Defense & Military
Top Aerospace Companies Lead Digital Transformation in 2024
Airbus, Honeywell, Lockheed Martin, RTX, and Safran drive aerospace digital transformation to address backlogs and improve efficiency.
The aerospace and defense (A&D) sector stands at a pivotal crossroads, driven by unprecedented production backlogs, evolving regulatory demands, and the need for operational resilience. As the industry faces mounting pressure to deliver on surging global demand, digital transformation has emerged as a strategic imperative. According to ABI Research, five companies, Airbus, Honeywell, Lockheed Martin, RTX (formerly Raytheon Technologies), and Safran, are leading the charge in integrating digital technologies to revolutionize their operations. Their efforts are not only setting new industry benchmarks but also redefining how complex manufacturing challenges are addressed.
Digital transformation in A&D is more than just the adoption of new technologies; it is a comprehensive rethinking of processes, workforce development, and strategic partnerships. The sector’s leaders are deploying digital twins, artificial intelligence, advanced manufacturing, and immersive training solutions to enhance efficiency, reduce costs, and achieve sustainability goals. This article explores the findings of the ABI Research Digital Transformation Benchmarking Index, examines the technologies reshaping the industry, and analyzes the broader implications for global competitiveness and future growth.
As the industry grapples with record-breaking order backlogs and supply chain vulnerabilities, understanding the digital strategies of these frontrunners offers valuable insights for stakeholders across the aerospace and defense ecosystem.
ABI Research’s Digital Transformation Benchmarking Index evaluates 21 of the world’s largest aerospace and defense manufacturers based on their digital readiness and the operational impact of their digital initiatives. Airbus has secured the top position, followed by Honeywell, Lockheed Martin, RTX, and Safran. These companies are recognized for their leadership commitment, strategic vision, and the integration of foundational digital capabilities, such as data fabrics, digital twins, and AI-driven analytics.
The index segments manufacturers into four categories: Digitally Transformed, Digitally Advancing, Emerging Digitally, and Digitally Trailing. Digitally Transformed firms like Airbus and its peers have embedded digital technologies into core operations, enabling them to address industry challenges such as production backlogs, workforce shortages, and regulatory compliance. Michael Larner, Director of Industrial and Manufacturing Research at ABI Research, highlights that “Airbus stood out particularly for its investments in data infrastructure, which underpin critical applications like the digital thread and digital twin.”
Other evaluated companies include Boeing, Northrop Grumman, L3Harris Technologies, General Dynamics, Mitsubishi Heavy Industries, and several others. The index underscores that while the A&D sector is ahead of many other manufacturing verticals in digital maturity, competition remains fierce. Firms that effectively deploy digital technologies are better positioned to win high-value contracts and keep complex projects on schedule.
“Deploying digital technologies effectively will help support efforts to keep projects on track.” — Michael Larner, ABI Research
The aerospace industry is currently facing historic production backlogs. In 2024, there were 1,447 aircraft orders, a 62% drop from the previous year, while deliveries fell by 11% to 1,128 units. Most notably, the backlog reached 15,818 aircraft, representing thirteen years of production at current rates. These figures highlight the urgent need for digital transformation to streamline manufacturing processes and address systemic inefficiencies.
Industry experts attribute these challenges to a combination of supply chain disruptions, regulatory hurdles, and workforce gaps. According to Aimie Stone, Chief Economist at ADS, “2024 was a turbulent year for the aerospace industry with ongoing supply chain challenges throughout the year forcing manufacturers to fall short of the ADS delivery forecast.” The backlog is not just a temporary issue; it reflects persistent structural challenges that digital technologies are being deployed to overcome. Digital transformation initiatives, such as the implementation of digital twins and advanced analytics, are enabling manufacturers to optimize production schedules, enhance quality control, and predict maintenance needs. These solutions are critical for reducing lead times, improving on-time delivery rates, and maintaining competitiveness in a market where demand consistently outpaces supply.
Financial commitment to digital transformation in aerospace is robust and growing. ABI Research estimates that aerospace manufacturers will spend $33.6 billion on digitalization in 2024, with projections reaching $53.8 billion by 2034. This investment is driven by the need to increase production capacity, reduce carbon emissions, and enhance operational visibility.
