- What Does It Take to Innovate in an Industry where Failure is Not an Option?
- Executive Summary
- Methodology and Participants
- The Innovation Use Divide
- AI at the Tipping Point: Navigating the Promise and Perils of Adoption
- Open Standards: The New Blueprint for Defense
- New Pressures and Priorities in Aerospace and Defense
- The Expertise Needed for the Modern Mission
- The Aerospace and Defense Career: A Demanding but Rewarding Path
- Meeting the Mission with Expertise and Partnership
What Does It Take to Innovate in an Industry where Failure is Not an Option?
The aerospace and defense industry is built on a foundation of rigorous design and uncompromising standards, where deep engineering expertise and unrelenting reliability are the critical links to mission success. This long-standing commitment to reliability and performance has defined the most trusted suppliers.
AI and open standards are driving a new wave of innovation, reshaping the industry with more autonomous platforms. While these technologies promise to enhance creative problem-solving and reduce costs, integrating them presents significant challenges.
The data from this survey uncovers new, surprising insights while also confirming established knowledge. This report analyzes the data-driven realities of this evolution, exploring the impact of key technology innovations and examining the human elements at the center of this change: the cultural divide between leadership and engineering and the critical skills needed to succeed.
Executive Summary
The aerospace and defense industry is being reshaped by the rapid adoption of AI and the industry-wide shift to open standards. This survey of 1,021 engineering stakeholders found a surprisingly high rate of AI adoption, often outpacing formal corporate policies. The data confirms that building AI competency is no longer optional, with 86% of those surveyed viewing it as a core requirement for future success. At the same time, 96% of the industry is adopting or actively investigating open standards, making interoperability a foundational principle for next-generation system design.
These technological shifts are challenging design engineers to meet anticipated needs for power and cybersecurity. While optimism for new technologies is high, significant concerns remain, and a traditional perception gap between leadership and design engineers persists. Despite these challenges, an overwhelming 97% of professionals recommend a career in the field, reflecting a deep appreciation for the job security and sense of mission it provides.
Methodology and Participants
Research Goal
The primary research goal was to capture quantitative data on trends impacting design engineers at aerospace and defense original equipment manufacturers (OEMs), prime contractors and suppliers, focusing on technology innovation, industry trends, evolving skills requirements and the varying priorities and perceptions among engineers and management.
Methodology
A diverse group of design engineering stakeholders from all levels of the organization was invited to participate in an online survey. The survey asked about their experiences and opinions regarding technology innovation, industry trends and professional development. The survey was fielded in English, German and French. Responses were captured between June 30 and July 18, 2025.
Participants
A total of 1,021 qualified participants completed the survey. At the time of the survey, all participants had direct responsibility (hands-on or management) for design engineering at an OEM, prime contractor or Tier 1 or sub-system supplier in the aerospace and defense industry in the United States, United Kingdom, France or Germany.
Countries Represented
Companies Represented
Company Size (# of employees)
Type of Company
Industries and Roles Represented
Industry
Role
The Innovation Use Divide
A critical perception gap regarding AI adoption separates leadership from their engineering teams in the aerospace and defense industry. While this wave of AI innovation is met with a shared enthusiasm across all roles, the data uncovers a disconnect between leadership and their engineering teams. The following data explores this gap and how it manifests in practice.
Weighing Cost and Risk Against Opportunity
KEY TAKEAWAY
Leadership’s caution is driven by pragmatic business realities, with potential cost impact (52%) being the top consideration. This focus on financial risk over other factors highlights the budget pressures facing aerospace and defense company leaders.
The Perception Gap, Illustrated
KEY TAKEAWAY
While cost is the top concern overall, the data reveals a critical perception gap in how risk is viewed. Design engineers are 13% more likely than leaders to believe their company is “unwilling to take any risks,” highlighting a differing view of innovation culture from that of the front lines.
