IoT in Aerospace & Defense Market Report 2026

The iot in aerospace & defense market size has grown rapidly in recent years. It will grow from $63.56 billion in 2025 to $73.18 billion in 2026 at a compound annual growth rate (CAGR) of 15.1%. The growth in the historic period can be attributed to increasing aircraft fleet sizes, rising defense modernization initiatives, adoption of sensor-based monitoring systems, growth in connected avionics systems, increasing focus on operational efficiency.

The iot in aerospace & defense market size is expected to see rapid growth in the next few years. It will grow to $128.68 billion in 2030 at a compound annual growth rate (CAGR) of 15.2%. The growth in the forecast period can be attributed to increasing investments in smart defense infrastructure, rising demand for autonomous monitoring systems, expansion of cloud-based aerospace analytics, growing focus on cyber-resilient defense networks, increasing use of AI-driven decision support. Major trends in the forecast period include increasing deployment of predictive maintenance systems, rising use of real-time aircraft health monitoring, growing adoption of smart surveillance and security networks, expansion of connected fleet management solutions, enhanced integration of data analytics platforms.

An increase in cyber-attacks on the aviation industry is expected to drive the growth of the IoT in the aerospace and defense market going forward. Cyberattacks refer to unauthorized attempts to access computer systems to steal, expose, alter, disable, or destroy information. IoT authentication within the aviation sector can help ensure essential cybersecurity safeguards, thereby lowering the occurrence of cyber-attacks. For example, in October 2024, Check Point Software Technologies Ltd., an Israel-based cybersecurity company, reported that in the U.S., cyberattacks had surged by 56% year-over-year, with organizations experiencing an average of 1,300 weekly attacks, marking a 10% increase from the previous quarter. Therefore, the rise in cyber-attacks on the aviation industry is contributing to the expansion of the IoT in the aerospace and defense market.

Leading companies in the IoT aerospace and defense market are creating new firmware security solutions to gain a competitive advantage. Firmware security involves the measures and practices implemented to protect the firmware - the permanent software installed in a device's read-only memory (ROM) or flash memory - from unauthorized access, modifications, or malicious actions. For instance, in March 2023, OP[4], a US-based security solutions provider, launched a cybersecurity platform. This innovative security platform is designed to automatically discover and address N-Day and 0-Day vulnerabilities in Internet-of-Things (IoT) devices and embedded systems. OP[4] plans to offer industry-specific versions tailored for the Consumer IoT, Aerospace & Defense, and Telecommunications markets. By simulating the operation of devices, the platform differentiates between active and inactive code to evaluate risk at the binary level. With a fully automated system, OP[4] efficiently detects, isolates, validates, classifies, prioritizes, and remediates vulnerabilities, allowing product development teams to concentrate on critical issues and improve time-to-market efficiency. The platform emphasizes enhancing the developer experience by providing targeted insights and risk prioritization throughout the product development lifecycle.

In February 2024, Cicor, a Switzerland-based electronics firm, acquired TT Electronics IoT Solutions Ltd. for an undisclosed sum. This acquisition aligns with Cicor's broader strategy to enhance its capabilities in the medical technology, industrial, aerospace, and defense sectors. TT Electronics IoT Solutions Ltd. is a UK-based company that provides Internet of Things (IoT) solutions in the aerospace and defense fields.

Major companies operating in the iot in aerospace & defense market are AeroVironment Inc.; AT&T Intellectual Property; FreeWave Technologies Inc.; General Atomics Aeronautical Systems Inc.; Honeywell International Inc.; Northrop Grumman Corporation; Elbit Systems Ltd.; Radisys Corporation; Textron Systems Corporation; Airbus SE; Boeing Company; BAE Systems plc; SAP SE; General Electric Company; Bombardier Inc.; CACI International Inc.; Collins Aerospace; Cubic Corporation; Curtiss-Wright Corporation; Dassault Aviation SA; Embraer SA; General Dynamics Corporation; L3Harris Technologies Inc.; Leonardo SpA; Lockheed Martin Corporation; Moog Inc.; RTX Corporation; Saab AB; Safran SA; Thales Group; United Technologies Corporation; Woodward Inc.

North America was the largest region in the IoT in the Aerospace and Defense market in 2025. The regions covered in the iot in aerospace & defense market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot in aerospace & defense market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs are impacting the IoT in aerospace and defense market by increasing costs of imported sensors, embedded systems, communication modules, and secure networking hardware used across aircraft, ground vehicles, and defense infrastructure. North America and Europe are most affected due to reliance on globally sourced electronics and satellite communication components, while Asia-Pacific faces pricing pressure on export-oriented manufacturing. These tariffs are increasing program costs and extending deployment timelines for large defense contracts. However, they are also driving domestic electronics manufacturing, localized system integration, and long-term investments in sovereign defense IoT ecosystems.

The iot in aerospace & defense market research report is one of a series of new reports that provides iot in aerospace & defense market statistics, including iot in aerospace & defense industry global market size, regional shares, competitors with a iot in aerospace & defense market share, detailed iot in aerospace & defense market segments, market trends and opportunities, and any further data you may need to thrive in the iot in aerospace & defense industry. This iot in aerospace & defense 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.

IoT in aerospace and defense refers to the application of Internet of Things solutions to enhance operational efficiencies and product quality across various activities within the aerospace and defense sector. This technology plays a pivotal role in improving overall flight safety and control, aiming for maximum operating efficiency through features such as predictive maintenance, data analytics, and smart surveillance.

The primary components of IoT in aerospace and defense encompass hardware, software, and services. Hardware involves the physical components and devices that facilitate connectivity, utilizing various technologies such as cellular, Wi-Fi, satellite communication, and radio frequency, deployed in on-premise and cloud environments. The diverse applications of IoT in aerospace and defense include fleet management, inventory management, equipment maintenance, security, and others, catering to space systems, ground vehicles, and various other areas.

The IoT in aerospace and defense market consists of revenues earned by entities by providing IoT-based solutions such as predicting aircraft failure, real-time mission-critical data sharing, improving vehicle maintenance, and safety applications. The market value includes the value of related goods sold by the service provider or included within the service offering. The IoT in aerospace and defense market also includes sales of climate control, wearable technology, and radio frequency identification are used in providing IoT-based solutions. 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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