This report identifies key demand-side trends in the aerospace and defense industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in this space based on Avasant’s assessment.

Why read this Market Insights?

Aerospace and defense (A&D) enterprises are facing challenges arising from supply chain risks, regulatory compliance, increasing operational costs, heightened security measures, and pressure to meet sustainability goals. To address these critical issues, companies are actively harnessing the power of digital technologies to revolutionize their manufacturing processes, maintenance, repair, and overhaul (MRO) activities, and supply chain operations. Exploring advanced technologies, including generative AI, AR/VR, and digital twins, these enterprises aim to enhance productivity and refine operational workflows. As this requires strong technological expertise and delivery capabilities, A&D enterprises are collaborating with service providers for digital transformation.

The Aerospace and Defense Digital Services 2023–2024 Market Insights™ aids enterprises in this sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Defining aerospace and defense industry scope
  • Key drivers and enterprise response
  • Avasant recognizes 16 top-tier service providers supporting the aerospace and defense industry in digital transformation

Demand-side trends (Pages 8–14)

• • A&D companies are undergoing organization-wide transformation for the sustainment of operations and being digitally ready by transitioning to cloud-based solutions.
  • With the increasing demand for MRO services, A&D companies are investing in digital tools to leverage fleet data for MRO activities using technologies such as AI, analytics, and IoT to mitigate risks.
  • A&D companies are increasingly incorporating Industry 4.0 initiatives in their overall strategy to enable real-time supply chain visibility.
  • To tackle rising cyber threats, A&D companies are implementing security protocols for cloud-based services, adopting a zero-trust security model, and complying with regulations.
  • With a strong focus on achieving sustainability goals, A&D companies are leveraging their partner network to optimize product designs that generate less carbon footprint. They are also investing in sustainability initiatives focused on decarbonizing supply chain emissions.
  • They are exploring the adaptability of generative AI in the A&D value chain to increase the productivity of existing processes.

Key contacts (Page 16)

Read the Research Byte based on this report.

Please refer to Avasant’s Aerospace and Defense Digital Services 2023–2024 RadarView™ for detailed insights on the service providers and supply-side trends.