Aerospace future in focus: 3 trends set to define the next decade
Steve Isaac is Head of UK Strategy and Space at Sopra Steria, where he leads the company’s UK space sector business and defines strategy across defence, national security, aerospace and public safety. With more than five years at Sopra Steria, he works closely with C-suite leaders, partners and new acquisitions to deliver innovative technologies and services. Passionate about driving growth and fostering future talent, he combines strategic insight with over 40 years of collective space expertise to help shape the sector’s next chapter.
Few industries are as critical to the UK’s long-term prosperity and sustainability as aerospace. Whether it’s accelerating defence programmes, advancing satellite and space systems, or leading cutting-edge R&D, aerospace sits at the heart of national innovation.
Generating £30.5 billion in annual turnover, the sector has grown by 7% over the past decade, a clear sign of its enduring strength and strategic importance. Much of this strength encompasses not only the large contractors but also the thousands of SMEs that form the backbone of the sector.
While there’s much to be optimistic about, it’s equally important to recognise the challenges the industry continues to face. These range from ramping up production rates and securing supply chains to driving digital transformation. Cybersecurity and reducing time-to-market also remain high on the agenda, demanding continued focus and coordinated action across the sector.
Layered on top of all this are heightened geopolitical tensions, the UK Defence Industrial Strategy’s renewed emphasis on sovereign production and the transformative potential of AI. Together, these forces are reshaping the sector’s priorities at pace. So, what will that look like in practice? Here are the trends set to shape aerospace in the years ahead.
Boosting future production ramp-up with generative AI
UK aerospace remains a major global player, with a reputation for reliability and technical excellence. From engine and wing manufacturing in the commercial sector to the development of next-generation military aircraft and space technologies, including satellites and launch systems, the UK continues to deliver at pace while upholding world-class quality standards.
However, like many complex production environments, the aerospace sector still faces operational inefficiencies that can hinder performance. Research suggests that issues such as lengthy inspection cycles and intricate testing processes could contribute to as much as £4 billion in downtime costs by the end of 2025. It’s a stark reminder of the need to modernise systems and strengthen productivity across the board.
Generative AI can help overcome these types of inefficiencies. Automating non-value-added tasks allows workers to focus on higher-value activities, improving overall consistency and accuracy and reducing the risk of human error.
Practical use cases include operators receiving summaries of complex assembly instructions to enable faster execution on the factory floor, or a mid-sized engineering firm using AI to accelerate inspection reporting, freeing up engineers from paperwork so they can focus on design work.
As these tools are deployed across dispersed production environments, ensuring the security of sensitive data and enabling trusted collaboration will be just as critical as the efficiency gains they deliver.
Strengthening supply chain planning will be central to greater resilience
Aerospace manufacturers are under growing pressure to improve planning processes in the face of mounting operational and economic challenges.
For example, 70% of UK manufacturers have seen their costs increase by up to a fifth in the last year, while almost one in ten have experienced an increase of up to 50%. This, on top of complex customer demands, shows that the ability to plan effectively has never been more critical. Those that treat supply chain planning as a strategic capability, rather than a day-to-day function, will be best placed to remain resilient and responsive.
Building supply chain resilience starts with greater visibility and awareness across the extended supplier network. This is particularly critical for SMEs, who typically operate on tighter margins and can be disproportionately affected by unexpected cost spikes or late changes in demand.
Manufacturers need a clear understanding of supplier capacity, potential risks and production demand to make operations more reliable. Achieving this depends on consistent, well-communicated data and the smart use of digital tools.
Breaking down data silos and improving data accuracy are essential first steps. From there, real-time monitoring, AI-driven modelling and scenario planning can help anticipate disruption, while stronger collaboration around shared data sets must become a strategic priority.
Driving innovation toward a decarbonised aerospace future
In response to the climate emergency, the aerospace industry is ramping up efforts to reduce its carbon footprint. International regulations like CORSIA are driving action, leading to initiatives like fleet renewal that combine aerodynamic improvements, lightweight materials and next-generation engines to cut fuel consumption.
Sustainable aviation fuels (SAF), along with electric and hydrogen propulsion, are also gaining momentum across the industry. Meanwhile, in space, the push for more sustainable satellite technologies and debris mitigation is accelerating, as space becomes central to both climate monitoring and secure communications.
Looking ahead, manufacturers will need to treat emissions reduction not just as a regulatory requirement but as a core business priority, or risk falling short of compliance, facing financial penalties and damaging their reputation.
Achieving these goals at scale, however, will depend heavily on digital technologies. From research and development through to operations, these tools are accelerating the shift to a greener industry.
In R&D, digital twins are being used to simulate aerodynamics, test material strength, and optimise designs before production begins. Across supply chains, the use of SAF can be tracked and verified more accurately. In infrastructure planning, digital modelling supports the design of energy-efficient, future-ready facilities.
Moves like the proposed EU Space Act are also prompting greater alignment on sustainability and cyber-resilience across the satellite ecosystem, from lifecycle emissions to collision avoidance protocols. And operationally, AI-powered algorithms are improving flight planning, route efficiency and fuel burn.
An industry in transition
Faced with the dual challenge of decarbonisation and accelerating innovation, the aerospace industry stands at a strategic crossroads. The pursuit of ambitious sustainability goals, pressure to boost production and the need for greater supply chain resilience underline just how complex the road ahead will be.
These trends point to the need for a systemic transformation, one that spans operations, digital infrastructure and workforce capability. Success will depend on how effectively the industry embraces change, breaks down silos and embeds technology into every layer of its ecosystem.
