Europe Aerospace And Defense Market Size (2024 - 2029)

The Europe Aerospace and Defense Market is poised for growth, driven by the need for armed forces to upgrade and procure new technologies to address emerging threats. This expansion is fueled by increasing international conflicts and the subsequent demand for advanced military aircraft. The market is experiencing a transformation due to technological advancements in areas such as artificial intelligence and unmanned systems, which are reshaping the industry landscape. Despite challenges like supply chain vulnerabilities and semiconductor shortages, Europe is taking steps to enhance its production capabilities, which is expected to support market growth during the forecast period.

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Market Size of Europe Aerospace And Defense Industry

Europe Aerospace and Defense Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 173.97 Billion
Market Size (2029) USD 223.48 Billion
CAGR (2024 - 2029) 5.14 %
Market Concentration Medium

Major Players

Europe Aerospace and Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Aerospace and Defense Market Analysis

The Europe Aerospace And Defense Market size is estimated at USD 173.97 billion in 2024, and is expected to reach USD 223.48 billion by 2029, growing at a CAGR of 5.14% during the forecast period (2024-2029).

The European market is expected to grow primarily due to the armed forces' procurement and upgradation activities to counter emerging threats. Military forces in European countries use multiple aircraft across their Air Force and naval aircraft. Owing to the increasing international conflicts in Russia, Ukraine, and the Middle East, countries in Europe are gearing up to tackle any potential issues arising from such conflicts. As a result, significant investments in upgrading the existing fleet and purchasing a new fleet equipped with efficient technologies have been witnessed over the past year.

The European aerospace and defense market is undergoing a revolutionary shift driven by rapid advancements in technologies. Cutting-edge innovations in artificial intelligence (AI), advanced materials, 3D printing, and autonomous and unmanned systems are reshaping the industry. Companies like BAE Systems PLC, Dassault Aviation SA, Fincantieri SpA, GKN Aerospace, and Leonardo SpA are at the forefront, investing substantially in research and development to usher in the next generation of aircraft. Incorporating AI and advanced materials enhances the performance of manned platforms and promotes high demand for unmanned systems.

While the aerospace and defense industry stands on the cusp of significant growth, it faces formidable challenges in supply chain vulnerabilities. The industry's supply chains, often global and intricate, are susceptible to disruptions, as evidenced by the impact of the COVID-19 pandemic on production and logistics. Ensuring the resilience of these supply chains is crucial for maintaining consistent operations and meeting the demands of defense programs. Similarly, at least semiconductor ship shortages in the European market will continue till 2024. However, Europe is building its own factories and shifting production away from Taiwan while dealing with changing technology, labor shortages, factory fires, and cyber attacks. Such factors are expected to drive demand in the European market during the forecast period.

Europe Aerospace and Defense Industry Segmentation

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

The European aerospace and defense market is segmented by commercial and general aviation, military aircraft and systems, unmanned aerial systems, and space systems and equipment. The report also offers the market sizes and forecasts for five countries across the region. For each segment, the report offers market sizing and forecasts in value (USD) terms.

Commercial and General Aviation
Market Overview
Market Dynamics
Drivers
Restraints
Opportunities
Market Trends
Commercial Aircraft
Air Traffic
Training and Flight Simulators
Airport Services (Ground Support Equipment and Logistics)
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Other Materials)
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
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, Other Materials)
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
Combat Aircraft
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Other Materials)
Adhesives and Coatings
Engine and Engine Systems
Landing Gear
Avionics and Control Systems
General Avionics
Mission Specific Avionics
Missiles and Weapons
Non-combat Aircraft
Structures
Airframe
Materials (Composite, Metal and Metal Alloys, Other Materials)
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
Segmentation: Satellites
By Subsystem
Command and Control System
Telemetry, Tracking, Commanding, and Monitoring (TTCM)
Antenna System
Transponders
Power System
By Application
Military
Commercial
Geography
United Kingdom
France
Germany
Italy
Spain
Rest of Europe
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Europe Aerospace And Defense Market Size Summary

The European aerospace and defense market is poised for significant growth, driven by the need for military procurement and upgrades to address emerging geopolitical threats. The increasing international conflicts, particularly in regions like Russia, Ukraine, and the Middle East, have prompted European countries to invest heavily in modernizing their military fleets. This includes the acquisition of advanced aircraft and technologies to enhance their defense capabilities. The market is also experiencing a technological revolution, with innovations in artificial intelligence, advanced materials, and unmanned systems reshaping the industry landscape. Key players such as BAE Systems, Dassault Aviation, and Leonardo are leading the charge in research and development to introduce next-generation aircraft, which are expected to drive demand in the coming years.

