Overview

USD million. Total market size = (total local production + imports - exports)

Data Sources: Unofficial estimates based on information from sector sources, including TEDAE (Spanish Association for Defense, Aeronautics and Space), Spanish Ministry of Industry, Commerce and Tourism, and the Spanish Chamber of Commerce.

Import figures include aeronautics only.  Latest data available.

Note: Statistics vary in line with exchange rate fluctuation.

According to the Spanish Chamber of Commerce, aeronautics imports from the United States have grown steadily since 2010. U.S. aeronautics products and services are well regarded in terms of price and quality. The best prospects for U.S. firms in this market sector continue to be new aircraft manufacturers.

Spain has a highly advanced aerospace industry that offers excellent opportunities for U.S. companies. In 2021 (the latest statistics available), sales reached 13 billion.  The sector employs approximately 47,693 workers. Due to rapid growth in recent years and significant investment in R&D, the aeronautics sector has grown by 10.5% and defense by 11% in 2021. Over the past ten years, Spanish companies have consistently dedicated more than 11% of their turnover to R&D activities. Spain’s aerospace industry is currently ranked 5th in Europe in terms of turnover and 8th in the world. Industry activity is concentrated in the following communities: 

• Madrid (49.2% of total sales)
• Andalusia (24.3%)
• Castilla La Mancha (10.7%)
• Basque Country (9.3%)
• Catalonia (1.2%)
• Castilla y León (1.3%)
• Remaining (4%)

Source: ICEX España Exportación e Inversiones (Spanish Trade & Investment Institute)

Spain participates in European and international aeronautic initiatives. Spain’s aerospace industry workforce has increased by 65% since 2000, and nearly all the increase is due to its activity in aviation and military aircraft programs. The Spanish space industry is involved in contracts in qualifications of flight and ground equipment, and the development and operation of satellite systems. There are several space centers located in Spain including the European Space Astronomy Center, European Space Agency the Madrid Deep Space Communication Complex (NASA), and Boeing’s European Center for Research and Technology.

Leading Sub-Sectors

Key Areas of Activity for Spanish Aerospace Companies:

Source:  Spanish Association of Defense, Aeronautical and Space Technologies (TEDAE)

Spanish aeronautics covers the entire value chain of an aircraft. Established aeronautics companies in Spain stand out in several fields such as military transport and special mission aircraft, low pressure turbines, maintenance, repair, operation activities, air-refueling aircraft, and air traffic management. Spain also has a highly specialized industry in aero-engines and propulsion engineering technology, with experience in advanced manufacturing processes.

Recently interest has also piqued in products related to composite tape-laying machines and fiber placement systems with computerized numerical control.  Other products in demand include components for aeronautical software programming, avionics, ground support equipment, unmanned air vehicles and systems, and extruded metal and plastics products.  

The Spanish space sector changed from launches and scientific development to satellites. The new focus puts forward the needs of telecommunications, institutional, and civilians needs. TEDAE (Spain’s Association of Defense, Aeronautical and Space Technologies) estimates that total sales in the Spanish space sector in 2022-2023 will again exceed $1 billion (€93 million)

Opportunities

Spain’s aerospace sector continues to grow and show great potential due to increased competition. The development of airport infrastructure also positions Spain with growing potential.  

The Ministry of Defense has succeeded in securing a dramatic increase in their budget plan for the coming years. The Spanish Minister of Defense committed to increase military spending to 1.53% of GDP by 2024, and President Sanchez, upon the conclusion of the NATO Summit (June 29-30, 2022), pledged that Spain would reach 2% by 2029, an increase of $11.8 billion (€10 billion). The Minister also pledged to invest $12.8 billion (€10.8 billion) to cover the “most necessary and urgent needs” of the Armed Forces. In 2023, the Ministry increased the defense budget by an impressive 26.31% to a total of $14.3 billion (€12.8 billion).

In March 2022, the Spanish government identified the aerospace sector as a strategic project for economic recovery. PERTE chips program plans to mobilize $4.8 billion (€4.5 billion) to the sector by 2025, including $4.6 billion (€2.3 billion) from the private sector.

Spain plans to strengthen its position in the space industry. In 2021 they announced their plan to open an official Spanish Space Agency, and in April 2023 it officially started operations.

Market opportunities are expected to remain noteworthy due to the need to replace less fuel-efficient aircraft with eco-friendly jets and the increase in domestic and international air travel.

While Spanish aerospace companies do seek outside suppliers, becoming a supplier can require patience, financial effort, an innovative approach, and competitive pricing. The best entry strategy is to enter a partnership with an existing local company.  

Spain has a presence at several important aerospace trade events including:

• FEINDEF: The first ever Spanish defense trade show took place in 2019. The U.S. Embassy in Spain is actively supporting the 2025 event as the United States has been designated as one of the most important markets. The number of exhibitors has grown exponentially from the original 150 companies to nearly 400 in 2023.
• The Aerospace and Defense Meeting (A&DM) in Seville is also a very important business to business (B2B) event in Spain for the aerospace sector. The last edition included conferences and workshops covering topics such as OEM procurement and supply chain policies. It is designed specifically to help large and small firms involved in global aviation explore the aerospace market and discover business opportunities with civil and defense applications. The next edition will take place in May 2024.

Resources

Spanish Association for Defense, Aeronautics and Space: TEDAE 

Spanish Ministry of Defense: https://www.defensa.gob.es/defensa/presupuestos/

U.S. Commercial Service Spain

Aerospace and Defense Specialist: Carlos Perezminguez

Tel: (+34) 913 081 598

email: Carlos.Perezminguez@trade.gov