ISG Launches Comprehensive Study of Aerospace and Defense Service Providers Driving Digital Modernization
Information Services Group (ISG) (Nasdaq: III), a globally recognized technology research and advisory firm with a strong focus on artificial intelligence and digital transformation, has announced the launch of a major research initiative examining service providers that support modernization across the aerospace and defense (A&D) sector. The study will evaluate how providers are helping A&D organizations improve operational efficiency, accelerate innovation, and adapt to an increasingly complex global environment shaped by geopolitical uncertainty, production pressures, and rapid technological change.
As aerospace and defense companies face unprecedented demands—from expanding aircraft production and sustaining aging fleets to advancing next-generation defense platforms—digital transformation has become a strategic imperative. ISG’s new research effort aims to provide enterprise decision-makers with actionable intelligence on the service providers best positioned to support these evolving requirements.
Addressing Operational Complexity in Aerospace and Defense
The aerospace and defense industry is undergoing a period of significant transition. Commercial aircraft manufacturers are working to reduce production backlogs and ramp up output amid supply chain constraints, while defense organizations are pursuing aggressive modernization programs in response to shifting security dynamics and rising geopolitical tensions. Across both segments, companies are under pressure to shorten design cycles, improve testing efficiency, and enhance operational resilience.
Digital technologies are playing a central role in these efforts. Advanced analytics, artificial intelligence, automation, additive manufacturing, and digital twins are being increasingly deployed to streamline aircraft development, improve production quality, and extend asset lifecycles. At the same time, organizations are investing in supply chain visibility, predictive maintenance, and secure digital integration to manage risk and improve responsiveness.
Service providers are critical enablers of this transformation, offering specialized expertise, scalable solutions, and technology platforms that support modernization initiatives across engineering, manufacturing, maintenance, and logistics.
ISG Provider Lens® Reports to Be Released in 2026
Findings from the study will be published in a series of ISG Provider Lens® reports titled Aerospace and Defense Services and Solutions, scheduled for release in May 2026. These reports will provide a detailed assessment of providers delivering services across the A&D value chain, offering insights into their capabilities, strengths, and differentiation.
The reports will cover organizations offering:
- Aerospace and defense engineering and design services
- Maintenance, repair, and overhaul (MRO) and aftermarket support
- Supply chain operations and logistics management
- Technology transformation, consulting, and digital integration services
- Specialized solutions for midsize aerospace and defense enterprises
Together, these evaluations will give enterprise buyers a comprehensive view of the competitive landscape and the evolving service models shaping the industry.
Supporting Informed Decision-Making for Enterprise Buyers
The ISG Provider Lens® reports are designed to serve as a practical decision-support tool for enterprise buyers across the aerospace and defense sector. Organizations will be able to use the research to assess current vendor relationships, identify gaps in service delivery, and evaluate potential new partnerships aligned with their modernization objectives.
ISG advisors will also leverage the findings to guide buy-side clients in selecting providers that best match their operational needs, risk profiles, and long-term strategic goals. By combining market intelligence with real-world client experience, ISG aims to help organizations navigate a complex and rapidly evolving services ecosystem.
Industry Transformation Driven by Technology and Geopolitics
The timing of ISG’s study reflects the profound changes reshaping the aerospace and defense industry. Rising production pressures, sustained aircraft order backlogs, and heightened geopolitical risks are forcing organizations to rethink how they design, build, maintain, and support aircraft and defense systems.
Digital transformation initiatives are increasingly focused on:
- Reducing time-to-market through model-based engineering and simulation
- Improving manufacturing efficiency with automation and additive manufacturing
- Enhancing fleet availability using predictive maintenance and AI-driven insights
- Strengthening supply chains through digital visibility and performance management
- Ensuring cybersecurity and secure data exchange across connected systems
In both defense and commercial aerospace, these efforts are essential to meeting modernization requirements, supporting mission readiness, and enabling long-term growth.
Expert Perspective on Service Provider Value
According to Iain Fisher, Director at ISG, service providers play a pivotal role in helping aerospace and defense organizations address these challenges.
