Overview

Singapore’s aerospace & defense industry has maintained a leading position in the Asia-Pacific market with a compounded annual growth rate of more than 8% over the past two decades. The combined market size is estimated to be around US$8 billion in 2024 and is expected to double by the end of the decade, projecting a compound annual growth rate (CAGR) of more than 12%, making it a key economic driver for Singapore. As a one-stop center for all maintenance, repair, and overhaul (MRO) services and a large precision engineering supplier, Singapore has captured over 10% of the global MRO market.

Singapore enjoys excellent connectivity and an efficient supply chain. It is further strengthening its infrastructure to ride future growth trends. The Seletar Aerospace Park is a centerpiece of this effort. Spanning 300ha, the dedicated aerospace park will host an integrated cluster of activities including aerospace MRO; design and manufacture of aircraft systems, components and light aircraft; business and general aviation activities; and a regional aerospace campus for aerospace education, research, and training. MRO business segment is robust which is backed by a pool of over 130 aerospace companies making Singapore the leading aviation hub in Asia-Pacific, contributing over a quarter of the region’s MRO output. Leading players such as ST Engineering Aerospace and SIA Engineering Company carry out comprehensive nose-to-tail MRO services. Singapore is also a center for regional parts distribution and warehousing.

As one of the leading aviation hubs in the Asia Pacific region, Singapore continues to enhance its infrastructure based upon future growth trends. Changi Terminal 5 (T5) is set to be one of the world’s largest airport terminals when completed sometime during 2030-2035. T5 will handle up to 50 million passengers a year in the initial phase of operation, increasing the airport’s total annual passenger handling capacity to 135 million. They will host an integrated cluster of activities including aerospace MRO; cargo / industrial zone, and a three-runway system and network of inter and intra-terminal tunnels.  Such investments will go a long way to maintain, if not enhance Singapore’s MRO hub status in the region.

Singapore conducts regular military exercises with the U.S. and is a major security cooperation partner. The Singapore Air Force’s high-end fighting platforms such as the F-15s, F-35s, along with weapons, avionics and accessories are all manufactured and purchased from the U.S.

Singapore has launched more than 30 small satellites since 2011. The ongoing partnerships with companies and research institutions help to further develop the country’s small satellite capability and create new space applications and services. Singapore will not only continue to invest in small satellite R&D, but also channel its resources to build deep and differentiated capabilities in a few selected areas including leveraging quantum cryptography to explore commercial applications in secure communications of sensitive data for telecoms and financial industries.

Rapid technological advances and digitalization are changing manufacturing processes. New market segments such as unmanned aircraft systems (UAS) have emerged. These industry trends will create opportunities in areas such as artificial intelligence, data science, 3D printing, advanced air mobility, and robotics engineering.

Aerospace Market Size, million USD

Leading Sub-Sectors

Singapore recently introduced two initiatives to further support sector growth:

• Aerospace Industry Transformation Map 2025 (ITM): Encourages collaborations in areas such as sustainable aviation and Advanced Air Mobility (AMM), supports aviation industry recovery, and drives future opportunities.
   
• Partnerships for Capability Transformation (PACT): Recently enhanced to expand collaborations between larger multinational corporations and local enterprises, deepen their capabilities, and expand their operations to capture new opportunities.

Sales prospects for products related to aircraft repair and overhaul, such as repair equipment for landing gears and nacelle, brake linings, tires, engines and fuel systems, avionics systems and equipment, fan blades, test equipment, etc. will likely remain strong over the next few years. Going forward, besides strengthening the MRO cluster, the aerospace manufacturing and R&D segments will also be further developed. Products designed and manufactured in Singapore include engine casings, engine gears, valves, seat actuators, and electrical power systems, among others.

Opportunities

Singapore is consistently developing its aerospace industry, particularly in its MRO and space segments. This will undoubtedly provide great growth opportunities in Singapore for MRO, space activities, and the supply of aircraft parts and systems. Suppliers of satellite-based quantum technologies for commercial applications should also represent opportunities in the Singapore space industry.  

To support the long-term growth of the logistics and aerospace industries, an industrial zone is being developed for airfreight and air express operators, as well as MRO activities. These developments will offer excellent opportunities for U.S. businesses to supply the aerospace sector in Singapore. With 5 passenger terminals, 8 airfreight terminals and 3 runways that will be completed sometime between 2030-2035, Changi Airport is well positioned for the next era of aviation. In the long term, the Singapore Armed Forces plan to procure submarines, infantry fighting vehicles with anti-drone capabilities, maritime patrol aircraft, and next gen unmanned aerial vehicle and to upgrade existing high mobility artillery rocket system. Two new commands have also been set up to focus on military digitalization & cybersecurity.

Resources

Trade Show 
Singapore Airshow 2026
February 3-8, 2026
The Singapore Airshow is Asia’s most influential international aerospace and defense exhibition for stakeholders to forge strategic alliances, collaborate for change, and shape the future of the global aviation industry. Leading industry players, government officials, and top military leaders gather in Singapore bi-annually to exchange ideas and advance the interests of the global aerospace and defense sector.

Singapore Government Offices

Civil Aviation Authority of Singapore
Defense Science & Technology Agency
Singapore Economic Development Board

Major Aviation Businesses

Changi Airport Group
ST Engineering Aerospace
SIA Engineering Company Ltd
Singapore Space and Technology Ltd
Association of Aerospace Industries (Singapore)

U.S. Commercial Service, Singapore Contact

CHAN Y K, Commercial Specialist
Email: yiukei.chan@trade.gov