North America leads global digitalization spending, influenced in part by policy initiatives such as the Inflation Reduction Act. Technology providers like Dassault Systèmes, PTC, and Siemens are playing pivotal roles in enabling manufacturers to optimize their value chains and respond to market demands.
Defense spending patterns also reflect the importance of digital transformation. From 2020 to 2024, 54% of the Pentagon’s $4.4 trillion in discretionary spending went to military contractors, with the top five contractors, Lockheed Martin, RTX, Boeing, General Dynamics, and Northrop Grumman, receiving over $770 billion in contracts. The integration of digital technologies is increasingly seen as essential for fulfilling these high-stakes, long-term contracts.
Digital twins are at the heart of aerospace digital transformation strategies. Airbus, for instance, describes digital twins as dynamic, living virtual replicas of physical objects, processes, or systems that integrate data from design, production, and in-service operations. This approach allows for real-time simulation, predictive maintenance, and optimization across the product lifecycle.
In manufacturing, digital twins enable real-time quality control and predictive maintenance. At Airbus’s Saint-Eloi plant in Toulouse, data from drilling and milling machines is used for immediate quality checks and maintenance scheduling. Similarly, production progress at the Hamburg facility is tracked automatically, aligning real-world performance with theoretical plans.
Beyond manufacturing, digital twins support fleet management and maintenance operations. Airbus’s Skywise platform, for example, connects over 12,000 aircraft, enabling predictive maintenance and operational optimization for 50,000 users worldwide. These capabilities are critical for reducing downtime and improving fleet availability.
“Digital twins give us the ability to simulate, predict, and optimize every aspect of aircraft design and operation.” — Airbus Digital Transformation Team
The adoption of advanced manufacturing technologies, such as additive manufacturing (3D printing), IoT-enabled factories, and robotics, is transforming aerospace production. Additive manufacturing reduces lead times and enables rapid prototyping, while IoT sensors optimize environmental controls and production schedules. Automation is increasingly used in composite material handling and assembly operations. Automated guided vehicles transport components, and robots assist with precision assembly, ensuring compliance with strict aerospace tolerances. AI-powered quality assurance systems are now capable of detecting microscopic defects, further enhancing safety and reliability.
Blockchain technology is also gaining traction for supplier performance and traceability. By creating immutable records for each component, blockchain enables immediate access to maintenance histories and ensures regulatory compliance throughout the supply chain.
Workforce challenges are a persistent issue in aerospace, with digital technologies offering innovative solutions. Virtual and augmented reality (VR/AR) are revolutionizing training, enabling faster, more effective skill development. Studies show that VR learners are four times faster to train than those in traditional classrooms and achieve higher accuracy in emergency procedures.
Financial benefits are significant: manufacturers using mixed reality training have reported up to 80% reductions in consumable usage and 75% faster training times. VR environments allow trainees to repeatedly practice complex tasks, while AR devices provide real-time, step-by-step guidance for maintenance and repair operations.
These technologies also offer advanced data capture on trainee performance, enabling continuous improvement of training programs. As hardware and software become more accessible, the adoption of immersive training solutions is expected to accelerate across the industry.
Meeting environmental targets is a central concern for aerospace manufacturers. Commercial aviation accounts for approximately 4.9% of global fossil fuel emissions, prompting the industry to pursue carbon neutrality by 2050. Digital transformation is instrumental in achieving these goals.
Digital twins and advanced simulations are being used to design more efficient aircraft, optimize fuel consumption, and reduce emissions. The development of electric and hydrogen-powered aircraft presents additional challenges, such as energy density and storage, which are addressed through comprehensive digital modeling and testing.
By integrating sustainability objectives into digital strategies, manufacturers can accelerate the adoption of greener technologies and comply with evolving regulatory requirements. The increasing interconnectedness of digital systems introduces new cybersecurity risks. Digital threads, while enhancing operational efficiency, can also create vulnerabilities at various stages of the product lifecycle. Protecting sensitive data and intellectual property is paramount.
Best practices include robust encryption, role-based access controls, multi-factor authentication, and continuous monitoring. Industry experts emphasize the importance of embedding cybersecurity into digital initiatives from the outset, rather than treating it as an afterthought.
Secure, interoperable platforms are essential for safeguarding global supply chains and maintaining trust with partners and customers.
