While surpassing an $800 billion valuation and hurtling towards trillion-dollar status, the global aerospace and defense industry is navigating a complex flight path defined by geopolitical tensions, technological arms races, and a fierce competition for talent.
Key Takeaways
- The global aerospace and defense market was valued at $814.8 billion in 2023 and is projected to reach $1,089.5 billion by 2030, growing at a CAGR of 4.2%.
- U.S. aerospace and defense industry revenue reached $424 billion in 2023, accounting for 52% of the global market.
- Commercial aviation segment of aerospace market generated $452 billion in 2023, while defense was $362 billion.
- Lockheed Martin reported $67.6 billion in net sales for 2023, with Aeronautics segment at $27.9 billion.
- Boeing's defense, space & security division generated $25.6 billion in revenue in 2023, down 10% YoY.
- RTX (Raytheon) achieved $68.9 billion total revenue in 2023, with Collins Aerospace at $27.3 billion.
- U.S. aerospace and defense industry employed 2.2 million people directly in 2023.
- Aerospace manufacturing workforce in the U.S. grew by 4.7% to 1.1 million in 2023.
- 45% of U.S. A&D jobs require STEM skills, with 320,000 engineers employed in 2023.
- Global A&D R&D spending reached $135 billion in 2023, with U.S. at $75 billion.
- Hypersonic weapons R&D investments by U.S. DoD hit $4.7 billion in FY2023.
- Space domain awareness tech R&D funded at $1.2 billion by DARPA in 2023.
- U.S. DoD FY2024 budget for RDT&E is $145 billion, 14.5% of total $997 billion.
- Top 100 defense contractors received $465 billion in U.S. contracts in FY2023.
- Lockheed Martin secured $58.2 billion in U.S. DoD contracts in FY2023.
The global aerospace and defense market is a massive, growing industry valued at over $814 billion.
Employment and Workforce
1U.S. aerospace and defense industry employed 2.2 million people directly in 2023.
Verified2Aerospace manufacturing workforce in the U.S. grew by 4.7% to 1.1 million in 2023.
Verified345% of U.S. A&D jobs require STEM skills, with 320,000 engineers employed in 2023.
Verified4Global A&D workforce totals 4.5 million, with 1.8 million in manufacturing roles as of 2023.
Directional5Women represent 20.5% of the U.S. aerospace workforce in 2023, up from 18% in 2020.
Single source6California hosts 1.3 million A&D jobs, 28% of U.S. total in 2023.
Verified7Average U.S. A&D engineer salary $128,000 in 2023.
Verified8150,000 skilled labor shortage projected in U.S. A&D by 2025.
Verified9UK A&D sector employs 164,000 people directly in 2023.
Directional10France A&D workforce at 205,000 in 2023.
Single source11Texas A&D jobs 450,000 in 2023.
Verified1212% growth in A&D apprenticeships U.S. 2023.
Verified13Germany A&D employment 120,000 high-skill jobs 2023.
Verified14Canada aerospace workforce 170,000 in 2023.
Directional15Diversity: 15% underrepresented minorities in U.S. A&D 2023.
Single source16Florida A&D employment 250,000 in 2023.
Verified1725% of A&D jobs unfilled due to skills gap U.S. 2023.
Verified18Italy A&D sector 85,000 jobs 2023.
Verified19Australia defense workforce 60,000 direct 2023.
Directional20Veteran hiring in A&D 18% of workforce U.S. 2023.
Single sourceEmployment and Workforce Interpretation
While boasting a formidable 2.2-million-strong workforce and growing, the American aerospace and defense sector is simultaneously a high-flying economic engine and a frantic search party scrambling to fill a projected 150,000 skilled seats before takeoff.
Government Contracts and Spending
1U.S. DoD FY2024 budget for RDT&E is $145 billion, 14.5% of total $997 billion.
Verified2Top 100 defense contractors received $465 billion in U.S. contracts in FY2023.
Verified3Lockheed Martin secured $58.2 billion in U.S. DoD contracts in FY2023.
Verified4F-35 program contract value exceeds $1.7 trillion over lifecycle, with $12B awarded in 2023.
Directional5NATO allies spent $1.3 trillion on defense in 2023, 2.0% of collective GDP.
Single source6U.S. DoD procurement budget FY2023 $168 billion.
Verified7F-35 Joint Strike Fighter $428 billion total program cost to date.
Verified8Boeing KC-46 tanker program $44.5 billion contract value.
Verified9Virginia-class submarine program $348 billion lifetime cost.
Directional10Global military spending $2.44 trillion in 2023, 6.8% increase.
Single source11U.S. Army aviation contracts $32B FY2023.
Verified12NGAD program $2.5B funding FY2024.
Verified13Trident II missile sustainment $1.2B contract 2023.
Verified14Constellation-class frigate $22B program cost.
Directional15EU defense spending €270B in 2023.
Single source16U.S. Navy shipbuilding contracts $40B FY2023.
Verified17B-21 Raider bomber $203B program cost.
Verified18Patriot missile system $14B exports since 2022.
Verified19Columbia-class sub $132B total program.
Directional20UK MoD budget £50.1B in 2023/24.
Single sourceGovernment Contracts and Spending Interpretation
While the Pentagon's $145 billion R&D budget aims to invent the future, the real art lies in spending trillions of today's dollars to ensure that future arrives with enough stealth bombers, angry submarines, and eternally-overbudget fighter jets to make any adversary deeply regret their life choices.
Major Companies and Performance
1Lockheed Martin reported $67.6 billion in net sales for 2023, with Aeronautics segment at $27.9 billion.
Verified2Boeing's defense, space & security division generated $25.6 billion in revenue in 2023, down 10% YoY.
