From Concept to Sustainment: Fueling Innovation in Aerospace

Drive aerospace progress by integrating advanced technologies for digital transformation.

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The future of the aerospace industry


The aerospace industry took off with Wilbur and Orville Wright’s first powered flight in 1903, a technology watershed that laid the foundation for rapid progress in aviation and space exploration. The industry evolved from rudimentary fixed-wing aircraft to sophisticated jetliners and rotary-wing platforms, as well as spacecraft, propelled by innovation and global conflicts that demanded the rapid development of aerial capabilities.

The global aerospace market is valued at approximately $330.5 billion (2023) and is projected to reach around $662.4 billion by 2033, growing at a compound annual growth rate (CAGR) of 7.2%. As the industry evolves further and faster, artificial intelligence (AI) and automation are expected to drive innovation, reduce costs, and increase efficiency. The integration of smart sensors and AI-driven systems will streamline maintenance and operations, while other variables like the rise of electric vertical take-off and landing (eVTOL) aircraft and increased commercial space activities are launching a new era of urban air mobility and space exploration.

Aerospace leaders are embracing digital transformation to navigate this evolving landscape and are already reaping the benefits. Leveraging advanced software solutions for CAD, PLM, and SLM is mission critical in keeping fleets safe and up to date, while sharpening and maintaining a competitive business edge.

Aerospace industry divisions

Aerospace companies may participate in several or all of the industry’s constituent divisions, while others are highly focused.

Commercial aviation

At the heart of global mobility and human connection, commercial aviation encompasses the development, manufacturing, and operation of aircraft designed to transport passengers and cargo for civilian purposes. This sector drives innovation in fuel efficiency, passenger comfort, and operational reliability in the context of strict safety regulations and volatile market pressures. From regional jets and helicopters to wide-body airliners, commercial aviation manufacturers balance their drive for innovation with economic viability across intricate global supply chains.

Defense and military aviation

Military aviation addresses specialized defense requirements in which mission readiness and warfighting capability eclipse commercial priorities. This sector develops aircraft with enhanced performance specifications, including supersonic capabilities, airborne weaponry, stealth technology, and other specialized mission equipment. Military programs emphasize operational preparedness, tactical superiority, ruggedized construction, and extended service lifecycles. Products delivered by the defense aviation sector often require extensive customization and specially secured supply chains. And compliance with defense-specific regulations and security protocols is not subject to compromise.

Space exploration

Space is the industry’s technological frontier, giving rise to the development of vehicles and systems that operate beyond Earth's atmosphere. Engineering challenges unique to space include extreme temperatures, harsh environments, and radiation exposure—with minimal to zero maintenance accessibility. Space systems, therefore, must be highly robust and exceptionally reliable, and their engineers must continuously innovate. This sector spans launch vehicles, satellites, deep space exploration craft, and habitat systems. These considerations drive materials science advancement while seeking to balance innovative capabilities with long-term dependability.

Aerospace industry challenges: How leaders rise

The aerospace industry has a direct, firsthand responsibility for protecting the lives and livelihoods of millions of people. In doing so, it must navigate challenges driven both by this unique responsibility and by the broader pressures facing all modern manufacturers.

Converting backlogs into revenue

As aerospace OEMs struggle to manage record-breaking order backlogs, turning those commitments into delivered products and revenue remains a serious challenge. Capacity constraints, skilled labor shortages, and disrupted supplier timelines create bottlenecks that slow production rates. The urgency to burn down backlogs is pushing companies to rethink manufacturing execution, streamline change management, and digitize production planning—especially across global, multitier industrial, and market ecosystems. Without a coordinated digital approach, OEMs risk nonconformities, delivery delays, and high operational costs.

Meeting regulatory requirements

The aerospace industry operates under intense scrutiny, with evolving safety, airworthiness, export, and environmental regulations. Compliance with standards from the FAA, EASA, ITAR, and others is not optional—yet managing audits, documentation, and traceability across complex product lifecycles is no small task. Furthermore, on the international front, there are several regulatory frameworks that manufacturers need to consider throughout development. As systems grow more complex, software-driven, and globally developed, the need for connected, compliant-by-design digital processes is paramount. A unified platform for requirements management, testing, and change control is key to reducing compliance risk and cost.

Managing supply chain risks

The aerospace supply chain spans thousands of specialized suppliers, including many small to medium-sized businesses that are vulnerable to disruption. From raw material shortages and geopolitical volatility to logistics bottlenecks, risk is everywhere. OEMs and Tier 1s need clear visibility into supplier performance, inventory, and risk factors across tiers. Digital supply chain solutions can help identify bottlenecks early, inform alternate sourcing strategies, and result in more resilient, agile supplier networks to maintain build schedules and service readiness.

Ensuring quality and safety

Maintaining the highest standards of quality and safety in aerospace requires rigorous control of design data, manufacturing processes, testing, and traceability. Transitioning to digital product definitions, model-based engineering, and advanced quality planning is imperative, ensuring that as systems grow more complex, every part and process meets exacting standards. Real-time feedback loops between design, production, and service environments help quickly detect and correct deviations—demonstrating flightworthiness and earning operator trust.

