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Executive Summary: Aerospace Industry Market Outlook 2026

  • Industry Growth Overview: The aerospace industry records an annual growth rate of 15%. With 7440 startups and 126 073 total companies active across aviation, space, propulsion, and advanced manufacturing.
  • Manpower & Employment Growth: Aerospace remains a major global employer with a workforce of 15 million people. The industry added 2900 new employees over the last year.
  • Patents & Grants: Innovation intensity remains exceptionally high, supported by 867 000 patents filed by 201 500 unique applicants. Patent activity grows at 2.6% per year, with China (268,883) and the USA (196,425) leading global filings.
  • Global Footprint: The USA, India, China, Germany, and the UK emerge as the top country hubs, while London, Shenzhen, Bengaluru, New York City, and Mumbai lead at the city level.
  • Investment Landscape: The sector records an average investment value of USD 99.5 million per round, supported by 21 742 investors and 30 100 closed funding rounds. More than 11 479 companies have received funding.
  • Top Investors: The top investors collectively deployed over USD 44.2 billion into aerospace ventures. Leading contributors include the European Investment Bank (USD 8.2B), BNP Paribas (USD 4.8B), and TransDigm (USD 4.7B).
  • Startup Ecosystem & Emerging Trends: Five innovative startups – VTI Aerospace (AI-powered perception and pilot assist), CirculAIRity (DAC-based sustainable fuel), MachFly Aerospace (reusable unmanned combat aerial vehicle), deltaVision (fluidic systems), Dashagriv Aerospace (AI-powered stratospheric platforms) – demonstrate the industry’s entrepreneurial depth and global reach.

 

 

Methodology: How we created this Aerospace Market Report

This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 9 million global companies, 20K+ technologies and trends, as well as 150M patents, news articles, and market reports.

This data includes detailed firmographic insights into approximately 9 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.

For this report, we focused on the evolution of the aerospace industry over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

  • Total Companies working in the sector
  • News Coverage and Annual Growth
  • Market Maturity and Patents
  • Global Search Volume & Growth
  • Funding Activity and Top Countries
  • Subtrends within aerospace

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the aerospace market.

What Data is used to create this Aerospace Market Report?

Based on data provided by the StartUs Insights Discovery Platform, we observe that the aerospace market stands out in the following categories relative to the 20K+ technologies and trends we track.

  • News Coverage & Publications: The aerospace industry demonstrates exceptionally strong visibility, with over 38,293 news publications in the past year, placing it among the top 5% of all industries analyzed.
  • Funding Rounds: It shows substantial venture and innovation activity, backed by 30.1K recorded funding rounds in our database.
  • Manpower: The global aerospace workforce exceeds 15 million employees, with the industry adding more than 2900 new workers in the last 12 months alone.
  • Patents: Innovation intensity remains high, supported by an extensive intellectual property base of 867 000 patents.
  • Yearly Global Search Growth: Global interest in aerospace technologies continues to accelerate, reflected in a remarkable 1100% yearly growth in global search demand.

Explore the Data-driven Aerospace Industry Outlook Report for 2026

The aerospace sector exhibits significant worldwide momentum, supported by a solid foundation of innovation and personnel capabilities. Our database catalogs around 7440 startups and 126 073 total companies within the industry.

The industry has achieved a 15% yearly growth rate, indicating its continuous expansion and enhanced technological sophistication. According to Precedence Research, the aerospace market is expected to reach USD 791.78 billion by 2034 at a 7.8% compound annual growth rate (CAGR).

 

 

Companies in this sector have jointly submitted about 867 000 patents, highlighting their emphasis on innovative materials, aerodynamics, AI-driven flight systems, propulsion efficiency, and space technology.

With a global workforce of 15 million individuals, the industry significantly contributes to high-skilled employment worldwide. In the past year, it recruited around 2900 new employees. This indicates consistent recruiting and capacity enhancement throughout the main aerospace centers.

For instance, 43% of the industry’s direct employment goes through commercial aerospace in the US aerospace and defense domain. According to the ASD industry group, the European aerospace and defense industry supports nearly 4.2 million jobs among 4000 companies.

Aerospace innovation is geographically concentrated in the world’s most advanced economies. The USA, India, China, Germany, and the UK are identified as the foremost national hubs, but cities like London, Shenzhen, Bengaluru, New York City, and Mumbai are recognized as prominent urban centers fostering entrepreneurship.

A Snapshot of the Global Aerospace Market

The aerospace industry continues to strengthen its global position, driven by steady expansion and a deep innovation pipeline. The sector records an annual growth rate of 15%, supported by a vibrant ecosystem of around 7440 startups advancing technologies across aviation, space, propulsion, materials, and aerospace manufacturing.

Patent Landscape & Innovation Activity

Companies and research institutions in this domain have collectively filed 867 000 patents. This reflects sustained investment into R&D areas like aerodynamics, AI-enabled flight systems, composite materials, propulsion efficiency, autonomy, and satellite technologies.

A WIPO report estimates that more than 67 000 patent families related to space transportation have been published since 2000.

