The report below gives a good overview of the Spring 2025 M&A activity in the Aerospace, Defense & Government Industry Sector. The aerospace and defense (A&D) sector in 2025 is undergoing significant transformation, which is primarily driven by the rising defense funds across the world, evolving market demands, and increasing technological advancements. The global aerospace and defense industry is projected at $875 billion in 2025 and is expected to grow at a CAGR of 5.8%, reaching more than $1 trillion by 2029. The U.S. Department of Defense's fiscal budget 2025 requested $849.8 billion to finance cutting-edge technology in unmanned aerial vehicles, space-based systems, and cyber defense. UAVs have progressed from reconnaissance weapons to multi-mission systems such as electronic warfare, precision strike, and tactical swarming, thus leading to drone warfare as a prime growth area. The military robotics and autonomous systems market is expanding at a CAGR of 7.6% from 2024 to 2032. Geographically, North America is the largest and most rapidly expanding market, and Asia-Pacific and the Middle East are increasing their defense modernization and aviation infrastructure. Also, the European countries are experiencing a historic defense spending shift with the launch of the €800 billion "ReArm Europe" initiative, which is a strong move toward strategic autonomy, joint procurement, and strengthened domestic defense capabilities in response to evolving geopolitical tensions. The adoption of machine learning and artificial intelligence for threat detection in real-time situations, predictive maintenance, and operation optimization both in military and commercial aviation shaping the A&D sector. Sustainability is becoming more prominent with businesses investing in green fuels, light materials, and green manufacturing processes to minimize their carbon footprints. According to the International Trade Organisation, the world's biggest aerospace industry, the United States, provides the rest of the world with most of its commercial and military aerospace equipment. The aerospace industry also concentrates on maximizing aircraft lifespans through digitalized MRO services to address increasing air travel demand after the pandemic. Therefore, the A&D sector is growing at a dynamic rate, solidifying its critical role in shaping global security and aviation worldwide.
Posted by Jim Gerberman.
Read the Entire Spring 2025 Aerospace, Defense & Government Report Here