The global aerospace industry stands as one of the most technologically advanced, capital-intensive, and strategically significant sectors of the modern economy. At its apex sit two familiar giants—Boeing of the United States and Airbus of Europe—whose rivalry has defined commercial aviation for more than half a century. Yet beneath this duopoly lies a far more complex and rapidly evolving ecosystem, where civil aviation, defense production, space systems, and industrial policy intersect across continents.
Measured by export value, industrial depth, and technological breadth, the United States remains the undisputed leader of the global aerospace industry. According to data from Tendata, the U.S. accounts for roughly 41 percent of all global aerospace exports, generating more than $130 billion in annual product value. This dominance reflects not only Boeing’s historic strength in commercial aviation but also the unparalleled scale of America’s defense-industrial base, anchored by firms such as Lockheed Martin, RTX (formerly Raytheon Technologies), Northrop Grumman, and General Electric Aerospace.
However, assessing aerospace power purely by national borders can be misleading. The European Union, fragmented politically but deeply integrated industrially, is home to Airbus and a dense web of suppliers and defense firms spread across France, Germany, the United Kingdom, Italy, and Spain. Collectively, Europe represents the world’s second aerospace pole, with France alone ranking second globally in export valuation thanks to the concentration of Airbus final assembly lines, Dassault Aviation, Safran, Thales, and a strong defense export culture.
Beyond the transatlantic core, new and distinctive players are exerting growing influence. China is accelerating its ascent through massive state-backed investment, Brazil has carved out a unique niche through Embraer, and Japan exerts outsized influence through advanced manufacturing and deep integration into U.S. aerospace supply chains. Together, these actors are reshaping a sector once dominated almost entirely by the United States and Western Europe.
The aerospace sector operates on two closely linked but structurally different fronts: civil aviation and defense. Commercial aircraft manufacturing is capital-intensive, cyclical, and dominated by economies of scale, while defense aerospace reflects national security priorities, long-term government contracts, and strategic alliances. The United States leads decisively in both domains, but the balance of power differs significantly between them.
On the civil side, the market is effectively a duopoly. Boeing and Airbus dominate large commercial aircraft production, from single-aisle workhorses to long-haul widebodies. On the defense side, the landscape is more fragmented, shaped by national sovereignty, alliance structures, and export controls. Here, the U.S. still reigns supreme, but European, Chinese, and Israeli firms play major roles in specific segments such as fighters, missiles, sensors, and electronic warfare.
Across America, approximately 54 percent of the aerospace workforce is dedicated to defense-related production, underscoring how deeply military programs underpin the broader industrial base. Europe, by contrast, maintains a more balanced split, with some countries—particularly France—leaning heavily on defense exports, while others, such as Germany, remain more focused on civil aerospace.
The epic rivalry between Boeing and Airbus remains the defining contest of global aviation. Born out of Cold War industrial policy, the competition pits American free-market dominance against European state-backed integration. For decades, Boeing held a clear lead in cumulative aircraft deliveries, technological prestige, and global reach. That balance has shifted dramatically over the past ten years.
Boeing’s struggles with the 737 MAX program, following two fatal crashes and a prolonged global grounding, marked a turning point. Production caps, regulatory scrutiny, and reputational damage severely constrained Boeing’s output. Deliveries collapsed from 806 aircraft in 2018 to just 157 in 2020. Although recovery is underway, the long-term impact reshaped market dynamics.
Airbus, by contrast, maintained relative production stability throughout the crisis. Its A320 family surged ahead in the high-volume single-aisle market, benefiting from strong airline demand and a more diversified global production footprint. In the fall of 2025, the A320 family officially overtook the Boeing 737 series to become the best-selling commercial airliner in history—a symbolic and commercial milestone that underscored Airbus’ ascendancy.
For the first time in nearly four decades, Airbus also surpassed Boeing in total lifetime aircraft deliveries. While Boeing continues to maintain an edge in certain widebody segments, particularly with the 787 Dreamliner, delays in the 777X program have further eroded its competitive position.
According to Tendata, five countries form the core of the global aerospace export economy, collectively serving as proxies for the Boeing–Airbus duopoly and its supply chains:
United States – $134.2 billion (41%)
France – $40.3 billion (12.3%)
Germany – $36.1 billion (11.1%)
United Kingdom – $16 billion (4.9%)
Canada – $13.2 billion (4%)
France, Germany, and the UK are the founding stakeholders of Airbus, while Canada’s ranking reflects the strength of Bombardier’s business jet legacy, Pratt & Whitney Canada’s engine dominance, and deep integration with U.S. defense and civil programs.
The American aerospace industry is unparalleled in scope and scale. Its defense sector alone dwarfs that of any other nation, with spending roughly four times greater than its nearest European rival. This dominance is anchored by five major prime contractors that manage the world’s largest aerospace programs—often in collaboration with one another.
Lockheed Martin stands at the apex, driven by the F-35 Lightning II, the largest defense program in military history. The fifth-generation stealth fighter, operated by more than a dozen nations, eclipses even historic efforts such as the Manhattan Project and the B-2 Spirit bomber in total investment.
RTX, the second-largest U.S. aerospace defense firm, occupies a unique position. While it does not independently produce aircraft, it dominates propulsion through Pratt & Whitney engines and is a global leader in missiles, sensors, and air defense systems such as Patriot.
