research, the Germany's aerospace and defense market size was USD 45 billion. Military aircraft, missile systems, cybersecurity, and space technologies comprise the nation's defense industry. Germany's dedication to international security partnerships and defense modernization is expected to result in the aerospace and defense market reaching USD 48 billion in 2024. Germany is a significant player in the global aerospace and defense market, with a particular emphasis on cybersecurity solutions, defense electronics, and aerospace engineering. Military aviation, missile defense systems, and space exploration are among the primary sectors in Germany that employ aerospace and defense capabilities. German technological advancements encompass satellite communications, drone technologies, and green aviation initiatives. The aerospace and defense workforce in Germany is highly competent, with an emphasis on international collaboration, sustainability, and innovation.

Japan (2024 Market Size: USD 50 billion)

The Japan's defense market size was USD 47 billion in 2023, indicating that Japan's aerospace and defense sector remained robust. The defense industry of the nation is renowned for its proficiency in the development of military aircraft, naval capabilities, missile systems, and space technologies. Due to strategic priorities and regional security challenges, Japan's defense market is projected to reach USD 50 billion in 2024. Japan holds a substantial portion of the global aerospace and defense market, with a particular emphasis on aerospace manufacturing, defense electronics, and space exploration. Military aviation, maritime defense systems, and satellite technologies are among the primary sectors in Japan that employ aerospace and defense capabilities. Autonomous systems, cybersecurity solutions, and satellite navigation are among the technological advancements that Japan has made. The aerospace and defense workforce in Japan is highly competent, with a strong emphasis on international partnerships and technological innovation.

India (2024 Market Size: USD 80 billion)

In 2023, India's aerospace and defense market size was USD 75 billion. The nation's defense industry is concentrated on the development of military aircraft, naval capabilities, missile systems, and space technologies. The aerospace and defence market size will be USD 80 billion in 2024, which is indicative of its strategic priorities and modernization initiatives. Driven by its expanding defense capabilities and partnerships with international partners, India holds 5% of global aerospace and defense market share. The primary sector in India that employ aerospace and defense capabilities are space exploration, naval defense systems, and military aviation. In India, technological advancements encompass the development of uncrewed aerial vehicles (UAVs), satellite technologies, and missile defense systems. The aerospace and defense workforce in India is expanding and highly competent, with an emphasis on indigenous production and innovation.

Israel (2024 Market Size: USD 22 billion)

In 2023, Israel's aerospace and defense market maintained its innovative and dynamic nature, with a market size of USD 20 billion. The nation's defense industry is renowned for its proficiency in space technologies, cybersecurity, uncrewed aerial vehicles (UAVs), and missile defense systems. Due to Israel's ongoing commitment to national security and technological innovation, its defense market is projected to reach USD 22 billion in 2024. Israel holds a substantial portion of the global aerospace and defense market, with a particular emphasis on cybersecurity solutions, uncrewed aerial vehicles (UAVs), and missile defense technologies. Defense electronics, aerospace engineering, and space exploration are among the primary sectors in Israel that employ aerospace and defense capabilities. Technological advancements in Israel encompass satellite communications, drone technologies, and sophisticated cybersecurity solutions. The aerospace and defense workforce in Israel is highly competent, with a strong emphasis on innovation, research, and collaboration with international partners.

South Korea (2024 Market Size: USD 42 billion)

According to cognitive market research, the South Korea's aerospace and defense market size will be USD 40 billion in 2023. The nation's defense industry is concentrated on the development of military aircraft, naval capabilities, missile systems, and space technologies. The aerospace and defence market in South Korea will be USD 42 billion in 2024, which is indicative of its strategic priorities and regional security challenges. South Korea holds a substantial portion of the global aerospace and defense market, with a particular emphasis on defense electronics, naval defense systems, and space research. Military aviation, maritime defense, and satellite technologies are the primary sectors in South Korea that employ aerospace and defense capabilities. Autonomous systems, radar technologies, and cybersecurity solutions comprise South Korea's technological advancements. The aerospace and defense workforce in South Korea is highly competent, with a strong emphasis on international partnerships and technological innovation.

