2026 outlook: defence and aerospace enter a new growth phase

The defence sector is heading into 2026 within a context of strong expansion, driven by a more demanding geopolitical environment and the need to structurally reinforce industrial and technological capabilities at a global level.

At an international level, the industry is moving towards increasingly integrated models, where the combination of physical platforms with software, cybersecurity, space and artificial intelligence is becoming a key competitiveness factor. This evolution is fostering heightened M&A activity, focused on acquiring critical capabilities, securing technological control and strengthening long-term positioning.

Europe drives consolidation and strategic autonomy

Across Europe, strategic autonomy has become a central pillar of industrial policy. The promotion of joint programmes, the strengthening of industrial champions and deeper value chain integration are creating a favourable environment for corporate transactions and strategic alliances within the defence sector.

In this context, M&A is consolidating its role as a key tool for companies seeking to gain scale, access European programmes and reinforce their technological base in an increasingly competitive and regulated market.

 

Spain strengthens its role within the defence ecosystem

In Spain, the defence sector is experiencing a particularly favourable cycle. Increased defencespending, active participation in European initiatives and a solid export positioning are all contributing to sustained growth.

During 2025, approximately twenty M&A transactions were completed in the Spanish defence sector, representing an increase of more than 50% compared to the previous year. This growth reflects rising investor interest and points to a higher volume of transactions ahead.

What to expect in 2026

Looking ahead to 2026, the market is expected to see greater momentum, with transactions focused on technology, innovation, critical software and strategic capabilities, from both industrial and financial investors. Consolidation will remain one of the main drivers of defence M&A, in an environment where scale, integration and specialisation will be decisive competitive factors.