Europe Aerospace and Defense Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers European Aerospace and Defense Companies and is Segmented by Commercial and General Aviation, Military Aircraft and Systems, Unmanned Aerial Systems, and Space Systems and Equipment. Moreover, The Report Offers A Market Forecast and is Represented by USD Million.

Europe Aerospace and Defense Market Size

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Europe Aerospace and Defense Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 2.40 %
Market Concentration Medium

Major Players

Europe Aerospace and Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Aerospace and Defense Market Analysis

The Europe Aerospace And Defense Market is expected to register a CAGR of 2.40% during the forecast period.

  • The Europe aerospace and defense market is anticipated to register a CAGR of over 2.4% during the forecast period.
  • Due to the COVID-19 pandemic, most countries imposed restrictions on the import and export of goods. The ongoing war between Ukraine and Russia also contributed to keeping tight control on imports and exports. However, the pandemic has hampered the economic conditions of the aerospace industry in Europe and had a moderate impact on the defense sector. The pandemic led to difficulties for manufacturers in obtaining raw materials required for the production of defense products. Conversely, the decline in pandemic levels led to growth in both the aerospace and defense industries in Europe. Additionally, manufacturers in both sectors witnessed growth due to an increase in end-product production. Therefore, it is likely that the aerospace and defense market in the European region will experience growth during the forecast period.
  • The growth of the aerospace and defense industry in Europe can be attributed to rising demand for commercial and military aircraft, along with a substantial increase in defense spending. The presence of leading industry incumbents, such as BAE Systems, Rolls Royce, Safran, Thales, and Leonardo, has bolstered indigenous R&D and extensive manufacturing.
  • Total military spending in Europe amounted to USD 418 billion in 2021, 3.0% higher than in 2020 and 19% higher than in 2012. Central and Western Europe, two subregions that together include most NATO allies and all European Union member states, had aggregated military spending totaling USD 342 billion last year (USD 305 billion for Western Europe and USD 36.6 billion for Central Europe). The combined military expenditure of these subregions increased by 3.1% in 2021, with military spending in Western Europe growing at a higher rate (3.4%) than in Central Europe (1.3%). Increased expenditure on arms procurement and military R&D mostly drove the growth in military spending in Central and Western Europe.
  • The aerospace and defense industry in Europe is closely related to the GDP of the region, and industry players work in close collaboration with regional suppliers and end-users to foster symbiotic sustenance. The European Union (EU) has also formulated the Europe 2020 Strategy for smart, sustainable, and inclusive growth. The European space program contributes to regional scientific progress in the fields of telecommunications, navigation, and Earth observation.

Europe Aerospace and Defense Market Trends

Commercial And General Aviation Aircraft And Infrastructure Segment is Expected to Witness Growth During the Forecast Period

  • The commercial and general aviation aircraft and infrastructure segment is expected to experience growth during the forecast period. The prospect of a sustained recovery in the commercial aviation sector is becoming stronger due to passenger traffic data presented by the International Air Transport Association (IATA) in April 2022. According to the reports, passenger traffic in the European region witnessed a growth of approximately 50% in April 2022 compared to April 2021. The gradual relaxation of travel restrictions in various European countries in recent months has made air travel to European nations more accessible to passengers worldwide, resulting in a significant surge in international demand. The data presented by IATA also shows that international traffic from the European region grew by approximately 434.3% in March 2022 compared to March 2021.
  • To facilitate the growth in passenger traffic, various airlines in the European region, such as Delta Airlines and International Airlines Group (IAG), have correspondingly increased their capacity within the European region. For example, Delta Airlines announced its plans to purchase 12 A220 aircraft from Airbus in July 2022.
  • The COVID-19 pandemic led to accelerated corporate, consumer, and regulatory scrutiny of air travel emissions, limiting the expansion plans of various airports in the European region in the long term. Terminal bottlenecks remain a problem at various European airports. Before the pandemic, many airports were preparing for capacity expansion by issuing debt and accumulating cash to fund these investments.
  • Heathrow Airport, for instance, had USD 3.79 billion in cash and committed undrawn lines earmarked for third runway construction at the beginning of 2020. However, most of these projects were delayed or canceled at the start of the pandemic, while the accumulated funds strongly supported liquidity during 2020-21. In the third quarter of 2021, the European region invested in five larger airport construction projects, with a total value of USD 1.3 billion, to cater to the ever-increasing passenger traffic at European airports.
  • Although the European defense industry is not among the top defense industries worldwide, it employs approximately 500,000 personnel, which gives the industry additional importance beyond its inherent security aspect. The structure of the European defense industry is highly dispersed, with a few large players and about 1,350 small and medium-sized enterprises (SMEs). While companies are scattered over almost the whole EU, a few countries (Austria, Czech Republic, France, Germany, Italy, Poland, Spain, Sweden, and the United Kingdom) host the bulk of SMEs as well as top companies. The European defense industry has undergone various changes after the COVID-19 pandemic to be on par with various global defense industries.
  • Thus, ongoing investments in both the aerospace and defense sector in Europe are likely to lead to market growth during the forecast period.
Europe Aerospace and Defense Market, By Type, CAGR (%), 2023 - 2028

