Global Aerospace Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Passenger Aircrafts, Aircraft Engines, Commercial Helicopters, Aircraft Turbines, Commercial Gliders And Drones, and Rocket Engines.By Vehicle Type;
Two-Wheeler, Passenger Car, and Commercial Vehicle.By Distribution Channel;
Original Equipment Manufacturer (OEM), and Aftermarket.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Aerospace Market (USD Million), 2021 - 2031
In the year 2024, the Global Aerospace Market was valued at USD 299,790.98 million. The size of this market is expected to increase to USD 306,143.54 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 0.3%.
The global aerospace market encompasses a diverse range of activities, including commercial aviation, military aerospace, and space exploration. With increasing air travel demand, advancements in technology, and expanding global economies, the aerospace sector continues to experience steady growth. Commercial aviation remains a cornerstone of the aerospace industry, with airlines investing in new aircraft to meet rising passenger numbers and enhance operational efficiency. Moreover, military aerospace plays a crucial role in national defense and security, driving demand for advanced aircraft platforms, weapons systems, and support services.
Space exploration has emerged as a dynamic and rapidly evolving segment within the global aerospace market. Both governmental space agencies and private companies are investing in ambitious space exploration initiatives, including crewed missions to Mars, lunar exploration programs, and satellite launches. The emergence of commercial spaceflight companies, such as SpaceX and Blue Origin, has democratized access to space and spurred innovation in launch technologies, satellite deployment, and space tourism. Additionally, advancements in satellite communication, earth observation, and space-based services contribute to the growth and diversification of the global aerospace market.
However, the aerospace industry also faces challenges such as regulatory complexities, geopolitical tensions, and economic uncertainties. Stringent safety standards and certification requirements drive up development costs and time-to-market for new aircraft and aerospace technologies. Moreover, geopolitical factors and trade disputes can impact supply chains, market dynamics, and international collaborations within the aerospace sector. Nevertheless, as the aerospace industry continues to innovate and adapt to evolving market conditions, fueled by technological advancements, market demand, and global partnerships, the long-term outlook for the global aerospace market remains positive, with opportunities for growth and innovation across its various segments.
Global Aerospace Market Report & Recent Development Snapshot
Recent Developments:
-
In December 2019, Solvay and SGL Carbon entered a joint development agreement (JDA) to introduce the first composite materials utilizing large-tow intermediate modulus (IM) carbon fiber. These materials aim to reduce costs, lower CO2 emissions, and enhance production processes and fuel efficiency for next-generation commercial aircraft.
-
In January 2019, Teijin Limited signed an agreement with Boeing to supply unidirectional pre-impregnated tape (TENAX TPUD). This agreement supported Teijin's medium-term growth in the aircraft business.
-
In February 2019, Teijin Limited acquired Renegade Materials Corporation, a North American supplier of highly heat-resistant thermoset prepreg for the aerospace industry. This acquisition strengthened Teijin's position as a leading provider of aerospace solutions.
Segment Analysis
The global aerospace market has been segmented into various categories to better understand its dynamics and cater to diverse industry needs. The segmentation by type encompasses a wide range of aerospace products and services, including aircraft, spacecraft, satellites, drones, and related components and systems. This classification allows stakeholders to analyze market trends, demand patterns, and technological advancements across different segments of the aerospace industry. Additionally, the segmentation by vehicle type distinguishes between commercial aviation, military aerospace, and space exploration vehicles, providing insights into the specific requirements and challenges faced by each sector.
Moreover, the segmentation by distribution channel enables efficient market analysis and business strategies tailored to the needs of various stakeholders, including original equipment manufacturers (OEMs), suppliers, distributors, and service providers. This classification considers factors such as direct sales, indirect sales through distributors and dealerships, online channels, and aftermarket services, reflecting the diverse sales and distribution channels prevalent in the aerospace industry. Furthermore, geographical segmentation provides a regional perspective on the global aerospace market, highlighting variations in market size, growth rates, regulatory frameworks, and investment opportunities across different regions. This allows industry players to identify emerging markets, assess competitive landscapes, and devise targeted expansion strategies to capitalize on regional growth opportunities.
Global Aerospace Segment Analysis
In this report, the Global Aerospace Market has been segmented by Type, Vehicle Type, Distribution Channel and Geography.
Global Aerospace Market, Segmentation by Type
The Global Aerospace Market has been segmented by Type into Passenger Aircrafts, Aircraft Engines, Commercial Helicopters, Aircraft Turbines, Commercial Gliders And Drones and Rocket Engines.
