The Cost of Poor Software Quality in the US: A 2022 Report
CISQ/Synopsys (2022)
Software Defect Reduction Top 10 List
Boehm, B. and Basili, V., IEEE Computer (2001)
Prologue: The 2022 Wilson Research Group Functional Verification Study - Verification Horizons
Siemens EDA (2022)
Business Analysis Benchmark Report
IAG Consulting (2009)
Pulse of the Profession Report
Project Management Institute (2021)
U.S. judge approves Toyota's $1.2 billion settlement over concealing defects
Reuters (2014)
Cost of Quality (COQ)
American Society for Quality (ASQ)
The Economic Impacts of Inadequate Infrastructure for Software Testing
NIST (2002)
Digital Engineering Strategy
U.S. Department of Defense (2018)
Final Report of the Model Based Engineering (MBE) Subcommittee
NDIA (2011)
2023 Annual Vehicle Safety Recall Report
NHTSA (2024)
Critical Reasons for Crashes Investigated in the National Motor Vehicle Crash Causation Survey
NHTSA (2015)
ISO 26262-3:2018 Road vehicles — Functional safety — Part 3: Concept phase
ISO (2018)
UN Regulation No. 155 - Cyber security and cyber security management system
UNECE
Unlocking the full life-cycle value from connected-car data
McKinsey & Company (2023)
MedTech Market Size & Growth
Evaluate MedTech, 'World Preview 2023, Outlook to 2028' (2023)
Digital Health Growth Rates
McKinsey & Company, 'The future of healthcare: Value creation through next-generation business models' (2023)
Value-Based Care Transformation
Deloitte, 'Forces of change: The future of health' (2022)
FDA Medical Device Development
FDA, 'Design Control Guidance for Medical Device Manufacturers'
Systems Engineering in Medical Devices
INCOSE, 'Systems Engineering Handbook: A Guide for System Life Cycle Processes and Activities'
Automotive Industry Transformation
McKinsey & Company, 'The future of mobility is at our doorstep' (2023)
CASE Trends in Automotive
Deloitte, '2024 Global Automotive Consumer Study' (2024)
Software-Defined Vehicles
McKinsey & Company, 'Software-defined vehicles: Are you ready for the new deal?' (2023)
Electric Vehicle Transition
Boston Consulting Group, 'The Electric Vehicle Transition Explained' (2023)
Semiconductor Market Growth and AI Demand
Semiconductor Industry Association (2024)
CHIPS and Science Act Impact
U.S. Chamber of Commerce (2023)
Global Semiconductor Talent Shortage
McKinsey & Company (2024)
Quantum Limits on Moore's Law in Electronics
IEEE / IRDS (2024)
AI-Powered EDA Tools in Chip Design
IEEE Innovation at Work (2024)
2025 Facts & Figures: American Aerospace & Defense Industry
Aerospace Industries Association (2025)
Space Economy Market | Global Market Analysis Report - 2035
Future Market Insights (2024)
Digital: The next horizon for global aerospace and defense
McKinsey & Company (2024)
Sustainability opportunities for A&D
EY (2024)
AIA and McKinsey Release New Study on Tackling Talent Gaps in Aerospace and Defense Industry
Aerospace Industries Association / McKinsey & Company (2024)
The global Aerospace and Defense industry is at a critical inflection point. The U.S. A&D sector alone generated nearly $1 trillion in economic activity in 2024 [30], with the global market poised to exceed $1.1 trillion by 2029. A commercial space economy is projected to reach $1.8 trillion [31], creating immense opportunities in emerging frontiers.
Pervasive integration of digital thread, digital twins, and AI as essential enablers for operational efficiency and innovation [32]
Software-defined autonomous systems emerging as the new force multiplier, shifting the paradigm of military and commercial operations
Strategic pivot toward advanced manufacturing, particularly additive manufacturing, to build more resilient and agile supply chains
Global push for decarbonization driving significant investment in Sustainable Aviation Fuels (SAF) and novel propulsion technologies [33]
Convergence of commercial enterprise and national security interests accelerating innovation and creating a dual-use space ecosystem [31]
This historic demand is straining an industrial base grappling with two fundamental challenges: a persistent talent crisis marked by high attrition and a looming retirement wave [34], and a persistently fragile, multi-tiered supply chain. These constraints represent a strategic bottleneck that threatens the industry's ability to innovate, scale production, and meet commitments.
Systems engineering [20] provides the framework to architect digital thread and digital twin ecosystems that span the entire product lifecycle. By establishing a unified data backbone, organizations can leverage AI to optimize design, accelerate certification, and enable predictive maintenance—unlocking the operational efficiency necessary to meet unprecedented demand while managing complexity across decades-long platform lifecycles.
A systems approach [20] enables holistic supply chain visibility and risk management across multi-tiered networks. Advanced manufacturing technologies like additive manufacturing must be integrated systematically, with rigorous qualification processes and digital traceability. This transforms fragile, opaque supply chains into resilient, agile networks capable of supporting both commercial and defense production surges.
The severe talent shortage [34] requires a systematic workforce development strategy. Systems engineering provides a framework for structured training programs, knowledge capture from retiring experts, and optimal team composition. By creating clear career pathways and leveraging digital tools to amplify human expertise, organizations can build the talent pipeline necessary to sustain growth in this critical industry.