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IoT in Aerospace and Defense Market to Reach US$ 115.47 Billion by 2032 at 11.56% CAGR, Driven by Real-Time Monitoring and Predictive Maintenance in Smart Defense Systems

01-22-2026 12:12 PM CET | Aerospace & Defense

Press release from: DataM Intelligence 4 Market Research LLP

IoT in Aerospace and Defense Market

IoT in Aerospace and Defense Market

According to DataM Intelligence, the global IoT in Aerospace and Defense market reached US$ 48.13 billion in 2024 and is expected to reach US$ 115.47 billion by 2032, growing at a CAGR of 11.56% during the forecast period 2025-2032, driven by increasing adoption of connected sensors for asset tracking and predictive maintenance, rising defense budgets for smart battlefield technologies, strong demand for real-time situational awareness in aerospace operations, expanding use in unmanned systems and supply chain visibility.

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IoT in Aerospace and Defense Market Key Mergers and Acquisitions

✦ January 2026: Lockheed Martin acquired a specialized IoT sensor integration firm to enhance its connected aircraft and defense platform capabilities for real-time data analytics.
✦ December 2025: Northrop Grumman completed a strategic acquisition of a defense IoT cybersecurity startup to strengthen secure communication and asset monitoring in unmanned aerial systems.
✦ November 2025: Boeing secured a licensing agreement with an advanced IoT edge computing provider to integrate predictive maintenance solutions into its aerospace fleet management systems.

IoT in Aerospace and Defense Market Key Industry Developments

☑️ January 2026: Lockheed Martin, Northrop Grumman, and Boeing launched upgraded IoT-enabled platforms with enhanced sensor fusion and predictive analytics for aircraft health monitoring and battlefield awareness, securing major defense contracts in North America.
☑️ December 2025: Raytheon Technologies and General Dynamics expanded their IoT solutions for supply chain and logistics tracking in military operations, focusing on secure data transmission and real-time asset visibility.
☑️ November 2025: Thales Group and BAE Systems introduced next-generation IoT systems for unmanned vehicles and smart base infrastructure, gaining adoption in Asia-Pacific and European defense modernization programs.

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IoT in Aerospace and Defense Market Segmentation Analysis

By Component: Solutions hold the largest share due to high demand for IoT platforms, sensors, connectivity modules, and analytics software in aerospace fleet management and defense operations; Services grow steadily for implementation, integration, and managed support.

By Application: Predictive Maintenance dominates with critical role in reducing downtime for aircraft, drones, and ground vehicles; Real-Time Monitoring and Asset Tracking follow closely for situational awareness and logistics; Others include smart base operations, unmanned systems control, and battlefield IoT networks.

By End-User: Defense sector accounts for major share with high investment in connected systems for military aircraft, naval vessels, and ground forces; Aerospace grows rapidly for commercial aviation fleet optimization, MRO, and air traffic management; Others include space and homeland security applications.

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IoT in Aerospace and Defense Market Key Players

✦ Lockheed Martin - In January 2026, acquired an IoT sensor integration firm and launched enhanced connected aircraft platforms with real-time predictive maintenance and battlefield data analytics.
✦ Northrop Grumman - Completed acquisition of a defense IoT cybersecurity startup in December 2025 and expanded secure IoT solutions for unmanned systems and critical infrastructure protection.
✦ Boeing - Licensed advanced edge computing tech in November 2025 and introduced IoT-based fleet management tools with improved predictive capabilities for commercial and defense aerospace applications.
✦ Raytheon Technologies - Rolled out upgraded IoT logistics and asset tracking systems in late 2025, focusing on supply chain resilience and real-time monitoring for military operations.
✦ General Dynamics - Strengthened IoT-enabled communication networks in December 2025 with new interoperability features for joint defense missions and smart base infrastructure.

IoT in Aerospace and Defense Market Regional Insights

North America commands the largest market share in the global IoT in Aerospace and Defense market, supported by massive defense budgets, advanced aerospace industry, high adoption of IoT for predictive maintenance and situational awareness, stringent security standards, and presence of leading defense contractors driving innovation in connected platforms and unmanned systems.

Asia-Pacific remains the fastest-growing region, fueled by rapid military modernization in China, India, Japan, and South Korea, increasing investments in smart defense technologies and unmanned systems, growing aerospace manufacturing, government initiatives for secure IoT infrastructure, and aggressive deployment of sensor networks and real-time analytics.

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