Reported revenue for the French civil aerospace industry in 2024 grew to 57.4 billion euros (source: GIFAS) out of total non-consolidated aerospace and defense revenues of 77.7 billion. The aerospace and defense industry exported approximately 82% of its consolidated turnover, and the civil sector represents 74% of revenues. The defense sector climbed 13% to 20.3 billion euros, driven by growth in export deliveries (+19%) and in the domestic market (+11%).
In defense, France and the United States we are close operational allies but not major trading partners. A leading defense manufacturer and exporter itself, France does not buy a lot from the U.S., preferring to build its own defense equipment or partnering on a European level in order to maintain its strategic independence. France is extremely reticent to use components subject to ITAR in its defense supply chains due to re-export issues.
The aerospace and defense industries are showcases for French technologies and are amongst the most dynamic market sectors economically. The French are known to be very protective of their supply chains and technology innovations as well as their economic and defense sovereignty in general, making this a challenging market to enter, but with many opportunities for the right products.
Aerospace
Five aircraft manufacturers account for most of the French market: Airbus (large commercial aircraft and military aircraft), Airbus Helicopters (civil and military), Dassault Aviation (high-end business jets and the Rafale Figher jet), ATR (passenger and cargo turboprop aircraft for regional transport, an Airbus JV with Italian firm Leonardo), and Daher (TBM and Kodiak light aircraft and business turboprops). There is also a growing ecosystem of small manufacturers offering light electric or hybrid aircraft or vehicles suited for urban air mobility. The Safran Group is also involved in both civil and military defense, manufacturing several military drones, as does Airbus Defence & Space and French electronics group Thales.
French manufacturers are working on a new generation of products aiming to be carbon-neutral by 2050. To achieve this, the industry is focusing on increasing usage of 100% sustainable fuels, developing hydrogen or hybrid powered aircraft and achieving a 30% improvement of energy efficiency across the aircraft (motors, wings, electrification and hybridization and green operations). Best prospects will products or innovations helping manufacturers achieve these goals.
Defense
While France is not a geographically large country, it is now the world’s second largest arms manufacturer and exporter after the U.S., before Russia and China. France considers the United States as its major competitor in defense sales. France is one of the few countries in the world that maintains full-spectrum military production capabilities; as a nuclear nation, it makes its own equipment, from small tactical weapons to a nuclear-powered aircraft carriers and ballistic missiles. France is a strong supporter of its own and the EU’s technology and industrial base. Avoiding components in its defense supply chains that are subject to ITAR is a clear competitive advantage to French primes when exporting - and most defense equipment is built for export. France does occasionally buy complete U.S. systems - for example General Atomics Reapers or Lockheed Martin C-130Js – when it has no local alternative to fill a capacity gap. It will generally buy via a Foreign Military Sales process when this is the case.
The defense budget, which has been increasing, hovers around 50 billion euros – a tiny amount compared to that of the U.S. but the biggest in Europe. The equipment acquisition share is about 25-30 percent of the budget. France is incrementally increasing its defense budget but is struggling to finance it in a time of high budget deficits.
In order to successfully do business in the French defense sector, U.S. firms may work with French or European partners, ideally looking as “local” as possible. Having a French or European footprint, which may need to include locally manufactured content, is usually a must.
Space
France’s space sector continues to grow, with about 60 companies working exclusively in this sector. French trade association GIFAS reports consolidated sales for 2024 at about 4.8 billion euros, which is about half of the value of the entire European space industry.
France has been the driver in Europe for greater investment in the sector, and a staunch supporter of the Ariane 6 program as well as in a European secured telecoms constellation. France will be investing 9 billion euros over the next 3 years (France 2030 Program) in space research, support for the Ariane 6 launch program, industrial competitiveness, exploration and defense-related space. According to President Macron, the catchword for the industry moving forward is “Sovereignty,” whether in terms of launchers (Ariane 6) or the secured connectivity constellation (Europe’s third, after Galileo and Copernicus).
In addition to large well-known primes, France is developing an ecosystem of innovative young companies offering technologies and services relating to “New Space” and organizing into clusters throughout France.
Upcoming Events
For companies seeking in-person opportunities to enter the French market, there are several upcoming events of interest:
- Paris Air Show, Le Bourget (Paris area), France. June 16-22, 2025. The Paris Air Show is the largest show of its kind and includes over 2,450 exhibitors from 49 countries. It is a biennial week-long event to demonstrate civilian and military aircraft to potential customers and investors, and to announce new developments and orders.
- JEC World, Villepinte (Paris area), France. March 10-12, 2026. The world’s leading international annual Composites show. Aerospace applications are featured prominently at this event.
- Eurosatory, Villepinte (Paris area), France. June 15-19, 2026. Eurosatory is the global land and air benchmark event for Defense and Security. Every two years the show brings together more than 100,000 professionals and 1,743 exhibitors from 62 countries.
- Euronaval, Le Bourget (Paris area), France. November 3-6, 2026. A biennial naval defense and maritime security event.
- Aeromart, Toulouse, France. December 1-3, 2026. Aeromart is a business-to-business supply chain event, featuring conferences and meetings with buyers from major aircraft manufacturers and their suppliers. 1500 companies and over 3000 participants attend Aeromart.
The U.S. Commercial Service is located in U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.
Meet Cara Boulesteix
Aerospace & Defense Commercial Specialist
U.S. Embassy – Paris, France
Market of the Month – Germany
The German aerospace and defense sector offers plenty of opportunities for U.S. companies. The best way of getting exposure to the German market is by participating in trade shows. Germany is home to some of the major European aerospace trade shows. These shows are ideal platforms for liaising with potential partners and buyers from Germany and multiple other European markets. Entering the German market is a long game, however. Beyond the trade show participation, cooperating with local firms is a preferred way for U.S. companies when bidding on major contracts.
