Aerospace & Defense
Prime contractors, systems integrators, MRO providers, and supply chain manufacturers serving commercial aviation, defense, and space markets.
- 13
- Segments
- 55
- Verticals
Overview
Aerospace & Defense covers the manufacturers and service providers behind aircraft, defense systems, and space — commercial aviation manufacturing, aerospace structures and MRO, avionics and defense electronics, missiles and munitions, naval and ground systems, space, drones, and defense services. It is a large, consolidated, and strategically critical sector.
The two halves have diverged sharply: defense is buoyed by geopolitical tensions and rising budgets (munitions replenishment for Ukraine, shipbuilding, missiles), while commercial aerospace fell into a deep 2017–22 trough from the Boeing 737 MAX grounding and the pandemic before beginning to recover. The sector is dominated by primes (Boeing, Airbus, Lockheed, RTX, Northrop, General Dynamics) with active M&A in defense, space, drones, and the supply chain.
Market snapshot
- Market size
- ~$318B
- Growth
- ~-1.8%CAGR (2017–22, nominal)
- Companies
- ~3,750
U.S. Census Bureau 2022 CBP/Economic Census across aerospace (3364xx), defense electronics (334511), and munitions (3329xx/325920). The negative aggregate reflects the 2017–22 commercial-aerospace collapse; the defense side grew.
Business model & economics
- Revenue model
- Program and platform sales, aftermarket/MRO, and defense contracts
- Recurring revenue
- Moderate–High — aftermarket and long defense programs
- EBITDA margin
- Program- and aftermarket-mix-dependent
- Capex intensity
- High
- Defense buoyed by geopolitical tensions and rising budgets.
- Commercial aerospace recovering from a deep 2017–22 trough.
- Consolidated around primes; high-margin aftermarket/MRO.
M&A deal context
Who’s acquiring
What’s driving deals
- Defense-budget growth and munitions replenishment.
- Supply-chain roll-ups and prime consolidation.
- Space, drone, and new-defense-tech M&A.
Segment classifications
- 5.1.1Aerospace & Defense Supply Chain Mfg4 verticals
- 5.1.2Aerospace MRO & Sustainment5 verticals
- 5.1.3Aerospace Structures & Components4 verticals
- 5.1.4Avionics & Flight Systems4 verticals
- 5.1.5Commercial Aviation Manufacturing4 verticals
- 5.1.6Defense Electronics & C4ISR4 verticals
- 5.1.7Defense Services & Support4 verticals
- 5.1.8Military Ground Vehicles & Systems4 verticals
- 5.1.9Missiles, Munitions & Ordnance4 verticals
- 5.1.10Naval Systems & Shipbuilding5 verticals
- 5.1.11Simulation & Training Systems4 verticals
- 5.1.12Space Systems & Satellites4 verticals
- 5.1.13UAV & Unmanned Systems5 verticals
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