Europe Aerospace and Défense Market Expected to Reach USD 497.71 Billion by 2031 - Mordor Intelligence

Introduction

According to Mordor Intelligence, the Europe Aerospace And Defense Market size was valued at USD 360.71 billion in 2026 and is projected to reach USD 497.71 billion by 2031, registering a CAGR of 6.65% during the forecast period. Growth is supported by rising defense expenditure across European nations, increasing emphasis on regional supply chain security, and sustained investments in next-generation aerospace platforms. These dynamics continue to reinforce the strategic importance of the Europe Aerospace And Defense industry.

Report Overview: https://www.mordorintelligence.com/industry-reports/europe-aerospace-and-defense-market?utm_source=openpr

Key Market Trends

Rising Defense Spending and Modernization Programs: Defense remains the dominant segment within the market, accounting for the majority of overall revenue. European governments are prioritizing fleet modernization, ammunition replenishment, and advanced military systems, supporting sustained growth across land, air, and naval domains.

Expansion of Space Capabilities: The space segment is emerging as the fastest-growing area of the market, driven by increased demand for satellites, launch services, and space-based communication and surveillance infrastructure. Government-backed programs and public-private partnerships are strengthening Europe's position in space activities.

Focus on Supply Chain Resilience and Localization: Supply chain vulnerabilities have accelerated investments in domestic manufacturing, alternative sourcing strategies, and recycling of critical materials. This trend is shaping procurement strategies and long-term industrial planning across the region.

Growth of Digital and Software-Centric Systems: Software, avionics, and digital engineering solutions are gaining prominence as aerospace and defense platforms increasingly rely on integrated, upgradeable, and network-enabled systems. This shift is influencing design priorities and procurement decisions across the market.

Check out more details and localized insights in the Japanese version:

https://www.mordorintelligence.com/ja/industry-reports/europe-aerospace-and-defense-market?utm_source=openpr

Market Segmentation

The Europe Aerospace And Defense Market analysis segments the market as follows:

By Industry
-Defense
-Commercial Aviation
-Space

By Type
-Platforms
-Systems
-MRO and Services

By Component
-Structures and Materials
-Propulsion and Power Systems
-Mission Payloads
-Sensors and Electronics
-Communication and Cyber Systems
-Software and Digital Systems

By Point of Sale
-Original Equipment Manufacturer
-Retrofit and Upgrade

By Geography
-Germany
-France
-United Kingdom
-Spain
-Russia
-Rest of Europe

This segmentation highlights the diversity of demand across civil, defense, and space applications throughout the region.

Major Players

Key companies operating in the Europe Aerospace And Defense industry include:

Airbus SE

BAE Systems plc

Leonardo S.p.A.

Safran SA

Thales Group

These players maintain strong market positions through extensive product portfolios, technological innovation, and long-term government contracts.

Conclusion

The Europe Aerospace And Defense Market forecast indicates steady growth through 2031, underpinned by increased defense budgets, expanding space programs, and ongoing modernization of aerospace platforms. As digital systems, propulsion technologies, and supply chain resilience gain prominence, competitive dynamics will continue to evolve. The market remains a cornerstone of Europe's industrial base, supporting both national security objectives and long-term aerospace innovation.

For complete market coverage and insights, visit the Mordor Intelligence report page

https://www.mordorintelligence.com/industry-reports/europe-aerospace-and-defense-market?utm_source=openpr

Industry Related Reports

Europe Military Aviation Market: The Europe Military Aviation Market is segmented by sub-aircraft type into fixed-wing aircraft and rotorcraft, and by country, including France, Germany, Italy, the Netherlands, Russia, Spain, Turkey, and the UK. The analysis incorporates key data points such as air passenger traffic, air transport freight, defense spending, the active military aircraft fleet, revenue passenger kilometers, high-net-worth individuals, and inflation rates.

Get More insights: https://www.mordorintelligence.com/industry-reports/europe-military-aircraft-market?utm_source=openpr

Europe General Aviation Market: The Europe General Aviation Market report is segmented by aircraft type, including business jets and other categories; by propulsion type, such as conventional piston or turbine systems, hybrid-electric options, and others; by ownership model, including full private ownership and additional structures; by end-user application, covering business and corporate transport, personal and leisure flying, and other uses; and by geography, encompassing the United Kingdom, France, Germany, and other European countries. Market forecasts are presented in terms of value (USD).

Get More insights: https://www.mordorintelligence.com/industry-reports/europe-general-aviation-market?utm_source=openpr

Europe Freighter Aircraft Market: The Europe Freighter Aircraft Market is segmented by type into dedicated cargo aircraft and freighters derived from non-cargo aircraft, by engine type covering turboprop and turbofan aircraft, and by geography, including Germany, the UK, France, Russia, and the rest of Europe. The report provides market size and forecasts for all these segments in terms of value (USD).

Get More insights: https://www.mordorintelligence.com/industry-reports/europe-freighter-aircraft-market?utm_source=openpr

For any inquiries or to access the full report, please contact:

media@mordorintelligence.com
https://www.mordorintelligence.com/

Mordor Intelligence, 11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli, Hyderabad, Telangana - 500032, India.

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

This release was published on openPR.