Germany is Expected to Witness Growth During the Forecast Period

  • Germany's aerospace and defense sectors were adversely affected by COVID-19. With travel restrictions in place in many countries, aircraft manufacturing companies have experienced a decline in orders, resulting in a slowdown in the market's growth. However, in recent months, there have been indications of a recovery in demand for commercial aircraft.
  • Despite these challenges, Germany remains one of Europe's leading economies and a major global spender on military and aerospace. The country is home to prominent defense manufacturers, including Rheinmetall AG, Diehl Stiftung & Co. KG, and Krauss-Maffei Wegmann GmbH & Co. KG, which are increasing the development of defense technologies and production rates through national and international investments, partnerships, and collaborations.
  • The International Air Transport Association (IATA) predicts steady growth in Germany's aviation industry due to the increasing number of passengers in the country. To support this growth, the government is increasing its investments in airport infrastructure development.
  • Germany is the third-largest spender on military and defense in Central and Western Europe, trailing behind France and the United Kingdom. Last year, the country allocated USD 56.0 billion, which represented 1.3% of its GDP.
  • Although this amount was 1.4% lower than the previous year, the new German government, formed in December 2021, declared its intention to invest 3% of the country's GDP in diplomacy, development, and defense. In light of the Russian invasion of Ukraine in February 2022, the government aims to increase military spending further in the future, which will result in the growth of Germany's defense market in the years to come.
Europe Aerospace and Defense Market, By Country, CAGR (%), 2023-2028

Europe Aerospace and Defense Industry Overview

The growing geopolitical unrest in several countries is contributing to an emerging security environment, resulting in increased demand for advanced aircraft, UAVs, and satellites. To secure long-term contracts and improve their market share, players are investing significantly in the R&D of sophisticated product offerings. Continuous R&D has fostered technological advancements in platforms and associated products and solutions in the European aerospace and defense market. The market is moderately fragmented, with several global players, including Airbus SE, BAE Systems PLC, Leonardo SpA, Safran SA, and the Thales Group.

In July 2022, Airbus and Singapore's Defence Science and Technology Agency (DSTA) expanded their agreement signed earlier this year at the Singapore Airshow to include helicopters. The goal is to advance the co-development of digital solutions for the Republic of Singapore Air Force's (RSAF) military aircraft platforms.

Europe Aerospace and Defense Market Leaders

  1. Airbus SE

  2. BAE Systems plc

  3. Leonardo S.p.A.

  4. Safran SA

  5. Thales Group

*Disclaimer: Major Players sorted in no particular order

Europe Aerospace and Defense Market Concentration
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Europe Aerospace and Defense Market News

July 2022: Leonardo and BAE Systems actively progressed collaboration opportunities between the UK and Italy on the Future Combat Air System (FCAS) program. This was part of a cooperation path launched by Italy and the UK in the defense sector.