In addition to military advancements, the commercial aerospace sector in Europe is witnessing a robust recovery, with a surge in air passenger traffic post-COVID-19. This has led to increased orders for new commercial aircraft as airlines expand their fleets to accommodate the growing number of travelers. The business aviation segment is also thriving, fueled by the rising number of ultra-high-net-worth individuals seeking private travel options. However, the industry faces challenges such as supply chain vulnerabilities and semiconductor shortages, which are being addressed through strategic investments and local production initiatives. The market's semi-consolidated nature, with major players like Airbus, BAE Systems, and Safran, underscores the competitive landscape, as these companies strive to secure long-term contracts and enhance their market share through continuous technological advancements.

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Europe Aerospace And Defense Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Commercial and General Aviation

      1. 1.1.1 Market Overview

      2. 1.1.2 Market Dynamics

        1. 1.1.2.1 Drivers

        2. 1.1.2.2 Restraints

        3. 1.1.2.3 Opportunities

      3. 1.1.3 Market Trends

      4. 1.1.4 Commercial Aircraft

        1. 1.1.4.1 Air Traffic

        2. 1.1.4.2 Training and Flight Simulators

        3. 1.1.4.3 Airport Services (Ground Support Equipment and Logistics)

        4. 1.1.4.4 Structures

          1. 1.1.4.4.1 Airframe

            1. 1.1.4.4.1.1 Materials (Composite, Metal and Metal Alloys, Other Materials)

            2. 1.1.4.4.1.2 Adhesives and Coatings

          2. 1.1.4.4.2 Engine and Engine Systems

          3. 1.1.4.4.3 Cabin Interiors

          4. 1.1.4.4.4 Landing Gear

          5. 1.1.4.4.5 Avionics and Control Systems

            1. 1.1.4.4.5.1 Communication System

            2. 1.1.4.4.5.2 Navigation System

            3. 1.1.4.4.5.3 Flight Control System

            4. 1.1.4.4.5.4 Health Monitoring System

          6. 1.1.4.4.6 Electrical Systems

          7. 1.1.4.4.7 Environmental Control Systems

          8. 1.1.4.4.8 Fuel and Fuel Systems

          9. 1.1.4.4.9 MRO

          10. 1.1.4.4.10 Research and Development

          11. 1.1.4.4.11 Supply Chain Analysis (Design, Raw Materials, Manufacturing, Assembly, Testing, and Certification)

          12. 1.1.4.4.12 Competitor Analysis

      5. 1.1.5 General Aviation (Includes Business Jets, Helicopter, and Personal Aircraft)

        1. 1.1.5.1 Air Traffic

        2. 1.1.5.2 Training and Flight Simulators

        3. 1.1.5.3 Airport Services (Ground Support Equipment and Logistics)

        4. 1.1.5.4 Structures

          1. 1.1.5.4.1 Airframe

            1. 1.1.5.4.1.1 Materials (Composite, Metal and Metal Alloys, Other Materials)

