Fostering Resilience in the Aerospace and Defense Sector through Digital Transformation

December, 2023

Aerospace and defense (A&D) enterprises are facing challenges arising from supply chain risks, regulatory compliance, increasing operational cost, 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 organizations 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.

Both demand-side and supply-side trends are covered in our Aerospace and Defense Digital Services 2023–2024 Market Insightsand Aerospace and Defense Digital Services 2023–2024 RadarView™, respectively. These reports present a comprehensive study of digital service providers in the aerospace and defense industry, including top trends, analysis, and recommendations. It takes a close look at the leaders, innovators, disruptors, and challengers in this market.

We evaluated 36 service providers across three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of the 36 providers, we recognized 16 that brought the most value to the market over the past 12 months.

The reports recognize service providers across four categories:

    • Leaders: Accenture, Capgemini, DXC Technology, and HCLTech
    • Innovators: SAP, TCS, and Tech Mahindra
    • Disruptors: CACI, Infosys, Kyndryl, L&T Technology Services, and Leidos
    • Challengers: Genpact, Hitachi Digital Services, LTIMindtree, and SAIC

Figure 1 below from the full report illustrates these categories:

MoneyShot AD Digital Services 2023 2024 1030x687 - Fostering Resilience in the Aerospace and Defense Sector through Digital Transformation

“In response to rising geopolitical tensions, A&D firms are heavily investing to diversify new business segments, such as UAVs, cyber warfare, sustainable aviation fuel, and space exploration,” said Naresh Lachmandas, partner at Avasant. “Collaborating with technology partners is crucial for business continuity and exploring innovation.”

The reports provide several findings, including the following:

    • 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.

“A&D companies continue to deal with supply chain issues, cyber threats, and managing operational efficiency. Service providers can assist A&D companies in areas of Industry 4.0, product design, sustainability, and emerging technology domains such as generative AI,” said Parinita Singh, research leader at Avasant.

The RadarView also features detailed profiles of 16 service providers, along with their solutions, offerings, and experience in assisting aerospace and defense enterprises in their digital transformation journeys.

This Research Byte provides a brief overview of the Aerospace and Defense Digital Services 2023–2024 Market Insights™ and Aerospace and Defense Digital Services 2023–2024 RadarView™. (click for pricing).