Key Players of Aerospace and Defence Market

Boeing (2024 Market Size: USD 60 billion)

The aerospace and defense market size of Boeing's was USD 58 billion in 2023, and it will be USD 60 billion in 2024. Boeing invests substantially in aerospace innovation through its annual research and development (R&D) expenditure of USD 5 billion. Boeing is involved in a variety of significant business sectors, such as Commercial Airplanes, Defense, Space & Security, and Global Services. Defense, Space & Security is Boeing's primary business segment, which is significantly influenced by the aerospace and defense sectors. This sector includes products and services that are associated with satellite technologies, space exploration, defense systems, and military aircraft. Boeing's market share in the global aerospace and defense market is 20%. Boeing's extensive product portfolio, technological capabilities, and market presence in numerous regions are the foundations of this share. Boeing, one of the world's foremost aerospace and defense corporations, is instrumental in the industry's evolution and the promotion of innovation.

Lockheed Martin (2024 Market Size: USD 68 billion)

In 2023, Lockheed Martin's aerospace and defense market size was USD 65 billion, and it will be USD 68 billion in 2024. The company invests USD 7 billion annually in aerospace and defense technologies, allocating a substantial portion of its revenue to research and development. Aeronautics, Rotary and Mission Systems, Space, and Missiles and Fire Control comprise Lockheed Martin's principal business segments. Lockheed Martin's operations are fundamentally centered on the aerospace and defense sector, which encompasses all main segments and emphasizes military aircraft, missile systems, space exploration, and defense technologies. Lockheed Martin is a significant participant in the global aerospace and defense market, with a market share of 15%. Lockheed Martin's substantial share of the market is indicative of its status as a premier provider of sophisticated aerospace and defense solutions, with a robust presence in both domestic and international markets. Its strategic partnerships and innovative products substantially influence the company's market influence.

Airbus Group (2024 Market Size: USD 52 billion)

Airbus Group's aerospace and defense Market Size was sector was USD 50 billion in 2023, and it will be USD 52 billion in 2024. The organization allocates USD 4.5 billion annually to aerospace and defense technologies in its research and development initiatives. Commercial Aircraft, Defense and Space, and Helicopters comprise Airbus Group's principal business segments. The Defense and Space segment is the primary focus of Airbus Group's operation, which is significantly influenced by the aerospace and defense sector. Airbus Group's holds 15% of the global aerospace and defence market share. This sector includes satellite technologies, space exploration, defense systems, and military aircraft.  This share is predicated on the global market presence, strong technological capabilities, and diverse product portfolio of the Airbus Group. The company's competitive position in the industry is bolstered by its strategic collaborations and emphasis on innovation.

Raytheon Technologies (2024 Market Size: USD 58 billion)

In 2023, Raytheon Technologies aerospace and defense market size was USD 55 billion and will be USD 58 billion in 2024. The company prioritizes research and development, allocating USD 6 billion annually to the advancement of aerospace and defense technologies. Intelligence & Space, Defense & Cyber, Pratt & Whitney (Aircraft Engines), and Collins Aerospace (Aircraft Systems and Services) are among the significant business segments in which Raytheon Technologies is involved. The aerospace and defense sector is a primary concentration in these segments, offering a variety of products and services such as military aircraft systems, defense electronics, aerospace technologies, and cybersecurity solutions. Raytheon Technologies holds 12% of the global aerospace and defence market share. The company's proficiency in the provision of innovative solutions for defense, space, and intelligence applications is illustrated by this share. Raytheon Technologies' market influence is bolstered by its technological advancements and robust customer relationships.

Northrop Grumman (2024 Market Size: USD 42 billion)

According to cognitive Market research, Northrop Grumman's aerospace and defense market size was USD 40 billion in 2023 and will be USD 42 billion in 2024. The corporation is dedicated to the advancement of aerospace and defense capabilities, with an annual R&D expenditure of USD 4.2 billion. Northrop Grumman is engaged in significant business segments, including Aerospace Systems, Mission Systems, and Defense Systems. Northrop Grumman's primary concentration is the aerospace and defense sector, which encompasses areas such as military aircraft, defense electronics, space systems, and cybersecurity solutions. Northrop Grumman accounts for 10% of the global aerospace and defence market share. The company's market share is derived from its diverse portfolio of products and services, which includes mission-critical solutions, defense systems, and advanced aerospace technologies. Northrop Grumman's competitive position in the industry is bolstered by its strategic partnerships and innovation.