            2. 1.1.5.4.1.2 Adhesives and Coatings

          2. 1.1.5.4.2 Engine and Engine Systems

          3. 1.1.5.4.3 Cabin Interiors

          4. 1.1.5.4.4 Landing Gear

          5. 1.1.5.4.5 Avionics and Control Systems

            1. 1.1.5.4.5.1 Communication System

            2. 1.1.5.4.5.2 Navigation System

            3. 1.1.5.4.5.3 Flight Control System

            4. 1.1.5.4.5.4 Health Monitoring System

          6. 1.1.5.4.6 Electrical Systems

          7. 1.1.5.4.7 Environmental Control Systems

          8. 1.1.5.4.8 Fuel and Fuel Systems

          9. 1.1.5.4.9 MRO

          10. 1.1.5.4.10 Research and Development

          11. 1.1.5.4.11 Supply Chain Analysis

          12. 1.1.5.4.12 Competitor Analysis

    2. 1.2 Military Aircraft and Systems

      1. 1.2.1 Market Overview

      2. 1.2.2 Defense Spending and Budget Allocation Details

        1. 1.2.2.1 Army

        2. 1.2.2.2 Navy and Marine Corps

        3. 1.2.2.3 Air Force

      3. 1.2.3 Market Dynamics

        1. 1.2.3.1 Drivers

        2. 1.2.3.2 Restraints

        3. 1.2.3.3 Opportunities

      4. 1.2.4 Market Trends

      5. 1.2.5 MRO

      6. 1.2.6 Research and Development

      7. 1.2.7 Training and Flight Simulators

      8. 1.2.8 Competitor Analysis

      9. 1.2.9 Supply Chain Analysis

      10. 1.2.10 Customer/Distributor Information

      11. 1.2.11 Combat Aircraft

        1. 1.2.11.1 Structures

          1. 1.2.11.1.1 Airframe

            1. 1.2.11.1.1.1 Materials (Composite, Metal and Metal Alloys, Other Materials)

            2. 1.2.11.1.1.2 Adhesives and Coatings

          2. 1.2.11.1.2 Engine and Engine Systems

          3. 1.2.11.1.3 Landing Gear

        2. 1.2.11.2 Avionics and Control Systems

          1. 1.2.11.2.1 General Avionics

          2. 1.2.11.2.2 Mission Specific Avionics

        3. 1.2.11.3 Missiles and Weapons

      12. 1.2.12 Non-combat Aircraft

        1. 1.2.12.1 Structures

          1. 1.2.12.1.1 Airframe

            1. 1.2.12.1.1.1 Materials (Composite, Metal and Metal Alloys, Other Materials)

            2. 1.2.12.1.1.2 Adhesives and Coatings

          2. 1.2.12.1.2 Engine and Engine Systems

          3. 1.2.12.1.3 Landing Gear

        2. 1.2.12.2 Avionics and Control Systems

          1. 1.2.12.2.1 General Avionics

          2. 1.2.12.2.2 Mission-specific Avionics

        3. 1.2.12.3 Missiles and Weapons

    3. 1.3 Unmanned Aerial Systems

      1. 1.3.1 Market Overview

      2. 1.3.2 Market Dynamics

        1. 1.3.2.1 Drivers

        2. 1.3.2.2 Restraints

        3. 1.3.2.3 Opportunities

      3. 1.3.3 Market Trends

      4. 1.3.4 Research and Development

      5. 1.3.5 Competitor Analysis

      6. 1.3.6 Regulatory Landscape and Future Policy Changes

      7. 1.3.7 Segmentation

        1. 1.3.7.1 Commercial

        2. 1.3.7.2 Military

    4. 1.4 Space Systems and Equipment

      1. 1.4.1 Market Overview

      2. 1.4.2 Market Dynamics

        1. 1.4.2.1 Drivers

        2. 1.4.2.2 Restraints

        3. 1.4.2.3 Opportunities

      3. 1.4.3 Market Trends

      4. 1.4.4 Research and Development

      5. 1.4.5 Competitor Analysis

      6. 1.4.6 Regulatory Landscape and Future Policy Changes

      7. 1.4.7 Customer Information

      8. 1.4.8 Segmentation: Space Launch Vehicle, Spacecraft, and Ground Systems

      9. 1.4.9 Segmentation: Satellites

        1. 1.4.9.1 By Subsystem

          1. 1.4.9.1.1 Command and Control System

          2. 1.4.9.1.2 Telemetry, Tracking, Commanding, and Monitoring (TTCM)

          3. 1.4.9.1.3 Antenna System

          4. 1.4.9.1.4 Transponders

          5. 1.4.9.1.5 Power System

        2. 1.4.9.2 By Application

          1. 1.4.9.2.1 Military

          2. 1.4.9.2.2 Commercial

    5. 1.5 Geography

      1. 1.5.1 United Kingdom

      2. 1.5.2 France

      3. 1.5.3 Germany

      4. 1.5.4 Italy

      5. 1.5.5 Spain

      6. 1.5.6 Rest of Europe

Europe Aerospace And Defense Market Size FAQs

The Europe Aerospace And Defense Market size is expected to reach USD 173.97 billion in 2024 and grow at a CAGR of 5.14% to reach USD 223.48 billion by 2029.

In 2024, the Europe Aerospace And Defense Market size is expected to reach USD 173.97 billion.

Europe Aerospace and Defense Market Report Snapshots

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