Buoyant exports underpinned a large trade surplus and wider economic gains.

Spain’s defence industry set a new benchmark last year, reporting €16.153 billion in revenue and employing 75,281 people, both the highest on record, according to a study by PwC for the sector’s employers’ association, Tedae. The report highlights the role of flagship companies including Indra, Airbus, Navantia and Santa Bárbara in lifting sales above the previous peak of €14.101 billion in 2019.

Activity is concentrated in a handful of regions. The Community of Madrid generated 53% of sector turnover, or €8.548 billion, followed by Andalusia with €3.044 billion (19%) and the Basque Country (Euskadi) with €1.324 billion (8%). Catalonia’s footprint remained small at €189 million, accounting for less than 1% of the total. Employment hubs mirror this distribution, with Madrid, Andalusia and Euskadi hosting the largest workforces.

International demand was a decisive driver. Exports were close to €10 billion and provided about 60% of industry revenue, led by sales to Europe (72%), with Asia taking 11% and the United States 8%. The sector posted a trade surplus of €5.554 billion, which PwC estimates reduced Spain’s overall trade deficit by 12.1%.

The industry’s broader economic footprint is significant. PwC projects a total impact of €21.919 billion in 2024, equivalent to 1.4% of Spain’s gross domestic product, while the sector’s contribution to industrial GDP stood at 12.9%. Average productivity reached €125,600 per employee, around 57% above the industrial average. Counting indirect and induced roles, the sector supported an estimated 260,049 jobs, and the defence and security industry contributed €7.399 billion to public finances, underlining its growing weight in the national economy.