 

Source: WIPO

 

The industry also shows strong participation from creators and R&D entities, with about 201 500 unique patent applicants contributing to the global IP pool. Patent activity continues to increase, recording a yearly growth rate of 2.6%. This highlights ongoing innovation cycles despite market fluctuations.

Global Patent Leaders

Patent issuance is led by countries with mature aerospace and defense ecosystems:

China emerges as the top patent issuer with 268,883 aerospace patents, showcasing rapid expansion in commercial aircraft programs, satellite clusters, urban air mobility, and defense technologies.

The United States follows with 196,425 patents, driven by strong activity across commercial aerospace, advanced materials, space exploration, and autonomous aviation research.

GE Aerospace is recognized as one of the largest AI patent holders in the aviation industry, while Boeing’s patent portfolio spans 21 783 US patents, 9259 European patents, and 6388 Chinese patents.

 

Source: GreyB

 

These two countries set the tone for global aerospace innovation, collectively representing a significant portion of worldwide patent filings.

Explore the Funding Landscape of the Aerospace Industry

The aerospace sector consistently garners significant investor confidence, as seen by robust deal activity and big transaction sizes among both startups and established entities.

The sector registers an average investment of USD 99.5 million every round. This highlights the capital-intensive characteristics of aerospace technologies.

Investor involvement in the business is extensive and varied, encompassing approximately 21 742 investors.

Deal activity persists robustly, with more than 30 100 investment rounds completed. This indicates sustained capital influx despite macroeconomic volatility. These phases encompass early-stage innovation to late-stage commercialization for facilitating progress in flight autonomy, supersonic mobility, launch systems, and in-orbit services.

As of now, capital has been invested in over 11 479 companies. This illustrates the broad scope of the worldwide aerospace innovation ecosystem.

 

 

According to the Seraphim Space Index Q4 2024 report, the sector recorded 601 total deals in 2024, a new record representing nearly a 50% increase from 415 deals in 2023. In Q4 2024 alone, USD 1.8 billion was invested across 133 deals.

Further, the European Union has committed EUR 1.7 billion in its Clean Aviation Joint Undertaking through 2031 to develop climate-neutral aircraft technologies.

Who is Investing in the Aerospace Market?

 

 

The top investors collectively demonstrate strong financial commitment to aerospace innovation, with a combined investment value exceeding USD 44.2 billion across the sector.

  • The European Investment Bank has backed 23 companies, investing USD 8.2 billion. It also offered a EUR 450 million loan to Thales for aerospace and radar R&D.
  • BNP Paribas has invested USD 4.8 billion across 28 companies.
  • TransDigm has provided USD 4.7 billion in funding to 20 companies.
  • KKR has invested USD 4.6 billion into 19 companies. The company recently sold parts firm Novaria Group to Arcline for USD 2.2 billion.
  • Apollo Global has contributed USD 4.4 billion across 11 companies.
  • Carlyle Group has deployed USD 4.2 billion into 14 companies.
  • Deutsche Bank has invested USD 3.7 billion in 22 companies.
  • Morgan Stanley has funded 23 companies with USD 3.6 billion.
  • HSBC has participated in 23 companies, deploying USD 3.1 billion.
  • Korean Air, though backing only 2 companies, has invested a significant USD 2.9 billion. It is also expanding the fleet with a USD 50 million investment in Boeing aircraft.

Top Aerospace Innovations & Trends

 

 

1. Aerospace Robotics

Aerospace robotics is emerging as a critical enabler of automation, precision manufacturing, and autonomous inspection across aviation and space systems. The trend encompasses robotic assembly lines, UAV-based maintenance, and advanced manipulators used in spacecraft integration.

  • 304 companies actively operate in this domain, reflecting a focused but high-value innovation space.
  • These companies employ 26,000 workers, with 5 new employees added last year, indicating stable but slow manpower expansion.
  • The trend shows a 0.67% annual growth rate, highlighting steady adoption of robotics in fields such as MRO automation, propulsion system handling, and payload integration.

2. Sustainable Aviation Fuel (SAF)

Sustainable Aviation Fuel continues to accelerate as the aviation industry prioritizes decarbonization and net-zero goals. This trend spans biofuels, synthetic fuels, power-to-liquid pathways, hydrogen-derived fuels, and carbon recycling technologies.

 

  • It is one of the largest emerging categories, with 1,069 companies involved-significantly higher than other top trends.
  • The segment employs 281,900 workers, adding 48.1 new employees in the past year, indicating strong workforce expansion aligned with rising SAF production targets.
  • Backed by regulatory shifts and airline commitments, the trend exhibits a 3.95% annual growth rate, making it one of the fastest-advancing innovation areas in aerospace sustainability.

3. Space Electronics

Space electronics is foundational to next-generation satellites, launch systems, in-orbit services, and deep-space missions. The trend includes radiation-hardened components, power systems, onboard computing, sensors, and high-reliability communication modules.

