Aerospace and Defense enterprises are responding to industry demands by advancing sustainable aviation through R&D in cleaner propulsion systems and adopting zero-emissions technologies such as hydrogen-powered engines. They are enhancing supply chain resilience using AI, blockchain, and digital threads while integrating predictive analytics and reshoring strategies to address geopolitical risks. Additionally, they are investing in advanced cybersecurity frameworks, generative AI, and quantum computing for innovation and operational efficiency while modernizing their workforce with AR/VR and AI-driven training to address the skills shortage. Aerospace and Defense companies collaborate with service providers for digital transformation, which requires strong technological expertise and delivery capabilities. Both demand-side and supply-side trends are covered in our Aerospace and Defense Digital Services 2024 Market Insights™ and Aerospace and Defense Digital Services 2024 RadarView™, respectively.

Enterprises focus on improving user experience and productivity by leveraging emerging technologies such as AI and analytics across various applications. They use generative AI to enhance communication, boost productivity with AI-powered PCs, strengthen endpoint security, and deploy chatbots for efficient support. They are shifting from service-level agreement (SLA)-based to experience-level agreement (XLA)-based pricing models, prioritizing user experience and business outcomes. BFSI, retail and CPG, and manufacturing sectors dominate over 50% of end-user computing services, focusing on virtual workspaces and unified collaboration to ensure secure access and teamwork.