Aerospace, Defense & Space
Summer 2025
AD&S – Distribution M&A Market Update, Summer 2025
The Aerospace, Defense & Space aftermarket distribution sector is growing, fueled by strong air travel demand, aging fleets, and supply chain challenges. Global MRO spend is set to rise at an 8% CAGR, with the used serviceable materials market reaching $11.6B by 2032. Distributors are standing out through inventory access, value-added services, and digital tools, making them attractive M&A targets. Recent deals highlight investor interest in scale and niche strengths. Meridian Capital’s update reviews market drivers, valuations, and deal activity shaping the AD&S aftermarket.

Trends Driving M&A for Aerospace, Defense & Space
Report Summary
The Aerospace, Defense & Space aftermarket distribution sector is experiencing growth driven by record air travel demand, aging fleets, and persistent supply chain pressures. Global MRO spend is projected to grow at an 8% CAGR, while the used serviceable materials (USM) market is forecasted to reach $11.6B by 2032. Distributors are differentiating through critical inventory access, value-added services, and digital transformation, positioning themselves as attractive M&A targets. Recent transactions underscore investor appetite for scale and niche capabilities. Meridian Capital’s latest industry update provides a detailed analysis of market drivers, valuation trends, and recent deal activity shaping the AD&S aftermarket landscape.
Aerospace, Defense & Space M&A TRENDS
Key Highlights
- Market Update
- M&A Activity
- Meridian Overview