2024 Aerospace and Defense Industry Outlook
December 05, 2023
In 2023, the aerospace and defense (A&D) industry witnessed a revival in product demand. In the aerospace sector, domestic commercial aviation revenue passenger kilometers surpassed prepandemic levels in most countries. This surge in air travel led to an increased demand for new aircraft and aftermarket products and services. In the U.S. defense sector, new geopolitical challenges, along with the prioritization of modernizing the military, drove robust demand in 2023, particularly for weapons and next-generation capabilities. As A&D companies prepare for the new year, Deloitte’s 2024 A&D outlook explores talent, supply chain, digital transformation, new product, and spending trends these companies may consider focusing on to take on the challenges and capitalize on emerging opportunities, with digitalization being the unifying theme across the trends.
