The report below gives a good overview of the Fall 2025 M&A activity in the Aerospace, Defense & Government Industry Sector. The global aerospace & defense (A&D) market is poised at a compelling inflection in 2025. According to Coherent Market Insights, it is estimated to grow from $ 846.9 Bn in 2025 to $ 1,470.4 Bn by 2032 at a CAGR of 8.2%. This growth is being driven by two key dynamics: a rebound in commercial aviation demand, which is pushing aircraft orders and fleet renewal, and an intense wave of defense modernization spurred by geopolitical tension. The defense systems & services domain remains the dominant share with approximately 57 % of the total market in 2025. Parallel to this, the aerospace supply chain, including parts, subsystems, avionics, and aerostructures, is scaling aggressively. Light structural and empennage components (aerostructures) are emerging as key growth pockets, benefiting from demand for lighter, fuel-efficient airframes. The adoption of advanced technologies such as artificial intelligence, unmanned systems, big-data analytics, and autonomous platforms is shaping new value chains and service models across aerospace and defense. Meanwhile, space is also pulling share, as the global space economy is forecasted at $ 646.9 Bn in 2025, expanding rapidly over the next decade. In the U.S. market, the A&D sector remains strong due to industrial and defense policy, backed by strong institutional support and advanced technological capabilities. The U.S. Department of Defense's R&D allocations, procurement of next-generation platforms, unmanned systems, and modernization initiatives act as a demand engine. On the commercial side, American OEMs, such as aircraft, engines, and avionics, continue to export globally, anchor aftermarket ecosystems, and lead in technology diffusion, such as AI, digital twins, etc.
Posted by Jim Gerberman.
Read the Entire Fall 2025 Aerospace, Defense & Government Report Here