Verified3RTX (Raytheon) achieved $68.9 billion total revenue in 2023, with Collins Aerospace at $27.3 billion.
Verified4Northrop Grumman net sales were $39.3 billion in 2023, up 6.5% from 2022.
Directional5General Dynamics reported $42.3 billion in 2023 revenue, with Aerospace at $10.5 billion.
Single source6BAE Systems reported £25.3 billion revenue in 2023, up 10% YoY.
Verified7Airbus Defence and Space revenue €11.8 billion in 2023.
Verified8L3Harris Technologies $19.4 billion revenue in FY2023.
Verified9Huntington Ingalls Industries shipbuilding revenue $11.5 billion in 2023.
Directional10Thales Group aerospace & defense sales €10.6 billion in 2023.
Single source11Leonardo S.p.A. orders €15.4B in 2023.
Verified12Saab AB revenue SEK 52.8B in 2023.
Verified13Textron Inc. aerospace revenue $4.7B in 2023.
Verified14Elbit Systems $6.0B revenue 2023.
Directional15Dassault Aviation orders €14.8B backlog end-2023.
Single source16Rolls-Royce aerospace revenue £13.8B 2023.
Verified17Spirit AeroSystems $6.0B revenue 2023.
Verified18Kratos Defense $1.08B revenue FY2023.
Verified19Embraer revenue R$27.6B 2023.
Directional20MBDA missile systems sales €4.2B 2023.
Single sourceMajor Companies and Performance Interpretation
The giants are eating, with RTX leading the table, but Boeing’s sneeze reminds everyone this feast is in a very fragile dining room.
Market Size and Revenue
1The global aerospace and defense market was valued at $814.8 billion in 2023 and is projected to reach $1,089.5 billion by 2030, growing at a CAGR of 4.2%.
Verified2U.S. aerospace and defense industry revenue reached $424 billion in 2023, accounting for 52% of the global market.
Verified3Commercial aviation segment of aerospace market generated $452 billion in 2023, while defense was $362 billion.
Verified4Asia-Pacific aerospace and defense market is expected to grow at 5.1% CAGR from 2024-2030, reaching $289 billion.
Directional5European A&D market size stood at $178 billion in 2023, with 3.8% projected growth through 2028.
Single source6Global A&D market projected to hit $1.1 trillion by 2028 at 5.2% CAGR from $778B in 2022.
Verified7U.S. MRO segment in aerospace valued at $78 billion in 2023, growing 4% YoY.
Verified8Defense electronics market size $221 billion in 2023, to $312B by 2030.
Verified9Middle East A&D market at $62 billion in 2023, CAGR 6.1% to 2030.
Directional10Space economy segment within A&D reached $447 billion globally in 2023.
Single source11U.S. defense budget FY2023 $816 billion, up 4.1% real terms.
Verified12Aftermarket services in A&D $250 billion globally 2023.
Verified13Sustainable aviation fuel market in A&D $2.8B in 2023.
Verified14Latin America A&D market $18.5B in 2023, 3.9% CAGR.
Directional15Engines segment $85B in global A&D 2023.
Single source16Global A&D IT spending $98B in 2023.
Verified17eVTOL urban air mobility market $9.2B by 2030 from $1.1B 2023.
Verified18Missile defense systems $15.4B U.S. market 2023.
Verified19Africa A&D market $4.2B in 2023.
Directional20Rotorcraft segment $52B global 2023.
Single sourceMarket Size and Revenue Interpretation
The global aerospace and defense industry, a trillion-dollar playground where the relentless engines of commerce and the sharp tools of geopolitics are equally serious business, is soaring on a trajectory fueled by everything from sustainable fuel dreams to missile defense realities.
R&D and Innovation
1Global A&D R&D spending reached $135 billion in 2023, with U.S. at $75 billion.
Verified2Hypersonic weapons R&D investments by U.S. DoD hit $4.7 billion in FY2023.
Verified3Space domain awareness tech R&D funded at $1.2 billion by DARPA in 2023.
Verified4Additive manufacturing adoption in A&D grew 28% YoY, with $2.5B market in 2023.
Directional5AI integration in defense systems R&D spend: $12.4 billion globally in 2023.
Single source6Directed energy weapons R&D budget $1.1 billion by U.S. in FY2024.
Verified7Quantum tech for defense R&D $850 million globally in 2023.
Verified8UAV/autonomous systems R&D spend $22 billion worldwide 2023.
Verified9Digital twin tech adoption in A&D R&D valued at $3.2B in 2023.
Directional10Cybersecurity R&D for A&D $8.7 billion in 2023.
Single source11Sustainable propulsion R&D $5.2B global A&D 2023.
Verified12Stealth tech R&D $3.8B U.S. DoD FY2023.
Verified13Biotech for soldier performance R&D $450M 2023.
Verified145G/6G comms R&D in defense $2.1B 2023.
Directional15Supply chain digitization R&D spend $4.3B A&D 2023.
Single source16Electric propulsion R&D $1.9B A&D global 2023.
Verified17Exoskeleton tech R&D $650M 2023.
Verified18Swarm drone tech R&D $1.4B U.S. 2023.
Verified19AR/VR training sims R&D $2.8B 2023.
Directional20Materials science R&D for hypersonics $900M 2023.
Single sourceR&D and Innovation Interpretation
The global aerospace defense industry's 2023 R&D ledger paints a picture of a sector sprinting on two tracks: one foot pushing for AI-swarmed, hypersonic, quantum, and space-fighting supremacy, while the other steps toward a future of sustainable, additive-manufactured, and digitally-twinned resilience, all on a budget that could make a small planet blush.
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