Mordor Intelligence has published a new report on the Mergers and Acquisitions in Aerospace and Defense Market offering a comprehensive analysis of trends, growth drivers, and future projections.
— The Mergers And Acquisitions In Aerospace And Defense Market size is projected to be USD 218.02 billion in 2025 and is expected to grow to USD 381.82 billion by 2030, growing at a compound annual growth rate of about 11.86 percent. Analysts predict that this growth will be driven by increasing demand for securing advanced capabilities, geopolitical dynamics, and a rising need for resilient supply chains. As the market evolves, mergers and acquisitions (M&A) are shaping the strategy of industry players seeking to expand their technological strengths and global presence.
Key Trends in the Mergers And Acquisitions In Aerospace And Defense Market
Shift toward capability-acquisition over pure scale: Traditional megadeals intended to deliver cost synergies are giving way to more targeted acquisitions. Companies prefer deals that bring in niche technology, digital systems, unmanned systems, cybersecurity functions, or advanced materials. This enables firms to fill technology gaps and reduce reliance on external suppliers.
Role of private equity and financial investors: Private equity firms are increasingly active in aerospace and defense M&A transactions. They are investing in smaller yet innovative firms and applying longer investment horizons. Their participation is widening the competitive landscape and enabling consolidation and specialization over time.
Cross-border transactions and regional strategies: Firms are pursuing deals beyond their own borders to acquire new technologies, enter new markets, and mitigate risks related to supply chain disruptions. Regions such as Europe show considerable cross-nation cooperation, while Asia-Pacific is attracting interest as companies in that region aim for self-reliance in aerospace and defense capabilities.
Government policies supporting domestic capabilities: National policies are encouraging defense manufacturers and suppliers to localize manufacturing and partner with foreign firms. This is especially evident in emerging markets where policy frameworks offer incentives, regulatory support, and sometimes mandates for technology transfer and joint ventures in defense and aerospace procurement.
Market Segmentation
By Sector
- Aerospace segment showing accelerated growth, especially in mergers and acquisitions aimed at commercial aviation, sustainable aviation, MRO (maintenance, repair, overhaul), and space technologies.
- Defense segment holding a majority share of the market, driven by need for unmanned systems, advanced weapons, cybersecurity and strengthening national defense infrastructures.
By Geography
- North America: Largest share in the M&A market, owing to presence of large original equipment manufacturers (OEMs), mature regulatory frameworks, and strong defense spending.
- Europe: Fastest growing region, aided by cross-border collaboration, supplier consolidation, and strong government backing for defense modernization and aviation technology.
- Asia-Pacific: Dynamic market with rising civil aviation demand, increasing investment in defense modernization, and efforts to build local supply chains and capabilities.
- Latin America: Emerging region with modernization of civil and military aviation and growing interest in local M&A to build MRO services and industrial cooperation.
- Middle East & Africa: Focus on infrastructure, local industry development, MRO capabilities, and acquisition of defense electronics and unmanned systems, backed by regional modernization plans and strategic diversification.
Key Players in the M&A in Aerospace And Defense Market
Major companies active in Mergers And Acquisitions In Aerospace And Defense Market include Boeing Company; Raytheon Technologies; Airbus SE; General Electric; Safran SA; BAE Systems; Parker Hannifin; L3Harris Technologies; Leonardo SpA; and Thales. These firms are pursuing acquisition strategies to enhance portfolios in digital technologies, autonomous systems, cybersecurity, and advanced materials. In addition, they are consolidating supply chains and entering into cross-geographical deals to strengthen their global footprint. Strategic behavior from these players helps define the competitive landscape and influences what kinds of deals occur in terms of size, specialty, and region.
Conclusion
The Mergers And Acquisitions In Aerospace And Defense Market is on track for strong growth in the forecast period up to 2030, with size expected to nearly double from its 2025 value. Key drivers include rising demand for technological capabilities, government policy that supports local defense and aerospace production, and a shift in strategic priorities from scale to skill-sets and innovation. Both large legacy players and smaller specialty firms are important to watch: large firms for setting broad deal trends and smaller firms for being acquisition targets that bring new capabilities. For companies considering entering or expanding in this space, success will likely depend on picking the right partnerships, navigating regulatory frameworks, and staying aligned with both defense security needs and civil aerospace demand.
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