Aerospace & Defense
Let’s take a look at the market figures. Germany has the third-largest aerospace and defense market in Europe, with 2023 revenues at EUR 46 billion or USD 49.7 billion, following the UK at GBP 88.4 billion or USD 109.9 billion (including land defense systems) and France at EUR 70.2 billion or USD 75.9 billion. The figures for 2024 will be published by the German Aerospace Industries Association in May 2025. They were not available at the time of this writing. Some three quarters or USD 33.3 billion of the German production are exported. Regarding the overall development, BDLI president Dr. Schöllhorn stated the following: “Industry figures for 2023 feature both pros and cons. We are delighted that our industry has overcome the COVID years. We also see further growth in both civil aircraft construction and the defense sector. However, there are significant issues related to supply chain reliability and capacity. Increasing regulatory requirements, such as complex national and European supply chain laws, place additional burdens on companies. And we need reliability and predictability in the growth of the defense budget. Uncertainty in procurement decisions is already threatening manufacturing capacity and know-how, especially at SMEs. Finally, we are at risk of being left behind internationally in the space sector if European countries/companies/players do not join forces more decisively and recognize and defend the strategic dimension of independent access to space and its use.” These comments highlight some of the challenges that the German aerospace industry is facing. Overall, it is in healthy condition though. The major industry players (Airbus Defence and Space, Airbus Helicopters, Airbus Aerostructures, Diehl, Hensoldt, IABG, Liebherr, MBDA, and others) have taken the right steps to shape the industry trends until 2040. The 2023 revenues were distributed as follows:
- Civil aviation, EUR 33 billion or USD 37.5 billion vs. EUR 28 billion in 2022
- Military aviation, EUR 10 billion or USD 10.8 billion vs. EUR 8.4 billion in 2022
- Space systems, EUR 3 billion or USD 3.2 billion vs. EUR 2.6 billion in 2022.
Strategic Considerations
Let’s also take a look at the strategic considerations of the German government. Aerospace stands out in this aspect. The Federal Ministry of Economic Affairs and Climate Action (BMWK) lists aerospace as a key industry with high growth rates and a strong industrial core in Germany. The “2020 Technology Strategy of the German Aerospace Industry” builds on BMWK’s earlier “Aerospace Strategy”, underlining the particular importance of the aerospace sector for Germany as an industrial country both technologically and economically. It was adopted by Germany’s former three-party coalition government (SPD, Greens, FDP) in December 2021. An update is expected once the incoming coalition (CDU/CSU, SPD) has been formed. The coalition talks are currently underway.
Besides aiming at increased competitiveness, the aerospace sector promises to make significant contributions to overarching societal goals, mainly with regards to the aspirational target of achieving less carbon emissions by 2050, developing sustainable aviation fuels (SAFs), reducing the noise footprint, and improving the environmental record of aircraft. Moreover, the BMWK has updated the Aerospace Research Program (LuFo)—a grant program for aerospace research and technology projects—and issued another call for applications in April 2022. The sixth phase of LuFo (LuFo VI) ended in April 2024. LuFo Climate VII-1 was launched on April 19, 2024, marking the start of the seventh phase which includes a total of three funding calls for innovative technology projects in Germany until 2030. The budget for LuFo is earmarked at EUR 300 million per year, making it the central funding program for industry-led civil research and development projects in Germany. Compared to previous funding periods, LuFo VII again places a strong focus on reducing the overall energy demand and the impact of aviation as well as on reducing non-carbon effects.
Regulatory Provisions
U.S. companies should be aware regulatory provisions on the European side, both on the EU and on the national level. The U.S. Commercial Service closely monitors any regulatory changes and supports U.S. companies by conducting frequent and active outreach to the relevant authorities in Germany, such as the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) in Koblenz, Rhineland-Palatinate. We also follow the latest aerospace, defense and security-related policy developments and discussions in Germany. On an international level, we gain insights from organizations like the Aerospace, Security and Defence Industries Association of Europe (ASD) and the Aerospace Industries Association (AIA) to understand their positions on transatlantic trade issues and communicate U.S. objectives.
Opportunities
Opportunities for U.S. aerospace and defense manufacturers with interest in the German market exist in the following segments:
- Commercial aircraft
- Business jets
- Turboprops
- Helicopters
- eVTOLs
- UAVs
- Aerostructures
- Propulsion systems
- Subsystems for aerospace vehicles
- Military aircraft, air defense systems
- Spacecraft and launch systems
- Communications systems
Earlier this decade, the Bundeswehr’s EUR 100 billion (USD 108.2 billion) Bundeswehr special fund promised to be the biggest opportunity across the board. The special fund was announced by then-Chancellor Scholz in February 2022 and approved by the German parliament in June 2022.
It comes on top of record defense budgets of EUR 50.4 billion (USD 55.9 billion) in 2022, EUR 50.1 billion (USD 54.3 billion) in 2023, EUR 52 billion (USD 56.2 billion) in 2024, and EUR 52.25 billion (USD 55 billion) in 2025, and will be spent until 2026, bringing Germany closer to NATO’s 2 percent GDP spending target. The euro-dollar conversions are based on the European Central Bank’s average exchange rates for the respective years. The lion’s share of the special fund is designated for air force procurements, summarized under the term “Dimension Air”, with approximately EUR 33.4 billion (USD 36.2 billion) slated for the procurement of H-47 Chinook heavy transport helicopters, jointly offered by Boeing and Airbus Helicopters, and F-35 Lightning II fighter jets offered by Lockheed Martin. The F-35s will allow Germany to continue in the NATO nuclear deterrence mission without a gap when the Tornados reach the end of their service life in 2030. They are already in service with the UK, the Netherlands, Italy, and others, and thus provide unique potential for cooperation with NATO allies. The German MOD plans to develop a Eurofighter variant to fulfill the electronic warfare role. The Future Combat Air System (FCAS), jointly developed by France, Germany and Spain, will replace the Eurofighter from 2040. The second-largest position, some EUR 20.7 billion (USD 22.4 billion) are earmarked for investments in the “Dimension Command Capability and Digitalization”; followed by EUR 16.6 billion (USD 18 billion) for land defense systems or “Dimension Land”, e.g., the Puma infantry fighting vehicle (IFV); followed by EUR 8.8 billion (USD 9.5 billion) for naval systems or “Dimension Sea”, e.g., K130 corvettes, F126 frigates, and HDW Class 212CD submarines.
As of April 2025, Germany considers the possibility of allocating 200 billion euros to bolster its defense capabilities. This could result in German defense spending remaining permanently above 2 percent of the GDP, or even reach up to 3.5 percent. The U.S. Commercial Service Germany will observe the development.
