The Aerospace and Defense Market is projected to grow USD 1185.07 billion by 2030, compound annual growth rate of 7.1%
The Business Research Company
The Business Research Company's Aerospace And Defense Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035
LONDON, GREATER LONDON, UNITED KINGDOM, January 16, 2026 /EINPresswire.com/ -- The aerospace and defense market sector has experienced notable expansion recently, reflecting growing investments and technological progress worldwide. This market’s evolution is closely linked to advancements in military and commercial aviation, alongside emerging space exploration activities. Let’s explore the current market size, key growth drivers, regional forecasts, and critical trends shaping this vital industry.
Steady Growth in Aerospace and Defense Market Size
The aerospace and defense market has seen substantial growth over recent years. It is projected to increase from $846.94 billion in 2025 to $899.65 billion in 2026, representing a compound annual growth rate (CAGR) of 6.2%. This historic growth is largely due to breakthroughs in aircraft design and materials, the expansion of commercial aviation fleets, ongoing military modernization programs, heightened geopolitical tensions fueling defense budgets, and the broadening scope of satellite and space exploration efforts.
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Forecasted Expansion Through 2030
Looking ahead, the aerospace and defense industry is expected to continue its strong upward trajectory, reaching $1185.07 billion by 2030 with a CAGR of 7.1%. This forward growth is driven by increasing demand for next-generation military platforms, rising investments in commercial space ventures, widespread adoption of autonomous and unmanned aerial vehicles, a growing emphasis on cybersecurity for defense systems, and a shift toward more sustainable aviation technologies. Key trends anticipated during this period include modernization of military aircraft, greater use of composite materials in manufacturing, enhanced missile defense systems, expansion of commercial space programs, and the integration of multifunctional weapon and command systems.
Defining Aerospace and Defense Equipment
Aerospace entails the design and production of aircraft, rockets, missiles, and spacecraft that operate within and beyond Earth’s atmosphere. Defense equipment covers the weapons, arms, and various military-related devices and machinery employed by armed forces for national security and defense operations.
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Key Factors Fueling Growth in Aerospace and Defense
One of the primary drivers of the aerospace and defense market is the steady rise in defense spending worldwide. Defense budgets allocate critical financial resources to developing and maintaining armed forces as well as procuring military equipment. This funding supports the design, manufacturing, and upkeep of advanced military hardware and technologies. For example, in April 2023, the Stockholm International Peace Research Institute reported that global military expenditure reached $2718 billion in 2024, marking a 9.4% real-term increase from the previous year—the largest annual rise since the Cold War era. This surge in defense budgets plays a significant role in boosting aerospace and defense market growth.
Regional Outlook and Fastest Growing Market
In 2025, North America held the position as the largest aerospace and defense market globally. This region is also forecasted to lead in growth rate throughout the upcoming years. The market analysis encompasses several key regions, including Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive view of the global industry's geographic trends.
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Oliver Guirdham
The Business Research Company
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