Mordor Intelligence has published a new report on the Europe Aerospace And Defense Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The Europe Aerospace and Defense Market, valued at USD 173.97 billion in 2024, is expected to grow to USD 223.48 billion by 2029, at a CAGR of 5.14%, according to Mordor Intelligence. The market’s growth is fueled by the rising need for fleet upgrades, advancements in unmanned systems, and increased investment in defense capabilities to counter emerging threats. With the commercial aviation sector recovering strongly post-pandemic and military aviation focusing on fleet modernization, the market is poised for substantial growth.
Key Trends
Fleet Modernization and Expansion in Defense
European nations are prioritizing the modernization of their defense fleets to enhance military capabilities. Countries like Germany and the UK have increased their defense budgets to procure advanced fighter jets, naval aircraft, and unmanned systems. Notably, Germany’s plans to upgrade its Eurofighter fleet and the UK’s procurement of F-35 fighter jets underscore this trend. The focus on interoperable and technologically advanced systems aligns with NATO’s strategic goals, bolstering the demand for cutting-edge aerospace and defense solutions.
Recovery in Commercial Aviation Post-COVID-19
Passenger air traffic across Europe has rebounded strongly post-pandemic, with many countries surpassing pre-2020 levels. By the end of 2023, passenger traffic within the EU grew by 21% compared to the previous year, driven by robust international travel. Airlines are responding by ordering new, fuel-efficient aircraft and upgrading existing fleets. For instance, Lufthansa’s order of 80 new aircraft, including the Boeing 737 MAX and Airbus A220-300, reflects this trend. This recovery has further amplified the demand for commercial aircraft and associated services.
Growth in Business Aviation and Helicopter Demand
The surge in high-net-worth individuals (HNWIs) across Europe has significantly boosted the business aviation segment. Between 2024 and 2030, an estimated 1,120 business jets are expected to be delivered, catering to the rising demand for luxury and corporate travel. Concurrently, the demand for civil helicopters is growing, driven by their application in offshore wind energy projects and emergency medical services, supporting the broader aerospace market.
Advancements in Unmanned and Autonomous Systems
The adoption of unmanned systems and autonomous technologies is transforming Europe’s aerospace and defense landscape. Unmanned Aerial Systems (UAS) are increasingly utilized in reconnaissance, surveillance, and tactical operations. Integrating AI and advanced materials into these platforms enhances their efficiency and operational capabilities, making them indispensable for modern military operations.
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Market Segmentation
The Europe Aerospace and Defense Market is segmented by sector and geography:
By Sector:
- Commercial and General Aviation: Driven by the recovery in passenger traffic and fleet expansions.
- Military Aircraft and Systems: Focused on advanced combat and non-combat platforms to bolster defense capabilities.
- Unmanned Aerial Systems (UAS): Witnessing growing applications in military and commercial use cases.
- Space Systems and Equipment: Supported by increased investment in satellite technologies and space exploration.
By Geography:
- United Kingdom: A leading market with significant contributions from commercial and military aviation.
- France: Dominant in aerospace manufacturing and export of military aircraft.
- Germany: A key player in defense modernization and green aviation technologies.
- Italy and Spain: Emerging markets with expanding aerospace manufacturing capabilities.
- Rest of Europe: Contributing through localized innovations and production.
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Key Players
Prominent players in the Europe Aerospace and Defense Market include Airbus SE, BAE Systems PLC, Leonardo SpA, Dassault Aviation SA, and Safran SA. These companies are leading the market through innovation, strategic partnerships, and extensive investment in research and development.
- Airbus SE continues to dominate commercial aviation with its fuel-efficient A320 and A350 aircraft series, aligning with sustainability goals.
- BAE Systems PLC excels in military aviation, offering advanced defense systems and collaborating with NATO for strategic programs.
- Leonardo SpA focuses on unmanned systems and helicopters, expanding its market presence across Europe and beyond.
- Dassault Aviation SA is known for its Rafale fighter jets, meeting the region’s defense modernization needs.
- Safran SA leads in propulsion and aerospace systems, driving advancements in eco-friendly technologies.
These companies play a pivotal role in shaping the future of Europe’s aerospace and defense landscape, ensuring competitiveness and resilience in a dynamic global market.
Conclusion
The Europe Aerospace and Defense Market is positioned for sustained growth, driven by the recovery of commercial aviation, increased defense spending, and technological advancements in unmanned systems and sustainability. With significant contributions from key players and strong government support, the market is set to address emerging threats and evolving consumer demands effectively. As Europe continues to invest in innovation and modernization, its aerospace and defense industry remains a critical driver of economic and strategic development, ensuring global competitiveness in the coming years.
Industry Related Reports
German Aerospace and Defense Market: The German Aerospace and Defense Market is categorized by Industry, which includes Manufacturing, Design and Engineering, and Maintenance, Repair, and Overhaul (MRO). It is further segmented by Type, covering Commercial Aviation, Military Aviation, and Space sectors.
US Aerospace and Defense Market: The US Aerospace and Defense Market is segmented by Sector, encompassing Aviation (Commercial Aviation and General Aviation), Defense (Army, Navy, and Air Force), Space, and Unmanned Systems. Additionally, it is categorized by Platform, including Land, Air, Sea, and Space.
Aerospace and Defense Materials Market: The report provides an analysis of the Aerospace and Defense Materials Market, segmented by Material Type (Aluminum Alloys, Steel Alloys, Titanium Alloys, Super Alloys, Composite Materials, and Other Materials), Aircraft Type (Commercial, Military, Business and General Aviation, and Other Aircraft), and Geography (Asia-Pacific, North America, Europe, South America, and the Middle East & Africa).
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