Global aerospace markets
Submitted by:
Sara Waddington
We present selected analysis on prospects, challenges and opportunities in the global aerospace sector for manufacturers.
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The aerospace market is a global industry encompassing the design, production and maintenance of aircraft, spacecraft and related systems. It includes commercial, business/general aviation and military sectors, as well as the space exploration field. Key players include aerospace manufacturers, defence contractors and space agencies.
Demand for air transport continues to increase as the industry continues to address environmental concerns through efficient aircraft design, as well as sustainable aviation fuels and materials. The market is characterised by continuous innovation.
According to analyst, Business Research Insights (BRI), the global aerospace market size was valued at approximately US$ 356.11 billion in 2024 and is expected to reach US$ 664 billion by 2033, growing at a compound annual growth rate (CAGR) of about 7.18% from 2025 to 2033. Analyst Precedence Research valued the global aerospace market size at an expected US$ 373.61 billion in 2024, anticipating it to reach around US$ 791.78 billion by 2034 (expanding at a CAGR of 7.8% over the forecast period 2024 to 2034).
However, U.S. President Trump’s tariffs have created uncertainty in global aerospace markets, disrupting global supply chains and increasing production costs for some manufacturers. They have particularly affected manufacturers, such as Boeing and Airbus, who rely on international supply chains for aircraft components. The tariffs have also spurred some European nations to re-assess their reliance on U.S. defence and aerospace technology.
Trends and developments
“The Russia-Ukraine war has significantly impacted aerospace market growth, inflicting disruptions in supply chains especially around the production of critical materials such as titanium,” commented analyst, BRI. “It has also caused rising costs and delays for aircraft manufacturers, as well as halting or limiting operations of agencies with ties to Russia. Sanctions on Russian aerospace agencies, such as Sukhoi and UAC, have reshaped worldwide competition.”
Analyst BRI pointed to the effect on the market of emerging trends, with the combination of artificial intelligence (AI) and machine learning (ML). These technologies, it said, are enhancing performance, decreasing costs and improving precision in the industry.
“AI and ML enable quicker simulation and optimisation of aircraft designs, while also automating manufacturing operations. Additionally, AI-powered predictive upkeep structures are improving aircraft performance and protection. The developing adoption of AI and ML is shaping the future of aerospace, making operations more streamlined and sustainable,” reported the analyst.
Growing demand for green and fuel-efficient aircraft mean that airlines and manufacturers are prioritising sustainability to satisfy stringent environmental regulations and decrease operational costs. Drone and unmanned aerial system technology has also seen considerable growth. Advances in lightweight materials, aerodynamic designs and propulsion structures, along with electric and hybrid engines, are examples of innovations. Sustainability will become a key driving force of the aerospace market.
To read the rest of this article in the May 2025 issue of ISMR, see https://joom.ag/HBjd/p34
We present selected analysis on prospects, challenges and opportunities in the global aerospace sector for manufacturers.
===
The aerospace market is a global industry encompassing the design, production and maintenance of aircraft, spacecraft and related systems. It includes commercial, business/general aviation and military sectors, as well as the space exploration field. Key players include aerospace manufacturers, defence contractors and space agencies.
Demand for air transport continues to increase as the industry continues to address environmental concerns through efficient aircraft design, as well as sustainable aviation fuels and materials. The market is characterised by continuous innovation.
According to analyst, Business Research Insights (BRI), the global aerospace market size was valued at approximately US$ 356.11 billion in 2024 and is expected to reach US$ 664 billion by 2033, growing at a compound annual growth rate (CAGR) of about 7.18% from 2025 to 2033. Analyst Precedence Research valued the global aerospace market size at an expected US$ 373.61 billion in 2024, anticipating it to reach around US$ 791.78 billion by 2034 (expanding at a CAGR of 7.8% over the forecast period 2024 to 2034).
However, U.S. President Trump’s tariffs have created uncertainty in global aerospace markets, disrupting global supply chains and increasing production costs for some manufacturers. They have particularly affected manufacturers, such as Boeing and Airbus, who rely on international supply chains for aircraft components. The tariffs have also spurred some European nations to re-assess their reliance on U.S. defence and aerospace technology.
Trends and developments
“The Russia-Ukraine war has significantly impacted aerospace market growth, inflicting disruptions in supply chains especially around the production of critical materials such as titanium,” commented analyst, BRI. “It has also caused rising costs and delays for aircraft manufacturers, as well as halting or limiting operations of agencies with ties to Russia. Sanctions on Russian aerospace agencies, such as Sukhoi and UAC, have reshaped worldwide competition.”
BRI pointed to the effect on the market of emerging trends, with the combination of artificial intelligence (AI) and machine learning (ML). These technologies, it said, are enhancing performance, decreasing costs and improving precision in the industry.
“AI and ML enable quicker simulation and optimisation of aircraft designs, while also automating manufacturing operations. Additionally, AI-powered predictive upkeep structures are improving aircraft performance and protection. The developing adoption of AI and ML is shaping the future of aerospace, making operations more streamlined and sustainable,” reported the analyst.
Growing demand for green and fuel-efficient aircraft mean that airlines and manufacturers are prioritising sustainability to satisfy stringent environmental regulations and decrease operational costs. Drone and unmanned aerial system technology has also seen considerable growth. Advances in lightweight materials, aerodynamic designs and propulsion structures, along with electric and hybrid engines, are examples of innovations. Sustainability will become a key driving force of the aerospace market.
Market drivers and challenges
Developing international demand for air travel is a key driver of the commercial aerospace sector. Rising disposable incomes, the expanding middle class and increasing tourism levels have expanded the quantity of passengers and freight transported worldwide.
To read the rest of this article in the May 2025 issue of ISMR, see https://joom.ag/HBjd/p34