US Aerospace and Defense Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US Aerospace and Defense Market is Segmented by Type (Commercial Aviation, General Aviation, Military Aviation, Unmanned Aerial Systems, and Space Systems and Equipment). The report offers market size and forecasts by value (USD billion) for all the above segments.

Market Snapshot

US A&D Market_overview
Study Period: 2018-2027
Base Year: 2021
CAGR: >2.37 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The US aerospace and defense market is projected to grow from USD 416.63 billion in 2020 to USD 550.78 billion, registering a CAGR of around 2.37% during the forecast period (2021-2030).

The US aerospace and defense sector is undergoing an unprecedented disruption due to the COVID-19 pandemic. Although the sector is projected to recover in 2021, the recovery is expected to be uneven across the two constituent sectors. For instance, the commercial aerospace sector has been significantly affected by the pandemic, resulting in a drastic reduction in passenger traffic, which, in turn, has negatively affected aircraft demand. As a result, the commercial aerospace sector is expected to recover slowly, as travel demand is projected to normalize to pre-COVID levels by 2023. However, the defense sector is expected to remain stable and even grow as the United States has not reduced its defense budget and remains committed to sustaining its military capabilities. Nevertheless, due to the widespread disruption in the supply chain, some defense programs may face minor cost escalations and delays in the short term.

The US aerospace and defense sector is one of the largest, globally, in terms of infrastructure and manufacturing activities. In 2019, the total industry sales revenue left a significant footprint on the American economy, contributing to a combined economic value of USD 396 billion, representing 1.8% of the nation’s GDP. The market is primarily driven by investments in the A&D sector and is supported by the rising demand for the products of the A&D sector by both commercial and military end-users. The market is also bolstered by the presence of leading industry incumbents in the US, whose manufacturing and R&D capabilities support the growth of the industry.

Scope of the Report

The study provides an in-depth analysis of the aerospace and defense industry in the United States. The scope of the study encompasses the commercial and military applications of all aerial assets. Besides, the study also accounts for the developments in the industry pertaining to critical systems and components of aircraft, UAVs, and satellites. For each segment, the market sizing and forecasts have been done based on value (USD billion).

By Type
Commercial and General Aviation
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Segmentation: By Aviation Type
Commercial Aviation
Air Traffic
Training and Flight Simulators
Airport Services (Ground Support Equipment and Logistics)
Structures
Airframe
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
Competitor Analysis
Segmentation: By Aircraft Type
Passenger Aircraft
Freighter
General Aviation
Air Traffic
Training and Flight Simulators
Airport Services (Ground Support Equipment and Logistics)
Structures
Airframe
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
Competitor Analysis
Segmentation: By Aircraft Type
Business Jets
Piston Fixed-wing Aircraft
Turboprop Aircraft
Helicopters
Military Aviation
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
Segmentation: By Aircraft Type
Combat Aircraft
Structures
Avionics and Control Systems
Others
Non-combat Aircraft
Structures
Avionics and Control Systems
Others
Unmanned Aerial Systems
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Research and Development
Competitor Analysis
Regulatory Landscape
Segmentation: By Type
Commercial
Structures and Propulsion System
Control Systems and Payload
Military
Structures and Propulsion System
Control Systems and Payload
Space Systems and Equipment
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Research and Development
Competitor Analysis
Segmentation: By Component
Launch Vehicle
Spacecraft
Ground Vehicles
Segmentation: By Satellite Subsystems
Command and Control System
Telemetry, Tracking, Commanding and Monitoring (TTCM)
Antenna System
Transponders
Power System
Segmentation: By Application
Military
Commercial

Report scope can be customized per your requirements. Click here.