  • 185 companies are identified in this space, representing a specialized but strategically important market.
  • These companies employ 14,800 workers, with 8.9 new employees added in the last year, reflecting targeted growth in high-skill engineering roles.
  • With a 0.5% annual growth rate, space electronics remains a stable, mission-critical domain that underpins satellite mega-constellations, lunar missions, and advanced space infrastructure.

5 Top Examples from 7400+ Innovative Aerospace Startups

The five innovative aerospace startups showcased below are picked based on data, including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

VTI Aerospace offers AI-powered Perception & Pilot Assist

VTI Aerospace is a US-based company that develops FlightStack, AI-powered perception and pilot-assist software that upgrades cockpit awareness and automation in aviation.

It is an AI-enabled perception and autonomy core that combines computer vision, sensor data, and real-time interpretation. FlightStack delivers runway detection, centerline tracking, obstacle monitoring, and GPS-independent navigation as a modular subsystem for piloted and future unmanned operations.

The company also develops FlightShepherd, an iPad-based, context-aware AI copilot. It integrates with avionics and live ATC audio to transcribe radio traffic, answer aeronautical and weather queries, and guide pilots through briefings and checklists during high-workload flight phases.

Together, these products provide distinctive capabilities like resilient terminal-area perception without radio-based aids, voice-driven cockpit interaction, and standardized procedure execution. Operators are able to test and deploy to validate safety and efficiency gains.

CirculAIRity provides Synthetic SAF

CirculAIRity is a UK-based company that builds direct air capture (DAC)-based synthetic sustainable aviation fuel for aviation decarbonization.

It captures carbon dioxide from ambient air using DAC units, then combines this CO2 with green hydrogen in a power-to-liquid synthesis route. This way, it produces drop-in e-fuels that meet existing jet fuel specifications without biomass or fossil feedstocks.

In addition, the company designs its system for deployment close to airports. This shortens fuel supply chains, limits transport-related emissions, and aligns production volumes with local SAF blending mandates.

Through this approach, the company allows aviation companies to reduce lifecycle emissions and address both scope 1 and wider supply chain emissions while maintaining compatibility with current aircraft and infrastructure.

CirculAIRity also collaborated with Cranfield University to improve power-to-liquid process efficiency.

MachFly Aerospace builds Reusable Unmanned Combat Aerial Vehicles

Indian company MachFly Aerospace develops reusable unmanned combat aerial vehicles and proprietary turbojet propulsion systems for defense applications.

The company’s turbojet-powered reusable UCAV, SkyReaper, integrates a modular airframe with interchangeable payload bays. This enables operators to configure the platform for surveillance, precision strike, or electronic support missions while reusing the same vehicle across multiple sorties.

The company also builds Rudra, a barrel-launched loitering munition that utilizes a rocket booster for launch and a compact turbojet engine for sustained flight. This approach allows extended loitering over target areas and controlled engagement instead of single-use ballistic profiles.

Moreover, MachFly Aerospace designs fuel-flexible turbojet engines that operate on gaseous fuels like hydrogen and methane as well as conventional jet fuels to align propulsion performance with logistics availability.

deltaVision makes Aerospace Fluidic Systems

deltaVision is a German company that offers aerospace fluidic systems that manage cryogenic and high-pressure propellants for space and hydrogen mobility applications. Its intelligent fluid-control subsystems include solenoid and motor-driven regulation valves, closed-loop pressure regulators, cryogenic ePumps, and space-rated BLDC motors.

These products integrate sensors, embedded controllers, and software to provide precise flow and pressure control in extreme low-temperature environments. Moreover, the company optimizes these components as modular blocks for complete propellant management architectures in launch vehicles, orbital refueling systems, spacecraft, and liquid hydrogen aircraft.

Further, the company’s approach ensures rapid response, low leakage, and high reliability across multiple mission cycles. Through this architecture-centric approach, it supports customers in New Space, space agencies, and hydrogen aviation.

Dashagriv Aerospace develops Stratospheric Platforms

Dashagriv Aerospace is an Indian startup that provides AI-powered stratospheric platforms that operate as high-altitude pseudo-satellites for near-space missions.

The company’s solar-electric high-altitude platform systems station-keep in the stratosphere. They also integrate autonomous flight control with onboard AI to manage power, payload pointing, and communication links for applications like surveillance, Earth observation, telecom backhaul, and environmental monitoring.

Additionally, the platforms feature modular payload bays to host electro-optical sensors, communication relays, and scientific instruments. AI routines continuously optimize coverage, data throughput, and mission persistence over designated areas.

These features allow the defense, telecom, and government industries to leverage a reusable, rapidly deployable alternative to satellites and traditional aircraft, while reducing the cost and lead time of accessing near-space.

Gain Comprehensive Insights into Aerospace Trends, Startups, and Technologies

The aerospace industry is entering a pivotal phase marked by rapid innovation, growing investment, and expanding global capabilities. As sustainable propulsion, autonomous systems, advanced robotics, and space technologies converge, the sector is positioned for accelerated transformation across commercial aviation, defense, and emerging space markets. Aerospace is set for sustained long-term growth.

Get in touch to explore 7400+ startups and scaleups, as well as all market trends impacting aerospace companies.