Market Research and Other Regional Defense Updates:
Afghanistan | Australia | Brunei | Bangladesh | China | India | Indonesia | Japan | Malaysia | Myanmar |
North Korea | Pakistan | Philippines | Singapore | South Korea | Sri-Lanka | Taiwan | Thailand | Vietnam.
- Rheinmetall Showcase Enhanced SSW40 Grenade Rifle at DEFEA 2025 May 6, 2025
Rheinmetall showcased its enhanced SSW40 grenade rifle at DEFEA 2025, a magazine-fed, semi-automatic 40mm launcher with advanced fire control and planned support for programmable airburst munitions. Designed for both low- and medium-velocity grenades, the SSW40 significantly expands the precision and range of squad-level firepower. - DefenseTech Financial Brief – May 5, 2025 May 5, 2025
The defense technology landscape continues to evolve rapidly, with this week’s developments highlighting several interconnected trends that present significant investment opportunities across multiple domains. The fundamental shift toward low-cost, mass-produced autonomous systems represents perhaps the most disruptive market dynamic, creating opportunities for both established defense primes and specialized technology providers. - U.S. Army 2025 Restructuring: Strategic Realignment and Industrial Impact May 5, 2025
The U.S. Army’s 2025 restructuring marks a decisive pivot—from legacy platforms to precision fires, autonomy, and rapid mobility. While this transformation opens new opportunities in missiles, drones, and sustainment tech, it also puts pressure on traditional players. We break down the winners, the exposed, and what this means for investors and defense suppliers. - DefenseTech Weekly Brief – April 28 – May 3, 2025 May 4, 2025
The defense landscape continues evolving rapidly, with emerging technologies reshaping battlefield dynamics across domains. This week’s developments highlight cost-effective drone proliferation, increased artillery autonomy, extended-range strike capabilities, enhanced vehicle protection systems, and significant procurement decisions affecting naval aviation forces. U.S. Army Restructuring 2025: Strategic Shifts and Industry Fallout This week’s DefenseTech Brief explores the U.S. Army’s sweeping transformation plan—canceling legacy ground systems, accelerating missile and drone capabilities, and consolidating command structures. The move signals a shift toward high-end conflict readiness, with profound implications for defense manufacturers, suppliers, and investors. Our feature breaks down key winners and at-risk contractors, including the rise of missile production, drone integration, and the industrial challenges ahead. 📈 Featured: Army’s pivot to long-range precision fires, drone warfare, and next-gen platforms📉 Impacted: Legacy platforms like Stryker, Booker, Apache, and MQ-1C Grey Eagle (Read the updated analysis) Aerial Warfare Evolution: Budget Drones Changing the Game Recent conflicts show a fundamental shift in how air power works. Mass-produced, affordable drones and loitering munitions are creating significant advantages for both state and non-state actors while imposing challenging cost-exchange ratios on defenders using expensive interceptors. (read the article) Key Technologies Driving Change: 3D printing enables faster component manufacturing AI systems allow autonomous operation and coordinated swarming Modular architectures provide adaptability for different missions Ukraine’s distributed manufacturing approach demonstrates the importance of production scale and operational resilience against countermeasures. Impact Assessment: This shift is forcing a rethink of traditional air defense doctrines. Military planners are moving toward multi-layered defenses combining electronic warfare, directed energy weapons, and specialized counter-drone capabilities. The economic imbalance in these engagements creates urgency for cost-effective countermeasures. Market Outlook: Companies specializing in low-cost UAS manufacturing, AI for autonomous functions (Anduril, Helsing, Stark Defence, Xtend Defense), counter-drone technologies, and modular subsystems are well-positioned. Established players like IAI, Rafael, AeroVironment, and KNDS are adapting their portfolios, while newer entrants like Firestorm Labs and Cummings Aerospace ... - Navy Advances Sea-Based Hypersonic Missile Program with Successful Cold-Gas Launch May 4, 2025
Last week, the U.S. Navy’s Strategic Systems Programs (SSP) reached a significant milestone in the development of its sea-based hypersonic capability with a successful end-to-end flight test of the ‘Dark Eagle’ conventional hypersonic missile at Cape Canaveral Space Force Station, Florida. This test demonstrated the Navy’s innovative cold-gas launch approach, crucial for the Conventional Prompt Strike (CPS) system that will be deployed on Navy platforms. This flight test is part of the ongoing program for the common All Up Round (AUR) missile, a collaborative effort with the U.S. Army’s Rapid Capabilities and Critical Technologies Office. Notably, the ‘Dark Eagle’ missile will be fielded to both the Navy and the Army, equipping the Army’s Multi-Domain Task Forces (MDTF) as well. Two additional successful end-to-end flight tests of the AUR were conducted in 2024. The cold-gas launch system allows the safe ejection of the missile from naval vessels before its engine ignites. Vice Adm. Johnny R. Wolfe Jr, Director of SSP, highlighted the importance of this achievement in bringing a safe and reliable hypersonic capability to the Navy and, by extension, to the Army. The CPS program has undergone extensive testing, including the use of an In-Air Launch test facility, to validate the launch method for its initial deployment on the USS ZUMWALT. The data collected from this test will be vital for the continued development and production of the AUR and the integration of the cold-gas launch system on surface ships. The rapid advancement of sea-based hypersonic strike weapons, like the ‘Dark Eagle’, significantly enhances U.S. deterrence and provides a crucial advantage in conventional strike capabilities for both naval and land forces. Secretary of the Navy John Phelan emphasized the speed, range, and survivability of these weapons as essential for integrated deterrence, noting their unmatched capabilities for warfighters across domains. This successful cold gas ... - Israel Pursues Loitering Weapons for Main Battle Tanks May 4, 2025