Key Market Trends

Enhanced Defense Spending Promoting R&D and Manufacturing

The United States is ranked as the world’s leading defense manufacturer and exporter. According to SIPRI, the US defense expenditure grew by 5.3% to amount to USD 732 billion in 2019, which is around 38% of the global defense expenditure. The US Foreign Military Sales (FMS) increased by USD 15 billion to reach USD 83.5 billion during FY2020. Besides, the US is one of the world’s largest FDI investors and the leading beneficiary of FDIs. In 2018, FDIs in the US aerospace industry totaled nearly USD 22 billion. This resulted in a significant upgrade of the manufacturing capabilities of key industry incumbents in the US. For instance, in January 2019, Airbus initiated the construction of its A220 Manufacturing Facility in Alabama. Similarly, in September 2018, Planet Labs Inc. invested around USD 183 million to open a 27,000-square-foot new satellite manufacturing and testing facility in San Francisco. In 2020, Lockheed Martin completed the construction of its USD 350 million satellite manufacturing facility, located at the company's Waterton Canyon campus near Denver. As the US envisions to retain its technological superiority over rival forces in terms of deployed platforms and weaponry in the aerial domain, a significant inflow of monetary resources is anticipated to occur during the upcoming period, thereby driving the US aerospace and defense market.

US A&D Market_keytrend1

Space Sector to Witness Highest Growth During the Forecast Period

Space capabilities provide the United States and its allies with unprecedented advantages in national decision-making, military operations, and homeland security. While the most recent space exploration efforts have been driven by a handful of private companies, there are ongoing discussions for establishing the Space Force as the sixth branch of the US military. This is slated to drive the public-sector investments towards space technologies in the forecast period. The creation of the US Space Command is likely to benefit the US Department of Defense (DoD) and the US aerospace and defense industry alike. Furthermore, the US Space Command, which oversees space operations using personnel and assets managed by the Space Force, will likely support A&D companies in accelerating investments in innovative technologies and capabilities. In 2019, space systems witnessed a 9% YoY sales growth. With the announcement of NASA’s Artemis program and the founding of the US Space Force in 2019, the space subsector appears well-positioned for future growth. Moreover, on a global scale, despite the ongoing pandemic, space launches for the first half of 2020 were mostly at par with previous years - 41 successful launches were only slightly below the five-year average of 43 successful launches. Space exploration is also expected to continue to evolve and grow during the forecast period due to declining launch costs and advances in technology. Such developments are envisioned to bolster the prospects of the market in focus during the forecast period.

US A&D Market_keytrend2

Competitive Landscape

The prominent players in the US aerospace and defense market are The Boeing Company, Lockheed Martin Corporation, Raytheon Technologies Corporation, Honeywell International Inc., and General Dynamics Corporation. The US aerospace manufacturers are very competitive internationally. Hence, with the changing regulations, the companies must align their product portfolio to the evolving requirements of end-users. The market is also significantly influenced by the dispersion of upgrade contracts to enhance the capabilities of the current fleet of active aerial assets. The active role of the United States in the global political front has resulted in the growth of the demand for advanced aircraft, UAVs, and satellites. To gain long-term contracts and enhance the market share, players are investing significantly toward the R&D of sophisticated product offerings. Furthermore, continuous R&D has been fostering the technological advancements in platforms and associated products and solutions of the US aerospace and defense market.

Recent Developments

  • In April 2021, the US Army started structures demo for the FLRAA, FARA upgrades that may help the airframes to survive battle damage, environmental shocks, and operational stresses.
  • In April 2021, the US Space and Missile Systems Center awarded contracts worth USD 191 million, USD 240 million, and USD 253 million, respectively, to Boeing, Lockheed Martin Corporation, and Northrop Grumman Corporation, to design prototype payloads for the Protected Tactical Satcom program of the US Space Force.

