UK Aerospace & Defense Market Size, Share, Growth & Forecast 2025–2033

Market Overview

The UK aerospace and defense market was valued at USD 28.7 Billion in 2024 and is projected to reach USD 58.3 Billion by 2033, growing at a CAGR of 8.21% during 2025-2033. The market growth is supported by advancements in manufacturing, innovative technologies, strong export capabilities, and government programs focusing on military modernization, space exploration, and sustainability.

Study Assumption Years

Base Year: 2024 Historical Period: 2019-2024 Forecast Period: 2025-2033

UK Aerospace & Defense Market Key Takeaways

• Current Market Size: USD 28.7 Billion (2024)
• CAGR: 8.21% (2025-2033)
• Growth supported by rising R&D investments and technology innovation.
• Government initiatives include the Tempest fighter jet program and increased spending on space technologies.
• Sustainability trends spur development of fuel-efficient aircraft and green propulsion systems.
• Strong export capabilities reinforce the UK's role as a global aerospace and defense leader.
• Increasing needs in cybersecurity and surveillance systems enhance market momentum.

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Market Growth Factors – UK Aerospace & Defense Market

Growth is driven by the UK’s strategic investments in research and development aimed at advancing artificial intelligence, robotics, and autonomous systems. Programs such as the Tempest sixth-generation fighter jet, approved in November 2024 and developed in partnership with Italy and Japan, demonstrate national commitment to modernizing defense capabilities.

The UK government has significantly increased defense spending, allocating an additional USD 6.4 billion in 2023/24 and 2024/25 and USD 2.5 billion annually until 2027/28, totaling a USD 14 billion increase over five years. These investments enhance national security, strengthen export capacity, and support local production in civil and military aerospace segments.

Sustainability initiatives also drive market expansion. Mandates for sustainable aviation fuels (SAFs) rolled out in January 2025, requiring a minimum 2% SAF content in jet fuel, rising to 10% by 2030 and 22% by 2040. Technological development in electric aircraft, hybrid propulsion, and green defense systems further reflects the alignment with global decarbonization efforts.

Market Segmentation – UK Aerospace & Defense Market

Analysis by Sector: 

• Commercial and General Aviation
  • Commercial Aircraft
    • Air Traffic
    • Training and Flight Simulators
    • Airport Services (Ground Support Equipment and Logistics)
    • Structures
      • Airframe
      • Engine and Engine Systems
      • Cabin Interiors
      • Landing Gear
      • Avionics and Control Systems
      • Electrical Systems
      • Environmental Control Systems
      • Fuel and Fuel Systems
      • MRO
  • General Aviation
    • Air Traffic
    • Training and Flight Simulators
    • Airport Services (Ground Support Equipment and Logistics)
    • Structures
      • Airframe
      • Engine and Engine Systems
      • Cabin Interiors
      • Landing Gear
      • Avionics and Control Systems
      • Electrical Systems
      • Environmental Control Systems
      • Fuel and Fuel Systems
      • MRO
• Military Aircraft and Systems
  • Combat Aircraft
    • Structures
      • Airframe
      • Engine and Engine Systems
      • Landing Gear
    • Avionics and Control Systems
      • General Avionics
      • Mission Specific Avionics
    • Missiles and Weapons
  • Non-Combat Aircraft
    • Structures
      • Airframe
      • Engine and Engine Systems
      • Landing Gear
    • Avionics and Control Systems
      • General Avionics
      • Mission Specific Avionics
    • Missiles and Weapons
• Unmanned Aerial Systems
  • Commercial
  • Military
• Space Systems and Equipment
  • Space Launch Vehicle
  • Spacecraft
  • Ground Systems
  • Satellites
    • By Subsystem
      • Command and Control System
      • Telemetry, Tracking, Commanding and Monitoring (TTCM)
      • Antenna System
      • Transponders
      • Power System
    • By Application
      • Military
      • Commercial

Segment Descriptions Commercial and general aviation is expanding with increased air travel, rising demand for modern aircraft, advanced air traffic systems, and efficient airport operations. Lightweight structural components and aerodynamic designs enhance fuel efficiency and performance.

The military aircraft and systems segment includes advanced combat jets with next-generation avionics, stealth materials, and precision-guided weapons. Non-combat aircraft support transport, surveillance, and reconnaissance operations.

Unmanned aerial systems are growing rapidly across both commercial sectors (mapping, inspection, delivery) and military roles (ISR missions), supported by advancements in AI, autonomous navigation, and endurance.

Space systems and equipment play a rising role, spanning spacecraft, satellites, ground control systems, and launch vehicles for military intelligence, commercial broadcasting, and navigation.

Regional Insights

London remains the dominant region in the UK aerospace and defense market due to its concentration of leading defense contractors, aerospace innovators, and strategic proximity to government institutions. Strong financial, legal, and consulting infrastructure enhances contract management and policy implementation, supporting long-term sector growth.

Recent Developments & News – UK Aerospace & Defense Market

• January 2025: Hadean partnered with Faculty Science to develop AI safety systems for military drone swarming and tracking.
• November 2024: Teledyne Technologies acquired aerospace and defense electronics assets from Excelitas Technologies, including UK-based Qioptiq, for USD 710 million.
• September 2024: BAE Systems acquired Kirintec to improve cyber and electromagnetic warfare capabilities.
• September 2024: Airbus Helicopters opened a £55 million facility at London Oxford Airport.
• August 2024: Rolls-Royce secured a contract to supply 60 Trent 7000 engines to Cathay Pacific for Airbus A330-900 aircraft.

Key Players – UK Aerospace & Defense Market

• BAE Systems
• Rolls-Royce
• Airbus

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