The Israeli Ministry of Defense (IMOD) is evaluating initial proposals from some local companies to decide what types of loitering weapon systems will be deployed on Israel’s Defense Forces (IDF) Merkava 4 main battle tank. The operational requirements match the experience gathered from the extensive operation of this MBT in the ongoing war. The idea to equip the MBT with advanced loitering weapon systems stems from the initial experience accumulated by the IDF’ armored corps during the fighting in the highly densely populated Gaza. In the fighting in such an urban area, the tank is more vulnerable to advanced anti-tank weapons. The initial idea is to equip the tank with special loitering weapon systems that will enable the tank commander to “see beyond the building” and, immediately after, attack the enemy using direct fire by the tank’s gun or other supporting weapons that enables indirect attack such as a loitering weapon, or another drone launched by the tank (such as the Viper 300 or 750). Tal Inbar, a senior defense analyst, said there is an urgent operational need to enhance the crew’s situational awareness, especially the tank commander’s field of view. “a loitering weapon system with an EO payload will allow the tank commander to locate hidden threats and destroy them in real-time. This is needed in very high priority.” A number of Israeli defense companies, like Uvision, Elbit Systems, Spear UAV, BlueBirs UAS and Aeronautics, have developed advanced loitering weapon systems that are used by many countries, including the U.S. RAFAEL have already included Spear UAS’s Viper loitering weapons in their Samson 30 turret configuration displayed at the DSEI 202 exhibition. The loitering weapon systems that will be carried by the MBT will have added capabilities to fulfill the triple task – improve situational awareness, detect and destroy the enemy. - Active Protection Systems (APS) – An Evolving Shield May 3, 2025
Modern warfare, especially lessons from Ukraine, highlights the critical need for Active Protection Systems (APS) on armored vehicles. Dive into the evolving world of APS with this detailed overview covering leading systems like Israel’s Trophy and Iron Fist, Russia’s Arena-M, Germany’s StrikeShield, Turkey’s AKKOR and PULAT, China’s GL-6, South Korea’s KAPS, and India’s latest developments. Explore their unique technologies, combat capabilities against ATGMs, drones, and top-attack threats, recent deployments (as of 2025), and the future trends shaping vehicle survivability. - The Autonomous Artillery Revolution: Reshaping Modern Firepower May 2, 2025
The battlefield is undergoing a quiet revolution as artillery sheds its human crews. Driven by the harsh realities of modern conflict and the critical need for survivability, autonomous fire support systems are rapidly moving from concept to reality. This article explores the key trends, technological advancements, and strategic impacts shaping the future of unmanned firepower in multi-domain operations. - The New Air War: How Rapid and Cheap Manufacturing of Drones and Missiles Are Remaking Conflict May 2, 2025
How One-Way Attack Unmanned Aerial Vehicles (OWA-UAVs), often dubbed “kamikaze drones,” and sophisticated loitering munitions are “democratizing” air power through low cost and agile manufacturing techniques - Rebuilding U.S. Theatre Strike May 2, 2025
Driven by the INF Treaty’s collapse and great power competition, the U.S. is rebuilding its theater strike capabilities. This article explores key initiatives like the Army’s Typhon MRBM, PrSM upgrades, and ‘Dark Eagle’ hypersonic weapon. It also touches on the Navy’s Conventional Prompt Strike (CPS) program for ships and subs, and the Air Force’s HACM. Learn how these systems aim to counter new threats and fit into evolving military concepts.
Research Focus: Japanese Defense Industry to 2016
Japanese defense budget is the fifth-larg
The Japanese defense budget is the fifth-largest in the world and recorded a CAGR of 10.04% during the review period (2007 – 2011). Japan has capped its defense budget at 1% of GDP, and is expected to continue to do so over the forecast period (2012 – 2016). The Japanese MoD spends the majority of its defense budget on revenue expenditure, which includes the salaries of personnel and maintenance of infrastructure. In the armed forces, the Japanese army receives 37% of the budget, while the navy and air force receive respective shares of 23% and 24%. The budget is primarily driven by the perceived threat from North Korea’s missile tests and the security of sea trade routes, as the country imports the majority of its minerals and food from foreign countries.
The Japanese government’s policy to ban arms exports to other countries makes it difficult for defense companies in Japan to maintain profitability. Since 2003, 20 companies have discontinued their participation in the fighter jet manufacturing business. Furthermore, as the Japanese government makes a minimal amount of procurements, domestic companies may diversify from the defense industry and enter other civilian industries. The Japanese government allocates 18% of its defense budget for equipment procurement. Defense equipment manufacturers are required to spend on R&D or purchase technology licenses from foreign OEMs, which in turn will increase the cost of the product.
Japan has a well-developed domestic industry, which is supported by government procurement. The domestic defense industry also procures production licenses of technology that is unavailable domestically, in order to supply the Japanese MoD with the most advanced equipment available.Japanese defense imports are expected to increase over the forecast period, partly due to government plans to procure fighter aircraft.
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