Aerospace and Defense Materials Market Size, Share & Trends Analysis Report By Material Type (Aluminum Alloys, Steel Alloys, Titanium Alloys, Composite Materials, Others), By Applications (Commercial Aviation, Military Aircraft, Spacecraft, Missiles and Defense Systems, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Aerospace and Defense Materials Market Size

The global aerospace and defense materials market size was valued at USD 22.5 billion in 2024 and is projected to grow from USD 23.81 billion in 2025 to reach USD 35.82 billion by 2033, growing at a CAGR of 5.8% during the forecast period (2025-2033).

Aerospace and defense materials are specially engineered to endure extreme conditions while ensuring aircraft, spacecraft, and defense systems perform optimally. These materials include high-strength-to-weight composites, lightweight alloys, ceramics, and polymers, known for their exceptional strength, heat resistance, and durability. The industry constantly innovates to meet stringent safety, reliability, and environmental standards while balancing cost-effectiveness and performance demands.

The growing demand for these materials is driven by advancements in aerospace technology, the expansion of space exploration missions, and the modernization of global defense systems. Additionally, the industry's increasing focus on sustainability emphasizes recyclable and fuel-efficient materials.

• For example, composites like carbon fiber reinforced polymers (CFRP) can reduce aircraft weight by 20–30%, significantly improving fuel efficiency.

In military applications, advanced alloys and radar-absorbing materials enhance stealth capabilities. Similarly, space programs, such as NASA’s Artemis mission, rely on ultra-lightweight, heat-resistant materials to develop lunar exploration vehicles capable of withstanding the moon’s harsh environment. As the sector evolves, aerospace and defense materials will continue to play a critical role in achieving greater efficiency, sustainability, and performance across diverse applications.

The Fleet size for leading countries in Combat aircraft in 2024:

Source: Straits Research

Latest Market Trends

Increased adoption of composite materials

Composite materials are increasingly used in the aerospace and defense sectors due to their superior strength-to-weight ratio, fatigue resistance, and thermal properties. In particular, carbon fiber-reinforced polymers (CFRPs) have gained prominence for their ability to deliver remarkable fuel efficiency and enhanced structural performance. These advancements not only improve aircraft efficiency but also reduce operational costs.

• For example, Boeing's 787 Dream-linerincorporates 50% composite materials in its primary structure, leading to a 20% increase in fuel efficiency compared to older models.

As the demand for lightweight and high-performance materials grows, composite innovations are expected to accelerate, driving advancements in aerospace and defense applications while meeting the industry's evolving performance and sustainability requirements.

Focus on sustainable and recyclable materials

Growing environmental concerns and stringent regulations are pushing manufacturers toward adopting eco-friendly and recyclable materials. These materials reduce the environmental impact of production while enhancing the industry's sustainability. Bio-inspired alternatives, such as nacre-like ceramics, are being explored to replace traditional super-alloys in aircraft engines, offering attractive properties and promoting sustainable manufacturing processes.

Organizations like the Aircraft Fleet Recycling Association (AFRA) have also played a pivotal role in advancing sustainability. AFRA's best practices ensure that up to 85–90% of an aircraft's weight can be recycled or reused during dismantling. Such initiatives reflect a collective shift toward greener, more efficient practices in aerospace and defense material production.

Aerospace and Defense Materials Market Growth Factors

Rising demand for fuel-efficient aircraft

The growing emphasis on fuel efficiency is driving the adoption of lightweight composite materials in the aerospace and defense industry. These materials reduce aircraft weight, enhance aerodynamics, and improve fuel economy. Modern airplanes featuring composite wings achieve greater aerodynamic efficiency, leading to significant cost and environmental benefits.

• According to the Air Transport Action Group, each new generation of aircraft is up to 20% more fuel-efficient than its predecessor. This has resulted in modern aircraft producing 80% less CO2 per seat compared to the first-generation jets.

The industry's commitment to sustainability is evident as manufacturers integrate advanced materials to address environmental concerns while maintaining cost-effectiveness. Such innovations are pivotal in meeting rising demands for eco-friendly and efficient aviation solutions.

Increasing aircraft production worldwide

Global aircraft production growth is a significant driver of the aerospace and defense materials market, fueled by the rebound in air travel demand. Manufacturers are scaling up production to meet extensive airline orders.

• For instance, Airbus reported a backlog of 8,749 commercial aircraft at the end of September 2024, alongside 308 net orders, including heavy helicopters. This surge in production underscores the need for advanced materials that offer high performance, durability, and reduced weight.

Such materials are critical for enhancing fuel efficiency and operational performance. As airlines and defense sectors seek modernized fleets, the demand for innovative materials and manufacturing technologies is expected to grow, reinforcing the industry’s focus on efficiency and sustainability.