Upcoming Events
- 15th Aviation Forum, December 10-11, 2025, Hamburg
https://www.aviation-forum.com/
- Aircraft Interiors Expo, April 14-16, 2026, Hamburg
https://www.aircraftinteriorsexpo.com/
- AERO, April 22-25, 2026, Friedrichshafen
https://www.aero-expo.com/
- ILA Berlin, June 10-14, 2026, Berlin
https://www.ila-berlin.de/en
Meet U.S. Commercial Specialist from the U.S. Embassy in Germany.
Moritz Holst
International Trade Administration
U.S. Department of Commerce
U.S. Consulate General, Munich
Office: +49 (89) 2888-754
Email: moritz.holst@trade.gov
Overview
Australia’s unique geography – a large land mass remote from other continents with a small population widely dispersed and almost entirely less than 100 miles from its coastline – helps explain why aerospace and defense are so central to its national development and psyche. A country similar in size to the U.S. and China, but with a population closer in size to Florida or Taiwan.
That said, Australia is an affluent country with a GDP that places it on the cusp of the world’s ten largest economies. It has a First World transportation system including its airlines (QANTAS, Virgin Australia, Jetstar), airports (Sydney, Melbourne, Brisbane, Perth and a host of smaller ones), civil aviation safety regulation (CASA) and air traffic control, navigation, communications and airport rescue and firefighting services (Airservices Australia). There is a well-established maintenance, repair and overhaul (MRO) industry as well as a respected drone and counter drone sector. Australia also has search and rescue responsibilities for approx. nine per cent of the Earth’s surface and a large territorial claim in Antarctica.
Australia has also established a national space agency and has a small but innovative space industry that is developing launch facilities, launch vehicles, hypersonics capabilities, satellites and specialized vehicles.
Defense
Australia spends a little over 2 per cent of its GDP on defense, equating to approx. USD 32 Billion in 2024. This ranks it just outside the ten largest military budgets worldwide (13th SIPRI; 11th IISS) and 4th in Asia behind China, Japan and South Korea. It is a more significant importer of defense equipment, consistently ranking in the top ten for many years and has been the U.S.’ largest defense customer in Asia collectively for the past fifteen years.
Australia’s defense forces are historically the strongest in the Southern Hemisphere. It operates the world’s first all 5th generation air force based almost entirely on U.S.-made platforms; a ‘blue water’ navy featuring two Landing Helicopter Docks (LHDs), three destroyers, seven frigates and six submarines; and a small army including tanks, artillery, armoured personnel vehicles, attack helicopters and special forces.
Whilst the Australian Defence Force is numerically modest in terms of personnel – 89,000 in total comprised of 57,000 active and 32,000 reserve personnel – it has a substantial budget of AUD 52.6 Billion in 2023-24 (USD equivalent 32+ Billion) and is implementing a long term investment program to acquire enhanced capabilities with a major focus on upgrading its submarine fleet to include nuclear-powered, conventionally-armed submarines in partnership with the U.S. and U.K under the AUKUS trilateral security partnership.
For some years Australia has focused on ensuring that it has a potent and regionally superior air force and is now placing a heavy focus on upgrading its naval capabilities.
Due to its small domestic manufacturing base Australia has become a leading importer of both civil and defense systems. It is consistently a top 10 importer of defense systems/arms and a top 20 importer of civil aircraft, with national policy initiatives in play to grow both the local defense industry – notably in terms of naval shipbuilding and weapons manufacture – and industrial collaboration with close allies.
For the past fifty years the U.S. has been the leading supplier of aerospace and defense equipment to Australia and while this position has been challenged in recent times from Europe as regards commercial passenger aircraft the U.S. has strengthened its position as the leading supplier of defense equipment.
Major U.S. industry-driven acquisitions delivered to Australia during calendar year 2024 included:
- 46 new M1A2 Abrams main battle tanks
- 7 new UH-50M Black Hawk helicopters
- First Triton remotely piloted aircraft system
- First prototype Ghost Shark autonomous robotic undersea vehicle
- And the arrival of the final nine of a fleet of 72 F-35A Lightning II aircraft
During 2023-24 the Australian Defence Force (ADF) achieved acquisition result was a record AUD 16.6 Billion (USD 10+ Billion) augmented by a further AUD 16.4 Billion (USD 10+ Billion) in sustainment.
Australia and the U.S. are signatories to the AUSFTA free trade agreement that celebrates its twentieth anniversary as of January 1st 2025 and the AUKUS partnership signed in September 2021.
The AUKUS partnership is the biggest development in Australia’s defense relationships since the ANZUS collective security agreement signed with the New Zealand and the U.S. in 1951. It sets out a pathway for Australia to acquire nuclear-powered, conventionally-armed submarines together with priority areas for technological collaboration with the U.K. and the U.S. These priority areas include accelerating collaboration and adoption of various new technologies including hypersonics and counter hypersonics, cyber, electronic warfare, artificial intelligence, quantum technology and undersea capabilities.
Key details pertaining to AUKUS can be found at
While AUKUS presents an imposing range of challenges in implementation, that is precisely the basis for its ambitious objectives including regulatory reforms, industrial collaboration, delivery schedules and the related major investments to help make it all happen. It will be a key driver of innovation and delivery of enhanced capabilities across all three nations.
Australia’s defense acquisition priorities are the subject of key public planning documents including four 2024 edition reports
- National Defence Strategy
- Integrated Investment Program
- Defence Industry Development Strategy
- Naval Shipbuilding and Sustainment Plan
All are accessible on the Australian Department of Defence website.
https://www.defence.gov.au/about/strategic-planning/2024-national-defence-strategy-2024-integrated-investment-program
The IIP will likely be of greatest interest to industry, and it maps out a planned ten-year program costed at AUD 330 Billion (USD 200+ Billion).
Space
Australia has a small but dynamic space industry that has been making impressive steps forward in recent years in terms of satellite manufacture, hypersonics, multiple small launch centers, development of an indigenous launch vehicle capability, development of a lunar rover, and ratification of a Technology Safeguards Agreement (TSA) with the United States. 2025 will also witness the world’s largest space event - the International Astronautical Congress (IAC) - come to Australia for the third time. It will be held in Sydney in
While the space sector is still of a modest size it is making some imposing steps forward and it is timely to consider engagement with it.