Northrop Grumman, now the third-largest U.S. defense aerospace firm, has surged ahead on the strength of programs like the B-21 Raider stealth bomber and the Sentinel intercontinental ballistic missile. Boeing Defense, Space & Security ranks fourth, producing the F-15EX, KC-46 tanker, and the newly awarded F-47 Next Generation Air Dominance fighter. Persistent speculation also surrounds a potential restart of C-17 Globemaster III production, reflecting enduring global demand for strategic airlift.
From a market capitalization perspective, the aerospace hierarchy reveals striking shifts. GE Aerospace towers over the sector at $326 billion, followed closely by RTX at $273 billion—now more valuable than Boeing itself, which stands at approximately $183 billion. Lockheed Martin, despite producing no civil aircraft, remains close behind Boeing at around $145 billion, underscoring the immense value of defense programs.
Europe’s aerospace defense market is uniquely structured as a hybrid of national champions and transnational conglomerates. No single European firm rivals the scale of Lockheed Martin, but collectively, Europe fields a formidable industrial ecosystem.
France relies heavily on defense exports as a pillar of its aerospace strategy. Dassault Aviation’s Rafale fighter has enjoyed a remarkable resurgence, with recent order volumes surging by more than 77 percent. Germany, by contrast, remains more heavily oriented toward civil aerospace, though defense revenues are growing steadily amid rising European security concerns.
The United Kingdom’s BAE Systems is Europe’s largest defense contractor and a global leader in combat aircraft design and production. Italy’s Leonardo ranks among Europe’s top three, playing a central role in the Eurofighter Typhoon and the future Global Combat Air Programme (GCAP) alongside BAE.
Sweden’s Saab occupies a distinctive niche, producing the JAS Gripen light fighter and the GlobalEye airborne early warning and control system, built on Bombardier’s long-range business jets. France’s Thales Group stands out as a high-technology specialist, with more than half of its revenue derived from defense electronics, sensors, and cyber systems.
Although commercial jets account for roughly 75 percent of Airbus’ total revenue, its defense and space divisions remain vital to European strategic autonomy. Airbus produces military helicopters, transport aircraft, and tankers, and accounts for nearly half of Eurofighter production capacity.
China has emerged as the most consequential challenger to Western aerospace dominance. It is already the world’s second-largest civil aviation market and the second-largest defense aerospace producer by revenue. While still lagging technologically in some areas, China’s rapid progress is reshaping global expectations.
State-owned Aviation Industry Corporation of China (AVIC) has become the world’s second-largest defense firm by revenue, generating approximately $44.9 billion annually. On the civil side, COMAC’s efforts to break the Boeing–Airbus duopoly are slowly bearing fruit. The C919 single-aisle jet and C909 regional aircraft have surpassed 200 deliveries to domestic carriers, establishing an initial production and support ecosystem.
China’s ambitions extend far beyond narrowbody aircraft. The widebody C929 program—developed under the COMAC umbrella—marks Beijing’s intent to compete in long-haul aviation, with Air China confirmed as the launch customer.
The government sector accounts for roughly 65 percent of China’s domestic aerospace revenue, reflecting a strategic emphasis on national security and space infrastructure. The China Aerospace Science and Industry Corporation (CASIC) is now ranked as the world’s second-largest aerospace and defense company by market capitalization at $264 billion, surpassed only by GE Aerospace.
China is also aggressively reducing reliance on Western components. A defining trend entering 2026 is the opening of civil airspace for drone logistics and electric vertical take-off and landing (eVTOL) trials in cities such as Shenzhen and Shanghai. More than 600 companies now operate in China’s commercial space sector, which is growing at an annual rate of 20 percent. Beijing projects the “space economy” to exceed $900 billion by 2029.
Japan does not command large global market share, but its influence on aerospace supply chains is profound. Approximately 35 percent of the Boeing 787 Dreamliner’s aerostructures are manufactured in Japan, highlighting its mastery of advanced composites and precision engineering.
Militarily, Japan’s Self-Defense Forces are the only operators of the Bell Boeing V-22 Osprey outside the United States and the second-largest global operator of the F-35 Lightning II. These roles underscore Japan’s deep integration into U.S. aerospace programs and its growing strategic profile in the Indo-Pacific.
Brazil represents one of the most distinctive aerospace success stories in the world. Unlike the U.S. and Europe, where multiple primes coexist, Brazil’s aerospace power is concentrated almost entirely in one company: Embraer.
As the world’s third-largest commercial aircraft manufacturer, Embraer dominates the 70- to 150-seat segment. Following the collapse of its proposed merger with Boeing in 2020, Embraer has thrived as an independent alternative to the Boeing–Airbus duopoly.
Aerospace generates roughly $6.5 billion annually for Brazil, with exports accounting for more than 90 percent of that total. The defense sector has pivoted toward high-end exports, co-producing the F-39 Gripen fighter with Saab and operating a dedicated production line at Gavião Peixoto.
The A-29 Super Tucano has become the global standard for light attack and counter-insurgency, used by more than 15 air forces, including the United States. The C-390 Millennium transport aircraft stands as Brazil’s most successful defense export, replacing the C-130 Hercules in multiple NATO air forces.
Brazil’s aerospace workforce numbers approximately 19,000, concentrated in the São José dos Campos cluster. The country also operates the Alcântara Launch Center, the world’s most geographically advantageous launch site due to its proximity to the equator, now being marketed to U.S. private launch firms.
The global aerospace industry is entering a more multipolar era. Boeing and Airbus remain without equal at the top, but their dominance is increasingly contested by state-backed challengers, niche specialists, and emerging space economies. As civil aviation demand rebounds, defense spending rises, and space commercialization accelerates, aerospace power is becoming a defining metric of national influence.
