Mergers And Acquisitions (M&A) In Aerospace And Defense Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 194.90 Billion |
| Market Size (2029) | USD 341.34 Billion |
| CAGR (2024 - 2029) | 11.86 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mergers And Acquisitions (M&A) In Aerospace And Defense Market Analysis
The Mergers And Acquisitions In Aerospace And Defense Market size is estimated at USD 194.90 billion in 2024, and is expected to reach USD 341.34 billion by 2029, growing at a CAGR of 11.86% during the forecast period (2024-2029).
Mergers and acquisitions (M&A) in the aerospace and defense (A&D) sector have emerged as a commercially viable business strategy. They help the participants enhance their technological know-how while dividing the risks associated with technological disruptions. An M&A facilitates the sustenance of both firms and, in most cases, helps the major players foster comparatively faster growth than their competitors.
In recent years, the aerospace and defense sector has showcased tremendous growth. The increasing air traffic, growing urbanization, and the rising number of aircraft are some of the critical drivers of the aerospace sector. The growing defense budget, increasing focus on strengthening military capabilities, and rising war situations are boosting the market's growth in the defense sector. Increasing expenditure in both sectors will create better opportunities for original equipment manufacturers and small players to enter the market and expand their operations. Thus, key players in the aerospace and defense sector focus on business expansion through various strategies, such as mergers and acquisitions, new contracts, agreements, and partnerships.
Although there have been several developments in mergers and associations in the aerospace and defense sector, rising regulations associated with mergers and acquisitions may hamper the market’s growth in the long run. Various regulations have been implemented to regulate mergers and acquisitions within the aerospace and defense sector. In countries with a federal government, the regulations for merger and acquisition activities fall within the dual jurisdiction of the federal government as well as the individual state in which the target company has been incorporated. Despite these factors, rising air passenger traffic, new aircraft deliveries, rising geopolitical tensions, and corresponding new technological innovations are expected to support the market’s growth.
Mergers And Acquisitions (M&A) In Aerospace And Defense Market Trends
The Aerospace Segment is Projected to Witness the Highest Growth During the Forecast Period
The aerospace sector has experienced a notable expansion in recent years, marked by significant advancements in technology and innovation. The sector, however, encountered unprecedented challenges due to the pandemic, which resulted in sharp declines in air travel and a significant decrease in demand for aircraft. Nevertheless, the sector demonstrated remarkable resilience and a strong recovery post-pandemic in 2022 and 2023.
As the aerospace sector evolves, major companies focus on business expansion through acquisitions. These strategic initiatives aim to enhance their capabilities, improve their market position, and drive growth in the highly competitive global market. For instance, in February 2024, BAE Systems PLC completed the acquisition of Ball Aerospace from Ball Corporation for USD 5.5 billion. Through this acquisition, BAE Systems will add science, space, and defense capabilities to its portfolio under the new Space and Mission Systems division. Similarly, in September 2022, Parker-Hannifin Corp., a motion and control technologies company, completed the acquisition of Meggitt PLC, an aerospace and defense components manufacturer, for approximately GBP 6.3 billion. With this acquisition, the Parker Aerospace Group aims to expand its portfolio with Meggitt's global defense and aerospace technologies.
Apart from acquisitions, various aerospace companies have been involved in mergers to solidify their position in the global market. For instance, in March 2024, XTI Aircraft Company and Inpixon merged their business units to form XTI Aerospace Inc. Through this merger, the companies are focusing on revolutionizing private air transportation with its TriFan 600 Vertical Lift Crossover Airplane. Similarly, in January 2024, Vistara announced that it expects to receive all legal approvals for its proposed merger with Tata Group-owned Air India. The process is expected to be completed by the first half of 2024. The merger was proposed by Singapore Airlines in November 2022. Thus, the increasing focus of aerospace companies to acquire start-ups or business domains of other companies is expected to drive the market's growth during the forecast period.
Europe is Expected to Exhibit the Highest Growth During the Forecast Period
Europe is expected to record highest growth during the forecast period. Europe has a well-flourished aviation and defense sector due to the massive demand from end users and the presence of top aviation and defense companies in the region. Airbus SE, Saab AB, THALES, BAE Systems, Dassault Aviation SA, and Safran SA are major players with significant market shares in the aerospace and defense sector.
An increasing number of air travelers, the growing construction of new airports, and rising aircraft deliveries are driving the regional commercial aviation market. The rising demand for business jets and general aviation aircraft and increasing procurement of helicopters for numerous applications are driving the aviation sector.
The key players in the aerospace sector focus on mergers and acquisitions to expand their business. For instance, in January 2023, Airbus Helicopters completed the acquisition of German-based ZF Luftfahrttechnik. The company has a global customer base and manufactures dynamic components for light and medium helicopters, including related services. In addition, the company is the MRO components supplier for military helicopters. With this acquisition, Airbus Helicopters expanded its range of MRO capabilities and secured additional competencies in dynamic systems.
Also, in April 2022, Airbus Defence and Space announced the acquisition of DSI Datensicherheit GmbH (DSI DS). This German-based company provides cryptography and communication systems for airborne, space, naval, and ground, certified by the Federal Office for Information Security (BSI). The company will operate under a new name: Aerospace Data Security GmbH. The acquisition would strengthen Airbus' cryptography capabilities and improve the development of end-to-end secured systems.
