The Spanish ecosystem of the defense and space industry enjoyed a record year last year, after billing 13.9 billion euros, 15% more than 2023 revenue. Such a trajectory far exceeds average pre-pandemic levels and anticipates a upward evolution in the coming years, especially catapulted by a very favorable geopolitical situation for this type of activities.
According to data from the report Economic and social impact of the Defense, Security, Aeronautics and Space Industry, prepared by the consulting firm PwC for the Spanish Association of Defense, Security, Aeronautics and Space Technology Companies (Tedae), The growth levers are directly related to the 26.3% increase in the General State Budgets in defense matters, as well as the increase in civil activity, of 17% in terms of the number of passengers in air transport and boost in exports, with special vigor in the space sector, with year-on-year increases of 74% in terms of the volume of sales made outside of Spain.
International demand for this market also increased due to recent international conflicts, along with the rise in Spanish civil aviation activity. In addition, the interruption of supply chains impacted the same marketwhich caused delays in product delivery times, as well as increases in the price of raw materials and components.
By subsectors of activity, aeronautics moved an annual business of 9,927 million euros, of which almost half corresponds to civil aeronautics, with 4,730 million and the remaining 5,197 million to military aeronautics. This last magnitude is also accounted for under the security and defense negotiations, which together generated a business volume of 8,042 million euros in 2023. Among other military items, the 1,515 million from the Army, another 1,110 from the Navy and 148 million from businesses related to security stand out.
Likewise, the Spanish space market moved 1,200 million euros in 2023, divided between Defense, 72 million, and civil space, estimated at 1,128 million euros. The year-on-year growth by sector reached 12.9% of the industry. aeronautics, 12.6% of space and 8.9% of the defense and security subsector. Quality employment. At the same time, defense sector industries “generate quality and stable employment.” According to data from the PwC report, Tedae partners are responsible for 215,607 jobs, both direct and indirect. Therefore, for every direct job in the Tedae sectors, another three jobs are created in the economy as a whole.
The Secretary of State for Defense, Amparo Valcarce, said yesterday that the Tedae report “reveals the relevance of the Defense sector as an engine of technological innovation, as a lever for business growth and regional and local development.” He also stressed that investment in Defense is not only “productive”, but also valuable in terms of “peace and security.”
Ricardo Martí Fluxá, president of Tedaehighlighted that the defense ecosystem “structures our territory and consolidates an industrial base that drives the economy, modern and essential for the generation of employment and the prosperity of the country.”
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