Information Services Group (ISG) (Nasdaq: III), a prominent global technology research and advisory firm, has initiated an extensive research study to evaluate service providers in the aerospace and defense sector. This study aims to analyze the engineering, design, logistics, and technological services that play a vital role in advancing the capabilities of aircraft, spacecraft, and defense systems across both commercial and military domains.
Addressing Industry Challenges and Technological Advancements
The aerospace and defense industry serves as a backbone for national security, economic stability, and technological growth. However, this sector is currently facing several challenges, including:
- Supply Chain Disruptions: The industry has been grappling with delays in component deliveries due to geopolitical factors, economic fluctuations, and logistical inefficiencies.
- Rising Costs: Increasing expenses associated with raw materials, production, and operations have led to a greater emphasis on cost-effective innovations.
- Digital Transformation: The adoption of digital technologies is essential to improving efficiency, safety, and adaptability in a rapidly evolving industry.
To address these concerns, the ISG study will provide valuable insights into the providers who are actively working to drive technological transformation within the aerospace and defense sector.
Comprehensive ISG Provider Lens Reports
The findings from ISG’s research will be compiled into two in-depth ISG Provider Lens™ reports titled Aerospace and Defense Solutions and Services, which are set to be published in June 2025. These reports will specifically focus on service providers operating within the United States and Europe, evaluating how they contribute to the modernization of both commercial and military aerospace industries.
For enterprises in this sector, the reports will serve as a critical resource for assessing existing vendor relationships, exploring new partnerships, and understanding the latest service offerings. Additionally, ISG advisors will utilize these insights to guide buy-side clients in selecting suitable service providers.
Increasing Global Demand for Aerospace and Defense Innovations
The ongoing geopolitical landscape has reinforced the necessity for sustained investments in defense capabilities worldwide. Governments and private entities are significantly investing in research and development to maintain their strategic edge. Key innovations currently shaping the industry include:
- Autonomous Systems: The deployment of autonomous drones and vehicles is transforming both commercial and military aviation by enhancing operational efficiency and safety.
- Artificial Intelligence (AI): AI-driven analytics and predictive maintenance are optimizing decision-making processes and improving aircraft longevity.
- Advanced Materials: Cutting-edge composite materials and lightweight alloys are enhancing aircraft performance, reducing fuel consumption, and improving durability.
Key Focus Areas of ISG’s Study
To provide a comprehensive assessment of aerospace and defense service providers, ISG has issued surveys to over 100 companies operating in this domain. The study will evaluate two primary service provider segments:
- Overall Service Provider Ecosystem
- Mid-Size IT Providers/Specialists
Within these segments, the analysis will be divided into four quadrants, each representing essential aerospace and defense services:
1. Engineering, Design, and Innovation
This quadrant will assess service providers who assist aerospace companies in developing next-generation aircraft and defense systems. Key areas of innovation include:
- Propulsion technology advancements
- Navigation and communication systems
- Digital engineering and simulation
- AI-driven predictive maintenance strategies
2. Maintenance, Repairs, and Overhaul (MRO) and Aftermarket
MRO services are crucial for extending the operational lifespan and ensuring the safety of aerospace systems. This segment will focus on:
- Routine maintenance and safety inspections
- Component repair and replacement
- Performance optimization and retrofitting
3. Supply Chain Operations and Logistics Management
Efficient logistics are essential for maintaining seamless production cycles and timely deliveries. This quadrant will evaluate providers specializing in:
- Inventory and demand forecasting
- Supplier relationship management
- Risk assessment and cost control strategies
4. Technology Transformation and Consulting
The aerospace and defense industry is undergoing a major digital shift. Consulting firms play a crucial role in guiding companies through this transition. This category will assess firms offering:
- Digital strategy and implementation
- AI, cloud, and data analytics solutions
- Cybersecurity services tailored for aerospace systems
Regional Focus: U.S. and Europe
The study will primarily examine providers serving the U.S. and European aerospace and defense markets. ISG analysts Harish B. (Europe) and Swadhin Pradhan (U.S.) will lead the research, ensuring a thorough evaluation of regional service providers and their contributions to industry advancements.
How Enterprises Can Benefit from the Study
The Aerospace and Defense Solutions and Services reports will be instrumental in helping enterprises:
- Identify top-performing vendors that align with their strategic needs
- Gain insights into industry benchmarks and emerging service trends
- Make informed decisions regarding future technology investments
Organizations that rely on aerospace and defense services will have access to data-driven analysis to improve their operational efficiency and competitiveness.
Expanded Customer Experience (CX) Insights
All 2025 ISG Provider Lens evaluations will incorporate extensive customer experience (CX) data. This initiative aims to provide a holistic understanding of how service providers perform in real-world scenarios. Enterprise customers will have the opportunity to share their experiences through an online survey, contributing to a broader dataset that informs industry-wide recommendations.
Participants in the survey will receive a complimentary copy of the final report, ensuring that their input is recognized and utilized in shaping the industry’s future.
ISG Provider Lens™ Research Overview
The ISG Provider Lens™ Quadrant research series is a unique evaluation framework that combines empirical research, market analysis, and real-world industry insights. Enterprises and service providers alike benefit from the detailed market intelligence provided by ISG, which currently covers a wide range of global and regional markets, including:
- The U.S.
- Canada
- Mexico
- Brazil
- The U.K.
- France
- Benelux
- Germany
- Switzerland
- The Nordics
- Australia
- Singapore/Malaysia
Additional markets will continue to be added in future research cycles.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a globally recognized technology research and advisory firm, trusted by over 900 clients, including more than 75 of the world’s top 100 enterprises. ISG specializes in:
- Digital transformation services, including AI, cloud, and data analytics
- Sourcing advisory
- Managed governance and risk services
- Network carrier services
- Strategy and operations design
- Change management
- Market intelligence and technology research
Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,600 professionals in over 20 countries. The company is known for its innovative thinking, deep industry expertise, and data-driven research capabilities.
For more information, visit www.isg-one.com.
The ISG study represents a critical step in evaluating the evolving aerospace and defense landscape. By assessing service providers’ contributions to innovation, maintenance, logistics, and technology transformation, ISG is equipping enterprises with the insights needed to navigate an increasingly complex industry. With continuous investments in defense and commercial aviation technologies, these reports will serve as a roadmap for businesses looking to align their strategies with emerging trends and technological advancements.