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TRENDS

Shifting market forces in aerospace and defense are fueling disruption

Digital is reshaping the future of A&D, offering exciting opportunities and presenting clear threats and challenges.

As the aerospace and defense industry passes 100 years of commercial services, powerful market forces and new technology trends fueled by digital disruption are causing many aerospace and defense companies to reconsider how they use digital to generate and sustain business results, according to Navigating Digital Turbulence: Accenture Technology Vision 2016 for Aerospace and Defense Companies. These forces are reshaping the future of aerospace and defense. Some offer exciting opportunities. Others present clear threats and challenges. All require a decisive response.

Flat defense budgets. Global defense acquisition spend of $461 billion is expected to grow by a very moderate 0.7 percent over the next five years.
Longer, more complex programs. New aircraft program durations have doubled from four to eight years.
A shrinking talent pool. Competition for science and technology talent comes from other, more visibly digital industries and demand for these skills are expected to grow at double the rate of other occupations.
Rising demand for airliners. The $738 billion airline industry is expected to grow by 6 percent or higher over the next few years.
The explosion of big data. Aircraft are generating unprecedented volumes of data raising demand for big data capabilities.
Operational cost optimization. Slashed defense budgets mean that upgrades, rather than platform replacements, are taking priority. Commercial operators are seeking greater insight into operational data to fine tune support operations and reduce costs.

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TRENDS

Shifting market forces in aerospace and defense are fueling disruption

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