Military Aerospace and Defense Lifecycle Management Market Report 2026

The military aerospace and defense lifecycle management market size has grown strongly in recent years. It will grow from $10.47 billion in 2025 to $11.4 billion in 2026 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to rising need for obsolescence management in aging defense aircraft fleets, early adoption of digital twin solutions for lifecycle cost reduction, expansion of sustainment and maintenance services for long-duration aircraft programs, increasing use of asset tracking systems for operational readiness, development of mission planning tools to support complex aerospace operations.

The military aerospace and defense lifecycle management market size is expected to see strong growth in the next few years. It will grow to $15.85 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to wider integration of predictive analytics to optimize fleet performance, growing adoption of fully digital lifecycle management ecosystems across defense programs, increasing investment in condition-based maintenance sensors and automation, expansion of end-of-life and disposal management services due to fleet retirements, enhanced use of data-centric platforms to streamline cross-platform aerospace logistics. Major trends in the forecast period include growth in digital twin adoption, rising demand for predictive maintenance solutions, increasing focus on obsolescence management, expansion of mission simulation and planning tools, enhanced integration of lifecycle data management systems.

The increasing defense investments are expected to drive the growth of the military aerospace and defense lifecycle management market going forward. Defense investments refer to the allocation of funds by a government or organization to develop, upgrade, and maintain military equipment, technologies, and infrastructure aimed at enhancing national defense and security capabilities. These investments are rising as nations prioritize the modernization of military technologies to strengthen strategic capabilities and ensure national security amid global uncertainties. Defense investments support military aerospace and defense lifecycle management by funding the development, maintenance, and modernization of systems, ensuring operational efficiency, technological advancement, and long-term mission readiness. For instance, in September 2025, according to the Ministry of Defence, a UK-based government department, UK government spending in the defense industry for the 2024/25 financial year is projected to increase by 6% in real terms, bringing total expenditure to approximately $40.3 billion (₤31.7 billion). Therefore, the rising defense investments are expected to propel the growth of the military aerospace and defense lifecycle management market.

Key companies in the military aerospace and defense lifecycle management market are increasingly focusing on advanced lifecycle management solutions, such as aerospace and defense startup acceleration ecosystems, to drive technological innovation, strengthen collaboration, and accelerate the adoption of next-generation digital solutions. An aerospace and defense startup acceleration ecosystem refers to a collaborative platform that helps emerging startups develop and scale advanced technologies through industry partnerships, innovation funding, and access to digital engineering tools. For instance, in July 2025, PTC Inc., a US-based computer software company, launched an aerospace and defense startup acceleration ecosystem aimed at accelerating innovation in the aerospace and defense sectors by providing early- and growth-stage startups free access to advanced product development tools including Creo+, Onshape, Codebeamer+, and Arena. The program enables startups to rapidly design complex, compliant, and mission-critical systems by offering software resources, mentorship, connections with venture capitalists, technology partners, and prime contractors, as well as guidance on non-dilutive funding. This initiative targets innovation in areas such as artificial intelligence, drones, cybersecurity, and directed energy, helping startups bring transformative technologies to market efficiently while overcoming modern aerospace and defense development challenges.

In October 2024, Siemens AG, a Germany-based technology company, acquired Altair Engineering Inc. for approximately $10 billion. Through this acquisition, Siemens aims to integrate Altair’s advanced simulation, data science, and artificial intelligence capabilities into its comprehensive portfolio, strengthening its digital business ecosystem and enabling customers to accelerate digital transformation while advancing sustainability initiatives across industries. Altair Engineering is a US-based provider of industrial simulation and analysis software, including solutions for aerospace and defense lifecycle management.

Major companies operating in the military aerospace and defense lifecycle management market are Siemens AG; Airbus SE; Lockheed Martin Corporation; Northrop Grumman Corporation; Honeywell International Inc.; General Electric Aerospace; Mitsubishi Heavy Industries Ltd.; Leidos Holdings Inc.; Jacobs Engineering Group Inc.; Kawasaki Heavy Industries Ltd.; Booz Allen Hamilton Holding Corporation; Rheinmetall AG; Dassault Systèmes SE; Amentum Services Inc.; Elbit Systems Ltd.; Israel Aerospace Industries Ltd.; SAAB AB; Kongsberg Gruppen ASA; Infor Inc.; PTC Inc.; Cyient Limited; Aras Corporation; Rafael Advanced Defense Systems Ltd.

North America was the largest region in the military aerospace and defense lifecycle management market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the military aerospace and defense lifecycle management 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 on aerospace components, electronics, and advanced digital systems have raised procurement and production costs across lifecycle management solutions, particularly affecting hardware-intensive areas such as condition-based maintenance sensors, mission planning systems, and asset monitoring platforms. Regions dependent on imported materials especially Asia-Pacific and Europe face delayed modernization schedules and higher integration expenses. However, tariffs also encourage domestic manufacturing, stimulate local innovation in lifecycle technologies, and reduce long-term reliance on foreign supply chains, benefiting national defense resilience.

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

Military aerospace and defense lifecycle management refers to the comprehensive and strategic process of managing every phase in the lifespan of defense and aerospace systems, starting from design and development to production, deployment, maintenance, and final decommissioning. It aims to ensure that military assets remain operationally effective, technologically advanced, and cost-efficient by integrating engineering, digital tools, and logistics management across their entire lifecycle.

The key types of military aerospace and defense lifecycle management include product lifecycle management (PLM) and service lifecycle management (SLM). Product lifecycle management involves the digital management of all stages of defense equipment, from concept and design to production and retirement. It encompasses various product categories such as aircraft systems, missile and munition systems, naval systems, ground defense systems, intelligence, surveillance, and reconnaissance (ISR) systems, simulation and training systems, and technologies such as artificial intelligence and machine learning, cloud computing, cybersecurity solutions, big data analytics, the Internet of Things (IoT), advanced robotics, and automation. Key end-users include military organizations, defense contractors, government agencies, private security firms, and commercial aviation and aerospace entities.

The countries covered in the military aerospace and defense lifecycle management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The military aerospace and defense lifecycle management market consists of revenues earned by entities by providing services such as obsolescence management, digital twin and predictive analytics, sustainment services, end-of-life and disposal management, and fleet management. The market value includes the value of related goods sold by the service provider or included within the service offering. The military aerospace and defense lifecycle management market also includes sales of mission planning and simulation systems, asset tracking and monitoring systems, condition-based maintenance sensors, and data management systems. 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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