Aerospace Leaders Embrace Digital Continuity to Tackle Disruptions

Digital Continuity

Recent strategic edge reports have found that over 80% of aerospace and defense (A&D) executives now view digital continuity as effectively harnessing all data across product lifecycles necessary for business transformation and creating competitive advantage. In 2024, Aerospace and Defense organizations averaged spending 2.1% of their annual revenue on these activities, and as a result, those organizations brought products to market 13% faster and at a quality 17% higher. By 2028, those organizations are predicted to spend 3.4% of their annual revenue on these activities, as organizations adjust to unpredictability in the supply chain, costs, and geopolitical risk.

The above figure illustrates the effect of digital continuity on vital performance indicators, wherein organizations recorded a 13% quicker time-to-market pace, a 17% improvement in quality, and 30-34% have already cut cost or development cycle time. The proximity of bars behind quality and cost improvements indicates that an early return on investment was reached, and with this upside already achieved, the anticipated rate of investment growth (increasing to 3.4% of revenue by 2028) reflects a velocity of change across initiatives throughout the value chain.

This survey of 179 senior executives in 16 countries worldwide has come to the conclusion that 86% of the aerospace and defense organizations credit digital continuity, while 77% link it to faster operational processes. Moreover, 1/3rd of the total respondents reported an approximate 13% realized cost reduction and 30% shortened time-to-market. These reports and statistics are catalyzing plans to increase digital spending to 3.4% by 2028.

Lee Annecchino, global industry lead, aerospace and defence, at Capgemini, said: “Digital continuity is a critical imperative for aerospace and defence organizations to thrive in today’s challenging and uncertain geopolitical environment.”

Next-Gen Aerospace & Defense and AI integration

The use of AI and generative AI is being normalized: 86% of respondents tell us that elements of digital continuity strategies include AI enablement in engineering and product development. The Aerospace Industries Association (AIA) indicates “AI is no longer optional, it’s required”, and enables the ability to achieve efficiency gains and operational excellence. The applications for AI, from supply chain optimization and aftermarket services to predictive maintenance, are growing rapidly. Deloitte forecasts that AI will accelerate beyond just daily operations in 2025, especially with the $850 billion budget request from the US Department of Defense.

Strategic Moves in Industry: Leonardo and Anduril Industries

Leonardo is acquiring a European cybersecurity firm as discussed at the Paris Air Show, with the intention of improving secure connectivity for integrated defense systems: a clear example of how digital continuity now includes cybersecurity resilience.

Anduril Industries, a private company specializing in defense technology innovation, is growing features and capabilities via acquisitions and is specifically aiming to bring AI and AI-enabled capabilities from its Lattice autonomy platform – an indication of how valuable AI-enabled digital systems are in today’s market.