Boeing, Airbus, Lockheed Martin and SpaceX have long been the biggest players in the aerospace industry. However, in the past few years, a new wave of aerospace startups has come along. These new businesses are shaking things up by using cutting-edge materials, digital tools and big ideas to change how we move people, goods and even satellites. From 2023 to 2025, a new group of startups has begun to make waves in electric flight, regional air mobility, cargo drones and modular space systems.
Aerospace startups are not just science fiction; they are becoming more useful and focused on solving real-world problems like gaps in connectivity, bottlenecks in logistics, sustainable travel and affordable access to space. When they grow up, they will not only change aviation and space, but also economies, cities and the way people move around the world.
What Is an Aerospace Startup and What Do They Do?
A company that works on technologies or services related to aviation, space exploration, defence or advanced mobility is called an aerospace startup. These new companies, on the other hand, often focus on very specific problems, like electric vertical takeoff and landing (eVTOL) planes, cargo drones or satellite deployment systems. They are more flexible and open to trying out new ideas that could change the game, like urban air taxis, modular spacecraft or new ways to travel by air in a region. Most of their work can be put into one of three groups:
- Innovation in aircraft means coming up with new designs for personal, regional or tactical planes.
- Access to space means cheap satellite launchers and spacecraft.
- Advanced mobility includes drones, eVTOLs and other ways to move people and things around in cities.
How Aerospace Startups Fit Into the Economy
Aerospace startups aren’t just about flying cars from the future; they also have bigger economic and strategic goals. By coming up with new ideas on a smaller scale, they go beyond what big companies usually do because of cost or risk. They do these things as well:
- Create new markets: Electric air taxis and cargo drones are opening up new markets that didn’t exist before.
- Help regional economies: Many new businesses focus on areas that don’t get enough attention and offer new ways to move goods or people.
- Make supply chains stronger: Startups like Jeh Aerospace make important parts for bigger aerospace systems.
- Help the environment: Electric and hybrid planes use less fossil fuels, which is in line with global climate goals.
As governments and investors try to make economies more diverse, aerospace startups are getting a lot of attention as sources of new ideas and jobs.
How Aerospace Startups Have Evolved
In the last ten years, aerospace startups have gone from making ambitious prototypes to being real game changers in the industry. Early companies like Rocket Lab and Joby Aviation showed that small businesses could get money and make technologies that worked. Now, newer startups are taking advantage of that momentum and focussing on affordable mobility, regional connectivity and modular spacecraft.
The cost of sensors has gone down and additive manufacturing and AI-driven design have made it easier to get started. Companies that start up between 2023 and 2025 are less about dreaming and more about getting things done. They work in a world where climate change, venture capital and defence funding all meet, which makes aerospace innovation more important than ever.
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Eight Aerospace Startups to Watch
The fact that aerospace startups were started between 2023 and 2025 shows how quickly this field is changing. These companies show how different new ideas are being developed, from flying taxis in India to modular spacecraft in Europe and heavy-lift drones for defence.
LAT Aerospace
LAT Aerospace is coming up with new ways to connect regions with hybrid-electric short takeoff and landing (STOL) planes. LAT could change how people get around in developing markets where airports are few and far between by making it possible for flights to happen between small cities with little infrastructure.
Sarla Aviation
Sarla Aviation is getting into urban air mobility with its electric air taxi, Shunya, which can hold six people. The company wants flying taxis to be a normal part of commuting in India’s crowded megacities to help ease traffic.
FAST Aerospace
With its “HyperDart” project, FAST Aerospace is working on air-launch systems that will let satellites be sent into space directly from planes. This makes it less necessary to build expensive launchpads and gives people more options for getting to orbit, which is a big step forward in Europe’s space race.
Jeh Aerospace
Jeh Aerospace is a company that makes precision parts for aeroplanes and focusses on aerospace supply chains. Its rise means that India is moving towards being able to make things locally, which means less reliance on foreign suppliers and stronger manufacturing in India.
ExLabs
ExLabs is making modular spacecraft platforms that can be changed to fit different missions, from low-Earth orbit to deep space. Their scalable approach makes it easier and cheaper for people to get to space, which makes it easier for both research and business users.
Basalt Tech
Basalt Tech is a software company that makes software for spacecraft. Their product, Dispatch, is an advanced operating system that lets different types of satellites work together without any problems and gives spacecraft fleets the best instructions. Dispatch makes sure that satellite coordination, mission planning, and command execution happen quickly and smoothly by using AI-driven automation.
CorePilot
CorePilot is a software company that is changing the aviation aftermarket industry with its cloud-based platform. The company offers a digital marketplace and SaaS solutions that make it easier to maintain, repair, and buy parts for aircraft. This helps operators and suppliers cut down on downtime, lower costs, and make their fleets more efficient overall.
Airvolve
Airvolve is making tactical transport planes that combine the best parts of helicopters and fixed-wing planes. It aims to provide low-cost mobility where traditional aircraft can’t, with uses in defence, logistics and disaster relief.