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 (Market Size by Value - USD billion)

    1. 4.1 By Type

      1. 4.1.1 Commercial and General Aviation

        1. 4.1.1.1 Market Overview

        2. 4.1.1.2 Market Dynamics

          1. 4.1.1.2.1 Drivers

          2. 4.1.1.2.2 Restraints

          3. 4.1.1.2.3 Opportunities

        3. 4.1.1.3 Market Trends

        4. 4.1.1.4 Segmentation: By Aviation Type

          1. 4.1.1.4.1 Commercial Aviation

            1. 4.1.1.4.1.1 Air Traffic

            2. 4.1.1.4.1.2 Training and Flight Simulators

            3. 4.1.1.4.1.3 Airport Services (Ground Support Equipment and Logistics)

            4. 4.1.1.4.1.4 Structures

              1. 4.1.1.4.1.4.1 Airframe

              2. 4.1.1.4.1.4.2 Engine and Engine Systems

              3. 4.1.1.4.1.4.3 Cabin Interiors

              4. 4.1.1.4.1.4.4 Landing Gear

            5. 4.1.1.4.1.5 Avionics and Control Systems

              1. 4.1.1.4.1.5.1 Communication System

              2. 4.1.1.4.1.5.2 Navigation System

              3. 4.1.1.4.1.5.3 Flight Control System

              4. 4.1.1.4.1.5.4 Health Monitoring System

            6. 4.1.1.4.1.6 Electrical Systems

            7. 4.1.1.4.1.7 Environmental Control Systems

            8. 4.1.1.4.1.8 Fuel and Fuel Systems

            9. 4.1.1.4.1.9 MRO

            10. 4.1.1.4.1.10 Research and Development

            11. 4.1.1.4.1.11 Competitor Analysis

            12. 4.1.1.4.1.12 Segmentation: By Aircraft Type

              1. 4.1.1.4.1.12.1 Passenger Aircraft

              2. 4.1.1.4.1.12.2 Freighter

          2. 4.1.1.4.2 General Aviation

            1. 4.1.1.4.2.1 Air Traffic

            2. 4.1.1.4.2.2 Training and Flight Simulators

            3. 4.1.1.4.2.3 Airport Services (Ground Support Equipment and Logistics)