Managing costs and risk

Aerospace development and production carry extraordinary financial risk—especially as programs grow in complexity and schedules stretch. Cost overruns can quickly erode margins or sink programs entirely. It’s crucial to carefully but aggressively manage program budgets, track engineering changes, and reduce rework and scrap throughout the manufacturing value chain. Digital continuity that seamlessly links engineering, manufacturing, and service lets teams make better-informed decisions, reduce or eliminate duplication, and align their collective and individual efforts toward on-time, on-budget delivery.

Improving collaboration

Aerospace programs are rarely developed in isolation. Cross-functional teams—often distributed across states, countries, and continents—need to work together seamlessly to meet aggressive timelines and stringent technical targets. But silos between engineering disciplines, suppliers, and production teams create friction and delay. Effective collaboration requires a shared digital environment where stakeholders work from a single source of truth. By enabling secure, role-based access to up-to-date product data and workflows, companies can accelerate decision-making, reduce errors, and drive program success, from concept to delivery and throughout the product lifecycle.

Aerospace leaders: Teaming up with PTC to drive value

For decades, PTC has partnered with leaders across industries and across the globe, delivering pioneering tools that have propelled innovation and created value in every sector. Today, the most consequential aerospace enterprises and their supply chain partners deploy PTC solutions to address the range of challenges that define the industry. Read about the paths taken by some of our most successful aerospace customers below.

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Airbus
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General Electric
Boeing
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Lufthansa Technik

Learn how Lufthansa has driven efficiency across manufacturing and service through digital transformation.

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Airbus FHS

Learn how Airbus increased forecast accuracy, boosted aircraft utilization, and reduced operational costs.

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NASA

Explore how digital engineering is enhancing mission safety and accelerating efficiency at NASA.

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GE Aviation

Learn how GE Aviation on Wing Support exceeded their service revenue goals by 130% within the first year.

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Boeing

Learn how Boeing is meeting demanding inventory needs, while keeping customer satisfaction a top priority.

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Hill Helicopters

Learn how Hill Helicopters mastered business processes, change control, and technology risk.

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Aura Aero: Building the Aircraft of Tomorrow

Learn how Aura Aero is developing sustainable aircraft with a digital foundation for real-time collaboration and product data management.

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PTC solutions driving progress in aerospace

Requirements management

It’s crucial that requirements be mapped in detail before any product is built or code written, so that software and hardware requirements are in sync across the manufacturing value chain. PTC's requirements management solutions, such as Codebeamer, provide a centralized repository for requirements, enabling aerospace engineering teams to integrate compliance into the development process early on, ensuring traceability and alignment with regulatory standards.

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Model-based systems engineering (MBSE)

PTC's MBSE approach employs integrated models to design and visualize complex aerospace systems, facilitating better decision-making and cross-disciplinary collaboration. This is essential for safety-critical applications, as well a​s “collapsing the V”—shortening development timelines by enabling multidisciplinary collaboration and system-level simulation so that every aspect of a system can be validated as working together according to the design intent.

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Design for additive manufacturing (DfAM)

PTC Creo supports DfAM by enabling engineers to create complex, lightweight, and innovative structures optimized for 3D printing, exemplified by the development of the world's first fully 3D-printed jet engine. And with the AI-enhanced generative design capabilities enabled in Creo, product designs can be created automatically based on your constraints and requirements for faster development, better quality, and designs that are ready to manufacture.

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Streamlining change management

PTC Windchill enables robust change management for aerospace, tracking modifications across complex products and systems. It integrates with ERP, MES, and CRM to align design and production, enhances cross-discipline collaboration, and supports scalable, repeatable processes that improve enterprise-wide decision-making.

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Product line engineering (PLE)

PLE is a strategic framework for managing the complexity and variability that characterizes much of the aerospace industry. PTC Pure Variants opens the door to truly holistic PLE, so aerospace engineers can manage feature and model variants with confidence. The solution integrates with existing development processes, streamlining product line development, improving efficiency, and managing complex aerospace product variants with the security the industry demands.

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Configuration management

PTC Windchill includes robust configuration management capabilities designed specifically to support the kind of large, complex product and assembly designs and high variability that characterize the aerospace industry. Complexity and variability, characteristic attributes of aerospace design and manufacturing, require extremely robust configuration management. It’s crucial that production and assembly follow the correct configuration every time to avoid nonconformities and ensure on-time delivery.

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Composite design and manufacturing

Creo offers the most advanced tools available for composites design and analysis, enabling engineers to create lightweight, high-strength components essential for modern aerospace applications. Engineers can mix and match material layers, allowing customization for very specific requirements to deliver the strong, lightweight components required to match and exceed the requirements of modern aeronautical engineering.

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Manufacturing process management (MPM)

The siloing of R&D and engineering functions can impede the concurrent engineering processes necessary for competitive advantage in today’s aerospace industry. PTC's digital manufacturing solutions facilitate comprehensive MPM by defining and managing the manufacturing processes used to make parts, assemble final products, and perform inspections, bridging the gap between product design and production execution.

