Market Forecast by Countries (Germany, United Kingdom, France, Italy, Russia, Spain, Rest of Europe), By Type (Aerospace, Defense), By Operation (Autonomous, Manual), By Component (Weapon System, Fire Control System, Command & Control System, Others) And Competitive Landscape
Product Code: ETC396107 | Publication Date: Aug 2022 | Updated Date: Oct 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 250 | No. of Figures: 50 | No. of Tables: 25 | |
According to 6Wresearch internal database and industry insights, the Europe Aerospace and Defense Market was accounted at USD 173.51 billion in 2024 and is projected to reach nearly USD 235.01 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 3.8% during the forecast period (2025-2031).
Report Name | Europe Aerospace and Defense Market |
Forecast period | 2025-2031 |
CAGR | 3.8% |
Market Size | USD 235.01 billion by 2031 |
Growing Sector | Aerospace & Defense |
The Europe Aerospace and Defense Market report thoroughly covers the market by countries, types, operations, and components. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high-growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
The Europe Aerospace and Defense Market is projected to grow significantly due to increasing investments in defense modernization and a heightened emphasis on national security. With industry leaders like Airbus at the helm, Europe aerospace industry continues to dominate commercial aircraft production. Meanwhile, European countries are expanding their defense expenditures to counter geopolitical uncertainties and support advanced defense technology adoption. The market includes diverse applications, from aerospace platforms like aircraft and satellites to defense systems that address military and security requirements.
Below mentioned are some prominent drivers and their influence on the market dynamics:
Driver | Primary Segments Affected | Why it matters (evidence) |
Defense Modernization | Aerospace & Defense; Military | Increased defense budgets in European nations like the UK, Germany, and France are driving growth in modernizing military systems. |
Technological Advancements | Aerospace; Commercial Aircraft; Space; Defense | The use of cutting-edge technologies like AI, IoT, and 5G in defense and aerospace systems is boosting the capabilities of both military and commercial sectors. |
Geopolitical Tensions | Defense; Military | Countries are strengthening their defense capabilities and investing more in aerospace solutions due to escalating geopolitical instability in Eastern Europe. |
Space Exploration & Satellite Applications | Aerospace; Space | European nations' heavy investment in space exploration and satellite technology, like Galileo, is driving demand for advanced aerospace systems. |
Environmental Regulations | Aerospace; Commercial Aircraft | The push to reduce emissions in commercial aviation is fueling innovations in eco-friendly aircraft designs, including hybrid and electric models. |
Europe Aerospace and Defense Market is anticipated to witness significant expansion,registering a CAGR of 3.8% during the forecast period of 2025-2031.The Europe Aerospace and Defense Market Growth is driven by several key factors. Geopolitical tensions are driving up defense budgets across Europe, leading to the modernization of military capabilities. AI, automation, and advanced materials are increasing efficiency in both the defense and aerospace industries. The aerospace sector is receiving a boost from increased investments in space exploration and satellite technology, while rising security risks are accelerating the demand for advanced defense technologies. Additionally, environmental regulations and a focus on sustainability are inspiring innovations in eco-friendly aerospace systems.
Below mentioned are some major restraints and their influence on the market dynamics:
Restraint | Primary Segments Affected | What this means (evidence) |
High Manufacturing Costs | Aerospace; Commercial Aircraft; Military | The high costs of developing next-generation aircraft, defense systems, and space technologies are a barrier for smaller European companies. |
Supply Chain Issues | Aerospace & Defense | Geopolitical factors and disruptions like semiconductor shortages and raw material supply issues are limiting defense and aerospace production capacity. |
Strict Environmental Regulations | Aerospace; Commercial Aircraft | Stringent EU emissions regulations are impacting the manufacturing of combustion-based aircraft and defense systems, raising compliance costs for companies. |
Competition from Emerging Markets | Aerospace; Defense | Competition from emerging markets such as China, Russia, and India in aerospace and defense may threaten European firms' dominance. |
Several challenges are facing the Europe Aerospace and Defense Industry, including the high development and manufacturing costs of next-gen aircraft, defense systems, and space technologies. Geopolitical risks and supply chain disruptions, including shortages of semiconductors and raw materials, are hindering production capacity. Strict environmental regulations and emission requirements are raising compliance costs, particularly for older aerospace and defense systems. Furthermore, rising competition from emerging markets like China and Russia challenges the leadership of European firms in these sectors.
Several prominent trends reshaping the market growth include:
Some prominent investment opportunities in the market include:
Some leading players operating in the Europe Aerospace and Defense Market Share include:
Company Name | Airbus Group |
Establishment Year | 1970 |
Headquarter | Toulouse, France |
Official Website | Click here |
Airbus is a global leader in commercial aircraft manufacturing, with a strong presence in defense and space sectors.
Company Name | BAE Systems |
Establishment Year | 1999 |
Headquarter | London, United Kingdom |
Official Website | Click here |
BAE Systems is a leading defense and aerospace company, providing advanced military solutions including naval systems, armored vehicles, and defense electronics.
Company Name | Dassault Aviation |
Establishment Year | 1929 |
Headquarter | Paris, France |
Official Website | Click here |
Dassault Aviation is a major aerospace company that designs and manufactures military and civilian aircraft, including the Rafale fighter jet.
Company Name | Thales Group |
Establishment Year | 2000 |
Headquarter | Paris, France |
Official Website | Click here |
Thales is a global leader in aerospace, defense, and security, offering advanced technology solutions including radar systems, defense electronics, and space systems.
