Navigating Growth in Aerospace Defense
The A&D industry expands rapidly, facing challenges while embracing technology and innovation for success.
Aerospace and Defense
Market Analysis
The US Aerospace and Defense sector is experiencing robust growth, with a market value projected to rise from $494.91 billion in 2024 to $694.86 billion by 2030, at a CAGR of 4.7%-5.85%. The global market size ranges from $750 billion to $1.8 trillion, underscoring the sector’s significance. Growth is fueled by increased defense spending, a rebound in commercial air travel, technological advancements, and expansion in the space economy. However, the industry faces challenges such as supply chain disruptions, workforce shortages, and quality concerns, prompting firms to prioritize supply chain resilience and talent management strategies.
~
$
494.9
B
Market Value 2024 (U.S)
~
$
694.9
B
Market Value 2030 (U.S)
4.70
%
CAGR (U.S)
Key Market Drivers
Increased Defense Spending
Commercial Air Travel Recovery
Technological Advancements
Market Inhibitors
Supply Chain Challenges
Workforce Shortages
Quality and Reliability Concerns
Our Insights
The Aerospace and Defense sector’s strong growth masks intensifying complexity—success will favor agile companies that outpace disruption. Business owners should prioritize digital transformation, invest in workforce development, and proactively address supply chain vulnerabilities. As competition intensifies—with new entrants and increased M&A—differentiation through specialized offerings and customer-centricity will be vital. Navigating shifting regulations and rising sustainability demands requires robust compliance frameworks and adaptive strategies. Leaders must monitor emerging technologies, especially AI and cybersecurity, while exploring niche opportunities in the space economy. Proactivity in innovation, compliance, and risk management will distinguish market leaders from those constrained by legacy challenges.
Key Players in The Industry
Lockheed Martin
Dominant player with a focus on defense contracts.
Northrop Grumman
Aerospace and defense innovation.
Boeing
Diversified aerospace and defense segments.
Recent
M&A Activity
ADG M&A volume in 2024 increased 13% from 2023. M&A activity is expected to continue to rise in 2025.
Acquisition
Announced July 1, 2024
Boeing acquired Spirit AeroSystems
Enhances Boeing's control over aerostructure manufacturing and addresses supply chain issues.
Acquisition
Announced November 19, 2024
Aerovironment acquired BlueHalo
Expands Aerovironment's capabilities in defense technology (space, C-UAS, electronic warfare & cyber).
Acquisition
Announced October 7, 2024, Completed January 27, 2025
Apollo acquired Barnes
Apollo acquired a company that manufactures machined and fabricated components and assemblies.