Passenger aircraft represent a significant segment, driven by the increasing demand for air travel worldwide. With rising incomes, urbanization, and globalization, more people are opting for air travel, stimulating the demand for passenger aircraft. Additionally, technological advancements, such as fuel-efficient engines and lightweight materials, are driving the development of next-generation passenger aircraft that offer enhanced comfort, safety, and operational efficiency. Aircraft engines play a crucial role in the aerospace market, powering various types of aircraft, including passenger planes, military jets, and commercial helicopters. Continuous innovation in engine design and performance is vital for meeting stringent emissions regulations, reducing fuel consumption, and enhancing aircraft performance. Moreover, the growing demand for military aircraft and commercial helicopters further fuels the demand for advanced engines that offer superior power, reliability, and fuel efficiency. As aerospace companies invest in research and development to develop cutting-edge engine technologies, the aircraft engines segment is poised for steady growth. Commercial helicopters, aircraft turbines, commercial gliders and drones, and rocket engines represent additional segments within the global aerospace market, each with its own unique characteristics and growth drivers. Commercial helicopters play a crucial role in various industries, including transportation, emergency medical services, and law enforcement. Aircraft turbines power a wide range of aircraft, from small private planes to large commercial airliners, while commercial gliders and drones serve diverse applications, including aerial photography, surveillance, and package delivery. Rocket engines, essential for space exploration ventures and satellite launches, are experiencing renewed interest with the rise of private space companies and increased governmental investments in space exploration initiatives. Overall, the segmentation of the global aerospace market into these distinct categories reflects the industry's multifaceted nature and its contributions to various sectors of the economy.
Global Aerospace Market, Segmentation by Vehicle Type
The Global Aerospace Market has been segmented by Vehicle Type into Two-Wheeler, Passenger Car and Commercial Vehicle.
Two-wheelers encompass a wide range of aircraft, such as helicopters, drones, and motorcycles, which are primarily used for personal transportation, leisure, and recreational activities. These vehicles are characterized by their agility, maneuverability, and versatility, making them suitable for various applications, including aerial surveillance, emergency medical services, and military operations.
Passenger cars represent another significant segment within the global aerospace market, comprising traditional fixed-wing aircraft designed for transporting passengers and cargo. These include regional jets, narrow-body, and wide-body airliners operated by commercial airlines, as well as private jets and business aircraft used for executive travel. Passenger cars serve as the backbone of commercial aviation, facilitating global connectivity, trade, and tourism. With increasing air travel demand and the growth of low-cost carriers, this segment continues to witness expansion and innovation in aircraft design, cabin amenities, and operational efficiency.
Commercial vehicles, including freighters, cargo planes, and air transport vehicles, form the third segment of the global aerospace market. These aircraft are optimized for transporting goods, mail, and cargo across domestic and international routes. Commercial vehicles play a vital role in global trade and logistics, supporting industries such as e-commerce, manufacturing, and perishable goods transportation. With the growth of global supply chains and the increasing demand for expedited shipping services, this segment offers opportunities for aircraft manufacturers and logistics companies to invest in fleet modernization, capacity expansion, and efficiency improvements.
Global Aerospace Market, Segmentation by Distribution Channel
The Global Aerospace Market has been segmented by Distribution Channel into Original Equipment Manufacturer (OEM) and Aftermarket.
The global aerospace market is segmented by distribution channel into Original Equipment Manufacturer (OEM) and Aftermarket, each playing a crucial role in the aerospace industry ecosystem. OEMs are responsible for designing, manufacturing, and delivering aircraft, engines, and aerospace components to customers worldwide. They work closely with airlines, defense agencies, and space organizations to develop state-of-the-art products that meet performance, safety, and regulatory standards. OEMs also engage in long-term contracts and partnerships to provide comprehensive support services, including maintenance, repair, and overhaul (MRO), throughout the lifecycle of aerospace products.
In contrast, the Aftermarket segment focuses on providing maintenance, repair, and overhaul services, as well as spare parts and components, for aircraft and aerospace systems after they have been delivered by OEMs. Aftermarket providers play a critical role in ensuring the continued airworthiness and operational efficiency of aircraft fleets. They offer a wide range of aftermarket services, including component repair and overhaul, engine maintenance, and avionics upgrades. Moreover, aftermarket providers collaborate closely with OEMs, airlines, and aircraft operators to deliver timely and cost-effective solutions that minimize aircraft downtime and optimize fleet performance.
