Security, defence, aerospace and space sectors add £46.8 billion to UK’s economy

The industries, which were explicitly recognised as growth sectors in the Government’s Modern Industrial Strategy, have also witnessed turnover reach nearly £110 billion. That’s an increase of 62% since 2015.

The data highlights that employment has grown by nearly 40%, with 468,500 individuals now directly employed in well-paid jobs across the UK. Productivity across the aforementioned sectors is nearly 25% higher than the UK average, standing at an output of £99,900 per worker.

Exports across the sectors have also continued to climb, growing by more than two-thirds in the last decade. The value of the security, defence, aerospace and space sectors’ exports now totals £50 billion, duly accounting for 45% of overall sector turnover.

Remarkable resilience

Kevin Craven, CEO of ADS Group, commented: “After a period of significant economic and geopolitical uncertainty, our industries have demonstrated remarkable resilience and continue to serve as the industrial foundation on which our nations rely upon. The contribution our sectors make to the economy, and to communities across the UK, continues to grow, supported by an expanding and highly skilled workforce.”

Craven went on to state: “We are now at a pivotal moment. To sustain this momentum, industry needs clarity and certainty from Government. Rising business costs, constrained access to finance and persistent supply chain pressures continue to hold back the full potential of our sectors. If we are to unlock future growth and drive investment in overseas markets, bold and decisive action is needed now more than ever.”

Despite a challenging operating environment for UK defence companies, the latest data shows that a growing export market continues to underpin sector performance, with defence exports now accounting for one-third of industry revenue. Since 2015, defence exports have increased by 33% to reach a total of £10.8 billion in 2025, contributing to the total sector turnover of £36.5 billion.

*Further information is available online at www.adsgroup.org.uk