Australia was one of the last countries to establish a national space agency (2018) after being one of the early leaders in launching a satellite from its own territory – 3rd, in 1967 with the launch of Wresat 1 from Woomera. The Australian Space Agency website is https://www.space.gov.au/ and its CEO is Enrico Palermo.
As of 2017 the Australian space industry was estimated to employ around 10,000 FTE (full time equivalents) and generate USD 2-3 Billion in annual revenue. The ASA was expected to help facilitate a tripling of the Australian space economy and creation of a further 20,000 new jobs by 2030. The Space Industry Association of Australia (SIAA) is the peak industry body.
https://www.spaceindustry.com.au/
Civil Aviation
Civil aviation in Australia has been gradually recovering from the pandemic-driven decline in services since 2019. Airservices Australia, an Australian Government agency that manages air traffic within Australian airspace. As of 2024 it reported 3.7 million aircraft movements carrying 157 million passengers which was almost back to 2019 levels. Aircraft movements were down 6% on FY 2019 and passengers carried were down 4% on FY 2019, representing almost complete recovery over five years. Domestic flights were actually slightly higher (102%) and there were 70 new domestic routes compared to FY 2019. International flights were still only 93% of FY 2019 levels.
Airservices Australia reported fifteen additions to the passenger-carrying fleet – fourteen were narrow body aircraft and only one was wide body. Qantas (excluding Jetstar) continued to dominate the market with 34% share of average daily flights (792), followed by Virgin Australia with 19% (435), Jetstar with 13% (297) and the Rex Group with 10% (223). As of March 2023 the Qantas Group – which includes Jetstar – was assessed to have a 60.8% share of the Australian domestic market.
Australian airlines are investing in fleet renewal and expected to bring on a 30% increase in seating capacity over the next ten years.
Fleet breakdown
| | Turboprop | Narrowbody Jet | Widebody Jet | Regional Jet | Piston |
| Active | 44% | 37% | 8% | 8% | 3% |
| On order | | 84% | 16% | | |
Australia’s civil aviation industry is one of the world’s oldest, with national carrier Qantas celebrating its 100th birthday in 2021. Together with Virgin Australia, Jetstar, Rex and various smaller regional airlines, Australia had over 550 aircraft being flown by commercial airlines prior to covid-19 disruption to air travel in 2020. Qantas and Virgin Australia were the two leading airlines. Qantas had a mixed Boeing/Airbus fleet while Virgin flew Boeing aircraft exclusively. In July 2024 regional carrier Rex collapsed and was placed in voluntary administration. As of January 2025 Rex continues to operate regional services with financial support from PAG Asia and the Queensland Government, but has ceased jet services and is now wholly turboprop. It is Australia’s second largest regional carrier by number of destinations behind QantasLink.
The Aviation industry underpins Australian business and tourism and has an estimated annual revenue in excess of USD 20 Billion. The Aviation sector carried over 60 million domestic passengers and there were over 1 million tonnes of international scheduled air freight traffic. The industry employs more than 65,000 people across its five main subsectors: Domestic Commercial Aviation, International Commercial Aviation, General Aviation, Air-freight Transport and Aviation Support Infrastructure.
In 2021, Qantas announced that it was pivoting towards Airbus and would replace its ageing domestic fleet of 75 Boeing 737s and 20 717s. Qantas decided to buy 20 Airbus A321XLR planes and 20 A220-300 jets and took out purchase options on another 94 aircraft. Deliveries were due to commence in 2023 and to continue over the following decade.
This followed an earlier decision by Qantas subsidiary Jetstar to opt for Airbus aircraft. Jetstar ordered 18 new Airbus A321LR (NEO) aircraft, the first of which was delivered in mid-2022. Jetstar is also acquiring a further 20 Airbus A321XLR from mid-2024.
Qantas explained that the strategic change in sourcing from Boeing to Airbus NEOs was based on expectations of increased range, greater fuel efficiency and less noise.
Virgin Australia meanwhile has progressed a Boeing-driven fleet growth program, the first stage of which will see four new Boeing 737 MAX 8 aircraft introduced to its network and F100 aircraft retired from service and replaced by Boeing 737-700s. These four new MAX 8 aircraft are scheduled to start flying from February 2023. They will reduce emissions by 15% per journey, compared to the current 737 NG aircraft.
The fleet program is part of a broader growth strategy, which will see the Boeing 737 fleet (currently consisting of 737-700 and 737-800 aircraft) increase to 88 with the inclusion of four MAX 8 aircraft as a result of increasing demand.
Business Aviation
Australia also has the 2nd largest business aviation fleet in Asia (China 340, Australia 230). Textron Aviation, Gulfstream Aerospace and Bombardier are forecast to deliver most future aircraft into the Asia region, with deliveries worth an estimated $18.3 billion at list prices over the next decade (Source: Aviation Week). Australia is currently the largest operator of Textron aircraft in Asia, with the leading business aviation brands being Textron (80), Bombardier (76), Embraer (12), Gulfstream (11) and Dassault (10). Textron’s Cessna Citation 510 Mustang was the most popular net addition in 2021 and the Light size category remained the most popular size category with 91 aircraft.
While Australia traditionally has one of the oldest business jet fleets in Asia with an average age of about 20 years, there has been rapid modernization in recent times as owners upgrade aircraft post pandemic.
The market now spans very light jets (VLJs), for shorter domestic routes, to ultra-long-range aircraft that enable one-stop flights to destinations including London and New York. Larger, more sophisticated aircraft such as Bombardier’s Global 7500 have also made a significant impact, with eight units entering the market, highlighting Australia’s demand for ultra-long-range travel. This growth is driven by a diverse range of customers, from private owners to charter operators, who increasingly opt for versatile aircraft capable of international travel and suited to Australia’s extensive geography.
