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Navigating disruption, modernisation and mission resilience

5 min read

2027 Executive Perspectives on Top Risks and Opportunities

For aerospace and defence leaders, risks rarely show up one at a time. Technology disruption, regulatory uncertainty, geopolitical instability, supply chain constraints, aging infrastructure and workforce gaps are converging, testing the ability to modernise, protect sensitive assets and deliver on mission-critical commitments. Protiviti's 2027 findings show leaders are far more prepared for planned change than for sudden policy shifts, trade restrictions or emerging threats. They're investing in cybersecurity and infrastructure modernisation to build a secure foundation for what comes next. Read the aerospace and defence brief to see how leaders are modernising without sacrificing mission resilience.

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Where aerospace & defence leaders see the greatest growth opportunities over the next two to three years

Aerospace and defence leaders still see growth ahead, but they're more selective about where it will come from. Rising defence spending favors organisations aligned with emerging technologies and mission priorities, while partnerships help accelerate innovation and expand capacity.

63 %

see significant opportunities to grow revenue.

64 %

see significant opportunities to expand strategic alliances and partnerships.

55 %

see significant opportunities to grow beyond their headquarters' domestic market.

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Discover our full catalogue of insight briefs for additional research findings and expert commentary related to the 2027 report on Top Risks and Opportunities.

CPG & Retail

Energy & Utilities

Healthcare

Higher Education

Manufacturing & Distribution

Private Equity

Non Profit

Technology, Media & Telecommunications

Digital & Marketing Teams

Finance Teams

Human Resources Teams

Information Security Teams

Internal Audit Teams

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FAQs

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Where do aerospace and defence leaders see the greatest growth opportunities?

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Strategic alliances and partnerships lead, with 64% seeing significant opportunity, followed closely by revenue growth (63%) and expansion beyond their domestic market (55%). Rising defence spending is creating opportunity, particularly for organisations aligned with emerging technologies and mission priorities. Partnerships help A&D companies accelerate innovation and expand capacity. Delivering on that growth, though, means working within long programme cycles, restricted supply chains and workforce gaps.

What are the top risks for aerospace and defence companies in 2027?

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Disruptive innovation leads at 3.66 on a five-point impact scale, up sharply from 2.90, driven by AI, drone proliferation and rapid changes in warfare. Regulatory change (3.56), limited access to technology skills (3.50), legacy infrastructure (3.49) and geopolitical instability (3.49) follow. No single risk defines the outlook. Technology can alter mission requirements, regulation can reshape investment decisions, and geopolitical shifts can constrain supply, all at once.

How can aerospace and defence organisations modernise legacy systems without disrupting operations?

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Legacy infrastructure ranks among the industry's top five near-term risks at 3.49, and infrastructure modernisation is the second-highest investment priority at 42%. Many A&D companies carry technical debt from acquisitions, disparate systems and delayed ERP upgrades, and advanced security is difficult to deploy on aging platforms. Modernising creates the foundation for stronger security, better use of data and the integration of emerging technologies, but long programme cycles mean it has to be planned around mission commitments.

What are aerospace and defence leaders' top priorities for AI?

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Workforce readiness leads at 48%, followed by integrating AI with existing technologies, processes and people (43%), governance and accountability (35%) and protecting sensitive data used to train and run models (31%). In a sector facing retirements and scarce technical talent, AI can help a fixed or shrinking workforce do more, but only if employees know how to use it and trust its role. Governance must also reflect classified information and controlled technical data.

What long-term risks should aerospace and defence executives prepare for over the next decade?

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Security and privacy lead at 53%, followed by AI deployments (46%, up from 41%), geopolitical challenges (37%) and supply chains and third-party ecosystems (33%). AI could change how platforms are designed, operated and defended, and geopolitics can determine where companies source, manufacture and sell. Quantum computing is still low at 12% but has tripled from 4%, and long-lived systems give A&D organisations reason to assess post-quantum exposure early.

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