The global Aerospace and Defense (A&D) sector is growing rapidly. Airbus and Boeing predict more than 40,000 new commercial jets will be manufactured over the next 20 years.1 And global defense spending rose by nearly 10 percent in 2024, its fastest growth rate in nearly four decades.2

At the same time, however, the sector is undergoing rapid and disruptive change across a wide range of areas. The agenda is continuously shifting based on rapidly evolving geopolitical change and technological advancements. As such, A&D leaders and defense departments will need to take a much more holistic view of their strategies to thrive in the current environment.

This report is intended to help sector executives, defense leaders, suppliers and investors make the most of the rapid change now underway across the sector. Rather than simply focus on the challenges, this report strives to provide A&D executives and decision-makers with practical and actionable insights and clear takeaways to better understand the challenges and identify the opportunities.


A&D leaders and defense departments will need to take a much more holistic view of their strategies to thrive in the current environment.

Grant McDonald

Global Sector Leader, Aerospace & Defense

KPMG International


The great reset

Download the full report to learn more about ten trends KPMG sees in the A&D sector for 2025 and beyond.


Ten emerging trends for 2025

  • Geopolitics: Risks and opportunities in the new world order
  • Supply chain resilience: Agility in the face of disruption
  • Sustainability: Collaboration in a fractured world
  • Competition: Scaling the next generation
  • R&D: Accelerating innovation
  • Digitalization: Delivering on the need for speed
  • M&A: Focus on value creation
  • Workforce: Reshaping the strategy
  • Defense: Integrating domains
  • Space: Commercializing the next frontier

1 Airbus, Boeing Raise 20-Year Forecasts For Aircraft Deliveries, Ainonline, 2023

2 Trends in world military expenditure, 2024, Stockholm International Peace Research Institute, April 2025

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KPMG Aerospace and Defense professionals are well-positioned to help clients achieve a balanced approach to financial and operational strategies so your company can survive — and thrive.

KPMG professionals have the defense domain knowledge and functional experience to tailor smart, creative and forward-thinking approaches.

Collaboration, innovations and regulatory compliance: The path to sustainability in Aerospace and Defense.

Contact us today

Grant McDonald

Managing Partner & Head of Tax, and KPMG Global Sector Leader, Aerospace and Defense

KPMG International

Brenda Walker

Partner, Global Head of Government

KPMG International

Jonathon Gill

Global Head of Industrial Manufacturing

KPMG International

Peter Griffiths

Global Leader, Defence & National Security | IGH Alliances and Connected Enterprise

KPMG Australia