AI at the Tipping Point: Navigating the Promise and Perils of Adoption
A near-universal belief in the promise of AI is fueling a powerful wave of grassroots adoption by engineers that is outpacing formal corporate governance. 98% of stakeholders surveyed expect AI-assisted design to be beneficial, with increased creativity cited as its top advantage. This optimism is driving engineers to use these tools frequently, often outpacing formal corporate policies.
Rapid adoption presents a strategic dilemma for aerospace and defense organizations. The findings detail how they are attempting to harness the clear benefits of AI while managing the significant risks. Later in this section, the data shows a remarkable 81% of the workforce has concerns about using AI, and there are considerable regional differences in formal tool approval.
The Rise of “Shadow AI”
KEY TAKEAWAY
AI tools are being rapidly adopted, often before formal corporate policies have been established. In fact, 79% of design engineers whose companies have not officially approved any AI tools are using them anyway.
Europe Leads the Way in Formal AI Tool Adoption
Do You Personally Use AI-Assisted Design to Help with Design Engineering Tasks?
Has Your Company Officially Approved Any AI Tools Specifically for Design Engineering?
KEY TAKEAWAY
European aerospace and defense companies are leading in formal AI tool approval, a trend that correlates with higher reported usage. France, with one of the highest approval rates (87%), Fhas the highest rate of frequent AI use among its engineers (66%). Conversely, the United States has the lowest AI tool approval rate in the survey (72%) and the lowest rate of frequent use (52%).
Why Frontline Engineers Have the Greatest AI Concerns
Design Engineers
Managers/Executives
KEY TAKEAWAY
Hands-on experience uncovers the real complexities of AI, with concerns growing as usage becomes more frequent. Among design engineers who use AI regularly, 43% report “significant concerns” compared to just 17% who use it occasionally.
Open Standards: The New Blueprint for Defense
The shift toward open standards has become a defining force in mission-critical engineering. These non-proprietary system architectures are propelled largely by government mandates for interoperability, and 96% of companies surveyed are now actively evaluating or adopting them. This signals a decisive move away from the proprietary architectures that have long defined the industry.
While the mandate is clear, its execution remains a work in progress, with only 39% of companies reporting full implementation—as detailed later in this section. The data highlights the industry’s progress and underscores the value that both engineers and leaders place on this new vision.
From Investigation to Implementation
KEY TAKEAWAY
The industry is in a clear state of transition regarding the adoption of open systems architectures. While 39% of companies report being fully implemented, a majority (57%) are in the earlier stages—either beginning implementation or actively investigating.
Engineers and Leaders Agree on the Value of Openness
By Type of Company
KEY TAKEAWAY
An overwhelming majority (94%) of respondents hold a positive opinion about the value of open standards for improving new system design. This indicates strong and consistent agreement on the issue, although Tier 1 and sub-system suppliers are somewhat less enthusiastic, likely because of concerns over increased competition and a loss of proprietary advantage.
New Pressures and Priorities in Aerospace and Defense
As the industry looks ahead to the next decade, the data reveals a clear consensus on the strategic forces that will reshape aerospace and defense. The emerging landscape is shaped by AI adoption, persistent cost pressures and the need to design for extreme environments. These forward-looking priorities will require a heightened level of innovation and expertise. Both new and familiar forces are fundamentally reshaping the priorities that engineering teams must navigate.
This development raises the stakes for core engineering principles. The findings illustrate how these trends are creating immediate and tangible pressures on core reliability and compliance requirements.
The Rising Stakes of Reliability
KEY TAKEAWAY
Reputations are on the line. Three out of four design engineers report being concerned about their company’s reputation for reliability, with 30% stating they are “highly concerned” about the issue.
The Expertise Needed for the Modern Mission
Rising power requirements (52%) and increasing security demands (48%) have become the two most critical challenges for today’s design engineers. The data highlights a clear consensus on this shift, driven by increasing electrification and connectivity. Meeting this new reality requires advanced engineering expertise.
To meet these challenges, aerospace and defense companies are implementing deliberate skill-development strategies. The results demonstrate their strategic investments in capabilities essential to maintaining their competitive advantage and highlight how key competencies like cybersecurity have become a shared responsibility.