The OEM and Aftermarket segments of the global aerospace market are closely interconnected, with OEMs often partnering with aftermarket service providers to offer integrated solutions to customers. This collaboration facilitates seamless transitions from manufacturing to aftermarket support, ensuring the availability of high-quality parts, technical expertise, and responsive customer service throughout the aircraft lifecycle. Additionally, as airlines and defense agencies seek to optimize their operations and reduce operating costs, there is growing demand for aftermarket solutions that offer innovative maintenance strategies, predictive analytics, and digital technologies to enhance fleet performance and reliability. Thus, both OEMs and Aftermarket providers contribute to the overall efficiency and safety of the aerospace industry.
Global Aerospace Market, Segmentation by Geography
In this report, the Global Aerospace Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Aerospace Market Share (%), by Geographical Region, 2024
North America's market share is bolstered by its robust aerospace manufacturing capabilities, significant defense spending, and leadership in space exploration initiatives. Additionally, Europe holds a considerable market share, with countries like France, Germany, and the United Kingdom hosting prominent aerospace firms such as Airbus and BAE Systems. Europe's aerospace market benefits from strong government support, technological expertise, and collaboration among European Union member states.
Meanwhile, the Asia-Pacific region is rapidly emerging as a key player in the global aerospace market, driven by economic growth, increasing air travel demand, and rising defense budgets. Countries like China, India, and Japan are investing heavily in aerospace infrastructure, aircraft manufacturing, and space exploration programs. As a result, Asia-Pacific's market share in the aerospace sector is expanding, with the region becoming a hub for aerospace manufacturing, research, and development. Additionally, other regions such as the Middle East and Latin America hold smaller but growing market shares, fueled by investments in aviation infrastructure, defense modernization, and commercial aerospace ventures.
However, while the geographical distribution of market share in the aerospace sector reflects these trends, it is also influenced by factors such as trade policies, regulatory frameworks, and geopolitical dynamics. Trade disputes, export controls, and political tensions can impact market access and competitiveness for aerospace companies across different regions. Moreover, economic downturns, natural disasters, and global crises like the COVID-19 pandemic can disrupt aerospace supply chains and dampen market growth in specific geographical regions. Nevertheless, as the aerospace industry continues to evolve, driven by technological advancements and market demand, the geographical distribution of market share is expected to shift, presenting both challenges and opportunities for stakeholders across the globe.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Aerospace Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Increasing Air Travel Demand
- Technological Advancements
- Expansion of Space Exploration Ventures-The expansion of space exploration ventures represents a significant driver within the global aerospace market, fueling innovation, collaboration, and investment in space-related technologies and services. Both governmental space agencies and private companies are increasingly investing in ambitious space exploration initiatives, including crewed missions to Mars, lunar exploration programs, and satellite launches. This surge in space exploration activities has created opportunities for aerospace manufacturers, technology providers, and service companies to contribute to the development of advanced spacecraft, launch vehicles, and space infrastructure.
The emergence of commercial spaceflight companies, such as SpaceX, Blue Origin, and Virgin Galactic, has democratized access to space and stimulated competition in the aerospace industry. These companies are pioneering breakthrough technologies in launch systems, satellite deployment, and space tourism, driving innovation and cost reduction in space access. Additionally, the growth of the satellite industry, fueled by the increasing demand for satellite communication, earth observation, and navigation services, presents lucrative opportunities for aerospace companies to provide satellite components, payloads, and support services.
The expansion of space exploration ventures also presents challenges such as technological complexities, regulatory hurdles, and financial risks. Developing and launching spacecraft, conducting manned missions, and establishing infrastructure in space require substantial investments, rigorous testing, and compliance with international space treaties and regulations. Moreover, the competitive landscape of the space industry can lead to market uncertainties and pricing pressures for aerospace companies. Nevertheless, as space exploration continues to capture the imagination of nations and individuals worldwide, the global aerospace market is poised for growth and innovation in the pursuit of new frontiers beyond Earth's atmosphere.
Restraints:
- Regulatory Complexities
- Geopolitical Tensions
- Economic Uncertainties-Economic uncertainties present significant challenges for the global aerospace market, impacting investment decisions, consumer behavior, and industry dynamics. Factors such as fluctuations in fuel prices, currency exchange rates, and global economic growth rates can influence air travel demand, aircraft orders, and aftermarket services. During periods of economic uncertainty, airlines may defer fleet expansion plans, reduce discretionary spending, or renegotiate contracts with aircraft manufacturers, leading to decreased revenue streams for aerospace companies. Moreover, economic downturns can affect consumer confidence and travel preferences, resulting in shifts in air travel patterns and demand for different types of aircraft and services.
