UK aerospace, defence and space sectors contribute £46.8bn to economy amid decade of growth

Posted on 9 Jul 2026 by James Devonshire
Company: ADS Group

The UK’s aerospace, defence, security and space industries contributed £46.8bn to the economy in 2025, marking a 65% increase over the past decade, according to new figures published by industry trade association ADS.

The data shows the sectors generated almost £110bn in turnover last year, up 62% since 2015, while direct employment has grown by nearly 40% to 468,500 people across the UK.

The findings come after the sectors were identified as priority Growth Sectors in the UK government’s Modern Industrial Strategy, underlining their role in driving investment, exports and high-value manufacturing.

ADS said productivity across the industries remains significantly above the UK average, with output reaching £99,900 per worker—around a quarter higher than the national average.

Exports also continued to strengthen, increasing by more than two-thirds over the past 10 years to reach £50bn in 2025, representing 45% of total sector turnover.

After a period of significant economic and geopolitical uncertainty, our industries have demonstrated remarkable resilience and continue to serve as the industrial foundation on which our nations rely upon. The contribution our sectors make to the economy, and to communities across the UK, continues to grow, supported by an expanding and highly skilled workforce.

We are now at a pivotal moment. To sustain this momentum, industry needs clarity and certainty from government. Rising business costs, constrained access to finance and persistent supply chain pressures continue to hold back the full potential of our sectors. If we are to unlock future growth and drive investment in overseas markets, bold and decisive action is needed now more than ever.
Kevin Craven, chief executive of ADS Group

The figures also highlight continued growth within the UK’s defence sector. Defence exports increased by 33% since 2015 to reach £10.8bn in 2025, accounting for around one-third of total defence industry revenue.

Overall defence turnover reached £36.5bn, with exports continuing to provide an important source of growth despite ongoing pressures on manufacturers, including higher operating costs and supply chain constraints.

ADS said the latest figures demonstrate the strength of the UK’s advanced manufacturing base but warned that sustained investment and policy certainty will be needed to maintain growth and improve international competitiveness.

For more information, download the full ADS Industry Facts and Figures 2026 briefing.

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