            4. 4.1.1.4.2.4 Structures

              1. 4.1.1.4.2.4.1 Airframe

              2. 4.1.1.4.2.4.2 Engine and Engine Systems

              3. 4.1.1.4.2.4.3 Cabin Interiors

              4. 4.1.1.4.2.4.4 Landing Gear

            5. 4.1.1.4.2.5 Avionics and Control Systems

              1. 4.1.1.4.2.5.1 Communication System

              2. 4.1.1.4.2.5.2 Navigation System

              3. 4.1.1.4.2.5.3 Flight Control System

              4. 4.1.1.4.2.5.4 Health Monitoring System

            6. 4.1.1.4.2.6 Electrical Systems

            7. 4.1.1.4.2.7 Environmental Control Systems

            8. 4.1.1.4.2.8 Fuel and Fuel Systems

            9. 4.1.1.4.2.9 MRO

            10. 4.1.1.4.2.10 Research and Development

            11. 4.1.1.4.2.11 Competitor Analysis

            12. 4.1.1.4.2.12 Segmentation: By Aircraft Type

              1. 4.1.1.4.2.12.1 Business Jets

              2. 4.1.1.4.2.12.2 Piston Fixed-wing Aircraft

              3. 4.1.1.4.2.12.3 Turboprop Aircraft

              4. 4.1.1.4.2.12.4 Helicopters

      2. 4.1.2 Military Aviation

        1. 4.1.2.1 Market Overview

        2. 4.1.2.2 Defense Spending and Budget Allocation Details

          1. 4.1.2.2.1 Army

          2. 4.1.2.2.2 Navy and Marine Corps

          3. 4.1.2.2.3 Air Force

        3. 4.1.2.3 Market Dynamics

          1. 4.1.2.3.1 Drivers

          2. 4.1.2.3.2 Restraints

          3. 4.1.2.3.3 Opportunities

        4. 4.1.2.4 Market Trends

        5. 4.1.2.5 MRO

        6. 4.1.2.6 Research and Development

        7. 4.1.2.7 Training and Flight Simulators

        8. 4.1.2.8 Competitor Analysis

        9. 4.1.2.9 Segmentation: By Aircraft Type

          1. 4.1.2.9.1 Combat Aircraft

            1. 4.1.2.9.1.1 Structures

            2. 4.1.2.9.1.2 Avionics and Control Systems

            3. 4.1.2.9.1.3 Others

          2. 4.1.2.9.2 Non-combat Aircraft

            1. 4.1.2.9.2.1 Structures

            2. 4.1.2.9.2.2 Avionics and Control Systems

            3. 4.1.2.9.2.3 Others

      3. 4.1.3 Unmanned Aerial Systems

        1. 4.1.3.1 Market Overview

        2. 4.1.3.2 Market Dynamics

          1. 4.1.3.2.1 Drivers

          2. 4.1.3.2.2 Restraints

          3. 4.1.3.2.3 Opportunities

        3. 4.1.3.3 Market Trends

        4. 4.1.3.4 Research and Development

        5. 4.1.3.5 Competitor Analysis

        6. 4.1.3.6 Regulatory Landscape

        7. 4.1.3.7 Segmentation: By Type

          1. 4.1.3.7.1 Commercial

            1. 4.1.3.7.1.1 Structures and Propulsion System

            2. 4.1.3.7.1.2 Control Systems and Payload

          2. 4.1.3.7.2 Military

            1. 4.1.3.7.2.1 Structures and Propulsion System

            2. 4.1.3.7.2.2 Control Systems and Payload

      4. 4.1.4 Space Systems and Equipment

        1. 4.1.4.1 Market Overview

        2. 4.1.4.2 Market Dynamics

          1. 4.1.4.2.1 Drivers

          2. 4.1.4.2.2 Restraints

          3. 4.1.4.2.3 Opportunities

        3. 4.1.4.3 Market Trends

        4. 4.1.4.4 Research and Development

        5. 4.1.4.5 Competitor Analysis

        6. 4.1.4.6 Segmentation: By Component

          1. 4.1.4.6.1 Launch Vehicle

          2. 4.1.4.6.2 Spacecraft

          3. 4.1.4.6.3 Ground Vehicles

        7. 4.1.4.7 Segmentation: By Satellite Subsystems

          1. 4.1.4.7.1 Command and Control System

          2. 4.1.4.7.2 Telemetry, Tracking, Commanding and Monitoring (TTCM)

          3. 4.1.4.7.3 Antenna System

          4. 4.1.4.7.4 Transponders

          5. 4.1.4.7.5 Power System

        8. 4.1.4.8 Segmentation: By Application

          1. 4.1.4.8.1 Military

          2. 4.1.4.8.2 Commercial

  5. 5. COMPANY PROFILES

    1. 5.1 The Boeing Company

    2. 5.2 Lockheed Martin Corporation

    3. 5.3 Raytheon Technologies Corporation

    4. 5.4 Northrop Grumman Corporation

    5. 5.5 Honeywell International Inc.

    6. 5.6 L3Harris Technologies Inc.

    7. 5.7 Textron Inc.

    8. 5.8 General Dynamics Corporation

    9. 5.9 Precision Castparts Corp.

    10. 5.10 Spirit AeroSystems Inc.

    11. 5.11 Arconic Inc.

    12. 5.12 TransDigm Group Incorporated

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The US Aerospace and Defense Market market is studied from 2018 - 2027.

The US Aerospace and Defense Market is growing at a CAGR of >2.37% over the next 5 years.

The US Aerospace and Defense Market is valued at 416 Billion USD in 2018.

The US Aerospace and Defense Market is valued at 550 Billion USD in 2027.

General Dynamics Corporation, Honeywell International Inc., Lockheed Martin Corporation, The Boeing Company, Raytheon Technologies Corporation are the major companies operating in US Aerospace and Defense Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!