July 2022: PZL-Świdnik, a Polish company fully owned by Leonardo, was awarded a USD 1.82 billion contract by the Polish Ministry of Defense (MoD) for the supply of 32 AW149 multi-role helicopters.

July 2022: Embraer and BAE Systems announced the signing of two MoUs. The first MoU aims to establish a strategic partnership between BAE Systems and Embraer to collaborate in markets where BAE Systems has a significant presence, including selected markets in the Middle East, such as the Kingdom of Saudi Arabia. The second MoU confirms an intention to create a joint venture to develop a defense variant of Eve's electrical vertical take-off and landing (eVTOL) vehicle.

Europe Aerospace and Defense Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET SEGMENTATION

    1. 4.1 Commercial and General Aviation

      1. 4.1.1 Market Overview

      2. 4.1.2 Market Dynamics

        1. 4.1.2.1 Drivers

        2. 4.1.2.2 Restraints

        3. 4.1.2.3 Opportunities

      3. 4.1.3 Market Trends

      4. 4.1.4 Segmentation: Commercial Aircraft

        1. 4.1.4.1 Air Traffic

        2. 4.1.4.2 Training and Flight Simulators

        3. 4.1.4.3 Airport Services (Ground Support Equipment and Logistics)

        4. 4.1.4.4 Structures

          1. 4.1.4.4.1 Airframe

            1. 4.1.4.4.1.1 Materials (Composite, Metal and Metal Alloys, Others)

            2. 4.1.4.4.1.2 Adhesives and Coatings

          2. 4.1.4.4.2 Engine and Engine Systems

          3. 4.1.4.4.3 Cabin Interiors

          4. 4.1.4.4.4 Landing Gear

          5. 4.1.4.4.5 Avionics and Control Systems

            1. 4.1.4.4.5.1 Communication System

            2. 4.1.4.4.5.2 Navigation System

            3. 4.1.4.4.5.3 Flight Control System

            4. 4.1.4.4.5.4 Health Monitoring System

          6. 4.1.4.4.6 Electrical Systems

          7. 4.1.4.4.7 Environmental Control Systems

          8. 4.1.4.4.8 Fuel and Fuel Systems

          9. 4.1.4.4.9 MRO

          10. 4.1.4.4.10 Research and Development

          11. 4.1.4.4.11 Supply Chain Analysis (Design, Raw Materials, Manufacturing, Assembly, Testing, and Certification)

          12. 4.1.4.4.12 Competitor Analysis

      5. 4.1.5 Segmentation: General Aviation (includes Business Jets, Helicopter, and Personal Aircraft)

        1. 4.1.5.1 Air Traffic

        2. 4.1.5.2 Training and Flight Simulators

        3. 4.1.5.3 Airport Services (Ground Support Equipment and Logistics)

        4. 4.1.5.4 Structures

          1. 4.1.5.4.1 Airframe

            1. 4.1.5.4.1.1 Materials (Composite, Metal and Metal Alloys, Others)

