US Aerospace and Defense Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The US Aerospace and Defense Industry 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 represented by USD million.

US Aerospace & Defense Market Size

US Aerospace and Defense Market Summary
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Study Period 2019-2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR 2.37 %
Market Concentration Medium

Major Players

United States Aerospace and Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Aerospace & Defense Market Analysis

The United States Aerospace and Defense Market is projected to grow and register a CAGR of around 2.37% during the forecast period.

The COVID-19 pandemic has had a negative impact on the United States Aerospace and Defense market. The onset of the pandemic led to a decline in the commercial aviation sector in the United States with many flights being grounded and a reduction in the number of air passenger traffic has led negatively affected the aircraft demand. The decline in the pandemic will lead to a gradual increase in the number of air traffic which will lead to the growth in the demand for newer aircraft which will lead to the market witnessing growth during the forecast period.

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 United States Aerospace and defense sector is one of the largest in terms of infrastructure and manufacturing activities. 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.

US Aerospace & Defense Market Trends

This section covers the major market trends shaping the US Aerospace & Defense Market according to our research experts:

Enhanced Defense Spending Promoting R&D and Manufacturing

The United States is ranked as the world's leading defense manufacturer and exporter. The US military expenditure increased by almost 2.9% last year to reach USD 801 billion from USD 778.23 billion the previous year. The United States continued to remain the biggest military spender last year and represented 38% of the global spending.

For FY 2022, the Department of Defense's (DoD) budget authority is approximately USD 722 billion, an increase of USD 17 billion from USD 705 billion in 2020, while the FY 2023 President's budget request was USD 773 billion for the DoD. The budget primarily aims at modernizing capabilities in the air, maritime, and land warfighting domains and on innovations to strengthen the country's competitive advantage.

In the past half-decade, around 1,000 helicopters have been delivered in the United States, out of which IO-540-AE1A5, Arriel2D, and Arrius 2R have been the most popular engines equipped in the 121, 112, and 100 helicopters, respectively.

The United States is one of the world's largest FDI investors and the leading beneficiary of FDIs. 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 retaining 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 Aerospace and Defense Market - US Defense Spending, in USD billion (2015 - 2021)

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 public-sector investments toward 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.

Space exploration is expected to continue to evolve and grow during the forecast period due to declining launch costs and advances in technology. Such factors are envisioned to bolster the prospects of the market in focus during the forecast period.

US Aerospace & Defense Market - NASA Annual Budget Allocation, in USD billion (2015-2021)

US Aerospace & Defense Industry Overview

The prominent players in the US aerospace and defense market include General Dynamics Corporation, Honeywell International Inc., Lockheed Martin Corporation, Boeing Company, and Raytheon Technologies Corporation amongst others.

With the changing regulations, 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.

Moreover, to gain long-term contracts and enhance market share, players are investing significantly in the R&D of sophisticated product offerings. Furthermore, continuous R&D has been fostering technological advancements in platforms and associated products and solutions of the US aerospace and defense market

US Aerospace & Defense Market Leaders

  1. General Dynamics Corporation

  2. Honeywell International Inc.

  3. Lockheed Martin Corporation

  4. The Boeing Company

  5. Raytheon Technologies Corporation

*Disclaimer: Major Players sorted in no particular order

US Aerospace & Defense Market Concentration

US Aerospace & Defense Market News

In December 2022, the United States announced that they have awarded defense contracts to various companies including a USD 1 billion contract to Lockheed Martin Corporation. The contract is aimed at procuring long lead time materials, parts, components, and efforts necessary to maintain on-time production and delivery of 118 Lot 18 aircraft F-35 aircraft for the Air Force, Marine Corps, Navy, non-U.S Department of Defense participants, and Foreign Military Sales customers.

In November 2022, the United States Army announced that they have awarded a 5-year IDIQ contract valued up to USD 1.498 billion to Kongsberg Defense & Aerospace AS for the continued delivery of the Common Remotely Operated Weapon Station (CROWS).

US Aerospace & 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 (Market Size and Forecast)

      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 (Market Size and Forecast)

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

        4. 4.1.4.4 Structures (Market Size and Forecast)

          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 (Market Size and Forecast)

            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 (Market Size and Forecast)

          7. 4.1.4.4.7 Environmental Control Systems (Market Size and Forecast)

          8. 4.1.4.4.8 Fuel and Fuel Systems (Market Size and Forecast)

          9. 4.1.4.4.9 MRO (Market Size and Forecast)

          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

          13. 4.1.4.4.13 Regulatory Landscape and Future Policy Changes

          14. 4.1.4.4.14 Customer/Distributor Information

          15. 4.1.4.4.15 Pricing Information (by Parts, such as Avionics, Engines, etc.)

      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 (Market Size and Forecast)

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

        4. 4.1.5.4 Structures (Market Size and Forecast)

          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 (Market Size and Forecast)

            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 (Market Size and Forecast)

          7. 4.1.5.4.7 Environmental Control Systems (Market Size and Forecast)

          8. 4.1.5.4.8 Fuel and Fuel Systems (Market Size and Forecast)

          9. 4.1.5.4.9 MRO (Market Size and Forecast)

          10. 4.1.5.4.10 Research and Development

          11. 4.1.5.4.11 Supply Chain Analysis (Design, Raw Materials, Manufacturing, Assembly, Testing, and Certification)

          12. 4.1.5.4.12 Competitor Analysis

          13. 4.1.5.4.13 Regulatory Landscape and Future Policy Changes

          14. 4.1.5.4.14 Customer/Distributor Information

          15. 4.1.5.4.15 Pricing Information (by Parts, such as Avionics, Engines, etc.)

