Aerospace Market Report 2026

The aerospace market size has grown steadily in recent years. It will grow from $340.04 billion in 2025 to $356.93 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to increasing global air travel driving demand for commercial aircraft production, expansion of MRO services to support aging commercial fleets, development of advanced aircraft components improving efficiency and safety, rising adoption of drones and ultralight aircraft in commercial applications, growth in aircraft modification and overhaul activities driven by fleet modernization cycles.

The aerospace market size is expected to see strong growth in the next few years. It will grow to $445.64 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to growing demand for next-generation fuel-efficient aircraft across global airlines, increasing investment in advanced manufacturing technologies for aircraft components, expansion of commercial drone applications requiring specialized aerospace production capabilities, rising need for comprehensive MRO solutions as global fleets continue to grow, development of sustainable aviation technologies influencing future aircraft design and support services. Major trends in the forecast period include increasing demand for fuel-efficient aircraft, expansion of mro capabilities across emerging markets, rising adoption of composite materials in aircraft manufacturing, growth in commercial aircraft deliveries driven by air travel demand, increasing investments in advanced aerospace support equipment.

The overall economic growth in emerging economies is anticipated to have a positive effect on the commercial aircraft manufacturing market. Increased disposable income, stemming from this economic growth, is expected to boost the demand for air travel. For instance, in April 2024, the International Monetary Fund, a US-based financial agency, projected that the global economy would sustain a growth rate of 3.2% in both 2024 and 2025, consistent with the pace observed in 2023. Additionally, developed economies are expected to experience stable growth during the forecast period, while emerging markets are predicted to continue growing at a slightly faster rate than their developed counterparts. This stable economic growth is likely to lead to increased investments in national security, thereby propelling the aerospace market during the forecast period.

Major players in the aerospace market are increasingly focusing on establishing technology hubs, such as Izon, to enhance their competitive position. Aerospace technology hubs are strategic geographic locations that bring together technology-based companies, startups, and other organizations engaged in the aerospace sector. For example, in September 2024, Honeywell, a US-based multinational conglomerate specializing in technology and manufacturing across various sectors, including aerospace, launched an innovation hub at Arizona State University’s Tempe campus in collaboration with the Ira A. Fulton Schools of Engineering. This partnership aims to equip students with essential engineering skills to tackle the critical challenges facing the aerospace industry. The creation of the Honeywell Innovation Hub underscores the company's commitment to aligning its portfolio with three significant megatrends, including advancements in aviation.

In July 2024, Boeing, a U.S.-based aerospace and defense company, acquired Spirit AeroSystems for $8.3 billion. The acquisition is intended to strengthen Boeing’s market position by incorporating Spirit’s expertise in fuselage and wing structures, streamlining its supply chain, improving production quality, and broadening its product portfolio to provide greater value to customers and shareholders. Spirit AeroSystems is a U.S.-based manufacturer of aerostructures for commercial and military aircraft.

Major companies operating in the aerospace market are Airbus Group, The Boeing Company, United Technologies Corporation, General Electric Company, Safran S.A., Honeywell International, Rolls-Royce Holdings Plc., Embraer S.A., Bombardier, Cessna (Textron Aviation), Dirgantara Indonesia, BAE Systems, Raj Hamsa Ultralights, Leonardo, Meggitt PLC, Honda Aircraft Company, GKN, Mitsubishi Aircraft Corporation, Mahindra Aerospace, IHI Corporation, Hindustan Aeronautics Limited (HAL), Kawasaki Aerospace Company, PD AeroSpace, Thales Japan, L3Harris Technologies Inc., TransDigm Group Incorporated, Arconic Inc., Britten-Norman, Pilatus Aircraft Ltd., Commercial Aircraft Corporation of China (COMAC), Superior Aviation Beijing Co., Indian Rotorcraft, Foxcon Aviation, ShinMaywa Aircraft Industries, Aviation Industry Corporation of China (AVIC), Drone Aerospace Systems Pvt Ltd., Dassault Aviation SA, Cobham plc, JAMCO Corporation, QinetiQ, Textron Inc., Hybrid Air Vehicles (HAV)

North America was the largest region in the aerospace market in 2025. North America is expected to be the fastest growing region in the forecast period. The regions covered in the aerospace market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the aerospace market by raising costs for imported aircraft components, engines, avionics, and specialized materials, disrupting production timelines and increasing operational expenses for manufacturers and MRO providers. These effects are most pronounced in commercial aircraft manufacturing, MRO services, and aerospace support equipment across regions heavily reliant on cross-border supply chains, particularly North America, Europe, and Asia-Pacific. While tariffs have slowed procurement and increased price pressures, they have also encouraged regional manufacturing expansion, local sourcing, and strategic collaborations that strengthen domestic aerospace capabilities.

The aerospace market research report is one of a series of new reports that provides aerospace market statistics, including aerospace industry global market size, regional shares, competitors with an aerospace market share, detailed aerospace market segments, market trends and opportunities, and any further data you may need to thrive in the aerospace industry. This aerospace market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The aerospace sector encompasses a diverse range of activities, including the production of commercial aircraft, aircraft maintenance, repair, and overhaul services, as well as the manufacturing of auxiliary equipment for civilian and commercial purposes. This industry involves companies engaged in developing prototypes and manufacturing or assembling complete aircraft and aircraft parts for commercial applications. Additionally, it includes entities providing modifications, conversions, repair, parts replacement, and comprehensive overhauling and rebuilding services for commercial aircraft. Various types of aircraft, such as gliders, helicopters, drones, ultra-light aircraft, passenger aircraft, and private jets, are manufactured within this industry.

The main categories within the aerospace sector include commercial aircraft, aircraft maintenance, repair, and overhaul services, aerospace support, and auxiliary equipment. Aircraft maintenance, repair, and overhaul services encompass activities related to the upkeep, repair, and comprehensive overhauling of commercial aircraft, including helicopters, gliders, drones, aircraft turbines, aircraft engines, and rocket engines. These aircraft come in different sizes, including wide-body, narrow-body, regional, and others, and can be operated in both autonomous and manual modes. The aerospace industry serves both government and private sector needs.

The countries covered in the aerospace market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The aerospace market consists of sales of civilian and commercial aircraft, aircraft components, MRO services, and aerospace equipment support. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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