            2. 4.1.5.4.1.2 Adhesives and Coatings

          2. 4.1.5.4.2 Engine and Engine Systems

          3. 4.1.5.4.3 Cabin Interiors

          4. 4.1.5.4.4 Landing Gear

          5. 4.1.5.4.5 Avionics and Control Systems

            1. 4.1.5.4.5.1 Communication System

            2. 4.1.5.4.5.2 Navigation System

            3. 4.1.5.4.5.3 Flight Control System

            4. 4.1.5.4.5.4 Health Monitoring System

          6. 4.1.5.4.6 Electrical Systems

          7. 4.1.5.4.7 Environmental Control Systems

          8. 4.1.5.4.8 Fuel and Fuel Systems

          9. 4.1.5.4.9 MRO

          10. 4.1.5.4.10 Research and Development

          11. 4.1.5.4.11 Supply Chain Analysis

          12. 4.1.5.4.12 Competitor Analysis

    2. 4.2 Military Aircraft and Systems

      1. 4.2.1 Market Overview

      2. 4.2.2 Defense Spending and Budget Allocation Details

        1. 4.2.2.1 Army

        2. 4.2.2.2 Navy and Marine Corps

        3. 4.2.2.3 Air Force

      3. 4.2.3 Market Dynamics

        1. 4.2.3.1 Drivers

        2. 4.2.3.2 Restraints

        3. 4.2.3.3 Opportunities

      4. 4.2.4 Market Trends

      5. 4.2.5 MRO

      6. 4.2.6 Research and Development

      7. 4.2.7 Training and Flight Simulators

      8. 4.2.8 Competitor Analysis

      9. 4.2.9 Supply Chain Analysis

      10. 4.2.10 Customer/Distributor Information

      11. 4.2.11 Segmentation: Combat Aircraft

        1. 4.2.11.1 Structures

          1. 4.2.11.1.1 Airframe

            1. 4.2.11.1.1.1 Materials (Composite, Metal and Metal Alloys, Others)

            2. 4.2.11.1.1.2 Adhesives and Coatings

          2. 4.2.11.1.2 Engine and Engine Systems

          3. 4.2.11.1.3 Landing Gear

        2. 4.2.11.2 Avionics and Control Systems

          1. 4.2.11.2.1 General Avionics

          2. 4.2.11.2.2 Mission Specific Avionics

        3. 4.2.11.3 Missiles and Weapons

      12. 4.2.12 Segmentation: Non-Combat Aircraft

        1. 4.2.12.1 Structures

          1. 4.2.12.1.1 Airframe

            1. 4.2.12.1.1.1 Materials (Composite, Metal and Metal Alloys, Others)

            2. 4.2.12.1.1.2 Adhesives and Coatings

          2. 4.2.12.1.2 Engine and Engine Systems

          3. 4.2.12.1.3 Landing Gear

        2. 4.2.12.2 Avionics and Control Systems

          1. 4.2.12.2.1 General Avionics

          2. 4.2.12.2.2 Mission Specific Avionics

        3. 4.2.12.3 Missiles and Weapons

    3. 4.3 Unmanned Aerial Systems

      1. 4.3.1 Market Overview

      2. 4.3.2 Market Dynamics

        1. 4.3.2.1 Drivers

        2. 4.3.2.2 Restraints

        3. 4.3.2.3 Opportunities

      3. 4.3.3 Market Trends

      4. 4.3.4 Research and Development

      5. 4.3.5 Competitor Analysis

      6. 4.3.6 Regulatory Landscape and Future Policy Changes

      7. 4.3.7 Segmentation

        1. 4.3.7.1 Commercial

        2. 4.3.7.2 Military

    4. 4.4 Space Systems and Equipment

      1. 4.4.1 Market Overview

      2. 4.4.2 Market Dynamics

        1. 4.4.2.1 Drivers

        2. 4.4.2.2 Restraints

        3. 4.4.2.3 Opportunities

      3. 4.4.3 Market Trends

      4. 4.4.4 Research and Development

      5. 4.4.5 Competitor Analysis

      6. 4.4.6 Regulatory Landscape and Future Policy Changes

      7. 4.4.7 Customer Information

      8. 4.4.8 Segmentation: Space Launch Vehicle, Spacecraft, and Ground Systems (Market Size and Forecast)

      9. 4.4.9 Segmentation: Satellites

        1. 4.4.9.1 By Subsystem

          1. 4.4.9.1.1 Command and Control System

          2. 4.4.9.1.2 Telemetry, Tracking, Commanding and Monitoring (TTCM)

          3. 4.4.9.1.3 Antenna System

          4. 4.4.9.1.4 Transponders

          5. 4.4.9.1.5 Power System

        2. 4.4.9.2 By Application

          1. 4.4.9.2.1 Military

          2. 4.4.9.2.2 Commercial

  5. 5. COMPETITIVE LANDSCAPE

    1. 5.1 Airbus SE

    2. 5.2 BAE Systems plc

    3. 5.3 Dassault Aviation SA

    4. 5.4 Fincantieri S.p.A

    5. 5.5 GKN Aerospace

    6. 5.6 Leonardo S.p.A

    7. 5.7 Naval Group

    8. 5.8 QinetiQ Group PLC

    9. 5.9 Rheinmetall AG

    10. 5.10 Rolls-Royce plc

    11. 5.11 Rostec

    12. 5.12 Safran SA

    13. 5.13 THALES

    14. 5.14 Lockheed Martin Corporation

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Europe Aerospace and Defense Industry Segmentation