The complexity of digital transformation has led to increased collaboration between aerospace manufacturers and technology providers. For example, RTX’s Collins Aerospace joined the Digital Alliance for Aviation, an Airbus-led initiative, to advance predictive maintenance and health monitoring solutions.
Such partnerships enable the sharing of data, expertise, and best practices, accelerating innovation and enhancing operational resilience. Industry-wide alliances are also facilitating the development of standards and frameworks for digital integration.
Collaboration extends to airports and service providers, as seen in Vancouver International Airport’s partnership with Unity’s Accelerate Solutions for digital twin technology. These initiatives demonstrate the value of cross-sector cooperation in addressing shared challenges.
The ABI Research Digital Transformation Benchmarking Index highlights a transformative period for the aerospace and defense industry. Companies like Airbus, Honeywell, Lockheed Martin, RTX, and Safran are not only investing in digital technologies but are also redefining industry standards for efficiency, quality, and sustainability. Their leadership offers a roadmap for others seeking to navigate the complexities of modern aerospace manufacturing.
Looking ahead, digital transformation will remain a critical driver of competitiveness and growth. Companies that embrace integrated digital strategies, spanning production, workforce development, and ecosystem collaboration, will be best positioned to capitalize on new opportunities and address the industry’s most pressing challenges. As digital technologies continue to evolve, the aerospace and defense sector is poised for a new era of innovation and operational excellence. Question: What is the ABI Research Digital Transformation Benchmarking Index?
Answer: The index evaluates the digital readiness and impact of digital initiatives among the world’s largest aerospace and defense manufacturers, ranking firms based on criteria such as leadership, strategy, and technology integration.
Question: Why are digital twins important in aerospace manufacturing?
Answer: Digital twins enable real-time simulation, predictive maintenance, and optimization throughout the product lifecycle, reducing costs, improving quality, and accelerating time-to-market.
Question: How is the industry addressing workforce shortages?
Answer: Aerospace companies are using virtual and augmented reality for immersive training, which speeds up skill development, reduces errors, and lowers training costs.
Question: What are the main cybersecurity challenges in aerospace digital transformation?
Answer: The integration of digital systems increases vulnerability to data breaches and cyberattacks, requiring robust encryption, access controls, and continuous monitoring to protect sensitive information. Question: How does digital transformation support sustainability goals?
Answer: Digital technologies help design more fuel-efficient aircraft, optimize operations to reduce emissions, and support the development of alternative propulsion systems like electric and hydrogen power.
Sources:
Digital Transformation Leadership in Aerospace and Defense: ABI Research Index Reveals Industry Pioneers
Digital Transformation Benchmarking: Industry Leaders and Their Strategies
Production Backlogs and the Demand for Digital Solutions
Market Outlook and Investment in Digitalization
Key Technologies Powering Aerospace Digital Transformation
Digital Twin Technology and Data Integration
Advanced Manufacturing, Automation, and Quality Assurance
Workforce Development and Immersive Training
Strategic Challenges and Industry Implications
Sustainability and Environmental Compliance
Cybersecurity and Risk Management
Strategic Partnerships and Ecosystem Collaboration
Conclusion
FAQ
PRNewswire/ABI Research
Photo Credit: Montage
Defense & Military
Bolivian Air Force C-130 Crashes at El Alto Airport Killing 15
A Bolivian Air Force C-130 cargo plane crashed at El Alto Airport, causing 15 deaths, 30 injuries, and scattering banknotes. Investigation ongoing.
This article summarizes reporting by Hindustan Times.
A Bolivian Air Force Hercules C-130 cargo aircraft crashed Friday evening while attempting to land at El Alto International Airport near La Paz, resulting in significant loss of life and chaotic scenes on the ground. According to reporting by the Hindustan Times, at least 15 people have been confirmed dead and 30 others injured in the incident, which occurred on February 27, 2026.
The tragedy was compounded by the nature of the aircraft’s cargo. The plane was transporting a shipment of newly printed banknotes for the Central Bank of Bolivia. The impact caused the fuselage to break apart, scattering cash across the crash site and a neighboring avenue, leading to a rush of bystanders attempting to collect the money amidst the wreckage.