The pandemic saw an unexpected boom in the pre-owned business aviation market, as travelers sought alternatives to commercial airlines. This shift brought in a new segment of owners who had never explored the sector, and as a result, the VLJ segment saw substantial growth, with fleet size doubling over five years. Aircraft like the Cessna Citation Mustang and the Phenom 100/300s are a popular choice for short-haul flights between Sydney and Melbourne and have become increasingly common.
Additionally, the Pilatus PC-12, often called the “Range Rover” of Australia, saw a rise in demand. These turboprop aircraft are frequently used for traversing the country’s remote corners, emphasizing their importance in the Australian market, where rugged terrain is a key consideration.
Civil (turbine) Helicopters
As of 2023 data, Australia also has the largest civil (turbine) helicopter fleet in Asia (Australia 984, China 707) and recorded the greatest net growth (20). McDermott Aviation is the largest operator in Australia (39) followed by Babcock (33) and Heli West (26).
By manufacturer, Australia is the largest operator of Bell and Robinson helicopters in Asia and the 2nd largest of Airbus and Leonardo. Rotortech is the key industry event for the helicopter and drone sector.
Drones
Australia also has a vibrant local drone and counter drone industry. There is an industry association called the Australian Association for Uncrewed Systems (AAUS). Its representation covers air, sea and land domains and advanced air mobility. https://aaus.org.au/
AAUS will be returning to the Avalon Airshow in 2025 with a two-day conference showcasing Australia’s sovereign capability and innovation of defence and civilian drone applications in the air domain.
Held in association with Avalon 2025, the AAUS SkyTech 2025 conference will focus on the rapidly evolving state of autonomous systems and the future of uncrewed flight in Australia.
Drones have also become a significant capability within the Australian Defence Force, from the smallest (eg Aerovironment’s Wasp) thru to the largest (Northrop Grumman’s Triton) and many variants and providers in between.
Airservices Australia reports that the overall number of non-military drone flights remained steady between FY 2023 and FY 2024 but drone activity increased around all major capital city airports. Activity types moved from predominantly hobby-based to more commercial applications such as mapping and infrastructure inspections. In FY 2024 the major areas of drone activity were recorded as hobby (67.6%), photography and filmmaking (24.8%) and mapping and inspections (7.6%).
Upcoming Events
Avalon Airshow 2025
Melbourne and Avalon Airport VIC, March 25 – 30, 2025.
Largest aerospace and defense event held in Australia. Includes a U.S. Pavilion, U.S. Investment Seminar, Showtime counseling program and the largest U.S. exhibitor presence in the Indo Pacific. Held every second year, alternating with the Singapore Air Show.
Avalon 2023 featured a record 794 exhibitors – a 14% increase over Avalon 2019 (NB Avalon 2021 was cancelled due to travel restrictions related to the covid pandemic.) Trade visitors totaled 48,516 – an increase of 24% over 2019 and the public days attracted a further 200,000 visitors. Official delegations totaled 234 – a 50% increase over Avalon 2019. Such was the success of the event that a decision was taken to substantially increase exhibition space for Avalon 2025.
The U.S. exhibitor cohort in 2023 exceeded 150 including 86 in the U.S. Pavilion itself. Nine U.S. States exhibited with companies and two more walked the show. A U.S. Investment Seminar was delivered for the second time at Avalon, featuring eight U.S. States. And a Showtime program featuring U.S. commercial specialists from across Australia, South East Asia and the U.S. delivered 200+ counselling sessions.
Exhibition space at Avalon 2025 has been increased by 25% and total exhibitor numbers are forecast to exceed 1000 for the first time. All Australian states and territories participate with companies. There is a strong international presence featuring numerous delegations, air force chiefs and exhibitors drawn from across the world. Avalon also boasts an awesome display of aircraft and a very strong conference program.
https://airshow.com.au/the-airshow/2025-event/welcome/
AUS SPACE 25
Sydney NSW, May 27-28, 2025
Australian space summit and exhibition. Held at the ICC Sydney / International Convention and Exhibition Centre at Darling Harbour. The Australian Space Summit and Exhibition is a two-day event that will feature two main stages focusing on the space and defence industries, hosting over 70 speakers who will engage with an audience of more than 1,000 passionate space enthusiasts. Strong line-up of local and international key opinion leaders who will take the stage, discussing critical funding issues and fresh opportunities for international collaboration that will fuel the continued growth of Australia’s space sector.
https://www.spaceconnectonline.com.au
International Astronautical Congress
Sydney NSW, September 29 – October 3, 2025.
The International Astronautical Congress (IAC) is a five-day congress taking place during the September/October timeframe each year in a different location around the world. The 76th International Astronautical Congress (IAC) will be held in Sydney at the ICC Sydney and is hosted by Space Industry Association of Australia (SIAA) and co-hosted by the Australian Space Agency and NSW Government. Australia has previously hosted IAC in 2017 (Adelaide) and 1998 (Melbourne).
The theme of IAC Sydney 2025 is “Sustainable Space: Resilient Earth” which will set the stage for important discussions such as: space-based application for earth; sustainable space activities; and sustaining life off earth. Key focus areas include showcasing the Asia Pacific region, inspiring and engaging the next generation’s space workforce, engaging a broad range of industries, and educating the community about ‘why space matters’ through the IAC’s open day.
https://www.iac2025.org
Indo Pacific Maritime
Sydney NSW, November 4-6, 2025
The Indo Pacific International Maritime Exposition is the region’s premier commercial maritime and naval defence exposition, connecting Australian and international defence, industry, government, academia and technology leaders, in the national interest.
The three-day event will be held at ICC Sydney and is a platform for engagement and incorporates an international industry exhibition, specialist conference program featuring presentations and symposia from leading maritime institutions and networking opportunities.
Indo Pacific is strongly supported by the Royal Australian Navy, Australian Government Department of Defence and the New South Wales State Government.
Indo Pacific Maritime 2023 attracted a record 832 exhibitors, 27,000 trade visitors and 176 delegations from 46 nations. There were also 48 Chiefs of Navy or their representatives and over 13% of trade visitors were international.
U.S. exhibitors at IPM 2023 totaled 70 of which 47 were part of the U.S. Pavilion. They were supported by a Showtime program involving 89 counseling sessions. Two U.S. states and one industry association participated with companies. It was another record U.S. presence across the event.
