Europe’s Aerospace and Defence Sector Records Strong Growth in 2024
Europe’s aerospace and defence industries experienced robust growth in 2024, with total turnover rising by 10.1% to €325.7 billion ($378.04 billion), according to Camille Grand, secretary general of the Aerospace, Security and Defence Industries Association of Europe (ASD). The sector’s direct employment reached an all-time high of 1.1 million jobs, underscoring its growing economic importance.
Defence Spending Drives Expansion
Defence activities led the overall surge, with turnover jumping 13.8% to €183.4 billion. Grand attributed the increase to heightened spending and intensified efforts to strengthen security across the continent, following the ongoing war in Ukraine. The rising demand for advanced defence technology and equipment has also bolstered industrial output, supporting thousands of new jobs.
ASD President Micael Johansson called on the European Union to maintain strong defence investment and introduce an industrial strategy for civil aeronautics. He cautioned that Europe’s leadership in high-technology sectors “cannot be taken for granted,” stressing the need for sustained innovation and competitiveness.
Civil and Space Sectors Show Steady Gains
The civil aeronautics segment posted a 6% increase, reaching €129.1 billion in turnover. The rebound in global air travel and growing demand for fuel-efficient aircraft helped lift the sector, although manufacturers continued to face supply-chain disruptions and workforce shortages.
Meanwhile, Europe’s space sector achieved modest growth, rising 3.1% to €13.2 billion. The sector remains a vital contributor to Europe’s technological base, supporting innovation in satellite communication, navigation, and Earth observation.
Innovation and Economic Impact
Research and development (R&D) spending rose 9.4% to €25.2 billion, reflecting ongoing investment in next-generation technologies. However, ASD noted that Europe still trails major global competitors in innovation intensity, highlighting the need for coordinated public and private initiatives to close the gap.
Overall, the aerospace and defence industry encompasses over 4,000 companies and supports 4.2 million jobs across Europe, generating €779 billion in total economic activity, according to ASD’s report.
with inputs from Reuters