Market Restraint

Supply chain disruptions

Given the complexity and global nature of its operations, the aerospace and defense industry faces significant challenges from supply chain disruptions. The reliance on specialized materials, components, and suppliers sourced from various parts of the world makes the supply chain highly susceptible to disruptions. Geopolitical tensions, natural disasters, or unexpected events such as the COVID-19 pandemic can create cascading effects, leading to production delays, escalating costs, and shortages of critical materials.

Even minor disruptions in the supply chain can significantly impact production timelines, operational efficiency, and profitability. Therefore, manufacturers must navigate these challenges by diversifying supplier networks, investing in local sourcing, and adopting advanced logistics strategies to mitigate risks and ensure stability in material availability.

Market Opportunity

Expansion of defense budgets globally

The global increase in defense budgets presents a significant opportunity for the aerospace and defense materials market. As nations prioritize upgrading their military capabilities, the demand for advanced materials, such as lightweight alloys, composites, and specialized coatings, continues to grow. These materials play a crucial role in enhancing the performance, durability, and efficiency of defense equipment.

For instance,

• The U.S. Department of Defense increased its budget for missile and munitions procurement and R&D by 340% over the past decade, rising from $9 billion in fiscal 2015 to $30.6 billion in fiscal 2024.
• Similarly, the European Commission has allocated €7.3 billion for military and defense technology investments from 2021 to 2027.

These developments not only drive innovation in materials manufacturing but also expand contracts for aerospace companies, fostering industry growth and technological advancement.

Regional Insights

North America: Dominant region with a significant market share

North America holds a dominant position in the global aerospace and defense materials market, driven by a combination of substantial defense budgets and world-leading aerospace manufacturing capabilities. The region benefits from its strong defense expenditure, fostering the demand for advanced, high-performance materials used in aircraft, spacecraft, and defense systems. The presence of major aerospace and defense companies, along with cutting-edge technologies, further accelerates the demand for these materials.

As North America continues to lead in defense and aerospace advancements, its market share remains strong, with ongoing investments in research and development driving material innovations to meet the evolving needs of modern warfare and space exploration.

Asia Pacific: Rapidly growing region

Asia-Pacific is recognized as the fastest-growing market for both aerospace and defense industries, fueled by significant investments in defense modernization and aerospace infrastructure development. Countries like China, India, Japan, and South Korea are actively enhancing their aerospace capabilities and expanding their defense sectors, creating a rising demand for advanced materials. With an increasing focus on cutting-edge technologies and defense systems, the region is witnessing a surge in the need for lightweight, high-performance materials.

Countries Insights

• United States – The U.S. leads the aerospace and defense materials industry, with major players like Boeing, Lockheed Martin, and Raytheon Technologies. The military’s growing demand, driven by significant defense spending, fuels the use of advanced materials such as composites and titanium in aircraft like the F-35 fighter jet. The U.S. remains the largest consumer of aerospace materials, with its Defense Department budget rising from $700 billion to $850 billion in the past three years, supporting innovation and production.
• China – China’s rapid expansion in rare earth and self-sustaining materials for aerospace and defense is reshaping the industry. Under the leadership of COMAC, China is building commercial aircraft like the C919, incorporating locally sourced materials to reduce reliance on foreign suppliers. This material innovation positions China as a global leader in aerospace, strengthening its competitive edge in both commercial and defense markets as it aims for self-sufficiency and market dominance.
• Russia – Russia excels in aerospace and defense, with a focus on military technology and space exploration. The use of lightweight alloys, including titanium, is central to aircraft like the Sukhoi Su-57 and spacecraft like Soyuz. Russia's aerospace material expertise is key to its global competitiveness, particularly in defense and space, where performance and reliability are critical. The nation's advancements in these materials continue to solidify its position as a global aerospace powerhouse.
• Germany – Germany plays a pivotal role in aerospace and defense materials, driven by exceptional manufacturing quality and engineering excellence. The Eurofighter Typhoon, a multi-role fighter jet, is an example of Germany’s use of advanced composite materials for weight reduction and performance enhancement. The country continues to be a leader in integrating high-performance materials into aerospace applications, ensuring its continued strength in both military and commercial aviation sectors.
• United Kingdom –The U.K. remains a leader in aerospace and defense materials, with a strong focus on both commercial aviation and military technologies. The Rolls-Royce Trent 1000 engine, used in Boeing 787 aircraft, exemplifies the use of advanced ceramics and alloys. Moreover, British-made Typhoon fighter jets utilize lightweight composites and titanium alloys, which contribute to enhanced speed and maneuverability, showcasing the UK’s commitment to innovative material use in both defense and aviation.
• France – France is a key player in the aerospace and defense materials market, particularly due to Airbus, a global leader in commercial and military aircraft. The country emphasizes the use of advanced materials such as carbon fiber-reinforced composites, aluminum-lithium alloys, and high-strength steel. These materials help enhance aircraft performance, reduce weight, and improve fuel efficiency, underscoring France's commitment to maintaining a competitive edge in the aerospace and defense industries.
• India – India is rapidly advancing in the aerospace and defense materials sector, driven by both defense needs and a growing commercial aviation market. Major players like Hindustan Aeronautics Limited and the Defence Research and Development Organisation (DRDO) are at the forefront of developing advanced materials such as composites, titanium alloys, and high-strength steels. India’s expanding aerospace capabilities reflect its increasing role in global defense and aviation, supporting both military and commercial aircraft development.

