Key data & overview

Turnover

In 2023, the turnover of Europe’s aero-space and defence industry increased by 10.1% year on year, to €290.4bn, following a 10.5% increase seen in 2022. The 2023 turnover corresponds to a 24.6% share of the global aerospace and defence market of €1,182bn; up from 23.4% in 2022 and back to the level seen in 2021.

In 2023, civil aeronautics generated €119bn in turnover, accounting for 41% of the total ASD industry turnover. This share was down from 44% in 2022 due to the stronger growth of the defence sector which contributed 55% of the total turnover in 2023 (up from 52% in 2022). Space accounted for 4% of total industry turnover.

Turnover in the defence sector grew 16.9% in 2023, reaching €158.8bn. As in the previous year, the growth was evident across all three sectors: military aeronautics, naval, and land; with growth rates of 15.8%, 17.7%, and 17.7% respectively. The increase – starting from a very low level after decades of underinvestment – is due to higher defence budgets across Europe, driven by support for Ukraine against Russian aggression and a reassessment of Europe’s defence readiness with the aim of strengthening its own capabilities.

Employment

Employment in the aerospace and defence industry within ASD member states increased by 8%, reaching a total of 1,027,000 employees, which translated into the creation of around 76,000 additional jobs in 2023. In 2023, employment growth in civil aeronautics amounted to 6.6%, similar to the previous year’s results, while the defence sector noted a growth of 8.9%.

Exports

Aerospace and defence exports increased by 12.1% year on year, reaching €164.2bn in 2023. The shares of civil versus defence and space sectors remained unchanged, with civil aeronautics accounting for 65% of the total exports and the defence and space sector accounting for the remaining 35%. Exports within the civil sector witnessed a growth of 11.7% in 2023, totalling €106.9bn, while military exports reached €57.4bn, up 12.6% year on year.

R&D

The significant increase (by 13.4% year on year) in European R&D investment in the aeronautics and defence sectors in 2023 is a clear indicator of the growing emphasis on technological advancement and security. The collective expenditure on R&D in the aeronautics and defence sectors, funded by both industry and governments, reached an estimated €23.4bn. The increased allocation of funding for military initiatives (61% versus 39% for civil sector), reflects the global trends in prioritising defence capabilities and underscores the importance of innovation in maintaining a competitive edge and addressing the evolving challenges in the military domain.