Aerospace and Defense Sector Embraces Digital Continuity to Overcome Disruption

In a rapidly changing geopolitical landscape, aerospace and defense (A&D) leaders are increasingly prioritizing digital continuity as a pivotal strategy to enhance operational efficiency and competitiveness. According to a recent report published by the Capgemini Research Institute on June 12, 2025, 77% of A&D executives believe that improving digital continuity—defined as the seamless integration of data across all phases of the product lifecycle—can significantly accelerate production ramp-up, resulting in a shorter time to market and a projected 13% reduction in costs.

The Capgemini report, titled "The Strategic Edge: How Digital Continuity Drives Business Outcomes in Aerospace and Defense," reveals that more than 80% of A&D leaders view digital continuity as essential for business transformation. In 2024, organizations within this sector allocated an average of 2.1% of their annual revenue to enhance digital capabilities, with projections indicating an increase to 3.4% by 2028. This investment comes in response to rising operational costs, supply chain instability, and geopolitical tensions, all of which have underscored the necessity for efficient data management and interoperability.

"Digital continuity is no longer a luxury but a critical imperative for success in today’s challenging environment," stated Lee Annecchino, Global Industry Lead for Aerospace and Defense at Capgemini. She emphasized that organizations must embrace digital continuity to improve productivity, reduce waste from disconnected systems, and foster a collaborative culture essential for long-term success.

The report highlights that nearly 90% of A&D executives agree that digital continuity is crucial to their organizations' ramp-up strategies, while 86% acknowledge the need to integrate artificial intelligence (AI) and generative AI into their engineering and product development processes. However, there remains a gap in readiness, with less than half of the defense organizations currently prepared to integrate AI and only 35% ready to develop autonomous systems.

This divide is particularly stark when comparing defense organizations to their civil aerospace counterparts. The survey found that 44% of defense organizations feel adequately equipped to ramp up production, compared to just over one-third of civil aerospace firms. This disparity is largely attributed to increased investments in technology and a more adaptable supply chain in the defense sector, where 65% of executives express confidence in their supply chain's ability to respond to changing demands.

The implications of these findings extend beyond immediate operational benefits. As geopolitical uncertainties continue to shape the global landscape, A&D organizations are recognizing the importance of agility and resilience. Dr. Michael Roberts, a Senior Research Fellow at the Massachusetts Institute of Technology (MIT), noted that the integration of digital continuity could lead to a paradigm shift in how A&D organizations manage their supply chains and production processes. "The ability to swiftly adapt to changes in demand or supply disruptions is critical in maintaining competitive advantage in this sector," Roberts stated.

Moreover, the report indicates a shift in focus toward developing autonomous systems and leveraging AI. While over 86% of defense organizations acknowledge the necessity of these technologies, only 44% consider themselves prepared for their implementation. This suggests a significant opportunity for A&D firms to invest in training and infrastructure that supports the integration of advanced technologies.

As A&D leaders navigate the complexities of digital transformation, the findings from the Capgemini report underscore the strategic importance of digital continuity in driving business outcomes. The commitment to enhancing digital capabilities may serve as a crucial differentiator in a sector poised for significant growth amid ongoing global challenges. Looking ahead, the emphasis on digital continuity will likely shape the future landscape of the aerospace and defense industries, influencing everything from production practices to strategic partnerships.

The Capgemini Research Institute conducted a comprehensive survey in March 2025, gathering insights from 179 A&D organizations across 16 countries, including the United States, Europe, and Asia-Pacific. All participating organizations reported annual revenues exceeding $500 million, with 56% surpassing the $1 billion mark, ensuring a robust representation of the industry’s key players.