The aerospace and defense sector is facing a confluence of geopolitical instability, rapid technological advances, evolving security requirements, and complex global supply chains.
According to aerospace and defense consultant Alessandro Pianelli, author of the white paper “Aerospace & Defence: 30-Year Outlook 2026-2056,” the entire sector is “embarking on an unprecedented phase of transformation.” Pianelli identified AI-driven autonomy, space-based architectures and infrastructures, advanced propulsion (electric and nuclear), hypersonics, and quantum technologies as key technological clusters that will influence the sector over the next three decades.
Market momentum is indeed accelerating. The aerospace and defense sector grew from $884 billion in 2023 to $986 billion in 2024 and is forecast to reach $1.23 trillion by 2028. The global space economy hit a record $613 billion in 2024, with commercial activity accounting for 78% of the market. Projections suggest the space market will exceed $1 trillion by 2032 and amount to $1.8 trillion by 2035. Meanwhile, the war in Ukraine has reinforced the importance of defense investment, contributing to a 9% increase in global spending in 2024 and greater funding for AI, cyber, and space-based capabilities.
Will the wars of tomorrow be fought by networks of autonomous machines? Can autonomous systems be trusted to operate effectively in GPS- and communications-denied environments? Where do edge AI and swarm intelligence intersect? What safeguards are needed to prevent adversaries from exploiting AI-driven decision-making? Are orbital data centers the next phase of AI infrastructure or their most expensive dead end?
View All This Special Report reviews advances in electronics and semiconductor technologies that make aerospace and defense systems ever more autonomous and resilient. It relies on interviews with companies such as Aalto, Anduril Carbice Corporation, Mikros Technologies, RUSI, SatVu, Sceye, Swarmer, and Tytan Technologies, as well as Ukraine’s Ministry of Digital Transformation and the Centre for Security, Diplomacy, and Strategy at Vrije Universiteit Brussel (Belgium). It also features a collection of contributions by Avella Security, Edgewater Wireless Systems, and Milexia.
The Stratosphere Race: HAPS Move from Experiment to Commercial Rea****lity
By Rebecca Pool
While autonomous flight is often associated with drones, a revolution in autonomy is unfolding in the stratosphere. At altitudes of about 20 km, high-altitude platform stations (HAPS) from the likes of Airbus subsidiary Aalto, Thales, and BAE Systems’ Prismatic are targeting the largely untapped airspace between most air traffic and low-Earth-orbit (LEO) satellites. SatVu Targets Industrial Intelligence with Thermal Ima****ging
By Rebecca Pool
With HotSat-2 in orbit and fresh funding, U.K. startup SatVu is demonstrating how high-resolution thermal satellite data can reveal real-world industrial activity.
Data Centers in Space: A Brilliant Idea or Delusional?
The power and thermal issues of placing data centers in space are formidable.
Space-Station Tech Pivots to Cool AI Data Ce****nters
Mikros Technologies and Carbice Corporation are adapting International Space Station technology to address AI data center heat challenges, using advanced liquid cooling and carbon nanotube thermal interface materials to improve chip performance.
Europe’s Path to Defense Resilience Lies in Technological Independenc****e
By Florian Pivit, Milexia
Europe’s aerospace and defense sector is entering a defining decade. Geopolitical instability, electronic warfare, fragmented supply chains, and accelerating advances in autonomous systems are fundamentally reshaping how nations think about sovereignty, resilience, and technological independence.
The Rise o****f Autonomous Drone Warfare
By Rebecca Pool
Russia has transformed drone warfare, mass-producing inexpensive autonomous attack drones and launching up to 1,000 in a single night, overwhelming Ukrainian defenses and relentlessly targeting cities and critical infrastructure.
Billions Pour into Autonomous Defense as AI Redefines Warfare By Rebecca Pool
Record funding is accelerating AI-driven autonomy in defense, with drones and edge AI set to dominate battlefields.
Securing Next-Generation Defense by Desig****n
*By Daryl Flack, Avella Security *
Europe’s defense landscape is being forced to recalibrate in response to a shifting global order defined by geopolitical instability, volatility, and the increasingly unpredictable nature of hybrid warfare, all of which are straining interconnected supply chains.
Military AI Agents Under Cyberthreat: The Route Forward
This article is the first part of a two-part series looking at how military AI agents are under threat from cyberthreats. Part 1 outlines some of the challenges that different militaries face and what threats they are up against. Part 2 looks at some of the technical solutions available and how robust governance is a critical part of ensuring military cyber safety in the long-term.
Protecting Military AI Agents From Cyberthreats Part 2 of this two-part series looks at how military AI agents are under threat from cyberattacks and nefarious actors. If you missed Part 1, you should read it here first, as it covers the main cyberthreats facing military AI agents today. This article looks at both the technical solutions available and the governance requirements going forward to combat the increasing number and diverse range of cyberthreats that military AI agents are facing.