Each year industry events like Sea-Air-Space and forums like AIAA SciTech and Future.Industry serve as venues to share technical insights, unveil innovations, and explore the breakthroughs shaping the future of the aerospace and defense sectors. In 2025, five key themes have emerged, offering a snapshot of where the defense, aviation, and space industries are headed next.

1. Digital Engineering and AI: A Speed and Efficiency Revolution

Aerospace and defense OEMs and prime contractors are racing to meet the demand for new aircraft, launchers, satellites, and systems amid an increasingly complex geopolitical landscape. The solution is clear: staying ahead requires embracing digital engineering and artificial intelligence (AI). While digital engineering has been a focus for years—bolstered by Department of Defense (DoD) strategies supporting it and startups thriving with it—the interoperability between tools and vendors remains challenging. Why? The digital chain often breaks down across tier-two and tier-three suppliers struggling with adoption. AI, though promising, is still met with hesitation.

Altair sees the path forward through open platforms and the convergence of AI, multi-fidelity simulation, data analytics, and scalable high-performance computing (HPC). This combination makes digitization easier and automates processes. Additionally, applying the optimal simulation fidelity through each design stage speeds analysis, optimizes IT resources, and pushes the limits of tools—delivering faster product development at lower costs. Click here to learn more about Altair’s AI-powered engineering capabilities.

2. AI and Data Management: Actionable Insights for All

Unpredictable global conditions demand that organizations have access to immediate, data-driven decision-making. The challenge lies in integrating and ensuring interoperability across data analytics systems, platforms, and domains. Secure, scalable data sharing—both internally and with industry partners, government agencies, and allies—is essential.

To harness data as a strategic asset, organizations must break down silos, aggregate data from diverse sources, and deliver real-time, actionable insights accessible for users of all skill levels and rank—not just data experts. The ability to process vast amounts of information rapidly can mean the difference between success and failure.

3. Electromagnetic Spectrum Management: A Critical Aviation and Battlefield Advantage

Secure, high-speed communication is mission-critical in the aerospace and defense industry. The ability to transmit and receive data in real time impacts safety and operational success. However, interference from environmental conditions, other systems, and terrain complicates the challenge.

Managing the electromagnetic (EM) spectrum ensures that pilots, controllers, and onboard systems maintain clear communication, precise navigation, and continuous surveillance. For military forces in particular, EM spectrum management helps widen situational awareness, maintain operational effectiveness, and deny advantages to adversaries. As connectivity expands, EM spectrum management becomes even more essential in enabling secure, resilient, high-performance communication systems.

4. The Push for Increased Production Rates

Traditionally, aerospace manufacturers have produced aircraft in limited numbers due to their system complexity, customization requirements, and high cost. However, shifting demands require ramping up production at an unprecedented scale. Commercial aircraft manufacturers face extensive order backlogs, space companies must deploy hundreds of satellites annually, and defense agencies require a steady supply of expendable assets from drones to ammunition. AI-driven automation is key to streamlining supply chains, enhancing quality, and optimizing production cycles and cost control. By leveraging AI for predictive maintenance and defect detection, manufacturers can minimize waste, boost supply chain resilience, and accelerate delivery timelines.

5. Space’s Split Mission: A Dual-Use Future

Space, still a dynamic frontier, continues to attract investment—including from nontraditional sectors. While telecommunication remains the primary application, Earth observation is rapidly expanding. With data analytics and AI, data from space brings insights that revolutionize industries such as agriculture, insurance, disaster relief, and environmental monitoring.

At the same time, space is evolving into a strategic military domain. Intelligence, positioning, and communications systems play critical roles in national defense. As a result, dual-use assets—systems that serve both civilian and military applications—are on the rise. This approach supports building a resilient national defense while sharing the cost for essential domestic infrastructure.

Learn more about the data analytics, AI, simulation, and HPC solutions that are shaping the future of aerospace at altair.com/aerospace and altair.com/defense.