What is the Historical Analysis of the Aerospace And Defense Market Size?
The aerospace and defense market has seen considerable growth due to a variety of factors.
• In the past few years, there has been a significant expansion in the size of the aerospace and defense market. The projection is that it will increase from $820.67 billion in 2024 to $875.37 billion in 2025, boasting a compound annual growth rate (CAGR) of 6.7%.
Factors contributing to this growth during the historical period include the rise of emerging markets, heightened demand for air travel, surges in military spending, the escalating utilization of military drones, and the continued development of autonomous fighter jets.
What is the Forecasted Growth of the Aerospace And Defense Market Size?
The aerospace and defense market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for substantial expansion in the aerospace and defense market over the next few years, with forecasts predicting its value to surge to $1098.86 billion by the year 2029.
This predicted growth of 5.8% compound annual growth rate (CAGR) may be due to factors such as governmental assistance, increased urbanization, the use of more lightweight materials, commercial drone usage, growing demand for military helicopters, and comprehensive military modernization initiatives. Some of the anticipated trends during this period include drone manufacturers implementing 3D printing technology, digital twin and digital thread for performance enhancement, merger and acquisition activities as well as use of cloud-based technology. Improvements in design and modularity of military weaponry, the incorporation of AI, advanced technology for light weaponry camouflaging, and utilizing aircraft health monitoring system (AHMS) for improving the efficiency of maintenance and repair processes are also expected. Additionally, the use of edge computing in defense, unmanned combat vehicles, augmented and virtual reality, laser technology, and drones for efficient maintenance are other likely trends. Investments in electric aircrafts and the potential impact of blockchain on aircraft production are also anticipated in the forecast period.
What Main Forces Are Fueling Expansion In The Aerospace And Defense Market?
Throughout the projected timeline, advanced nations are expected to see a decrease in interest rates. This is due to central banks lowering rates in an effort to spur economic development and curb deflation. This development has resulted in a surge of affordable investment capital in these economies. The lower rates have facilitated investment borrowing and spurred expenditures. For instance, the Mortgage Reports, a U.S. media firm focusing on mortgage news, reported in September 2023 that mortgage interest rates plummeted to record levels in 2020 and 2021 amid the Covid pandemic. Emergency measures implemented by the Federal Reserve helped push mortgage rates below 3% and maintained them at that level. These low interest rates are expected to significantly contribute to the expansion of the aerospace and defense markets in the upcoming years.
What Is The Segmentation Of The Global Aerospace And Defense Market?
The aerospace and defense market covered in this report is segmented –
1) By Type: Aerospace, Defense
2) By Operation: Autonomous, Manual
3) By Component: Weapon System, Fire Control System, Command and Control System, Other Components
Subsegments:
1) By Aerospace: Commercial Aviation, Business Aviation, General Aviation, Space, Helicopters, Unmanned Aerial Vehicles (UAVs)
2) By Defense: Military Aircraft, Naval Defense, Land Defense, Missile Defense Systems, Cybersecurity, Military UAVs
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What Emerging Trends Are Shaping The Aerospace And Defense Market Landscape?
Drones are being equipped with 8K video capture technology to improve the image and video quality they produce. The superior horizontal display resolution of 8K technology presents images with greater detail than traditional HD. Drones fitted with 8K cameras offer increased accuracy and deliver high-resolution videos during self-directed flights. For example, Autel supplies its EVO series of drones with 8K cameras.
Who Are the Key Players in the Aerospace And Defense Market?
Major companies operating in the aerospace and defense market include:
• 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
• 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
What are the Regional Insights into the Aerospace And Defense Market?
North America was the largest region in aerospace & defense market in 2024. 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
