INDUSTRY REPORT
“ Based upon aircraft type, commercial aircraft dominated the market including passenger, freight and cargo aircraft. The global commercial passenger and cargo fleet are expected to grow in line with the annual number of passengers, which is expected to double over the next two decades,” confirmed Grand View Research.
“ Based upon region, North America contributes the largest share to the market, accounting for more than 47.9 % of the total market in 2025 owing to the presence of key aerospace parts manufacturers coupled with the huge aircraft manufacturing industry in the region. The Asia-Pacific region is estimated to be the fastest growing market for aerospace parts manufacturing industry due to growing development in the aviation industry in the region driven by the economic growth of Japan, China and other markets,” it added.
Falcon 6X and Rafale demonstrators at Paris Air Show 2025.
Military platforms
Rising demand for next-generation military platforms, military aircraft modernisation, the adoption of autonomous and unmanned aerial systems and a growing focus on cybersecurity for defence systems are clear trends in military aerospace markets.
Countries are increasingly investing in modernising their defence systems to address emerging threats and geopolitical tensions. This has led to an uptick in demand for advanced materials used in military aircraft, according to analyst Grand View Research.
“ The need for enhanced survivability, stealth features and operational effectiveness has prompted defence contractors to seek innovative materials to meet these stringent requirements,” it said.
Major companies operating in the aerospace and defence industry are adopting a strategic partnership approach to work together on various aspects relating to aerospace and defence.
Drones and UAVs
The global drone market size is anticipated to register a CAGR of 9.5 % from 2026 to 2033, according to a March 2026 report by Grand View Research, Inc. Evolving regulations facilitating easier drone
Image: Tom Smeeton / Unsplash.
Innovations in lightweight materials and more efficient batteries have extended flight times and payload limits, enabling drones to perform a wider range of tasks
Royal Navy drone at the MACH 2026 exhibition in the UK. integration into airspace and operations and improvements in energy density, charge / discharge rates and overall battery performance, which are extending flight times and enhancing the operational capabilities of battery-powered drones, are expected to drive market growth.
“ Clearer guidelines and modernised approval processes are enabling businesses to utilise drones more effectively for various applications, from aerial surveys to last-mile delivery. Innovations( in areas such as propulsion systems, battery life, sensors and autonomy) are enhancing the capabilities and functionalities of drones. For example, innovations in lightweight materials and more efficient batteries have extended flight times and payload limits, enabling drones to perform a wider range of tasks. These technological advancements are improving drone performance, reliability and safety, increasing their appeal to various industries and applications, and driving market growth,” explained the analyst.
“ The hardware segment accounted for the largest revenue share of 59 % in 2025 owing to the increasing demand for advanced drones with improved features, such as high-resolution cameras and long-range connectivity. The hybrid segment is anticipated to witness the fastest growth over the forecast period due to the growing adaptability of hybrid drones in varying farm sizes to ensure balanced crop monitoring. The remotely operated segment accounted for the largest revenue share in 2025, owing to the increasing adoption of drones for surveillance and security applications,” it added.
The 2-19kg segment is expected to witness the fastest growth over the forecast period due to the increasing use of drones for public safety and emergency response applications. The battery-powered segment accounted for the largest revenue share in 2025 owing to improvements in energy density, charge / discharge rates and overall battery performance.
The military segment accounted for the largest revenue share in 2025 owing to the intensive use of military drones, also known as Unmanned Aerial Vehicles( UAVs), by defence forces worldwide for investigation, intelligence gathering, surveillance, target acquisition and combat operations.
North America dominated the market in 2025 owing to the increasing adoption of drones in various commercial applications, particularly in agriculture, construction, and oil & gas. n
24 | ismr. net | ISMR May 2026