Facts & Figures 2023

Major trends in the industry in 2022

In 2022, the European aerospace and defence industry sustained its post-pandemic economic resurgence. Both the civil and defence sectors experienced robust growth, witnessing substantial increases in turnover and employment, surpassing pre-pandemic levels.

Commercial air travel continued on its path toward pre-pandemic travel volume in 2022, driving growth in the civil aviation space. Simultaneously, the war unleashed by Russia against Ukraine led to increased demand for defence products, driven by both support for Ukraine and a reassessment of defence preparedness in Europe with the aim of strengthening Europe’s own capacities.

Stabilised recovery – and new challenges

In 2022, the European aerospace and defence industry sustained its post-pandemic economic resurgence. Both the civil and defence sectors experienced robust growth, witnessing substantial increases in turnover and employment, surpassing pre-pandemic levels.

In 2022, the turnover of Europe’s aerospace and defence industries increased by 9.8% year-on-year, to €260.5bn, stabilising the trend seen in 2021 when the sector was up 10.2% over 2020. The 2022 turnover corresponds to a 22% share of the global aerospace and defence market of €1,194bn; down from 24% in 2021, indicating stronger growth in other regions worldwide. Within the EU’s 27 Member States (EU27), the industry recorded a similarly robust growth of 10.5% in 2022 (up from 8.3% growth in 2021). The total turnover within the EU27 reached €196.5bn. ASD accounted for 97% of the aerospace and defence industry’s turnover within the EU Member States.

Employment in the aerospace and defence industry within ASD member states increased by 5.2%, reaching a total of 921,400 employees, translating into the creation of around 45,900 additional jobs in 2022. Employment growth was similar in civil aeronautics (6%) and defence (4.4%) in 2022, while the space sector saw the largest employment growth in the year at 8.2%.

Aerospace and defence exports exceeded €150bn in 2022, with civil aeronautics constituting 65% of these exports and the defence and space sector accounting for the remaining 35%. Exports within the civil sector witnessed a growth of just over 10% in 2022, totalling €98.3bn, while military exports reached €52.4bn, marking an 8% increase. It is worth noting that in 2021, military exports experienced a slight decline, reflecting the stagnant growth in total military turnover. However, in 2022, the trajectory reversed, with both exports and turnover showing a recovery.

Innovation and development across both civil and defence sectors have also contributed to growth. R&D investment across the industry totalled €23.2bn, an increase of 18.5% from 2021, with the civilian sector still leading the way, marking an increase of 27% in 2022; and the defence sector showing a growth of 12.9%.

An industry that connects

World passenger traffic by air began to return to normal in 2022, with global total traffic (measured in revenue passenger kilometres) reaching 69% of pre-pandemic (2019) levels for the entire year. In Europe, air traffic surged by 132% compared to 2021. This resurgence was reflected in significant rebounds in both industry turnover and employment.

Civil aeronautics turnover reached €114bn in 2022, marking an 11.1% increase over the €102.6bn reported in 2021. The sector accounted for 44% of the total industry turnover in 2022. The notable growth in this regard was seen in the helicopter and commercial aircraft segments, evident from higher delivery figures.

Despite the challenges posed by a tight labour market and a shortage of high skilled workers, sector employment increased by 6.0% in 2022, reaching a total of 348,000 jobs. Compared to pre-pandemic (2019) levels, 2022 turnover was 2.3% higher, and 2022 employment was 6.1% higher. 

However, at a time when demand surged, new challenges arose. These included supply-chain bottlenecks, shortages of critical raw materials and electronic components, as well as trade restrictions due to sanctions on Russia. Additionally, soaring inflation and escalating energy costs further complicated the situation.

An industry that protects

After decades of low investment, the European defence industry received more attention following the Russian invasion of Ukraine. The EU and its Member States took several steps to improve security and resilience of the region. This includes boosting the defence budget of EU Member States to a combined total of €290bn a year in 2025. 

New challenges

The supply-chain bottlenecks caused by the pandemic, with a lack of raw materials and semiconductors, created challenges for military equipment manufacturers. The increased demand for ramping up production in the wake of the Russian invasion of Ukraine reinforced these supply-chain challenges.

In 2022, the European space industry witnessed notable employment growth, although it experienced fluctuating revenue levels. Nevertheless, the sector continues to uphold its leading position in the global space industry, even as concerns emerge regarding contributions from institutional bodies.

The European space manufacturing industry is a strategic sector, essential for the implementation of many public policies, and supporting all economic sectors. It is embedded in the wider European aerospace and defence industrial complex.

The need for sovereignty

In 2022, space systems exports represented $10bn in the spacecraft segment, and $6bn in the launcher segment, generating a net surplus to the European trade balance worth $900 million every year in the past decade. This positive impact would be much higher if Europe was not the first destination for US satellite exports. Space systems imports not only reduce the positive impact of our exports on the trade balance, but they also diminish the local business opportunities for European space systems suppliers.