Company Name | Rolls-Royce Holdings |
Establishment Year | 1906 |
Headquarter | London, United Kingdom |
Official Website | Click here |
Rolls-Royce is a leading manufacturer of aircraft engines, with a strong presence in both commercial and military aerospace sectors.
The European Union has enacted various regulations to foster innovation in aerospace and defense. The European Defense Fund (EDF) provides funding for collaborative defense initiatives, strengthening Europe defense capabilities. Furthermore, the EU Space Strategy aims to increase Europe involvement in space exploration, satellite technologies, and related sectors. The EU Green Deal further encourages sustainable aerospace advancements, driving innovations in fuel-efficient and hybrid aircraft technologies, supporting the shift toward environmentally friendly solutions in the aerospace industry.
The Europe Aerospace and Defense Market is poised for consistent growth, driven by expanding government investments in defense modernization, aerospace innovation, and space exploration. The increasing demand for advanced aerospace technologies, autonomous and eco-friendly aircraft, and stronger national security and defense capabilities will propel the market forward. Furthermore, increasing collaboration among European countries in space exploration and defense initiatives will strengthen the sector competitiveness on the global stage.
The report offers a comprehensive study of the subsequent market segments and their leading categories.
According to Ritika Kalra, Senior Research Analyst at 6Wresearch, Germany is expected to dominate the Europe Aerospace and Defense Market due to its strong defense budget, leadership in the aerospace industry with companies like Airbus, and advanced technological capabilities in military systems. Germany's ongoing investments in defense modernization and participation in NATO-led initiatives contribute to its leading position. The country is also a key player in space exploration through the German Aerospace Center (DLR), further solidifying its dominance in both aerospace and defense sectors.
The Aerospace segment dominates the market, driven by high demand for commercial aircraft, space technologies, and satellite systems. European companies such as Airbus, Dassault Aviation, and Rolls-Royce are global leaders in aerospace manufacturing, with increasing demand for advanced aircraft solutions and space exploration initiatives.
The Autonomous segment leads the market due to the increasing demand for unmanned aerial vehicles (UAVs) and autonomous systems for both defense and commercial aerospace applications. These systems offer high efficiency, safety, and cost-effectiveness, with growing adoption in surveillance, logistics, and reconnaissance.
The Weapon System segment is expected to dominate due to the rising investments in advanced defense technologies such as missile systems, fighter jets, and naval weaponry. European nations are focusing on enhancing their military capabilities with next-gen weapons systems to address security concerns and maintain a technological edge.
The report offers a comprehensive study of the subsequent market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Europe Aerospace and Defense Market Overview |
3.1 Europe Regional Macro Economic Indicators |
3.2 Europe Aerospace and Defense Market Revenues & Volume, 2021 & 2031F |
3.3 Europe Aerospace and Defense Market - Industry Life Cycle |
3.4 Europe Aerospace and Defense Market - Porter's Five Forces |
3.5 Europe Aerospace and Defense Market Revenues & Volume Share, By Countries, 2021 & 2031F |
3.6 Europe Aerospace and Defense Market Revenues & Volume Share, By Type, 2021 & 2031F |
3.7 Europe Aerospace and Defense Market Revenues & Volume Share, By Operation, 2021 & 2031F |
3.8 Europe Aerospace and Defense Market Revenues & Volume Share, By Component, 2021 & 2031F |
4 Europe Aerospace and Defense Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Europe Aerospace and Defense Market Trends |
6 Europe Aerospace and Defense Market, 2021 - 2031 |
6.1 Europe Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
6.2 Europe Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
6.3 Europe Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
7 Germany Aerospace and Defense Market, 2021 - 2031 |
7.1 Germany Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
7.2 Germany Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
7.3 Germany Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
8 United Kingdom Aerospace and Defense Market, 2021 - 2031 |
8.1 United Kingdom Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
8.2 United Kingdom Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
8.3 United Kingdom Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
9 France Aerospace and Defense Market, 2021 - 2031 |
9.1 France Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
9.2 France Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
9.3 France Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
10 Italy Aerospace and Defense Market, 2021 - 2031 |
10.1 Italy Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
10.2 Italy Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
10.3 Italy Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
11 Russia Aerospace and Defense Market, 2021 - 2031 |
11.1 Russia Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
11.2 Russia Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
11.3 Russia Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
12 Spain Aerospace and Defense Market, 2021 - 2031 |
12.1 Spain Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
12.2 Spain Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
12.3 Spain Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
13 Rest of Europe Aerospace and Defense Market, 2021 - 2031 |
13.1 Rest of Europe Aerospace and Defense Market, Revenues & Volume, By Type, 2021 - 2031 |
13.2 Rest of Europe Aerospace and Defense Market, Revenues & Volume, By Operation, 2021 - 2031 |
13.3 Rest of Europe Aerospace and Defense Market, Revenues & Volume, By Component, 2021 - 2031 |
14 Europe Aerospace and Defense Market Key Performance Indicators |
15 Europe Aerospace and Defense Market - Opportunity Assessment |
15.1 Europe Aerospace and Defense Market Opportunity Assessment, By Countries, 2021 & 2031F |
15.2 Europe Aerospace and Defense Market Opportunity Assessment, By Type, 2021 & 2031F |
15.3 Europe Aerospace and Defense Market Opportunity Assessment, By Operation, 2021 & 2031F |
15.4 Europe Aerospace and Defense Market Opportunity Assessment, By Component, 2021 & 2031F |
16 Europe Aerospace and Defense Market - Competitive Landscape |
16.1 Europe Aerospace and Defense Market Revenue Share, By Companies, 2021 |
16.2 Europe Aerospace and Defense Market Competitive Benchmarking, By Operating and Technical Parameters |
17 Company Profiles |
18 Recommendations |
19 Disclaimer |