Aerospace and Defense Global Market Report 2024

The aerospace & defense market size has grown rapidly in recent years. It will grow from $884 billion in 2023 to $985.56 billion in 2024 at a compound annual growth rate (CAGR) of 11.5%. The growth observed in the historical period can be attributed to several key factors, including the growth of emerging markets, increased demand for air travel, rising military expenditure, the expanded utilization of military drones, and advancements in the development of autonomous fighter jets. These factors collectively contributed to the growth of the aerospace and defense sector during the historical period.

The aerospace & defense market size is expected to see strong growth in the next few years. It will grow to $1234.42 billion in 2028 at a compound annual growth rate (CAGR) of 5.8%. Anticipated growth is driven by government support, increasing urbanization, widespread use of lightweight materials, commercial drone utilization, growing demand for military helicopters, and rise in military modernization programs.

The current period is characterized by low interest rates in developed countries, facilitated by deliberate measures by monetary authorities to encourage economic growth and prevent deflation. These low rates have led to the availability of inexpensive capital for investment within these economies. The reduction in interest rates has promoted borrowing for investment purposes and stimulated overall spending. A notable example occurred during the COVID-19 pandemic, where emergency actions by the Federal Reserve resulted in historic lows for mortgage interest rates in 2020 and 2021, dropping below 3%. Such low-interest rates are anticipated to augment the growth trajectory of the aerospace and defense markets throughout the forecast period.

An anticipated increase in defense spending is expected to drive the future growth of the aerospace and defense market. Defense spending refers to the financial resources allocated by a nation for the maintenance and establishment of its armed forces or essential defense mechanisms. This budgeting supports the aerospace and defense industry, which encompasses the development, production, and maintenance of military equipment. Notably, the budget designated for the aerospace and defense sectors is a component of the broader defense expenditure, which funds various activities pertinent to national defense. For instance, data from the Stockholm International Peace Research Institute (SIPRI) in April 2023 revealed a 3.7% real-term increase in global military expenditure in 2022, reaching a record high of $2,240 billion. Notably, Europe witnessed a significant rise of 13% in military spending during the year, marking the largest annual increase in total European spending since the post-Cold War era. Hence, the escalation in defense spending serves as a prime driver propelling the growth of the aerospace and defense market.

The integration of 8K video capture technology with drones is significantly enhancing the quality of images and videos captured by these aerial vehicles. 8K technology offers an elevated horizontal display resolution, delivering imagery with superior detail compared to standard HD. Drones equipped with 8K cameras not only offer higher precision but also enable the capture of high-resolution footage during autonomous flights. A notable example includes Autel, which has incorporated 8K cameras into its EVO series of drones, thereby ensuring advanced imaging capabilities for their aerial platforms.

Major players within the aerospace and defense industry are increasingly adopting a strategic partnership approach to collaborate on various aspects associated with aerospace and defense endeavors. Strategic partnerships involve diverse entities such as governmental agencies, private firms, and research institutions leveraging each other's strengths and resources to attain mutual benefits and achieve shared objectives. A noteworthy instance involves the Ministry of Defense of India collaborating with the U.S. Department of Defense in September 2021. This collaboration culminated in a project agreement (PA) focused on the development of an air-launched unmanned aerial vehicle (ALUAV). Such collaborative efforts signify a significant stride in expanding defense technology cooperation between the two nations. Considering the aerospace and defense industry's substantial contributions to the economic progress of both India and the United States, the ALUAV project is poised to propel technological advancements within the aerospace sector through joint development initiatives.

Major companies operating in the aerospace and defense market report are Airbus Group SE, Lockheed Martin Corporation, Raytheon Technologies Corporation, The Boeing Company, Northrop Grumman Corp, General Dynamics, General Electric Company, Bae Systems PLC, Safran SA, Thales, Hindustan Aeronautics Ltd., Team Indus, Rolls Royce India, Bharat Electronics Limited (BEL), Drone Aerospace Systems Pvt Ltd., Indian Rotorcraft, Mahindra Aerospace, Raj Hamsa Ultralights, Commercial Aircraft Corporation of China Ltd. (COMAC), Shanghai aircraft manufacturing factory, Aviation Industry Corporation of China, Superior Aviation Beijing Co., Honeywell International Inc., Bombardier Inc., Embraer, McDonnell Douglas, Cessna, Almaz-Antey, United Aircraft Corporation, Tactical Missiles Corporation, Uralvagonzavod, Textron Inc., Pilatus Aircraft Ltd., Leonardo SpA, Dassault Aviation SA, Piper Aircraft Inc., Honda Aircraft Company, Precision Castparts Corp, Spirit AeroSystems Inc., TransDigm Group Incorporated, Advanced Composites Solutions, AEL Sistemas, Airship do BrasilOneWeb, Telespazio, ARSAT, Cirrus Aircraft Corp., Israel Aerospace Industries, Iran Aircraft Manufacturing Industries, Saudi Arabian Military Industries (SAMI), Advanced Electronics Company, Abu Dhabi Ship Building (ADSB), DragonFly Aerospace, Armscor, Atlas Aircraft Corporation.

North America was the largest region in aerospace & defense market in 2023. North America is expected to be the fastest growing region in the forecast period. The regions covered in the aerospace and defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the aerospace and defense market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa. The aerospace and defense market consists of sales of aircraft, aircraft components, weapons, artillery tanks, and radar equipment for aerospace and defense purposes. 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 primary types within the aerospace and defense sector include aerospace and defense. The aerospace industry comprises companies engaged in developing prototypes, as well as the manufacturing or assembling of complete aircraft and aircraft parts for commercial purposes. Aircraft within this industry can be operated in both autonomous and manual modes. Various components of the aerospace and defense sector include weapon systems, fire control systems, command and control systems, and other related elements.

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

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.