“Aerospace and defense enterprises are under pressure to shorten design and testing timelines while increasing production,” Fisher said. “Service providers are supporting these objectives by improving supply chain readiness and enabling organizations to meet defense modernization requirements and commercial aircraft production schedules.”
This support spans a wide range of capabilities, from advanced engineering services and digital integration to aftermarket support and logistics optimization.
Research Methodology and Provider Participation
As part of the study, ISG has distributed surveys to more than 120 aerospace and defense service providers worldwide. These surveys collect detailed information on service portfolios, technology capabilities, industry experience, and client engagement models.
Working in close collaboration with ISG’s global advisory teams, the research group will analyze provider data alongside ISG’s extensive client experience to produce a set of competitive evaluations. The resulting analysis will be organized into five key quadrants, each reflecting a major category of services commonly purchased by aerospace and defense enterprises.
Five Key Evaluation Quadrants
The study will assess providers across the following quadrants:
Engineering, Design, and Innovation
This quadrant evaluates providers that support digital integration and modern engineering practices. Key capabilities include model-based systems engineering, digital twins, and advanced simulation tools that enable faster, more accurate aircraft and defense system development.
Maintenance, Repair, and Overhaul (MRO) and Aftermarket Services
Providers in this category are assessed on their ability to improve maintenance planning, reduce aircraft downtime, and enhance asset lifecycle performance. The evaluation focuses on the use of AI-driven insights, predictive analytics, and digital workflows to support aging fleets and complex maintenance environments.
Supply Chain Operations and Logistics Management
This quadrant examines providers that help strengthen supply chain resilience amid geopolitical risk and market volatility. Providers are evaluated on their deployment of industrial IoT, digital twins, artificial intelligence, and machine learning to improve logistics planning, supplier performance, and operational visibility.
Technology Transformation and Consulting
Providers in this category support aerospace and defense organizations in adopting AI, automation, and digital platforms to modernize core operations. The assessment includes capabilities related to secure data exchange, disaster recovery, connected aircraft solutions, and enterprise-wide digital integration.
Aerospace and Defense Services for Midsize Enterprises
This quadrant focuses on global midsize IT and specialist providers delivering services across multiple domains. These providers are evaluated on their ability to tailor solutions to the needs of midsize A&D organizations, supporting growth, innovation, and competitive positioning.
Global and Regional Market Coverage
In addition to a global market perspective, the ISG Provider Lens® study will include geographically focused reports examining aerospace and defense services in key regions, including the United States, Europe, and other major global markets. This regional analysis will highlight differences in service demand, regulatory environments, and provider specialization.
The reports will be authored by ISG analysts Swadhin Pradhan (U.S. and global) and Harish B (Europe and global), who bring deep industry expertise and extensive experience analyzing technology and services markets.
Customer Experience Data Enhances Provider Evaluation
All 2025 ISG Provider Lens® evaluations will feature expanded customer experience (CX) data, providing insight into actual enterprise experiences with specific provider services and solutions. This data is drawn from ISG’s continuous CX research program and offers a valuable complement to provider-reported information.
By incorporating real-world client feedback, ISG aims to deliver a more nuanced and credible assessment of provider performance, helping buyers make more confident sourcing decisions.
Opportunities for Provider Participation
A digital brochure outlining the study scope, timeline, and participation details is available to interested parties. Providers not currently listed as aerospace and defense service and solution vendors are encouraged to contact ISG to request inclusion in the research.
This open approach reflects ISG’s commitment to comprehensive market coverage and fair representation of the competitive landscape.
A Strategic Resource for a Transforming Industry
As aerospace and defense organizations navigate a period of intense transformation, the upcoming ISG Provider Lens® reports will serve as a critical resource for understanding the service provider ecosystem supporting modernization efforts. By combining deep market analysis, provider benchmarking, and customer experience insights, ISG’s research will help enterprises identify partners capable of delivering value in an increasingly digital, interconnected, and high-stakes industry environment.
Source link: https://www.businesswire.com