Built to provide research that’s more actionable and strategically valuable, The Business Research Company’s 2026 market reports include market attractiveness analysis, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, broader supply chain intelligence, emerging startup tracking, and in-depth product insights.
#IoT in Aerospace & Defense Market Growth From $73.18 Billion In 2026 To $128.68 Billion By 2030 At A CAGR Of 15.2%#_x000D_
The iot in aerospace & defense market has experienced substantial expansion in recent years. It is projected to grow from $63.56 billion in 2025 to $73.18 billion in 2026, achieving a compound annual growth rate (CAGR) of 15.1%. This historic growth is attributable to factors such as an increase in aircraft fleet sizes, heightened defense modernization initiatives, the adoption of sensor-based monitoring systems, an expansion in connected avionics systems, and a growing focus on operational efficiency._x000D_
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The iot in aerospace & defense market size is expected to show significant growth over the coming years, projected to reach $128.68 billion in 2030, with a compound annual growth rate (CAGR) of 15.2%. This anticipated growth during the forecast period stems from increasing investments in smart defense infrastructure, a rising demand for autonomous monitoring systems, the expansion of cloud-based aerospace analytics, a growing focus on cyber-resilient defense networks, and the increased use of AI-driven decision support. Concurrently, major trends for the forecast period include the expanding deployment of predictive maintenance systems, the rising use of real-time aircraft health monitoring, the growing adoption of smart surveillance and security networks, the expansion of connected fleet management solutions, and enhanced integration of data analytics platforms._x000D_
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#IoT in Aerospace & Defense Market Opportunity Drivers: What’s Unlocking New Revenue Potential?#_x000D_
The escalating number of cyber-attacks targeting the aviation industry is projected to propel the expansion of the IoT in the aerospace and defense market in the future. These cyberattacks are defined as unauthorized intrusions into computer systems, aimed at the theft, disclosure, alteration, incapacitation, or destruction of data. Within the aviation sector, IoT authentication can ensure essential cybersecurity safeguards, consequently diminishing the frequency of cyber-attacks. A case in point is the situation in October 2024, where data from Check Point Software Technologies Ltd., an Israel-based cybersecurity firm, indicated a 56% year-over-year increase in cyberattacks in the U.S., reaching a weekly average of 1,300 attacks per organization, which represents a 10% increase from the prior quarter. Consequently, the growing number of cyber-attacks affecting the aviation industry is a key factor propelling the expansion of the IoT in the aerospace and defense market._x000D_
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#IoT in Aerospace & Defense Market Segments: Where Is Growth Concentrated?#_x000D_
The iot in aerospace & defense market covered in this report is segmented – _x000D_
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1) By Component: Hardware, Software, Services_x000D_
2) By Connectivity Technology: Cellular, Wi-Fi, Satellite Communication, Radio Frequency_x000D_
3) By Deployment Mode: On-Premise, Cloud_x000D_
4) By Application: Fleet Management, Inventory Management, Equipment Maintenance, Security, Other Applications_x000D_
5) By End User: Space Systems, Ground Vehicles, Other End-Users_x000D_
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Subsegments:_x000D_
1) By Hardware: Sensors, Embedded Systems, Connectivity Devices, Drones And UAVs (Unmanned Aerial Vehicles) _x000D_
2) By Software: IoT Platforms, Data Analytics And Visualization Software, Security Software, Fleet Management Software _x000D_
3) By Services: Consulting Services, Integration Services, Maintenance And Support Services, Training And Development Services _x000D_
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#IoT in Aerospace & Defense Market Innovation Trends Shaping Future Development#_x000D_
Leading firms within the IoT in aerospace and defense market are innovating with new firmware security solutions to enhance their competitive position. Firmware security encompasses the protective actions and methods used to secure firmware—the permanent software embedded in a device’s ROM or flash memory—against unauthorized entry, modifications, or hostile actions. As an illustration, in March 2023, OP[4], a security solutions provider based in the US, introduced a new cybersecurity platform. This cutting-edge security platform is engineered to automatically identify and remediate N-Day and 0-Day vulnerabilities present in Internet-of-Things (IoT) devices and embedded systems. OP[4] intends to roll out specialized versions for the Consumer IoT, Aerospace & Defense, and Telecommunications markets. By simulating operational devices, the platform differentiates between active and inactive code to evaluate risk at a binary level. Through its completely automated system, OP[4] precisely identifies, segregates, confirms, categorizes, ranks, and resolves vulnerabilities, thereby enabling product development teams to concentrate on crucial problems and improve time-to-market speed. The platform prioritizes the developer experience, offering relevant insights and risk prioritization across the entire product development lifecycle._x000D_
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#IoT in Aerospace & Defense Market Key Participants And Competitive Landscape#_x000D_
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. _x000D_
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#IoT in Aerospace & Defense Market Regional Breakdown: Where Is Demand Concentrated?#_x000D_
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._x000D_
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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.