The 2025 event can be expected to focus strongly on the AUKUS partnership between Australia, the U.K. and the U.S. and most particularly the major commitments towards upgrading Australia’s submarine fleet, naval shipbuilding and enhanced weapons systems. The commercial marine sector will also feature. Like Avalon and Land Forces, Indo Pacific Maritime is held biennially.
Total exhibitor numbers at IPM 2025 are also expected to exceed 1000 for the first time. There will be a large U.S. Pavilion within a total U.S. exhibitor cohort expected to exceed 100 for the first time. A U.S. Investment seminar is planned and there will be a Showtime counselling program as per Avalon. Strong international participation is anticipated in this event.
https://www.indopacificexpo.com.au/
Australian Airports Association (AAA) National Conference and Industry Expo
Venue TBA, Timing TBA
The AAA is the national association that represents the interests of more than 340 airports and aerodromes Australia wide – from the local country community landing strip to major international gateway airports. Its annual conference moves around Australia and is the key opportunity to engage the widest range of airport operators in one place. The 2024 conference was held over three days in Brisbane Queensland, November 19 – 21, 2024.
https://airports.asn.au/national-conference/
MilCIS 2025
Canberra ACT, November 18 – 20, 2025
MilCIS is a trade expo and conference focusing on the crucial technologies, products, systems and services associated with military communications and information systems. It is held at the National Convention Centre in Australia’s capital city, Canberra. Unlike the major defense trade shows – Avalon, Land Forces and Indo Pacific Maritime – which are biennial events held every other year, MilCIS is held annually each November.
MilCIS facilitates a continuing dialogue between Department of Defence employees, contractors, industry and researchers to discuss current and developing technological capabilities, project initiatives, and operational requirements.
It has two major components: the MilCIS Expo and the MilCIS Conference, both of which can be accessed in-person and virtually.
The MilCIS trade exposition usually attracts between 120 and 160 exhibitors, approx. 30% of which are either visiting U.S. companies or Australian subsidiaries of U.S. companies. Past programs and exhibitor lists for MilCIS events held in 2021, 2022, 2023 and 2024 are available on the MilCIS 2025 website.
https://www.milcis.com.au/
Rotortech 2026
Gold Coast QLD, May 6-8, 2026
The biennial RotorTech Vertical Flight Exposition is the premier industry event for the helicopter, uncrewed flight and Advanced Air Mobility (AAM) communities of Australia and region. A directory of exhibitors at the 2024 event can be found here - https://exhibitors.rotortech.com.au/rotor-tech-2024/Exhibitor
RotorTech 2026 will take place at the RACV Royal Pines Resort Gold Coast. Its program includes a three-day industry exposition incorporating an international industry exhibition, static helicopter display park and industry dinner.
RotorTech 2026 will attract industry leaders, key players and expert speakers. It is an industry-only event open to those with commercial, operational, government or research affiliation with aviation, aerospace, rotary-wing, AAM, autonomous or uncrewed flight industries.
https://rotortech.com.au/
Indian Ocean Defence and Security
Perth WA, May 26 – 28, 2026
Indian Ocean Defence & Security 2024 (IODS 2024) was held in Perth Western Australia, the geographic fulcrum between the UK, India, Japan and US. Key Australian and international government, defence and industry leaders explored the theme: Where AUKUS Meets The Quad. IODS 2024 highlighted challenges and opportunities for international engagement, and delved into how Australian industry may support diplomacy, defence and security policy in the region.
IODS was significantly expanded in 2024 to include a trade exhibition as well as the established conference. It was held at the Perth Convention and Exhibition Centre. IODS has a regional focus both in terms of its location on Australia’s west coast and its geographic focus on the Indian Ocean and associated defense issues. 2024 event statistics can be found at https://iods.com.au/index-2024.asp . Key points included a first-ever exhibition total of 110 exhibitors from 12 nations, of which 8 were from the U.S. 112 Delegations from 15 nations participated. The event also included all three AUKUS nation naval chiefs for the first time in Australia.
https://iods.com.au/
Land Forces
Melbourne, September 9-11, 2026
The Land Forces 2024 International Land Defence Exposition is Australia’s premier platform for interaction between defence, industry and government of all levels, to meet, do business and discuss the opportunities and challenges facing the global land defence markets.
Most recently held in September 2024, the Land Forces program includes a comprehensive international industry exhibition; a three day conference program from leading convenors and industry experts; daily networking events and functions; innovation awards and formal business-to-business and business-to-delegation engagement programs.
Organisers claimed a record 995 exhibitor companies from 31 nations – 23% more than in 2022. This can be attributed in part to the event moving from Brisbane to a larger venue in Melbourne. Commerce identified a further 17 U.S. exhibitors not listed in the official show report, indicating that Land Forces 2024 became the first Australian defense trade event to exceed 1000 exhibitors. It also included 77 conferences, symposia and presentations and attracted 240 delegations from 41 countries – 50% more than in 2022. Land Forces 2024 attracted 25,675 trade visitors from 46 nations – 15% more than in 2022 – while international exhibitors made up 16% of total exhibitors and international visitors comprised 12% of total visitors. Full details can be found here - https://landforces.com.au/index-2024.asp
The U.S. presence at Land Forces 2024 included 90 exhibitors in total of which 40 were located within the U.S. Pavilion including two U.S. States with companies and one industry association. These were record totals.
https://landforces.com.au/
MRO Australasia
Brisbane, TBA 2026
MRO Australasia is a two-day conference that 2-day conference designed for airlines, MROs, suppliers, OEMs, regulators, lessors and industry experts to explore the aviation maintenance industry in Australasia. It includes dedicated networking functions including 2 evening receptions; a speed networking session between buyers and suppliers during Meet the Buyers; and a showcase exhibition.
The most recent event was held November 13-14, 2024 at the Sofitel Hotel in Brisbane Queensland and attracted 407 attendees, 42 showcase exhibitors, 78 airline buyers and involved 470 meetings. The website for the 2024 event is https://mroaustralasia.aviationweek.com/en/info/why-attend.html
The two-day conference will return to Brisbane in 2026, with plans already underway for a bigger venue to satisfy the huge demand.
https://mroaustralasia.aviationweek.com/en/home.html
Meet U.S. Commercial Specialist from the U.S. Embassy in Australia.