Growing cross-border conflicts, political disputes, and tensions among neighboring countries created a warfare situation in Europe. The Russia-Ukraine War and the growing expenditure from NATO countries to enhance defense capabilities aided the market's growth across the region. For instance, in February 2024, THALES acquired Cobham Aerospace Communications for USD 1.1 billion. THALES is expected to create a significant trend toward connected cockpits through this acquisition.
Thus, increasing expenditure on procurement by vendors and businesses from other companies to expand product portfolios is expected to improve the company's overall performance and customer base, driving the market's growth during the forecast period.
Mergers And Acquisitions (M&A) In Aerospace And Defense Industry Overview
The A&D sector comprises several players, and the market is highly competitive. Some prominent players in the market include Parker Hannifin Corporation, The Boeing Company, Airbus SE, RTX Corporation, and Safran, amongst others.
Companies are adopting aggressive acquisition strategies to gain significant contracts and increase their market presence and dominance. A diversified growth strategy protects a firm from country-specific economic slumps. This has triggered market incumbents' acquisition of several competitor product portfolios to gain a competitive advantage in the market. Moreover, several other M&A transactions were expected to be completed by the end of FY 2024, resulting in substantial market consolidation.
Mergers And Acquisitions (M&A) In Aerospace And Defense Market Leaders
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Parker Hannifin Corporation
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The Boeing Company
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Airbus SE
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RTX Corporation
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Safran SA
*Disclaimer: Major Players sorted in no particular order
Mergers And Acquisitions (M&A) In Aerospace And Defense Market News
March 2024: Airbus Defence and Space acquired Infodas, a German cybersecurity company that provides IT solutions for the public sector's defense and critical infrastructure elements. The acquisition deal is expected to be finalized before Q4-2024.
March 2024: Spirit AeroSystems Holdings Inc. announced that it was engaged in talks with Boeing regarding Boeing's potential acquisition of Spirit AeroSystems. Spirit AeroSystems manufactures aerostructures for commercial aircraft, defense platforms, and business and regional jets.
Aerospace Mergers and Acquisitions Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Sector
5.1.1 Aerospace
5.1.2 Defense
5.2 Geography
5.2.1 North America
5.2.2 Europe
5.2.3 Asia-Pacific
5.2.4 Latin America
5.2.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 The Boeing Company
6.1.2 RTX Corporation
6.1.3 Airbus SE
6.1.4 General Electric Company
6.1.5 Safran SA
6.1.6 BAE Systems PLC
6.1.7 Parker Hannifin Corporation
6.1.8 L3Harris Technologies Inc.
6.1.9 Leonardo SpA
6.1.10 THALES
6.1.11 Elbit Systems Ltd
6.1.12 Rolls-Royce PLC
6.1.13 Honeywell International Inc.
6.1.14 Rheinmetall AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mergers And Acquisitions (M&A) In Aerospace And Defense Industry Segmentation
Mergers and acquisitions (M&A) in the aerospace and defense (A&D) sector have emerged as a commercially viable business strategy as they help the participants enhance their technological know-how while mitigating the risks associated with technological disruptions. Moreover, mergers and acquisitions facilitate the sustenance of both firms and, in most cases, help the major players to foster comparatively faster growth than their competitors.
The aerospace mergers and acquisitions market is segmented based on sector and geography. By sector, the market is segmented by aerospace and defense. The report also covers the market sizes and forecasts in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Sector | |
| Aerospace | |
| Defense |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Aerospace Mergers and Acquisitions Market Research FAQs
How big is the Mergers And Acquisitions In Aerospace And Defense Market?
The Mergers And Acquisitions In Aerospace And Defense Market size is expected to reach USD 194.90 billion in 2024 and grow at a CAGR of 11.86% to reach USD 341.34 billion by 2029.
What is the current Mergers And Acquisitions In Aerospace And Defense Market size?
In 2024, the Mergers And Acquisitions In Aerospace And Defense Market size is expected to reach USD 194.90 billion.
Who are the key players in Mergers And Acquisitions In Aerospace And Defense Market?
Parker Hannifin Corporation, The Boeing Company, Airbus SE, RTX Corporation and Safran SA are the major companies operating in the Mergers And Acquisitions In Aerospace And Defense Market.
Which is the fastest growing region in Mergers And Acquisitions In Aerospace And Defense Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Mergers And Acquisitions In Aerospace And Defense Market?
In 2024, the North America accounts for the largest market share in Mergers And Acquisitions In Aerospace And Defense Market.
What years does this Mergers And Acquisitions In Aerospace And Defense Market cover, and what was the market size in 2023?
In 2023, the Mergers And Acquisitions In Aerospace And Defense Market size was estimated at USD 171.78 billion. The report covers the Mergers And Acquisitions In Aerospace And Defense Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mergers And Acquisitions In Aerospace And Defense Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Aerospace Mergers and Acquisitions Industry Report
Statistics for the 2024 Aerospace Mergers and Acquisitions market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aerospace Mergers and Acquisitions analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
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