Spain’s defense, security, aeronautics, and space industries reported a combined revenue of €13.9 billion in 2023, a 15% increase compared to the previous year, according to a report by PwC for the Spanish Association of Defense, Security, Aeronautics, and Space Technologies (TEDAE). This growth marks a return to pre-pandemic levels, solidifying the strategic importance of these industries for the Spanish economy.
The report highlights that these industries contributed €19.7 billion to Spain’s GDP in 2023, representing 12% of the country’s industrial GDP. They also generated over 215,000 direct and indirect jobs, with a multiplier effect creating three additional jobs for every direct position. In fiscal terms, TEDAE member companies contributed €6.97 billion in taxes, accounting for 2.6% of Spain’s tax revenues.
Investment in research, development, and innovation (R&D&I) reached €2.4 billion in 2023, representing 27% of total industrial investment in Spain. According to the report, this focus on innovation enhances Spain’s competitiveness and ensures its strategic and technological autonomy.
Exports accounted for 59% of the sector’s revenue, underscoring its international relevance. The report also points out that without the contribution of these industries, Spain’s trade deficit would have been 11.7% higher in 2023.
Madrid, Andalusia, and the Basque Country received 79% of the sector’s total contribution to GDP, making them the most impacted regions. The aeronautics industry stands out in Madrid, Andalusia, and the Basque Country, while the defense and security sectors have a strong presence in Catalonia, Galicia, and Murcia. The space industry is primarily concentrated in Madrid, Catalonia, and the Basque Country.
TEDAE President Ricardo Martí Fluxá stated: “These fully integrated industries develop proprietary products that form supply chains with significant regional impact, creating a modern industrial base that drives the economy and is indispensable for job creation and the prosperity of Spain and its regions.”
Jordi Linares, Director General of Industrial Programs at the Ministry of Industry and Tourism, added: “This law drives an industrial policy aligned with digitalization, environmental sustainability, circular economy, and the strengthening of Spain’s strategic and industrial autonomy.”
Finally, Secretary of State for Defense Amparo Valcarce emphasized: “This report highlights the relevance of the defense sector as a driver of technological innovation, business growth, and regional and local development. The figures presented today show that investment in defense is not only productive but also an investment in peace and security.”