Dr. Douglas Hartley
International Trade Specialist
U.S. Embassy - Canberra, Australia
Military Modernization in the Balkans Aligns with NATO’s Strategic Security Goals
Western Balkan countries are increasing defense spending as conflicts in Eastern Europe and the Middle East prompt reassessment of their individual military capacities. Many Western Balkan countries made either recent purchases or allocated increased funds to defense capabilities aimed at enhancing military readiness within the European subregion. While not all Balkan states are NATO members and therefore not bound to NATO investments, the NATO alliance reaffirmed its commitment in August to regional stability and security as it is an area of strategic importance within Europe.
The 2024 NATO Summit held in Washington, D.C. marked 75 years of the transatlantic alliance. The Ukraine conflict precipitated discussions on how NATO would continue to support Ukrainian and European security needs, including how defense modernization can bolster the alliance’s collective deterrence. NATO members reaffirmed the 2023 Defense Investment Pledge, committing members to invest at least 2 percent Gross Domestic Product (GDP) annually on defense and at least 20 percent within individual defense budgets on major equipment buys and research and development. On the summit margins, several industry events occurred as NATO Allies look to accelerate joint procurements, boost production capacity, and improve interoperability. To achieve NATO’s modernization goals, Allies agreed to expand their defense industrial capacities to enhance NATO capabilities, such as the Alliance’s Integrated Air and Missile Defense with new ballistic missiles and its cyber defense under a new NATO Integrated Cyber Defense Center. Moreover, under the newly adopted NATO Industrial Capacity Expansion Pledge, members underscored their commitment to NATO standards for defense systems and bolstering transatlantic defense industrial cooperation.
Croatia’s A&D Investments Strengthen NATO Deterrence and Interoperability
Croatia is member of the NATO since 2009 and of European Union since 2013. About ten years ago, the country started modernization of its armed forces. The largest portion of funds was allocated to the air force. Croatia’s defense budget for 2024 is $1.39 billion, increased by $27 million from the previous year. The government plans to further increase the budget in 2025, and the Minister of Defense believes Croatia will reach the targeted 2% of its GDP spending for defense in 2027.
The most developed and largest part of the Croatian military is the army. The Croatian military has around 15,000 personnel: about half in the land army, 10% in the navy and 10% in the air force. The Ministry of Defense defines personnel as the military’s key asset and emphasizes the importance of training and education. Recent Equipment Acquisitions
Aviation
- 2 Dassault Rafales F-3R procured from the French government in 2021 for 999 million Euros. Six fighter jets have been delivered in 2024, with the remaining six arriving by the end of 2025.
12 UH-60M Black Hawk helicopters, acquired with the support of the U.S. government. Four helicopters were delivered in 2024, and eight more will arrive in 2028.
Military
- Bradley Fighting Vehicles (89 used vehicles acquired with U.S. government support). 62 vehicles will be deployed to frontline units, five will be allocated for training, and the remaining 22 will be reserved for spare parts. The first three refurbished Bradley vehicles were tested in October 2024, and the full fleet should be delivered to the Army by 2026
- Leopard 2A8 tanks – Croatia will buy up to 50 new tanks from Germany.
- Patria AMV – Croatia currently has 126 Patria vehicles in seven different versions. Acquisition of an additional 30 Patria AMV’s is planned soon
- Eight HIMARS M142 systems, to be acquired through the U.S. government FMS program.
Navy
- The Ministry of Defense has been considering using the local shipbuilding company Brodosplit to construct a new corvette.
Cybersecurity
- Cybersecurity Operations Center was established in 2022, with support of the U.S. government. Croatian military works closely with NATO (through Cyber Coalition and Cooperative Cyber Defense Centre of Excellence) and the U.S. Cyber Command to maintain its cybersecurity capabilities.
Opportunities
Croatia continues to modernize its systems and platforms in all segments of the military to align with NATO standards. Key projects include:
- Upgrade of communication systems
- Acquisition or upgrade of control and command systems
- Procurement of unmanned aerial vehicles
- Upgrade of naval radars
- Upgrade of cybersecurity capabilities
Most of Croatia’s defense equipment is imported from Western countries. However, there are also some advanced defense equipment manufacturing companies in Croatia, including HS Produkt (firearms manufacturer, over 90% of their handguns are exported to the United States), Sestan-Busch (ballistic protective gear), and DOK-ING (demining equipment). Croatian defense manufacturers are gathered in the Croatian Defense Industry Competitiveness Cluster.
Upcoming Events
Adriatic Sea Defense and Aerospace Exhibition and Conference, Zagreb, April 8-10, 2025.
Contact Information
Nina Čerkez , Commercial Specialist
International Trade Administration
U.S. Department of Commerce
U.S. Embassy Zagreb, Croatia
+385-1-661-2090 | Email: Nina.Cerkez@trade.gov
Market of the Month, Austria
The Austrian aviation, defense and space sectors offer ample opportunities for U.S. companies. The preferred way of conducting international business is through industrial cooperations.
Defense
AUSTRIA DEFENSE PROCUREMENT OPPORTUNITIES
U.S. firms in the defense industry are of high renown, and well-regarded for their innovative technologies, and after-sale service and training, making them competitive for exports in Austria’s growing defense market.
Background: Neutrality has been the foundation of Austria’s security and defense policy for many decades. In view of the changed geopolitical circumstances, mainly the ongoing armed conflicts in the Ukraine in the Gaza Strip, Austria is forced to rethink its security and defense strategy. As part of that, investments of 4.02 billion Euros by the Austrian Armed Forces are planned in 2024, with the goal of an annual budget of 6 billion by the year 2027.
Opportunity: The Austrian Armed Forces require a substantial increase in quality and quantity of land and air equipment and in the information environment. Budget increases have been allocated for that, as a measure of the long-term military renewal plan titled ÖBH2032+.
Some intended purchases include:
- large investment allocations
- 10.3 million Euros for automotive vehicles
- 306.2 million Euros for armored vehicles
- 249.1 million Euros for weapons systems
- 195 million Euros for aviation (whereof 121,1 million for AW169 Leonardo helicopters and 35 million for the replacement of c-130 Hercules air transport system)
- increase of material expenses by 8.8%
- ammunition
- clothing and gear
Wheeled tanks, helicopters, aircraft, as well as antiaircraft missiles, drones and drone defense are listed among required military equipment.
