Europe’s aerospace and defence sector surges 10% in 2024

Industry turnover reached €325.7 billion, driven by higher defence spending amid geopolitical tensions. Meanwhile, shares of major European defence companies like Rheinmetall and Leonardo have skyrocketed in recent years.

Europe’s aerospace and defence sector recorded strong growth in 2024, with total turnover rising 10.1% to €325.7 billion ($378 billion), according to industry group ASD. Direct employment reached a record 1.1 million, reflecting the rapid expansion of the sector.

Defence activity led the surge, with revenues climbing 13.8% to €183.4 billion as European governments boosted military spending in response to the war in Ukraine. Civil aeronautics also rose 6% to €129.1 billion thanks to a recovery in air travel and strong demand for fuel-efficient aircraft, despite ongoing supply-chain bottlenecks. The space sector reported more modest growth of 3.1% to €13.2 billion.

ASD said the industry — comprising more than 4,000 companies — supports nearly 4.2 million jobs and generates €779 billion in economic activity across Europe. Research and development investment increased 9.4% to €25.2 billion, though the organisation warned that Europe still lags behind global competitors in innovation.

European defence stocks have posted strong gains in recent years, reflecting the sharp rise in military spending across the continent. Germany’s Rheinmetall has been one of the strongest performers: its share price has increased almost tenfold since 2022, while over the past year alone the stock has gained around 140%, supported by record defence orders following the war in Ukraine. Italy’s Leonardo has also seen significant growth. Its shares have risen roughly sixfold since late 2022, and in the last twelve months they have climbed by about 80–85%, driven by expanding defence budgets and strong operational performance.