The report below gives a good overview of the Summer 2025 M&A activity in the Aerospace, Defense & Government Industry Sector. The global aerospace and defense (A&D) industry is experiencing dynamic transformation, driven by surging innovation, heightened geopolitical tensions, growing investments in A&D, and rapid technological advancements. The global aerospace and defense market size is projected to grow from $875.4 billion in 2025 to $1,098.9 billion by 2029, with a CAGR of 5.8%. Global air travel demand has fully rebounded, resulting in sustained demand for fleet modernization. Leading manufacturers such as Airbus and Boeing forecast production of more than 40,000 new jets in the upcoming two decades to improve efficiency and meet the sustainability targets. The global defense spending grew by nearly 10% in 2024. The key investment areas include unmanned aerial systems, artificial intelligence, advanced air mobility (AAM), and next-generation propulsion systems. The U.S. continues to lead the world with the highest military budget of $962 billion in 2025, with major allocations into next-generation capabilities, including unmanned systems, nuclear modernization, and space-based assets. U.S. airlines, OEMs (Original Equipment Manufacturers), and MRO (Maintenance, Repair and Overhaul) providers are investing in digital maintenance technologies, AI-driven operational efficiencies, and sustainability initiatives such as Sustainable Aviation Fuel (SAF) and hybrid propulsion. However, operational risks, including supply chain constraints and raw materials volatility, persist. Emerging segments like advanced air mobility, hypersonic weapons, and commercial space are reshaping traditional boundaries with changing geopolitical tensions and technology. Businesses are focusing on R&D, cross-sector partnerships, and digital transformation to secure competitiveness within an increasingly dynamic global A&D environment.
Posted by Jim Gerberman.
Read the Entire Summer 2025 Aerospace, Defense & Government Report Here