Aviation
U.S. aviation companies can find great partners in the well-developed Austrian aviation industry. The following aspects in particular might be of interest:
- Highly Innovative (25% of revenue invested in R&D) sector in Austria: open to international collaborations.
- Market Access: Austria’s central location in Europe, offers strategic access to other European markets.
- Skilled Workforce: well-trained local workforce in aviation industry, which represents great value when cooperating with local partners.
- Growth Potential: Austria’s aviation sector is growing at accelerated rates, opening the market for new business and transactions.
Today, Austrian companies in the aviation sector generate around EUR 3,14 billion in turnover annually. 75% of the companies are small and medium-sized, however, 20 of the companies have an annual turnover of over EUR 10 million. These firms operate as suppliers to major aircraft manufacturers and space agencies, while also working on innovating in areas like small aircraft and unmanned helicopters.
Currently, Austrian Aviation is aiming at achieving its 2040+ Strategy goals, i.e. climate-friendly and future-oriented aviation, meaning that objectives will include technological change implementations and creating sustainable fuels for air transport.
Space
The entire spectrum of space technology is present in Austria: from components for satellites and space vehicles to ground equipment and specialized measuring instruments. The Federal Ministry for Transport, Innovation and Technology (BMVIT) invests around EUR 70 million annually to support the space sector.
Upcoming Events
- Airpower 24: September 6-7, 2024 in Styria, with an industry day on September 5
AIRPOWER24 6th – 7th Sept 24 – Die Flugshow in Zeltweg organisiert vom Österreichischen Bundesheer und Land Steiermark und Red Bull
- ESA Industry Space Days, September 18-19, 2024 in the Netherlands
The Industry Space Days (ISD) connect SMEs, start-ups, and the broader space community for presentations, exploring business potential, exchanging ideas, and finding partners.
- AUSA 2024 | Oct 14 - 16 | Washington DC (defenseadvancement.com) Official Austrian delegation attending
- Aviation Forum Austria 2024 - open4aviation Oct 24, 2024 in Vienna
Contact Information
Andrea Wimpissinger, Commercial Specialist
International Trade Administration
U.S. Department of Commerce
U.S. Embassy Vienna
Cell: +43 676 968 5746; Email: andrea.wimpissinger@trade.gov
Market of the Month, Japan
Executive Summary
Japan offers a lucrative market for imported aircraft, aircraft parts, and engines. U.S. firms have an overwhelming presence in the market due to long-standing relationships, some spanning over 70 years, with domestic manufacturers and trading firms. U.S. firms are presented with opportunities in the market as the domestic industry undertakes international projects, develops transport and patrol aircraft for defense, as well as small jet engines for civil aviation.
Commercial Aerospace
U.S. firms dominate Japan’s aerospace sector, benefiting from long-standing partnerships and increasing involvement of Japanese companies in international defense and civil aviation projects.
The resurgence in aircraft demand post-COVID-19 highlights a recovery in the aerospace sector, with a gradual increase in production for Boeing components by Japanese manufacturers such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Subaru. This recovery is supported by the U.S. FAA lifting the ban on Boeing 787 deliveries and a cautious approach to Boeing 777X program delays. In 2022, Japan imported $8.3 billion worth of aerospace products, with 59.6% coming from the U.S., and continues to offer duty-free importation on aircraft and parts under the WTO Agreement on Trade in Civil Aircraft.
Defense
Japan is increasing its defense budget in response to a challenging regional security landscape, underscored by North Korean missile advancements and China’s rising influence. The Cabinet approved a historic $55.9 billion budget for FY2024, marking a 16.5% increase from the prior year, to enhance capabilities across naval, land, and air dimensions, including the modification of Izumo-class carriers for F-35B operations, acquisition of new armored vehicles, and procurement of F-35A and F-35B fighter jets.
The budget focuses on advancing Japan’s defense technology research and development, with significant investments in stand-off defense, counter-hypersonic capabilities, and the Global Combat Air Program (GCAP) in collaboration with Italy and the UK.
Space
Japan’s space industry, renowned for its world-class industrial and technological prowess in R&D, is shifting its focus towards the commercialization of space technology, with concerted efforts from the Japanese government and industry to grow its space business. This pivot builds on a long-standing international collaboration in space development and exploration, initiated by a Japan-U.S. Joint Communique in 1969, and has seen Japan engaging in significant projects primarily led by NASA, with expectations for expanded collaboration in space exploration and science.
Recent developments have further strengthened space cooperation between the U.S. and Japan, including the signing of the Gateway Implementation Agreement in November 2022 as part of NASA’s Artemis missions for lunar exploration, offering a JAXA astronaut a crew position on a future Artemis mission. Additionally, Japan’s early commitment to the ISS extension until 2030, the signing of the Framework Agreement for Cooperation in Outer Space in January 2023, and subsequent dialogues and plans for a trade mission in May 2023, underscore a deepening partnership aimed at advancing space science, exploration, technology, and commercial opportunities between the two nations.
Upcoming Events
Japan International Aerospace Exhibition (“JA”)
Dates: October 16-19, 2024
Venue: Tokyo Big Sight
Website: https://japanaerospace.jp/en/
Description: Japan’s only large scale, fully integrated trade show on aerospace, defense and space. The most recent JA was held in 2018 in Tokyo with 520 exhibitors and 20,000 visitors. The U.S. Commercial Service Japan provided on-site counseling to U.S. exhibitors throughout the exhibition.
Defense and Security Equipment International (“DSEI”)
Dates: May 21-23, 2025
Venue: Makuhari Messe Center, Chiba
Website: https://www.dsei-japan.com/
Description: The only large-scale, fully integrated defense event. DSEI-Japan brings the global defense and security sector together with both the Japanese and wider Asian defense community to innovate, partner and share knowledge.
Contact Information
Sayoko Koto, Senior Commercial Specialist
U.S. Embassy – Tokyo
Email: Sayoko.Koto@trade.gov