AI and Cybersecurity Top the Training Agenda
KEY TAKEAWAY
Over the next 12 months, design engineering teams plan to invest heavily in skills related to their top challenges. AI (64%) is the top investment priority, followed by high-speed data transfer (44%) and cybersecurity (43%).
A Multi-pronged Approach to Acquiring Skills
KEY TAKEAWAY
Aerospace and defense companies are taking a balanced approach to closing the skills gap. They are prioritizing training existing staff (60%) while also working with consultants (53%) and hiring new talent (51%).
Cybersecurity: A Responsibility for All
By Role
KEY TAKEAWAY
A remarkable 88% of all stakeholders have personally acquired additional skills in cybersecurity over the past five years. This trend extends to the highest levels of leadership, with 93% of managers and 91% of executives also reporting they have upgraded their skills in this critical area.
The Aerospace and Defense Career: A Demanding but Rewarding Path
A career in aerospace and defense is defined by a distinct balance of significant challenges and compelling rewards. The data shows that navigating bureaucracy is the top professional difficulty (51%), which ranks significantly higher than other challenges including changing compliance requirements (42%) and managing design tradeoffs (33%).
Beyond technologies and trends, the human aspect of the data in this section reveals what truly drives these professionals. The findings provide a clear explanation for why, despite the field’s demanding nature, an overwhelming 97% of respondents recommend their career path to the next generation.
Navigating Regulatory Challenges
By Role
KEY TAKEAWAY
Navigating the regulatory landscape is a major professional challenge. In fact, 74% of stakeholders find it “somewhat difficult” or “very difficult” to keep up with evolving compliance demands, a challenge felt most acutely by frontline design engineer.
The Enduring Appeal of a Demanding Career
KEY TAKEAWAY
While bureaucracy remains a notable challenge, a career in aerospace and defense continues to attract professionals with its significant rewards. The most valued aspects include job security (54%), the satisfaction of solving a hard problem (50%) and opportunities for continuous learning (50%).
Analysts and Conferences Are Top Information Sources
KEY TAKEAWAY
Aerospace and defense professionals prioritize credible, expert-led information. Traditional sources like analysts (49%) and conferences (48%) are the top choices for staying informed, followed by direct vendor and distributor briefings (40%).
An Overwhelming Consensus on Career Value
By Role
KEY TAKEAWAY
There is broad consensus on the value of an aerospace and defense career, with 97% of survey respondents recommending it to the next generation. This powerful endorsement highlights the deep sense of mission and stability that defines the profession, even amid significant challenges.
Meeting the Mission with Expertise and Partnership
The findings of this report point to a significant industry evolution, driven by the rapid adoption of AI and the mandate for open standards. These technological shifts, coupled with escalating technical pressures in power and security, have redefined the modern mission. Success in this new environment now also depends on a culture of true partnership. This requires cross-functional alignment and effective change management to bridge the divide between leadership and engineering.
Molex and AirBorn, a Molex company, provide the proven expertise, comprehensive capabilities, global scale and manufacturing footprint required to navigate and deliver amid this market transformation. With a combined heritage of 140 years in resilient connector innovation and more than 19,000 ruggedized products, Molex applies this specialized expertise to solve the industry’s most complex challenges. This work ranges from developing ruggedized interconnects for aerospace and defense aircraft to engineering high-speed, EMI-shielded connectors for autonomous operations and secure data transmission. By delivering modular, scalable components that meet rigorous aerospace and defense standards, Molex provides the trusted foundation for mission-critical reliability.
While reliability is non-negotiable in these high-stakes applications, innovation can set the leading suppliers apart from the rest. How does a supplier in aerospace and defense balance reliability and innovation? For Molex and AirBorn, customer collaboration is the key, achieved through a structured voice of the customer program that actively brings customer insights into early product development, helping co-create solutions that address evolving aerospace and defense needs. By embedding customer requirements throughout the innovation cycle, Molex anticipates market shifts and delivers solutions with and for the world’s leading customers.