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Service parts management

Nowhere in industry is it more critical for operators to have access to the right part where it’s needed at the lowest possible price. When a plane is grounded due to a missing part, the costs vastly exceed the value of the part itself. PTC's Servigistics applies AI-driven optimization to enhance service supply chains, ensuring high parts availability at reduced costs, and aiding aerospace organizations in maintaining operational readiness.

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PTC technologies: for aerospace leaders with vision

Computer-aided design (CAD)

Accelerate aerospace design with Creo’s precision modeling for complex, lightweight, and certifiable components.

Product lifecycle management (PLM)

Windchill ensures full traceability and control across aerospace programs, from initial design to certification and sustainment.

Application lifecycle management (ALM)

PTC’s ALM tools, including Codebeamer and complementary products like PTC Modeler and Pure Variants, unify hardware and software development for avionics and aerospace systems requiring high assurance and compliance.

Service lifecycle management (SLM)

PTC SLM-focused and supporting technologies, including ServiceMax, Arbortext, and Servigistics, help bolster fleet readiness by optimizing parts availability, service planning, and MRO for aerospace platforms.

Digital thread

Open architectures like PTC’s help companies establish a digital thread across the value chain for real-time, cross-domain connectivity from concept to service, supporting certification, quality, and innovation in aerospace programs.

Digital twin

Use real-world, real-time data to simulate and monitor aerospace assets, improving performance, maintenance, and lifecycle decision-making.

A&D industry: frequently asked questions (FAQs)

How does automation benefit aerospace manufacturing?

In aerospace, where precision and safety are paramount, strategic automation initiatives will drive efficiency, consistency, and quality. Automated processes reduce manual errors, accelerate production cycles, and enhance traceability across highly regulated environments. From robotic drilling and composite layup to automated inspection and quality control, automation allows manufacturers to meet aggressive delivery schedules while maintaining strict compliance standards. Integrated digital platforms support automation by ensuring seamless data flow between design, engineering, and production systems. Configuration changes, part revisions, and process updates are communicated instantly and accurately across the enterprise. Automation not only amplifies overall throughput and repeatability, but also helps manufacturers manage workforce-related challenges, lower costs, and deliver complex aerospace systems on time and on budget.

What is the aerospace industry?

The aerospace industry encompasses the design, development, production, and maintenance of aircraft, spacecraft, satellites, and related systems and components. It includes both civil aviation and defense sectors, and delivers products ranging from commercial airliners, rotary-wing aircraft, and business jets to military aircraft and space launch systems. Today, unmanned aircraft command increasing resources and attention as well. The industry also includes support services like navigation, maintenance, and avionics. Major players include enterprises like Boeing, Airbus, and Lockheed Martin, along with a global network of suppliers, engineers, and technology partners. Aerospace is defined by high levels of innovation, strict regulations, and long product development cycles. As aircraft systems become more complex and software-driven, digital transformation is playing an increasingly central role. Companies must embrace it to improve efficiency, manage lifecycle data, and meet rising global demand for safer, more sustainable aerospace solutions—and more of them.

What is aerospace manufacturing?

The aerospace manufacturing industry encompasses the entire spectrum of designing, producing, assembling, and testing components and systems used in aircraft and spacecraft. This includes everything from airframes, cabin interiors, and engines to avionics, propulsion systems, and advanced materials. It’s one of the most technically demanding and highly regulated industries in the world, and its exacting standards of quality, traceability, and safety are non-negotiable. Aerospace manufacturing spans a wide range of disciplines—mechanical, electrical, software, and materials engineering—and is characterized by complex, multitier supply chains. Manufacturers rely on highly advanced tools for product design, configuration management, and quality assurance. And as deliverables become more and more complex, digital platforms and model-based approaches are increasingly essential for managing product complexity, streamlining production, and maintaining compliance across national and global programs.

Does PTC also support the defense industry?

Yes. PTC has a long-standing presence in the defense sector, helping organizations meet the unique requirements of defense product development and sustainment. Defense programs demand extreme precision, tight configuration control, and complete lifecycle traceability. PTC technologies and expertise help build robust capabilities in systems engineering, digital collaboration, and mission-critical asset management, all within the strict security protocols required. Whether managing complex product structures, enabling secure digital thread continuity, or improving readiness through predictive service strategies, PTC’s technologies are designed to align with the priorities of defense contractors, Tier 1 suppliers, and armed forces alike. PTC also offers compliance-ready solutions that help defense partners adhere to federal cybersecurity, export, and data-handling regulations while driving innovation at speed and scale. Learn more here.

Does PTC offer support for aerospace startups?

Yes, PTC’s Startup Program is tailored for early and growth stage companies developing next-generation aerospace technologies. The program provides free or discounted access to powerful, enterprise-grade tools, including Creo+ for advanced 3D CAD and simulation, Onshape for cloud-native product design and collaboration, Codebeamer+ for end-to-end application lifecycle management, and Arena for cloud-based PLM. With integrated support for systems engineering, compliance, and rapid iteration, PTC’s Startup Program empowers aerospace startups to accelerate development, streamline certification, and scale confidently from prototype to production.