    2. 4.2 Military Aircraft and Systems

      1. 4.2.1 Market Overview (Market Size and Forecast)

        1. 4.2.1.1 Market Overview (Market Size and Forecast)

      2. 4.2.2 Defense Spending and Budget Allocation Details

        1. 4.2.2.1 Market Dynamics

        2. 4.2.2.2 Army

          1. 4.2.2.2.1 Drivers

        3. 4.2.2.3 Navy and Marine Corps

          1. 4.2.2.3.1 Restraints

        4. 4.2.2.4 Air Force

          1. 4.2.2.4.1 Opportunities

      3. 4.2.3 Market Dynamics

        1. 4.2.3.1 Market Trends

        2. 4.2.3.2 Drivers

          1. 4.2.3.2.1 Research and Development

        3. 4.2.3.3 Restraints

          1. 4.2.3.3.1 Competitor Analysis

        4. 4.2.3.4 Opportunities

          1. 4.2.3.4.1 Regulatory Landscape and Future Policy Changes

      4. 4.2.4 Market Trends

        1. 4.2.4.1 Customer Information

      5. 4.2.5 MRO (Market Size and Forecast)

        1. 4.2.5.1 Pricing Information

      6. 4.2.6 Research and Development

      7. 4.2.7 Training and Flight Simulators (Market Size and Forecast)

      8. 4.2.8 Competitor Analysis

      9. 4.2.9 Regulatory Landscape and Future Policy Changes

      10. 4.2.10 Pricing Information

      11. 4.2.11 Supply Chain Analysis (Design, Raw Materials, Manufacturing, Assembly, Testing, and Certification)

      12. 4.2.12 Customer/Distributor Information

      13. 4.2.13 Segmentation: Combat Aircraft

        1. 4.2.13.1 Structures (Market Size and Forecast)

          1. 4.2.13.1.1 Airframe

            1. 4.2.13.1.1.1 Materials (Composite, Metal and Metal Alloys, Others)

            2. 4.2.13.1.1.2 Adhesives and Coatings

          2. 4.2.13.1.2 Engine and Engine Systems

          3. 4.2.13.1.3 Landing Gear

        2. 4.2.13.2 Avionics and Control Systems (Market Size and Forecast)

          1. 4.2.13.2.1 General Avionics

          2. 4.2.13.2.2 Mission Specific Avionics

        3. 4.2.13.3 Missiles and Weapons (Market Size and Forecast)

      14. 4.2.14 Segmentation: Non-Combat Aircraft

        1. 4.2.14.1 Structures (Market Size and Forecast)

          1. 4.2.14.1.1 Airframe

            1. 4.2.14.1.1.1 Materials (Composite, Metal and Metal Alloys, Others)

            2. 4.2.14.1.1.2 Adhesives and Coatings

          2. 4.2.14.1.2 Engine and Engine Systems

          3. 4.2.14.1.3 Landing Gear

        2. 4.2.14.2 Avionics and Control Systems (Market Size and Forecast)

          1. 4.2.14.2.1 General Avionics

          2. 4.2.14.2.2 Mission Specific Avionics

        3. 4.2.14.3 Missiles and Weapons (Market Size and Forecast)

    3. 4.3 Unmanned Aerial Systems

      1. 4.3.1 Market Overview (Market Size and Forecast)

      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 Customer Information

      8. 4.3.8 Pricing Information

      9. 4.3.9 Segmentation: Commercial

        1. 4.3.9.1 Structures and Propulsion System (Market Size and Forecast)

        2. 4.3.9.2 Control Systems and Payload (Market Size and Forecast)

      10. 4.3.10 Segmentation: Military

        1. 4.3.10.1 Structures and Propulsion System (Market Size and Forecast)

        2. 4.3.10.2 Control Systems and Payload (Market Size and Forecast)

    4. 4.4 Space Systems and Equipment

      1. 4.4.1 Market Overview (Market Size and Forecast)

      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 (Market Size and Forecast)

        1. 4.4.9.1 By Subsystem (Market Size and Forecast)

          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 The Boeing Company

    2. 5.2 Lockheed Martin Corporation

    3. 5.3 United 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

US Aerospace & Defense Industry Segmentation

Aerospace is 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 the United States.

The United States Aerospace and Defense Market has been segmented by commercial and general aviation, Military Aircraft and Systems, Unmanned Aerial Systems, and Space Systems and Equipment. The report also covers market sizes and offers a market forecast represented by USD million. Furthermore, the report also includes various key statistics on the market status of leading market players and provides key trends and opportunities in the United States Aerospace and Defense Market.

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

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US Aerospace & Defense Market Research FAQs

The United States Aerospace and Defense Market is projected to register a CAGR of 2.37% during the forecast period (2023-2028).

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

US Aerospace and Defense Industry Report

Statistics for the 2023 US Aerospace and Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Aerospace and Defense analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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