The aerospace industry encompasses the manufacture of a wide range of aircraft and spacecraft products (including passenger and military aeroplanes, helicopters, and gliders, as well as spacecraft, launch vehicles, satellites, and other space-related items).

The aircraft industry is classified as a high-technology, capital-intensive branch of the aerospace and defense (A&D) industry, which itself is a subset of the broader manufacturing sector. It is characterized by extreme barriers to entry due to the immense costs of research and development, stringent safety regulations, and the need for highly specialized engineering talent. Economically, it is often described as an oligopoly, dominated globally by a small number of massive "original equipment manufacturers" (OEMs) like Boeing and Airbus. The industry is divided into three primary segments: commercial aviation (passenger and cargo planes), military aviation (fighter jets and transport), and general aviation (private and corporate jets). Because aircraft take years to design and decades to service, it is also a "long-cycle" industry, meaning it is sensitive to global geopolitical shifts, fuel prices, and environmental regulations. In 2026, the industry is increasingly defined by its transition toward "sustainable aviation," investing billions into electric propulsion, hydrogen fuel cells, and sustainable aviation fuel (SAF) to meet global carbon-neutrality goals.