Innovation in Aerospace & Defense (A&D) Industry

The aerospace and defense industry is a key area for innovations worldwide. It has spurred innovations with broader implications and in many cases has impacted daily life in a positive way. AI, GPS navigation, commercial aircraft, and satellites are just a few examples of innovations that have made major changes.

For example, aircraft design has undergone radical innovations since the early 1900s, which has led to significant performance improvements. The focus of technological improvements in flight design has shifted from the high-speed model to the more reliable, faster, and cheaper version.

A&D innovation trends can be classified into four main categories:

Materials: A few decades ago, 70% of the aircraft was made of aluminum. Other materials, such as composites, titanium, graphite, and fiberglass, have limited applications. However, the use of pure aluminum in modern aircrafts is reduced by 20%. The aircraft's structural materials now include compositions. For critical engine parts and components, low weight, high temperature insulating materials are preferred for better fuel efficiency. This has led to a search for new material development and a reappearance of previously abandoned materials for the industry.

Graphene / carbon nanotubes (CNT) for ceramics and engine structures are more demanding and handy than practical for different manufacturing processes and equipment. With the uniqueness of the application in the industry, the mix of things in A&D seems to continue to change in the coming years.

Design: The aircraft primarily uses carbon-based fuels, such as gasoline or kerosene, but with decreasing oil resources and increasing sanctions for greenhouse gas emissions, the future of aviation depends on finding an alternative energy source. The solution to this challenge is the development of electric aircraft (or hybrid aircraft) that use energy for aircraft systems. The idea is to significantly reduce fuel consumption by improving overall energy efficiency. Low battery storage capacity and weight and power density are some of the challenges that require innovative thinking.

Commercial aircraft turbofans are getting bigger. Larger fans and higher bypass ratios mean higher drive efficiency and lower fuel consumption. Turbo fans have a 15-20 bypass ratio compared to 10-12.5 for conventional engines. But its larger size forces changes in wing and landing gear design, and presumably in aircraft design and engine location.

In the era of deflationary profit margin environments and the need for innovative designs, modeling, simulation, and rapid prototyping can play an important role in developing and testing the new design with less risk and lower cost, reducing well the time to market. A&D engineers can explore the effects of highly complex physical phenomena on typical product designs. They can imagine, create, optimize, and evaluate multiple design alternatives for engines, wings, radar systems, and other components that have the potential to transform the industry, without investing in extensive physical prototyping or wind tunnel testing.

Manufacturing technologies and processes: The pressure on aircraft production in the A&D industry continues to be fueled by an ever-increasing significant increase in commercial passengers and defense costs. Today, the transition to Industry 4.0 seems to be the most effective solution to increase factory productivity.

Industry 4.0 is seen as a transforming force that transforms not only the manufacturing infrastructure but also the development of products and services. This trend is driven by rapid advances in digital technologies such as: the Internet of Things, Big Data, Artificial Intelligence and Digital Practices: cooperation, mobility and open innovation.

Huge investments have been made in the A&D industry to facilitate this revolution, which is not limited to sectors such as 3D printing, factory automation, advanced analytics, and post-marketing forecasting, but to more capabilities and strategies. integrated for business transformation with Industry 4.0.

The A&D industry is at the forefront of the use of 3D printing, both in proto and in manufacturing. Aerodynamic engine manufacturers increasingly use this technology for blades and other components within the engine. However, in the field of robotics, the industry is still reaping the benefits due to its low volume compared to other industries such as automotive.

Business: Business innovation refers to innovation in the business model and processes that ultimately change the practice of what companies do and how it is done. Such innovations typically have a long-term impact on the industry.

The "Power by the Hour" approach is already reshaping customer-supplier relationships in the A&D industry. Customers and suppliers of critical products such as aeroengineers, semiconductor equipment, aircraft, and defense systems are recognizing the importance of providing timely and cost-effective support and maintenance services throughout the post-customer relationship. A primary focus of these efforts involves redesigning the contractual and implicit relationships between clients and providers in the service support phase. At the heart of this concept is the notion that risks and incentives should be more equitable between providers and consumers, which is possible under traditional contracts.

An improved agreement with new entities, new suppliers, or existing suppliers can significantly improve products and profits. Leading A&D industry prime contractors have integrated vendors into manufacturing processes. This has significantly reduced latent costs and lead times in the supply chain, but significantly increased supplier change costs.

While growth in the surface industry suggests progress, the A&D industry is changing at an unprecedented rate. The industry is seeing devastating changes, from aggressive production growth rates to the need for fuel economy, from cost pressures to a dynamic geopolitical situation. Industry consolidation and increased merger and acquisition activities have also been observed. 

INNOVATION overwhelmed by these challenges seems to be the mantra of future success. In the solution buggy, we have seen projects published in the aerospace consultant sector and the defense sector represents approximately 14% of the total number of projects on the platform. There is a high demand for defense and aerospace consultant who are well versed in design and industry 4.0 concepts. Due to the inherent nature of this industry, there have been some requests for debt and equity financing from entrepreneurs.