The crash took place at approximately 6:00 PM local time. The aircraft, operated by the Fuerza Aérea Boliviana, had originated from Santa Cruz and was in its final landing phase at El Alto International Airport (LPB). Reports indicate that the plane veered off the runway, crashed through the airport’s perimeter fence, and collided with vehicles on a busy adjacent road.
According to verified details summarized in reports, inclement weather may have played a role in the pilot losing control. The aircraft struck multiple vehicles, destroying several cars and damaging trucks, which contributed to the high casualty count. Fire Chief Pavel Tovar confirmed the fatalities but noted the difficulty in distinguishing between victims who were on board the aircraft and those in vehicles struck on the ground.
The immediate aftermath of the crash was marked by unusual complications due to the scattered cargo. As the C-130 broke apart, the shipment of banknotes intended for the Central Bank of Bolivia spilled onto the roadway. Social media footage and news reports described chaotic scenes as members of the public rushed toward the burning wreckage to gather the loose cash.
Security forces were required to intervene to secure the site for emergency responders. Police and military personnel reportedly utilized tear gas and water hoses to disperse the crowds, allowing ambulances and fire crews to reach the injured. The 30 injured individuals were subsequently transported to local hospitals for treatment.
“Authorities have confirmed at least 15 fatalities and approximately 30 injuries.”
, Summary of verified reports
Following the incident, Boliviana de Aviación (BoA), the national airline, issued a clarification stating that the aircraft involved was a military transport and not part of their commercial fleet. The Bolivian Ministry of Defense and the Air Force have launched an official investigation to determine the precise cause of the accident.
The following is analysis by AirPro News.
El Alto International Airport presents unique challenges for aviation operations due to its extreme elevation. Situated at approximately 4,061 meters (13,325 feet) above sea level, it is one of the highest international airports in the world. At this altitude, the air density is significantly lower than at sea level, which reduces engine performance and lift.
For heavy transport aircraft like the Lockheed C-130 Hercules, these conditions necessitate higher landing speeds and longer runway distances. When combined with inclement weather, as reported in this incident, the margin for error during the landing phase is drastically reduced. While the C-130 is a robust tactical airlifter designed for rugged environments, the specific aerodynamic limitations imposed by El Alto’s “hot and high” conditions remain a critical factor in aviation safety in the region.
The Bolivian Air Force has suffered losses involving its C-130 fleet in previous decades. Historical data indicates a crash in 1989 in Guayaramerín that resulted in 24 fatalities, and another hull loss in Trinidad in 1994. This latest incident marks a significant tragedy for the military aviation sector in Bolivia, further complicated by the civilian casualties on the ground.
El Alto International Airport was temporarily closed following the crash, with commercial flights suspended or diverted while authorities cleared the wreckage and conducted their preliminary investigation.
15 Dead, 30 Injured After Bolivian Air Force C-130 Crashes in El Alto
Incident Overview and Flight Path
Scene Chaos and Security Response
Official Statements and Context
AirPro News Analysis: High-Altitude Operations
Historical Safety Context
Sources
Photo Credit: X
Defense & Military
Retired US Air Force Pilot Arrested for Training Chinese Military Aviators
Gerald Eddie Brown Jr., a retired US Air Force Major, was arrested for allegedly training Chinese military pilots without authorization, violating export laws.
This article summarizes reporting by Fox News and official statements from the Department of Justice.
Federal authorities have arrested a retired U.S. Air Force Major on charges of conspiring to provide unauthorized military training to the People’s Liberation Army Air Force (PLAAF) in China. The arrest of 65-year-old Gerald Eddie Brown Jr., announced on February 25, 2026, marks the latest development in a broader federal crackdown on Western military personnel selling their expertise to foreign adversaries.
According to reporting by Fox News and unsealed court documents, Brown was taken into custody in Jeffersonville, Indiana. Prosecutors allege that Brown, a former F-35 simulator instructor, violated the Arms Export Control Act (AECA) by sharing sensitive U.S. military tactics with Chinese pilots without the required export license from the State Department.
The Department of Justice (DOJ) claims Brown’s activities were facilitated by intermediaries connected to Stephen Su Bin, a convicted Chinese hacker known for targeting U.S. defense contractors. If convicted, Brown faces significant prison time for allegedly betraying the oath he took as an American servicemember.
