The global aerospace and defence market is projected to reach roughly US $847 billion in 2025, according to The Business Research Company. Sustained defence spending and post-pandemic commercial recovery are reshaping how manufacturers design, build, and secure systems across air, land, sea, and space domains.
Analysts at Deloitte note that more than 80 percent of A&D companies now deploy AI or machine-learning tools for design, logistics, or threat modelling. The shift toward autonomy—spanning UAVs, underwater vehicles, and AI-assisted command-and-control—marks a structural turn toward data-driven operations. While efficiency gains are significant, the same interconnectivity heightens cyber-exposure across manufacturing and mission systems.
Supply resilience remains a second axis of pressure. Reuters reports Western primes expanding component sourcing to India and Southeast Asia to offset labour and logistics bottlenecks. Le Monde observed that regional defence firms are under pressure to expand capacity and localise supply to support Ukraine and EU security programmes.
Parallel innovation in sustainability and space is redefining the industry’s scope. WSJ highlighted Leonardo’s plan to launch dual-use satellite constellations, while aerospace OEMs invest in low-carbon fuels and advanced mobility platforms to align with climate targets.
Across regions, multi-domain integration and digital resilience define the sector’s competitive edge for 2025. Analysts expect manufacturers to prioritise secure data architectures and adaptive industrial capacity as aerospace and defence enter a phase of sustained technological re-tooling.