Economic uncertainties can disrupt supply chains and increase production costs for aerospace manufacturers, impacting profitability and competitiveness. Supply chain disruptions, caused by events such as natural disasters, trade disputes, or geopolitical tensions, can lead to delays in aircraft deliveries, increased lead times for components, and higher logistics costs. Additionally, economic uncertainties may affect financing options for aircraft purchases, lease agreements, and infrastructure investments, further complicating the business environment for aerospace companies. As a result, aerospace manufacturers and suppliers must navigate complex economic conditions and adapt their strategies to mitigate risks and capitalize on emerging opportunities.
Despite the challenges posed by economic uncertainties, the global aerospace market also presents opportunities for resilience, innovation, and growth. During periods of economic volatility, aerospace companies may focus on cost-saving initiatives, efficiency improvements, and diversification strategies to weather downturns and maintain competitiveness. Moreover, advancements in technology, such as additive manufacturing, digitalization, and automation, offer opportunities to streamline operations, enhance product development processes, and reduce production costs. Additionally, as economies recover and stabilize, pent-up demand for air travel, coupled with emerging market opportunities and government stimulus measures, may drive a resurgence in aerospace activities, paving the way for sustained growth and prosperity in the industry.
Opportunities:
- Growth of Commercial Aviation
- Innovation in Military Aerospace
- Advancements in Space Exploration-Advancements in space exploration are reshaping the global aerospace market, driving innovation, collaboration, and investment in new technologies and capabilities. With both governmental space agencies and private companies venturing further into space, there is a surge in demand for spacecraft, launch vehicles, and satellite systems. This trend is bolstered by a growing interest in crewed missions to the Moon, Mars, and beyond, as well as the expansion of satellite constellations for communication, Earth observation, and scientific research. As space exploration ventures become more ambitious and diverse, the aerospace industry is experiencing a renaissance, with companies competing to develop cutting-edge solutions for space travel, colonization, and resource utilization.
The emergence of commercial spaceflight companies has democratized access to space and catalyzed innovation in launch technologies and space tourism. Companies like SpaceX, Blue Origin, and Virgin Galactic are revolutionizing the space industry by developing reusable launch vehicles, novel propulsion systems, and affordable space tourism experiences. This disruptive innovation is driving down the cost of space access and expanding the market for space-based services and applications. Additionally, the growing collaboration between public and private entities in space exploration initiatives, such as NASA's Commercial Crew Program and the Artemis lunar program, presents opportunities for synergistic partnerships and shared investments in space exploration capabilities.
The advancements in space exploration also pose challenges for the global aerospace market, including regulatory complexities, technological risks, and geopolitical tensions. The development and operation of spacecraft and space infrastructure require adherence to stringent safety standards and international regulations, adding complexity and cost to space missions. Moreover, the rapid pace of technological innovation in space exploration introduces uncertainties and risks, including the potential for mission failures, equipment malfunctions, and budget overruns. Additionally, geopolitical rivalries and competition for space dominance may lead to conflicts over space resources, access rights, and security concerns, impacting international collaboration and cooperation in space exploration endeavors. Nevertheless, as the global aerospace market continues to evolve and adapt to the opportunities and challenges of space exploration, the prospects for innovation, growth, and discovery in the cosmos remain compelling.
Competitive Landscape Analysis
Key players in Global Aerospace Market include:
- Boeing
- Airbus
- Lockheed Martin
- Northrop Grumman
- Raytheon Technologies
- Safran
- BAE Systems
- General Dynamics
- Thales Group
- United Technologies Corporation (UTC)
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Vehicle Type
- Market Snapshot, By Distribution Channel
- Market Snapshot, By Region
- Global Aerospace Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Increasing Air Travel Demand
- Technological Advancements
- Expansion of Space Exploration Ventures
- Restraints
- Regulatory Complexities
- Geopolitical Tensions
- Economic Uncertainties
- Opportunities
- Growth of Commercial Aviation
- Innovation in Military Aerospace
- Advancements in Space Exploration
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bragaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Aerospace Market, By Type, 2021 - 2031 (USD Million)
- Passenger Aircrafts
- Aircraft Engines
- Commercial Helicopters
- Aircraft Turbines
- Commercial Gliders And Drones
- Rocket Engines
- Global Aerospace Market, By Vehicle Type, 2021 - 2031 (USD Million)
- Two-Wheeler
- Passenger Car
- Commercial Vehicle
- Global Aerospace Market, By Distribution Channel, 2021 - 2031 (USD Million)
- Original Equipment Manufacturer (OEM)
- Aftermarket
- Global Aerospace Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Aerospace Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Boeing
- Airbus
- Lockheed Martin
- Northrop Grumman
- Raytheon Technologies
- Safran
- BAE Systems
- General Dynamics
- Thales Group
- United Technologies Corporation (UTC)
- Company Profiles
- Analyst Views
- Future Outlook of the Market