ADS is the UK’s trade association for the aerospace, defence, security and space sectors, representing over 1600 businesses. ADS holds dedicated offices in London, Farnborough, Northern Ireland, Scotland, as well as an international office in Toulouse.
Scottish defence and aerospace sectors grows by more than half since the pandemic
The aerospace, defence, security and space sectors added £3.7 billion to Scotland’s economy in 2024, according to new data from ADS – 55% increase between 2020 and 2024. The industries – explicitly recognised as Growth Sectors in the UK government’s Industrial Strategy – have also seen turnover in Scotland reach £9 billion, an increase of one third over five years.
The data from the representative body for the industry also highlights that employment has grown a fifth, with 36,900 people now directly employed in well-paid jobs across the industries in Scotland. Figures also demonstrate a strong pipeline of young talent across all four sectors, with 2,000 apprenticeships playing a crucial role within the workforce.
Employment in Scotland’s defence sector saw growth of two thirds in the five years to 2024, with 16,250 people now securing theirs and their family’s livelihoods through the industry.
Warrick Malcolm, Director of ADS Scotland commented:
“The strategic importance of aerospace, defence, security and space to Scotland cannot be understated. Our sectors are not only economic drivers, but also key contributors to innovation, skills development, and regional prosperity.
“There is now a real opportunity to build on this momentum through the appropriate resourcing and support. It is vital that both governments provide the clarity and certainty needed to secure the long-term prosperity of our industries.”
Highly productive sectors fuel the Scottish Economy
Productivity – measured by the output per worker – of all of ADS’ sectors in Scotland now stands at £100k, growth of almost one third since 2020 and 49% higher than the UK average. According to the data, the aerospace sector alone saw a 93% productivity increase, with output per worker at £140,000.
While headline data outlines that turnover has increased one third over the past five years, so, too, has value to the economy. The defence and space sectors respectively now add £1.3 billion to the Scottish economy.
Stats on the combined value of the UK’s defence and security sectors
The defence and security sectors contribution to the UK economy includes:
£26.7 billion in value add to the UK economy, almost doubling (93%) over the last decade
£60.4 billion in turnover, nearly double (95%) since 2014
£25.4 billion in exports, more than doubling (105%) over the last decade.
330,000 people are employed in the defence and security sector, increasing by more than a half (51%) since 2014
Productivity within the defence and security sectors is up a quarter (28%) over the last 10 years at £81k output per worker
Government commitment to growing the UK defence industry
The Rt Hon John Healey MP Defence Secretary made a speech at the Defence Investment Summit on 10th September 2025 in which he mentioned:
“The vision that we share of defence being an engine for growth in this country could not be closer. But with that promise to invest more comes with the responsibility to invest better… in the Defence Industrial Strategy, part of that will be an investment of £250m pounds, into five Defence Growth Deals in different parts of the country and in Scotland and in Northern Ireland and in Wales.”
Scotland Growth Deal
A recently launched partnership recognises that Scotland is key to innovation in the space and maritime sectors and will receive a share of the £250 million UK-wide investment programme to drive job creation and cutting-edge research and development.
The press release states:
Secretary of State for Scotland Douglas Alexander said:
“The UK Government’s Defence Industrial Strategy will mean a real boost for Scotland’s economy and create highly skilled jobs for years to come – this is the defence dividend. Just last week we saw a £10 billion shipbuilding contract come to Clydeside – that is a fantastic example of what can be achieved with a government committed to ensuring Scotland benefits from the global rise in defence spending. Scotland’s defence sector is second to none, and our Defence Industrial Strategy will help ensure it has a thriving future, as part of our Plan for Change.”
Scotland brings a dynamic mix of growth industries to the UK’s defence capabilities, from a rapidly advancing space sector to next-generation maritime innovation centred around the Clyde and Rosyth. The nation’s critical technology superclusters are anchored by world-class academic institutions like the Universities of Glasgow and Strathclyde, creating a fertile environment for defence research and development.
Scotland’s shipbuilding heritage combined with its emerging space technologies makes it uniquely positioned to benefit from this Defence Growth Deal, driving innovation and job creation across traditional maritime sectors and cutting-edge aerospace industries that will strengthen Britain’s defence industrial base.