Segmentation Analysis

By Material Type

The aluminum alloys segment holds the largest market share in the aerospace and defense materials industry due to its unique combination of lightweight, strength, and corrosion resistance. These properties make aluminum alloys ideal for use in both commercial and military aircraft structures. The growing demand for fuel-efficient aircraft and lightweight materials in defense applications further boosts the use of aluminum alloys. With an excellent strength-to-weight ratio and versatility, aluminum alloys remain a top choice for manufacturers, driving market revenue and shaping the future of aerospace materials technology.

By Applications

The commercial aviation sector leads the aerospace and defense materials market due to the surge in global air travel and the increased focus on fuel efficiency. Airlines prioritize lightweight, durable materials to enhance fuel economy, reduce costs, and improve the overall passenger experience. Growing disposable incomes, urbanization, and the expansion of the middle class in developing nations further fuel-air travel demand. Moreover, stricter regulations on emissions and fuel efficiency continue to drive innovation in materials for commercial aviation, ensuring this sector maintains the largest market share in aerospace materials.

Company Market Share

Key market players in the global aerospace and defense materials sector are increasingly investing in advanced materials to meet the evolving demands of the industry. By pursuing strategies such as strategic partnerships, acquisitions, and continuous product innovations, these companies are not only enhancing their offerings but also expanding their market presence.

Hexcel Corporation: An emerging player in the Global Aerospace and Defense Materials Market

Hexcel is an emerging company that designs advanced composite materials for aerospace, defense, and industrial applications. The company produces lightweight materials, carbon fiber, resins, and honeycomb structures that can be used in both commercial and military applications. Hexcel is expanding its operations to cater to the growing demand for high-performance materials in aerospace and defense.

Recent Developments by Hexcel Corporation:

• In March 2024, Hexcel and Arkema completed the first aeronautical structure made from high-performance thermoplastic composites as part of the HAICoPAS project. This demonstration used HexPly® thermoplastic tapes made from Arkema's Kepstan® PEKK resin and Hexcel's HexTow® carbon fibers. The project incorporated two new technologies: automated tape deposition and in-situ welding (ISW) to replace metallic materials within aircraft structures with lighter-weight, cost-effective composites.

Recent Developments

• December 2024 – Woodward, Inc. announced a definitive agreement to acquire Safran Electronics & Defense's electromechanical actuation business, with operations in the U.S., Mexico, and Canada. The acquisition includes intellectual property, operations assets, talent, and long-term agreements for Horizontal Stabilizer Trim Actuation (HSTA) systems, notably used in the Airbus A350.
• December 2024 – RTX signed a memorandum of understanding (MOU) with the Netherlands Aerospace Group (NAG) to advance sustainable aviation technologies. This initiative builds on RTX’s long-standing presence in the Netherlands and aims to enhance partnerships across Europe and North America to address aviation’s carbon footprint.

Analyst Opinion

As per our analysts, the global aerospace and defense materials industry is experiencing robust growth, fueled by significant advancements in lightweight composites, high-strength alloys, and sustainable materials. The increasing demand for fuel-efficient aircraft, military modernization, and space exploration are primary drivers of this growth.

Emerging technologies, such as thermoplastic composites, hydrogen propulsion systems, and 3D-printed components, are reshaping the industry's landscape, presenting new opportunities for innovation, performance enhancement, and cost optimization. Moreover, the growing focus on sustainability is prompting the development of eco-friendly materials and processes.

However, the sector faces challenges, including supply chain disruptions, high R&D costs, and geopolitical uncertainties, which could hinder growth. Despite these obstacles, the ongoing investments in material innovation, coupled with advancements in digital manufacturing and smart materials, are expected to fuel continued expansion and transformation in the global market.