The aerospace, defence, security and space sectors added £3.7 billion to Scotland’s economy last year, according to new data from ADS, representing a 55% increase between 2020 and 2024.

These industries, explicitly recognised as vital growth sectors in the UK Government’s recently published Industrial Strategy, have also seen turnover in Scotland reach £9 billion, an increase of one third over the last five years.

The data shows that Scotland’s defence and space sectors are pulling serious weight, each adding £1.3 billion to the economy, and while the Scottish aerospace sector hasn’t yet hit the £1 billion mark, its value has almost doubled since 2020.

“The strategic importance of aerospace, defence, security and space to Scotland cannot be understated,” said Warrick Malcolm, director of ADS Scotland.

“Our sectors are not only economic drivers, but also key contributors to innovation, skills development, and regional prosperity.”

ADS, which acts as the trade body for these industries, also found that employment has grown by a fifth, with 36,900, including 2,000 apprentices, directly employed in well-paid jobs across aerospace, defence, security and space in Scotland. 

Employment in Scotland’s defence sector, in particular, saw significant growth, rising by two-thirds in the five years to 2024, with 16,250 people now working in the industry.

Meanwhile, productivity across the Scottish aerospace industry grew by a staggering 93% over the same period, with every worker responsible for £140,000 in output, beaten only by those working in the space sector, where each employee produced £142,850 in value.

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Across all four sectors, ADS found that Scottish workers were 49% more productive than the UK average, with the average productivity per employee standing at £100,000, a growth of almost one third over the last five years.

“World-class Scottish skills, expertise and innovation are key drivers in the success of the UK’s defence, security, aerospace and space sectors,” said the new Scottish Secretary, Douglas Alexander.

“The UK Government is committed to ensuring that Scotland continues to be at the forefront of these industries through record investment and our ten-year Industrial Strategy. Scotland has a proud industrial heritage, and we are helping to ensure it also has a thriving future.”