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he aerospace and defence industry has experienced a period of growth and haveT progressed despite several challenges such as supply chain, talent and production shortages faced in recent years. Deloitte’s latest report indicates that things are getting better, and 2025 is all set to bring significant growth, innovation and smarter operations. This analysis breaks down the key trends and changes that are poised to shape the industry in 2025.
Soaring Aviation Industry
After the Covid pandemic, the demand for air travel has bounced back strongly in 2024 and is expected to continue growing in 2025. Global air passenger traffic rose nearly by 12% in 2024. The aircraft manufacturers are adding more seats and ramping up their production. But sourcing material parts and provisions of adequate maintenance of older aircrafts remain a key challenge. That’s where the AI-powered maintenance comes in, helping to ensure that aircrafts are available when needed by the customer. Companies are using artificial intelligence to predict when parts might fail, ensuring the right technicians and tools are available, and minimizing the downtime of aircrafts. The smart MRO (maintenance, repair, and overhaul) mean fewer delays and timely availability.
Workforce: A Challenge That Needs Tech and Strategy
With the growing demand for skilled workers, the industry needs thousands of new technicians and engineers, but turnover rates are high, and many experienced professionals are retiring. Attracting and retaining employees has become a major challenge. Companies are responding by offering higher wages, investing in training programs, and using digital tools to enhance learning and knowledge sharing. Apprenticeship programs and partnering with schools are building a pipeline of future talent.
Defense: Spending Up as Global Tensions Rise
With conflicts growing around the world, countries also must increase their defense spending. Global military spending crossed $2.4 trillion in 2023, and the U.S. alone has proposed nearly $850 billion for 2025. These investments are diverted to advanced technology like solid rocket motors, hypersonic weapons, space programs, and military drones. Unmanned aerial vehicles (UAVs) is one such niche that are now central to both military and commercial use — from surveillance to delivery.
Advanced Air Mobility (AAM): Technology
Electric vertical takeoff and landing (eVTOL) aircrafts are the reality now – imagine air taxis. Companies are building and testing these quiet, eco-friendly aircrafts for short urban travel similar to the premium cab services at competitive pricing in 2025. This reduces travel time and zero operating carbon emissions. Technologies like eVTOL aircraft are attracting investment and could soon change how people and goods move in cities.
Supply Chain: A Persistent Challenge
The industry’s supply chain is huge and diverse, with large number of suppliers making the aircraft. Shortages of parts, delivery delays, and rising shipping costs occur due to global uncertainties and natural calamities. Geopolitical risks (like the Red Sea attacks) and climate issues (like Panama Canal droughts) have made things worse. Therefore, aircraft manufacturers are now using digital tools to track materials and ensure quality. Efforts like the new Aviation Supply Chain Integrity Coalition are pushing for safer, more reliable systems.
Looking Ahead
In 2025, the aerospace and defense industries are now embracing various digital solutions, strategic investments, and a renewed focus on workforce developments and supply chain visibility to stand out in this dynamic environment.
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.