Boosting Growth: 3 Aerospace-Defense Stocks to Buy Amid Impressive Air Traffic and Defense Spending Increases

The aerospace-defense industry is poised for growth, driven by rising US defense spending and strong global air passenger growth. Companies such as GE Aerospace, Airbus Group, and Huntington Ingalls Industries are well-positioned to benefit from these trends. Despite challenges from persistent supply-chain issues, the industry's frontrunners are expected to see positive momentum from airlines' demand for new jets and fleet upgrades.

The aerospace-defense industry is poised for robust growth, fueled by increasing US defense spending and strong global air passenger growth. Companies such as GE Aerospace, Airbus Group, and Huntington Ingalls Industries are well-positioned to capitalize on these trends. Despite persistent supply-chain challenges, the industry's leading players are expected to see positive momentum from airlines' demand for new jets and fleet upgrades.

According to a report by The Insight Partners, the global ballistic protection market is experiencing healthy growth due to rising global military expenditure [1]. This trend is expected to continue, with the market reaching USD 23.69 billion by 2031, growing at a CAGR of 5.9% from 2025 to 2031. North America, driven by high defense spending and technological leadership, leads the market, while Asia Pacific is emerging as the fastest-growing region.

The aerospace industry is also witnessing significant growth, with rising aircraft deliveries and expanding airline fleets driving demand for high-performance jet engines. Companies like Rolls-Royce and GE Aerospace are at the forefront of this expansion. Rolls-Royce, with a focus on operational efficiency and hybrid-electric propulsion, and GE Aerospace, with strong aftermarket services and next-generation engine programs, are well-positioned to benefit from these trends [2].

However, the industry faces challenges, including persistent supply-chain issues and the need for technological innovation. Despite these challenges, the industry's leading players are expected to see positive momentum from airlines' demand for new jets and fleet upgrades.

References:
[1] https://www.prnewswire.com/news-releases/with-5-9-ballistic-protection-market-to-reach-usd-23-69-billion-by-2031--experiences-growth-in-business-aviation-sector--the-insight-partners-302517406.html
[2] https://www.nasdaq.com/articles/rolls-royce-vs-ge-aerospace-which-engine-maker-has-more-thrust-2025