Tracking 2025 Aerospace and Defense Trends

It’s vital that aerospace and defense companies maintain quality in the supply chain, so they are finding ways to integrate AI and innovative technology that will increase value, optimize operations, and be cost-effective. A survey found that 81% are already using or plan to use AI and ML. Respondents also noted that AI will be a major focus in the next few years as companies look to revamp sustainable practices, discover new ways to increase efficiency, and enhance the customer experience.

In 2024, the industry’s primary challenge was attracting and retaining talent, and this is projected to continue into next year despite companies offering higher-than-average salaries. In recent years, labor demand for the industry has increased, so the need to fill roles is vital to meet expectations and achieve success. As a result, 2025 is proving to be a pivotal year as aerospace and defense companies consider using AI and GenAI to re-strategize recruitment.

Significant advancements in reducing aviation’s environmental impact will be a top priority due to government regulations and consumer demand for environmentally friendly travel options. Companies will focus on electric and hybrid aircraft development. Even more so, the goal is to reduce carbon emissions by improving air traffic management, boosting fuel efficiency, and creating sustainable engine fuels.

Many advanced air mobility (AAM) and urban air mobility (UAM) are setting ambitious targets to launch operations into the mainstream, changing how we travel and transport goods. AAM aims to make air travel more efficient, environmentally friendly, and accessible. While UAM will not only revolutionize urban transportation, but also craft defense strategies, including autonomous surveillance, cargo transport, and emergency medical evacuations.

While companies are already strategizing how to make the supply chain more efficient, they still must deal with parts shortages, delivery dates, shipping costs, and sourcing concerns that continue to impact the industry. Consequently, increasing supply chain visibility is important so companies can determine areas to optimize, increase collaboration, and predict potential issues.