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A high-level view

In the December 2023/January 2024 issue of ISMR, we highlight trends, drivers, opportunities and challenges in global aerospace markets for manufacturers.


“The global aerospace market size was estimated at US$ 321.5 billion in 2022 and is projected to reach around US$ 678.17 billion by 2032, growing at a CAGR of 7.80% during the forecast period from 2023 to 2032,” commented analyst, Precedence Market Research.

“The aerospace market is a global industry encompassing the design, production and maintenance of aircraft, spacecraft and related systems. It includes commercial and military sectors, as well as the space exploration field. Key players include aerospace manufacturers; defence contractors and space agencies,” it added.

This market is strongly involved in the development of the latest modern technologies from advanced materials and propulsion systems to satellite communication and space exploration initiatives. Demand is driven by factors such as passenger travel; defence requirements and an increasing interest in space exploration. It is a highly competitive and dynamic industry, characterised by continuous innovation, with international collaboration playing a crucial role in shaping its future.

Aerospace market dynamics

“The continuous expansion of commercial aviation serves as a paramount catalyst for the aerospace market. To keep pace with this escalating demand, airlines are in a perpetual quest to modernise and expand their fleets. Consequently, aircraft manufacturers are compelled to pioneer innovations aimed at creating aircraft that are not only more fuel-efficient but also offer heightened comfort and environmental sustainability,” continued Precedence Market Research.

“This substantial growth in commercial aviation also mandates sustained progress in air traffic management systems. These advances are essential to ensure the safe and efficient operation of increasingly crowded skies. Furthermore, it's imperative to acknowledge that the burgeoning commercial aviation sector doesn't solely fuel the production of new aircraft; it also spurs significant demand for maintenance, repair and overhaul (MRO) services which constitute a pivotal and enduring facet of the aerospace industry,” it added.

Substantial market growth is also due to heightened global defence and security requirements. In an increasingly complex and volatile geopolitical landscape, governments worldwide prioritize enhancing their military capabilities. As defence budgets expand, this segment generates substantial demand for aerospace companies, fostering innovation in military aviation and technology while bolstering the industry's overall economic health. Defence and security needs are therefore instrumental in propelling aerospace market growth and supporting the industry's long-term sustainability.

“The global aerospace market grew from US$ 261.12 billion in 2022 to US$ 278.43 billion in 2023 at a compound annual growth rate (CAGR) of 6.6%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The aerospace market is expected to grow to US$ 358.44 billion in 2027 at a CAGR of 6.5%,” added analyst, Research and Markets.

A regional review

“The U.S. aerospace market size was valued at US$ 103.52 billion in 2022 and is projected to hit around US$ 218.37 billion by 2032, registering a CAGR of 7.80% between 2023 and 2032,” continued Precedence Market Research.

According to the analyst, North America held the largest revenue share of 46% in 2022 and remains a global aerospace powerhouse, home to industry giants such as Boeing and Lockheed Martin. The region boasts a mature aerospace market with a strong focus on innovation and advanced technology.

“Notable trends in North America include a push towards sustainable aviation, the rise of space exploration endeavours driven by companies like SpaceX and increasing defence spending. Additionally, a competitive commercial aviation sector continuously strives to improve efficiency and passenger experience, making North America a critical hub for aerospace advances,” explained the analyst.

The analyst estimates that the Asia-Pacific region will see the fastest expansion.

“The Asia-Pacific region is rapidly emerging as a key player in the aerospace market. It's witnessing substantial growth in commercial aviation due to rising passenger numbers, particularly in countries such as China and India. Governments are also investing in defence aerospace capabilities. The region is becoming a significant contributor to space activities, with countries like China making strides in lunar exploration and satellite technology. Trends include increased aircraft production; aerospace innovation and international collaborations in space initiatives,” outlined the analyst.

Europe's aerospace market is well known for its modern technology and product innovations. It hosts major industry players such as Airbus and Rolls-Royce.

“Europe exhibits strong demand for commercial and military aircraft, alongside a keen focus on sustainable aviation practices and stringent safety regulations. European space agencies, such as ESA, contribute to space exploration. Europe's aerospace sector is marked by a commitment to excellence and environmental sustainability,” added Precedence Market Research.

Growth drivers

Various drivers are propelling the global aerospace market, confirmed the analyst, as highlighted below:

To read the rest of this article in the December 2023/January 2024 issue of ISMR, please see

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