The report below gives a good overview of the Winter 2025 M&A activity in the Aerospace, Defense & Government Industry Sector. The Aerospace and Defense (A&D) industry is valued at $985.8 billion in 2024 and is expected to reach $ 1,234.4 billion in 2029 at a CAGR of 5.8%. The upward trajectory is driven by emerging technologies, rising military spending, and evolving market dynamics. The commercial aerospace segment continues to recover as the air travel demand is rising, which is leading to increasing investments into sustainable aviation fuels and green technologies to reach the target of net-zero emission goals by 2050. The defense sector is experiencing a substantial rise in demand due to increased global tensions and partly due to the wars in Ukraine and the Middle East. The global AI in aerospace and defense market size accounted for $25.4 billion in 2024 and is expected to grow to $65.4 billion by 2034, growing at a CAGR of 9.9% for the forecasted period. The growth of AI in the aerospace and defense market is attributed to its use in accelerating speed and refining the design phases, which enhance surveillance, security, and training within the defense sector. These innovations primarily aim to boost operational efficiency, improve supply chain visibility, and foster new revenue streams for companies in the industry. As there is rising demand for aerospace and defense products from both commercial and defense sectors, the industry is expected to concentrate on key areas such as rocket technology, unmanned systems, and space capabilities. Although demand is increasing, the industry is still struggling with issues like supply chain disruptions and labor shortages. To address these challenges, companies are reinforcing and improving their supply chains. Consequently, the A&D market landscape presents both opportunities and challenges, dependent on the ability to integrate digital technologies, strengthen supply chains, commit firmly to sustainable practices, and navigate regulatory policies on a global scale.
Posted by Jim Gerberman.
Read the Entire Winter 2025 Aerospace, Defense & Government Report Here