The Dynamics Group was formed as a separate operating unit within British Aerospace on 1st January 1978 and took over the guided weapons and associated activities of the companies that had been merged to form BAe in 1977. Initially, the new organisation was headed by G.R. Jefferson, previously head of BAC Guided Weapons Ltd, with Tom Kent assisting as General Manager. When it was established the Group consisted of four divisions which were run as separate business units with their own specific responsibilities. These were ground-launched weapons, space and communications, both of which were based at the Stevenage site, ship-launched weapons, based at Bristol, and air-launched weapons, based at Hatfield. In its initial years, the group worked on a number of projects including the Sky Flash and P3T missiles as well as the Sea Dart and Seawolf systems used by the Royal Navy. It also was involved in the European Communications Satellite (ECS) programme and the Marecs satellite. In January 1980 British Aerospace Dynamics Group was joined by Admiral Sir Raymond Lygo, as deputy chairman, and Tom Kent was promoted to Deputy Group Chief Executive. The Group also began a number of international cooperations including the Euromissile Dynamics Group (EMDG) with Aerospatiale and Messerschmitt-Bölkow-Blohm (MBB), which aimed to develop a new anti-tank missile and a programme with BTG in Germany relating to the AIM 9L Sidewinder missile. 1980 also saw the group working on the Sea Eagle anti-ship missile, the production of Sky Flash, Rapier and MILAN, and the development of the Giotto probe for the European Space Agency. In August 1980 G.R. Jefferson became Chairman of British Telecom and he was replaced as Chairman and Chief Executive of the Group by Admiral Sir Raymond Lygo. 1981 would see British Aerospace become a Public Limited Company but operations in the Dynamic Group would continue with the same structure as had already been in place. It would continue to work on various missile contracts, including Sea Skua for the Royal Navy and Sky Flash for Sweeden, and would also establish new facilities at the Stevenage site for circuit development and plastics production. In 1982 Sperry Gyroscopes was acquired by the Group and would become a division within it, known simply as Bracknell. The same year would also seem the sale of the Industrial and Vehicle weighing activities, which had previously been part of the division based at Hatfield. Sir Reymond Largo would also become Managing Director of British Aerospace and was replaced by Hugh Metcalfe. 1983 saw the group work on a Cargo Surveillance System and the Sea Urchin mine as well as cooperation with other organisations. This included Bodenseewerk Geraetetechnik/BAe GmBH, a joint company with Germany for missile development and production, and the Wind Energy group, which produced a prototype for the largest wind turbine generator erected in the UK. During 1985 British Aerospace underwent a restructuring as it prepared for privatisation which had been announced by the British Government in 1984 when it stated that it was prepared to sell its 48.43% in BAe to a successful bidder, and this was to occur in May 1985. As part of this restructuring the management structure of the company underwent a streamlining process and this involved the absorption of the Aircraft and Dynamic Groups into one single structure. As a result the Dynamics Group formally ceased to exist on 1st June 1985.

Matra Marconi Space was an aerospace company that was a jointly owned by the British General Electric Company (GEC) Group and the French Lagardere Group. Both of these larger companies merged their space and communications divisions, Marconi Space Systems and Matra Espace respectively, to form the new company in 1990. Claude Goumy of Matra was made the first Managing Director with Richard Wignall of Marconi as his deputy. In 1994 the company would acquire British Aerospace Space Systems and Ferranti Satcomms. 1997 would see the company’s Filton site close with some of the personnel being transferred to their Stevenage site and in 1999 British Aerospace would acquire Marconi Electronic Systems from GEC. This would create BAe Systems which replaced GEC as a joint owner of Matra Marconi Space. In 2000 the company merged with the space division of DaimlerChrysler Aerospace AG (DASA) to form Astrium.

EADS Astrium was a satellite manufacturer and subsidiary of the European Aeronautic Defence and Space Company, EADS later Airbus. It was formed, as Astrium, in 2000 by the merger of Matra Marconi Space, DaimlerChrysler Aerospace and Computadoras, Redes e Ingeniería. The new company was a joint venture between EADS and BAE Systems until 2003 when the British company sold its stake. This led to the company being reorganised to become EADS Astrium with EADS as its sole shareholder. In 2004 CASA Espacio became part of the company. During 2013 Cassidian and Airbus Military were merged with EADS Astrium during a reorganisation of EADS. This led to the creation of Airbus Defence and Space within the newly created Airbus Group.