The market includes the design and manufacture of aircraft, rockets, missiles, and spacecraft that operate in space. Defense equipment refers to weapons, arms, and equipment that are used for military purposes. The study conducted in this report provides an in-depth analysis of the aerospace and defense industry in Europe.

The Europe aerospace and defense market is segmented by commercial and general aviation, military aircraft and systems, unmanned aerial systems, and space systems and equipment. Furthermore, the report also includes various key statistics on the market status of leading market players and provides key trends and opportunities in the Europe aerospace and defense Market.

Moreover, the report offers a market forecast and is represented by USD million. 

Commercial and General Aviation
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Segmentation: Commercial Aircraft
Air Traffic
Training and Flight Simulators
Airport Services (Ground Support Equipment and Logistics)
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Others)
Adhesives and Coatings
Engine and Engine Systems
Cabin Interiors
Landing Gear
Avionics and Control Systems
Communication System
Navigation System
Flight Control System
Health Monitoring System
Electrical Systems
Environmental Control Systems
Fuel and Fuel Systems
MRO
Research and Development
Supply Chain Analysis (Design, Raw Materials, Manufacturing, Assembly, Testing, and Certification)
Competitor Analysis
Segmentation: General Aviation (includes Business Jets, Helicopter, and Personal Aircraft)
Air Traffic
Training and Flight Simulators
Airport Services (Ground Support Equipment and Logistics)
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Others)
Adhesives and Coatings
Engine and Engine Systems
Cabin Interiors
Landing Gear
Avionics and Control Systems
Communication System
Navigation System
Flight Control System
Health Monitoring System
Electrical Systems
Environmental Control Systems
Fuel and Fuel Systems
MRO
Research and Development
Supply Chain Analysis
Competitor Analysis
Military Aircraft and Systems
Market Overview
Defense Spending and Budget Allocation Details
Army
Navy and Marine Corps
Air Force
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
MRO
Research and Development
Training and Flight Simulators
Competitor Analysis
Supply Chain Analysis
Customer/Distributor Information
Segmentation: Combat Aircraft
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Others)
Adhesives and Coatings
Engine and Engine Systems
Landing Gear
Avionics and Control Systems
General Avionics
Mission Specific Avionics
Missiles and Weapons
Segmentation: Non-Combat Aircraft
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Others)
Adhesives and Coatings
Engine and Engine Systems
Landing Gear
Avionics and Control Systems
General Avionics
Mission Specific Avionics
Missiles and Weapons
Unmanned Aerial Systems
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Research and Development
Competitor Analysis
Regulatory Landscape and Future Policy Changes
Segmentation
Commercial
Military
Space Systems and Equipment
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Research and Development
Competitor Analysis
Regulatory Landscape and Future Policy Changes
Customer Information
Segmentation: Space Launch Vehicle, Spacecraft, and Ground Systems (Market Size and Forecast)
Segmentation: Satellites
By Subsystem
Command and Control System
Telemetry, Tracking, Commanding and Monitoring (TTCM)
Antenna System
Transponders
Power System
By Application
Military
Commercial
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Europe Aerospace and Defense Market Research FAQs

The Europe Aerospace and Defense Market is projected to register a CAGR of 2.40% during the forecast period (2024-2029)

Airbus SE, BAE Systems plc, Leonardo S.p.A., Safran SA and Thales Group are the major companies operating in the Europe Aerospace and Defense Market.

The report covers the Europe Aerospace and Defense Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Aerospace and Defense Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Europe Aerospace and Defense Industry Report

Statistics for the 2024 Europe Aerospace and Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Aerospace and Defense analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Europe Aerospace and Defense Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)