INDUSTRY REPORT
throughput and quality standards,” added defence specialist, Morgan Ryder.
Defence market trends
According to analyst, the Business Research Company, major trends shaping the defence market include:
■ Next-generation technologies: One such example is a multilayered, indigenous counter-drone system as a robust defence against asymmetric warfare.
■ AI-driven defence innovations: Major companies are focusing on the launch of innovative technologies, such as AI-based defence systems, to enhance situational awareness, improve decision-making speed and strengthen overall operational effectiveness.
According to analyst Research and Markets, major trends include the increased demand for multi-domain defence platforms and the growth in modernisation of land, air and naval fleets. It also highlights a rising focus on longrange strike and missile defence systems, the expansion of defence maintenance, repair & overhaul( MRO) services and the strengthening of indigenous defence manufacturing capabilities.
New technologies, says defence contractor Primus Aerospace, are driving innovation,
“ Materials and alloys are becoming lighter and more durable. In 2026, we expect further adoption of high-temperature alloys, ceramic matrix composites( CMCs) and next-generation titanium alloys to meet the demands of fuel efficiency and higher performance in commercial aerospace and defence systems,” it said.
It also pointed to the increasing use of additive manufacturing( AM) in defence markets, which is now going beyond prototyping.
“ 2026 will bring greater use of 3D printing for production parts, especially complex geometries that reduce weight and consolidate multiple components into single, highly engineered pieces. We are investing in hybrid approaches that combine additive processes with precision machining to meet performance
Image: @ Jiachen Lin, Unsplash.
Image: @ Peter Pryharski, Unsplash.
Image: @ Nicola Vogler / BAE Systems.
2026 will bring greater use of 3D printing for production parts, especially complex geometries that reduce weight and consolidate multiple components into single, highly engineered pieces
and certification requirements,” outlined Primus Aerospace.
The digital thread is tying aerospace development together, it added.
“ By 2026, model-based definitions( MBD) and digital twins will play an even larger role in design, simulation and testing, accelerating timelines and improving accuracy across aircraft and defence programme lifecycles,” it continued.
“ Top priorities are rapid deployment and high production. Defence priorities are shifting towards rapid capability deployment, while commercial aerospace is focused on recovering production rates. That means suppliers must deliver complex assemblies faster, with fewer delays. Investing in advanced machining, lean manufacturing and programme management tools will be essential
Manufacturing methods
Steel cut for Dreadnought submarine.
in 2026,” added the manufacturer.
Compliance requirements will also be harder to meet. As systems become more advanced, tolerances are getting tighter and compliance requirements more demanding.
Manufacturing methods are also changing, explained Primus Aerospace.
“ Automation is powering manufacturing environments. Robotic machining, automated inspection and AI-driven scheduling tools are reducing lead times and enhancing repeatability. For suppliers, balancing this automation with skilled human expertise remains essential— particularly in precision machining for mission-critical components,” it confirmed.
Manufacturing is also becoming more sustainable, with environmental impact top of mind in 2026. Aerospace OEMs are under pressure to reduce emissions, and that extends through the supply chain. Suppliers are responding with energy-efficient machining, optimised material usage and recycling programmes that minimize waste without sacrificing quality.
“ Cybersecurity risks are also increasing. In 2026, aerospace and defence manufacturers are expected to meet higher cybersecurity standards to protect intellectual property and comply with government regulations,” concluded Primus Aerospace. n
18 | ismr. net | ISMR July / August 2026