The criminal complaint details a timeline of events beginning in August 2023, when Brown allegedly began communicating with Chinese contacts. According to federal prosecutors, Brown traveled to China in December 2023 and remained there until February 2026, allegedly providing instruction on combat aircraft operations.
Under the International Traffic in Arms Regulations (ITAR), providing “defense services”, which includes training foreign military personnel, requires explicit authorization. The DOJ alleges Brown neither sought nor received such a license. Upon his arrival in China, prosecutors claim Brown expressed enthusiasm for the opportunity in seized communications:
“Now… I have the chance to fly and instruct fighter pilots again!”
Alleged message from Gerald Eddie Brown Jr., cited by the Department of Justice
The government alleges that on his very first day in China, Brown spent hours answering technical questions about U.S. Air Force operations. He subsequently provided personal briefings and ongoing instruction to PLAAF personnel throughout his stay. A critical element of the government’s case is Brown’s alleged association with Stephen Su Bin. Su Bin is a Chinese national who was convicted in the United States in 2016 for conspiring to hack major defense contractors, including Boeing and Lockheed Martin, to steal designs for the F-22, F-35, and C-17 aircraft.
According to the charges, Brown negotiated his employment through a network linked to Su Bin. This connection suggests a coordinated effort by Chinese state actors to acquire U.S. military knowledge through both cyber espionage and the recruitment of human assets.
Brown, who utilized the call sign “Runner,” served 24 years in the U.S. Air Force, retiring in 1996 with the rank of Major. His service record includes commanding nuclear weapons delivery units and flying combat missions. He served as an instructor for multiple airframes, including the F-4, F-15, F-16, and A-10.
However, it is his post-military career that has likely drawn the most scrutiny from counterintelligence officials. After retiring, Brown worked as a contract simulator instructor for the F-35 Lightning II, the United States’ most advanced stealth fighter. Knowledge regarding the F-35’s operational limits, sensor fusion capabilities, and tactics is considered highly classified and extremely valuable to near-peer adversaries like China.
Federal officials have condemned the alleged actions as a betrayal of national security. In a statement released following the arrest, John A. Eisenberg, Assistant Attorney General for National Security, emphasized the gravity of the charges.
“The United States Air Force trained Major Brown to be an elite fighter pilot and entrusted him with the defense of our Nation. He now stands charged with training Chinese military pilots…”
John A. Eisenberg, Assistant Attorney General for National Security
Roman Rozhavsky, Assistant Director of the FBI’s Counterintelligence Division, echoed these sentiments, noting the persistent efforts by the Chinese government to exploit U.S. military expertise.
“Gerald Brown… allegedly betrayed his country by training Chinese pilots to fight against those he swore to protect.”
Roman Rozhavsky, FBI Assistant Director
The arrest of Gerald Brown is not an isolated incident but part of a documented trend where the Chinese military aggressively recruits former Western pilots to fast-track their own capabilities. By hiring experienced instructors, the PLAAF seeks to understand Western tactics and carrier operations without the decades of institutional learning usually required.
This case draws parallels to that of Daniel Duggan, a former U.S. Marine Corps pilot arrested in Australia in 2022. Duggan is currently fighting extradition to the U.S. on charges that he trained Chinese pilots to land on aircraft carriers. In response to these threats, NATO allies, including the UK and Australia, have recently issued joint warnings about Chinese headhunting firms targeting former military personnel with lucrative contracts.
The specific mention of the F-35 in Brown’s background makes this case particularly sensitive. While previous cases often involved older platforms or general carrier operations, the potential transfer of knowledge regarding fifth-generation stealth tactics represents a severe breach of operational security.
Sources: Fox News, Department of Justice, Federal Bureau of Investigation
Former U.S. Air Forces Pilot Arrested for Allegedly Training Chinese Military Aviators
The Allegations: “Defense Services” for the PLAAF
The Su Bin Connection
Military Background and F-35 Sensitivity
Official Reactions
AirPro News Analysis: A Pattern of Recruitment
Timeline of Events
Photo Credit: Montage
Defense Contracts
Leonardo Reports Double-Digit Growth and Halves Net Debt in FY 2025
Leonardo S.p.A. achieved double-digit growth in orders, revenues, and EBITA for FY 2025 while reducing net debt to €1.0 billion and advancing strategic initiatives.
