New Index Reveals the Extent that Digital Transformation Can Support Aleviating the Production Backlog in the Aerospace and Defense Industry
NEW YORK, Sept. 18, 2025 /PRNewswire/ -- Airbus has secured the top position in ABI Research's Digital Transformation Benchmarking Index for Large Aerospace and Defense (A&D) Manufacturers, followed by Honeywell, Lockheed Martin, RTX (formerly Raytheon Technologies), and Safran in an evaluation of 21 leading firms in the sector.
The Index evaluates both the digital readiness of A&D manufacturers, defined by the breadth and integration of digital technologies across production operations, and the tangible impact these technologies are having on operational performance. It provides a comprehensive measure of how effectively digital tools are being deployed to address the complex challenges facing the industry.
Digital readiness criteria include leadership commitment, strategic vision, and the implementation of foundational capabilities such as data fabrics, digital twins, large language models (LLMs), and agentic AI. Meanwhile, the impact dimension examines how these technologies are being used to alleviate production backlogs, enhance operational efficiency, improve workforce capabilities, meet sustainability goals, and ensure regulatory compliance.
"Airbus stood out particularly for its investments in data infrastructure, which underpin critical applications like the digital thread and digital twin. These efforts are enabling the company to make meaningful progress on long-standing industry challenges," said Michael Larner, Industrial and Manufacturing Research Director at ABI Research and author of the Index.
Beyond a simple ranking, the Benchmarking Index segments A&D manufacturers into four categories:
- Digitally Transformed: Firms where digital technologies are integral to meeting industry challenges.
- Digitally Advancing: Firms with strong transformation foundations but more room for applied innovation.
- Emerging Digitally: Firms in early stages of embedding digital technologies to address industry needs.
- Digitally Trailing: Firms behind peers in both investment and deployment of digital capabilities.
"The aerospace and defense industry as a whole is more advanced than many other manufacturing verticals when it comes to digital transformation. However, firms across the ecosystem are competing to win contracts, from airlines and governments, that are often in the billions and run for over a decade. Deploying digital technologies effectively will help support efforts to keep projects on track," Larner added. The Index also highlights the best examples of firms utilizing digital twins, LLMs, and technologies that support quality control, sustainability, and compliance efforts.
Other manufacturers featured in the Index include Boeing, Northrop Grumman, L3Harris Technologies, General Dynamics, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Thales Group, Rolls-Royce, Saab AB, Bombardier, Embraer, BAE Systems, Leonardo, Dassault Aviation, and Textron Aviation, as well as China's AVIC and Norinco.
These findings are from ABI Research's Digital Transformation Benchmarking Index for Large Aerospace and Defense Manufacturers report, part of the company's Industrial & Manufacturing Markets research service, which includes research, data, and ABI Insights.
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