Aerospace & Defense Global Market Report 2023

Major companies in the aerospace & defense market include Airbus Group SE, Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, Raytheon Co, Northrop Grumman Corp, Bae Systems plc, General Dynamics, General Electric Company, and Safran SA.

The global aerospace & defense market grew from $795.92 billion in 2022 to $855.62 billion in 2023 at a compound annual growth rate (CAGR) of 7.5%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The aerospace & defense market is expected to grow to $1076.56 billion in 2027 at a CAGR of 5.9%.

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.

Aerospace is the design and manufacture of aircraft, rockets, missiles, and spacecrafts that operate in the space. Defense equipment refers to weapons, arms and equipment that are used for military purposes.

North America was the largest region in aerospace & defense market in 2022.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, and Africa.

The main aerospace and defense types are aerospace and defense.The aerospace industry consists of companies involved in developing prototypes and the manufacturing or assembling of complete aircraft and aircraft parts for commercial purposes.

The aircraft are operated through autonomous and manual modes. The different components include weapon systems, fire control systems, command and control systems, and others.

During the forecast period, developed countries will experience low interest rates as monetary authorities are reducing interest rates to stimulate economic growth and prevent deflation.This led to the flow of cheap money for investment in these economies.

Low interest rates encouraged borrowing for investment and helped drive spending. For instance, in March 2020, the Bank of England, a UK-based central bank, reduced interest rates to 0.1%, the lowest level ever, as a measure of protest against COVID-19. Major countries that had low-interest rates in the historic period included the USA, Germany, and Japan. Low interest rates will boost the growth of the aerospace and defense markets in the forecast period.

The outbreak of COVID-19 disease (COVID-19) has acted as a massive restraint on the aerospace and defense market in 2020 as supply chains were disrupted due to trade restrictions and manufacturing was affected due to lockdowns imposed by governments globally.COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty breathing.

The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China, and has spread globally, including Western Europe, North America, and Asia.Defense equipment manufacturers depend on the supply of raw materials and parts from different countries across the globe.

As many governments restricted the movement of goods across countries, manufacturers had to halt production due to a lack of parts and raw materials.The outbreak had a negative impact on businesses throughout 2020 and into 2021.

However, it is expected that the aerospace & defense market will recover from the shock over the forecast period as it is a "black swan" event and not related to ongoing or fundamental weaknesses in the market or the global economy.

8K video capture technology is being integrated with drones to enhance the picture and video quality captured by these aircraft. 8K technology offers greater horizontal display resolution and offers images that show more details than standard HD. 8K cameras integrated with drones offer higher precision and provide high-resolution footage in autonomous flights. For instance, Autel is offering its EVO series of drones with 8K cameras.

The countries covered in the aerospace & defense market report are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.

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.

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.