Research & development

Investment in research and development (R&D) is crucial for maintaining a competitive edge in the European aeronautics and defence industry. It represents a commitment to innovation and progress, focusing on creating new products and services that can meet the demands of the future.

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.

R&D in civil aeronautics

In 2023, private and public stakeholders collectively invested an estimated €9.2bn in research and development (R&D) activities within the civil aeronautics sector, marking a 0.7% drop compared to 2022 figures. Most of the investment comes from the private sector, driven by both the traditional aerospace. industry as well as a number of private investors (suppliers and customers).

Despite this slight decrease in R&D spending in the civil sector in 2023, the aerospace and defence sector is experiencing a dynamic shift, with companies increasingly focusing on engineering research and development (ER&D) to stay competitive. The anticipated budget growth over the next few years reflects a commitment to innovation and production expansion.

R&D will be the main driver to achieve the ambitious sustainability targets the sector is committed to (Destination 2050; see Civil Aeronautics section). European public–private partnerships (PPPs) such as Clean Aviation and SESAR 2020 are playing a critical role in delivering substantial socio-economic impacts

R&D in defence

Combined European investment in defence R&D amounted to roughly €14.2bn in 2023, up 25% from 2022. Investments in defence Research & Development (R&D) and Research & Technology (R&T) (as its subset) are crucial for advancing the capabilities of Europe’s armed forces. These investments enable the development of cutting-edge technologies and systems that are essential for maintaining a competitive edge.

While the primary focus of the defence industry remains on ensuring robust defence capabilities, there is a growing awareness of the need to integrate sustainable practices into operations. This includes optimising energy use, reducing waste, and considering the environmental impact of defence activities. Companies are exploring innovative ways to balance these objectives, demonstrating that even in sectors as critical as defence, sustainability can be part of the strategic agenda.