U.S. Aerospace Market Poised for Growth in 2025

2025-09-05 companies

Washington, Friday, 5 September 2025.
The U.S. aerospace market anticipates significant growth fueled by advancements in materials, defense modernization, and urban air mobility innovations, led by industry giants like Lockheed Martin and Boeing.

Key Drivers of Growth

The U.S. aerospace market is projected to grow at a compound annual growth rate (CAGR) of 2.40% from 2025 to 2034, driven by advancements in materials, defense modernization, and the rise of urban air mobility (UAM) with electric vertical takeoff and landing vehicles (eVTOLs) [1]. This expansion is fueled by significant investments and innovations from leading companies such as Lockheed Martin Corporation (NYSE: LMT), Raytheon Technologies Corporation (NYSE: RTX), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD), which are at the forefront of integrating cutting-edge technologies into aerospace solutions [1].

Urban Air Mobility and eVTOLs

Urban air mobility, particularly through the development of eVTOLs, is transforming the U.S. aerospace landscape. Companies like Lilium and Firefly Aerospace are spearheading efforts to create efficient, environmentally friendly air transport options for urban areas [1]. These innovations are expected to not only enhance urban transportation efficiency but also contribute significantly to the aerospace market’s growth trajectory over the next decade [1].

Defense Modernization Efforts

Defense modernization remains a pivotal aspect of the U.S. aerospace market’s growth strategy. With a focus on upgrading capabilities, including next-generation fighter jets and unmanned aerial vehicles (UAVs), defense contractors are investing heavily in research and development to maintain technological superiority [1]. This focus is crucial as it aligns with the broader national security objectives of the United States, ensuring the continued demand for advanced military aerospace capabilities [1].

The Role of Advanced Materials

The integration of advanced materials into aerospace manufacturing is another critical factor contributing to market growth. These materials offer enhanced performance characteristics, such as improved strength-to-weight ratios and greater durability, which are essential for both commercial and defense applications [1]. As the industry continues to innovate, the adoption of such materials is expected to play a significant role in driving efficiency and sustainability across various aerospace segments [1].

Sources

aerospace growth defense modernization