This article is based on an official press release from Leonardo S.p.A..
On February 25, 2026, Italian defense and aerospace conglomerate Leonardo S.p.A. released its preliminary financial results for the fiscal year 2025, reporting performance that exceeded both company guidance and market expectations. The company achieved double-digit growth across all primary metrics, including new orders, revenues, and profitability, while successfully reducing its net debt by nearly 45%.
According to the official release, the company’s “One Company” transformation strategy has begun to yield significant financial efficiencies. CEO Roberto Cingolani highlighted the results as a validation of the industrial plan launched three years prior, noting that the group has strengthened its financial position ahead of potential strategic moves in 2026.
Leonardo reported €23.8 billion in new orders for FY 2025, a 14.5% increase over the previous year and well above the guidance range of €22.3–22.8 billion. This surge in orders has pushed the company’s total backlog to €46.6 billion, providing approximately 2.4 years of revenue visibility.
Revenues climbed to €19.5 billion, marking a 10.9% year-over-year increase. Profitability also improved significantly, with Earnings Before Interest, Taxes, and Amortization (EBITA) reaching €1.75 billion, an 18.2% rise compared to 2024. The company noted that these growth figures are “like-for-like,” excluding the contribution of the Underwater Armaments & Systems business, which was divested to Fincantieri earlier in 2025.
Perhaps the most notable metric for investors was the reduction in Group Net Debt. Leonardo lowered its debt burden to €1.0 billion, down from €1.8 billion in 2024. This reduction was driven by strong Free Operating Cash Flow (FOCF) of €1.0 billion, which beat the upper end of the company’s €980 million guidance.
“We exceeded the challenging guidance, which had been already upgraded during the year. Such a performance represents the completion of the value-accretion path launched three years ago… fully enabling the Leonardo ‘One Company’ model.”
— Roberto Cingolani, CEO of Leonardo S.p.A.
The press release detailed growth across all main business sectors, with Aeronautics emerging as a standout performer regarding order intake. The Aeronautics division secured €5.8 billion in new orders, a 55% increase year-over-year. The company attributed this spike to a major logistics support contract in Kuwait and accelerating activity in the Global Combat Air Programme (GCAP). Additionally, the Aerostructures sub-unit, historically a drag on profitability, was reported to have “narrowed its losses” amid recovering demand for commercial fuselages from Boeing and Airbus.
Electronics remains the largest segment by revenue, contributing €8.35 billion. The division maintained the highest Return on Sales (ROS) at 12.9%. Meanwhile, the Cyber & Security Solutions division recorded the sharpest improvement in profitability, with EBITA jumping 63.3% to €80 million and margins hitting 10%.
Looking ahead to the rest of 2026, Leonardo management outlined several key strategic initiatives. CEO Cingolani confirmed that the company is in advanced negotiations to establish a Joint Venture for its Aerostructures unit. Leonardo expects to finalize the deal by June 2026, initially retaining a 50% stake in the new entity.
Furthermore, the company is currently reviewing its 22.8% stake in German defense electronics firm Hensoldt. Management indicated that discussions are underway regarding a potential reduction in this holding to facilitate an increased position by the German government, with a decision expected before the summer.
Despite the operational “beat” across all metrics, Leonardo’s stock (LDO.MI) closed down approximately 2.7% on the day of the announcement, trading around €58.69. In our view, this reaction reflects a classic “buy the rumor, sell the news” dynamic. The stock had rallied significantly in the months leading up to the release, trading near 52-week highs.
While the immediate market reaction was negative, the fundamental improvements in cash flow and debt reduction place Leonardo in a robust position. The reduction of net debt to €1.0 billion significantly increases the company’s firepower for potential M&A activity or increased shareholder returns, such as the potential 20% dividend increase hinted at by leadership.
Sources: Leonardo S.p.A. Press Release, Borsa Italiana Market Data
Leonardo S.p.A. Reports Double-Digit Growth in FY 2025, Halves Net Debt
Financial Performance vs. Guidance
Segment Highlights
Aeronautics and Aerostructures
Electronics and Cyber Security
Strategic Outlook: Joint Ventures and Divestments
AirPro News Analysis: Market Reaction
Sources
Photo Credit: Leonardo
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