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IoT in Aerospace & Defense Market Value Analysis: What Growth Is Expected Over The Forecast Period?
The market size for iot in aerospace & defense has seen substantial expansion recently. Projections indicate it will expand from $63.56 billion in 2025 to $73.18 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 15.1%. This historical growth can be linked to factors such as larger aircraft fleet sizes, escalating defense modernization efforts, the integration of sensor-based monitoring systems, the proliferation of connected avionics systems, and a heightened emphasis on operational efficiency.
The iot in aerospace & defense market size is anticipated to experience swift expansion over the coming years, projected to reach $128.68 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.2%. Factors contributing to this growth during the forecast period include greater investments in intelligent defense infrastructure, increasing demand for autonomous surveillance systems, the expansion of cloud-powered aerospace analytics, an intensified focus on cyber-robust defense networks, and the wider application of AI-powered decision support. Key trends characterizing this period encompass the growing deployment of predictive maintenance systems, increased utilization of real-time aircraft health monitoring, the broadening adoption of smart surveillance and security networks, the extension of connected fleet management solutions, and the improved integration of data analytics platforms.
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IoT in Aerospace & Defense Market Industry Drivers: What Is Driving Revenue Growth?
The IoT in the aerospace and defense market is projected to expand significantly, driven by an uptick in cyberattacks against the aviation industry. Cyberattacks refer to malicious attempts to gain unauthorized entry into computer systems to unlawfully obtain, reveal, modify, disable, or eradicate data. Within the aviation sector, IoT authentication offers crucial cybersecurity safeguards, thereby helping to diminish the occurrence of these cyber threats. For instance, data from October 2024, provided by Check Point Software Technologies Ltd., an Israel-based cybersecurity company, indicated a 56% year-over-year rise in cyberattacks in the U.S., averaging 1,300 attacks per organization each week, a 10% increase from the previous quarter. This surge in cyberattacks on the aviation industry is therefore a key factor fueling the growth of the IoT in the aerospace and defense market.
IoT in Aerospace & Defense Market Segments: Where Are The Largest Growth Opportunities?
The iot in aerospace & defense market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Connectivity Technology: Cellular, Wi-Fi, Satellite Communication, Radio Frequency
3) By Deployment Mode: On-Premise, Cloud
4) By Application: Fleet Management, Inventory Management, Equipment Maintenance, Security, Other Applications
5) By End User: Space Systems, Ground Vehicles, Other End-Users
Subsegments:
1) By Hardware: Sensors, Embedded Systems, Connectivity Devices, Drones And UAVs (Unmanned Aerial Vehicles)
2) By Software: IoT Platforms, Data Analytics And Visualization Software, Security Software, Fleet Management Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support Services, Training And Development Services
#IoT in Aerospace & Defense Market Growth Trends: What Is Influencing The Future Outlook?
Leading companies in the IoT in aerospace and defense market are developing new firmware security solutions to gain a competitive advantage. Firmware security refers to the measures and practices implemented to protect the permanent software programmed into a device’s read-only memory (ROM) or flash memory from unauthorized access, alterations, or malicious activities. For instance, in March 2023, OP[4], a US-based security solutions company, launched a cybersecurity platform. This innovative security platform is designed to automatically discover and address N-Day and 0-Day vulnerabilities in Internet-of-Things (IoT) devices and embedded systems. OP[4] plans to release industry-specific versions for Consumer IoT, Aerospace & Defense, and Telecommunications markets. The platform, by leveraging simulation of running devices, distinguishes active and inactive code to assess risk at the binary level. With a fully automated system, OP[4] accurately detects, isolates, validates, classifies, prioritizes, and remediates vulnerabilities, allowing product development teams to focus on critical issues and enhance time-to-market efficiency. The platform emphasizes the developer experience, providing targeted insights and risk prioritization throughout the product development cycle.
IoT in Aerospace & Defense Market Major Participants And Competitive Dynamics
Major companies operating in the iot in aerospace & defense market are AeroVironment Inc.; AT&T Intellectual Property; FreeWave Technologies Inc.; General Atomics Aeronautical Systems Inc.; Honeywell International Inc.; Northrop Grumman Corporation; Elbit Systems Ltd.; Radisys Corporation; Textron Systems Corporation; Airbus SE; Boeing Company; BAE Systems plc; SAP SE; General Electric Company; Bombardier Inc.; CACI International Inc.; Collins Aerospace; Cubic Corporation; Curtiss-Wright Corporation; Dassault Aviation SA; Embraer SA; General Dynamics Corporation; L3Harris Technologies Inc.; Leonardo SpA; Lockheed Martin Corporation; Moog Inc.; RTX Corporation; Saab AB; Safran SA; Thales Group; United Technologies Corporation; Woodward Inc.
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IoT in Aerospace & Defense Market Regional Outlook: Where Are The Largest Opportunities Located?
North America was the largest region in the IoT in the Aerospace and Defense market in 2025. The regions covered in the iot in aerospace & defense market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.