Spain defense and aerospace sectors hit record 18,034 million euro revenue

Spain's defense, aeronautics, and space industries reached a record turnover of 18,034 million euros in 2025, marking an 11.6% increase from the previous year. According to a report by PwC for the Spanish Association of Defense, Security, Aeronautics and Space Technology Companies (TEDAE), these sectors contributed 24,425 million euros to the Spanish GDP, representing 1.45% of the national total.

The aeronautics sector remains the largest component with 12,080 million euros in revenue, while the defense and security sector saw the highest growth rate at 16.2%, reaching 10,877 million euros. The space industry also grew by 9.5% to 1,416 million euros. Geographically, Madrid accounted for 53% of the total turnover, followed by Andalusia at 17% and the Basque Country at 7%.

Despite the surge in revenue and the mobilization of Special Modernization Plans (PEM) intended to channel at least 61,900 million euros, the deployment of actual military capabilities faces delays. The gap between budgetary approvals and operational availability is attributed to complex engineering, certification, and manufacturing timelines, as well as the need to manage deferred expenses from previous armament programs.