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.
- Defense Tech Market Brief – Q1 2025 Apr 25, 2025
The first quarter of 2025 showcased the continued strength and strategic depth of the U.S. defense technology sector. Leading defense contractors posted resilient results supported by deep order backlogs, strong demand for next-generation platforms, and continued geopolitical uncertainty. At the same time, inflationary pressures, tariffs, and supply chain challenges highlighted vulnerabilities in global sourcing and fixed-price contracting. Sustained Demand and Record Backlogs The top-tier U.S. defense companies reported combined quarterly revenues exceeding $68 billion, led by NOC ($41.0), RTX ($20.3B), and Lockheed Martin ($17.96B). Notably, defense-focused backlogs reached new heights, totaling over half a trillion US dollars in orders: Lockheed Martin at $173 billion, GD with $102 billion spread across three of its four operating businesses, Northrop Grumman at $91.5 billion, and Raytheon (part of RTX) at $61 billion. These multi-year pipelines signal enduring global demand for advanced air, sea, and space capabilities. Lockheed Martin maintained its position as the sector’s cornerstone, delivering solid revenue growth driven by continued F-35 deliveries and sales of missile systems. The company unveiled its “fifth-generation plus” upgrade roadmap for the F-35, aiming to integrate up to 80% of sixth-generation capabilities—such as enhanced stealth and AI-driven sensor fusion—at half of the cost expected with sixth-generation platforms. Meanwhile, General Dynamics posted a 13.9% revenue increase, fuelled by the strength of its Gulfstream jet division and new orders for Virginia-class submarine components. GE Aerospace and RTX saw double-digit growth in aerospace engines and defense electronics, respectively, driven by demand linked to NATO modernization and the Ukraine conflict. Modernization Milestones and New-Gen Programs The quarter marked several key milestones in U.S. force modernization: • Northrop Grumman’s B-21 Raider program advanced despite a $477 million production loss. The stealth bomber, now scoped to produce 145 units (up from 100), is central to the U.S. long-range strike strategy. While the company had to absorb this loss due ... - DefenseTech Brief | April 21, 2025 Apr 21, 2025
This week’s DefenseTech Brief captures a defense landscape in flux—driven by urgent needs for missile defense, advanced autonomy, and sovereign production capabilities. Across domains and continents, governments and industries are accelerating the integration of AI, expanding unmanned capabilities, and realigning production strategies to adapt to geopolitical tension and supply chain fragility. From space-based missile defense to AI-driven battlefield systems, each development signals a growing emphasis on speed, integration, and industrial resilience—core pillars shaping the future of global defense. DefenseTech Brief is currently running for free in Beta Testing. The service will eventually shift to a subscription model, where assessment and investor insights will be reserved for subscribers. DefenseTech Brief will be available in newsletter format. A egistration link will be posted shortly. Golden Dome Missile Defense Initiative Summary: Initiated by a Presidential executive order, the “Golden Dome for America” aims to create a comprehensive, multi-layered missile defense shield against ballistic, hypersonic, and cruise missiles. Heavily reliant on space-based assets, the concept involves satellite constellations for detecting and tracking missile targets (“custody layer”) and using various interceptors, potentially including space-based interceptors, as the “attack layer,” echoing concepts from SDI. A SpaceX-led consortium, including Palantir and Anduril, is reportedly a frontrunner for the custody layer, proposing hundreds of satellites that can be rapidly deployed to orbit, potentially offered as a leased service. More traditional defense contractors, such as Lockheed Martin, Northrop Grumman, Boeing, and RTX, are also expected to be major players. Lockheed Martin is promoting its combat-proven systems and emphasizing the need for reliability. Costs are estimated in the hundreds of billions, with initial capabilities targeted for 2026. (Read the full report) Assessment: Golden Dome signifies a major potential shift in U.S. strategic defense posture toward space-based layers. The initiative faces substantial technical hurdles and strategic debates regarding cost-effectiveness and geopolitical stability. The competitive landscape ... - Autonomy Takes to the Seas Apr 18, 2025
This article is part of our weekly DefenseTech Brief. Investment and activity in unmanned maritime systems (UMS), encompassing Unmanned Surface Vessels (USVs) and Unmanned Underwater Vehicles (UUVs), continue to accelerate, driven by naval requirements for missions like Mine Countermeasures (MCM), Anti-Submarine Warfare (ASW), and Intelligence, Surveillance, and Reconnaissance (ISR). Saronic Expand Manufacturing Capabilities A significant indicator of the sector’s growth and industrial maneuvering is the acquisition by autonomous vessel startup Saronic of Louisiana-based shipbuilder Gulf Craft. This deal provides Saronic with nearly 100 acres of shipbuilding facilities. Saronic has pledged a $250 million investment to modernize the shipyard, specifically for the production of unmanned systems, aiming for an annual capacity of up to 50 USVs and creating up to 500 jobs. The immediate focus is on establishing the capacity to develop, test, and produce larger Autonomous Surface Vessels (ASVs), including the company’s first Medium Unmanned Surface Vessel (MUSV) model. This strategic move towards vertical integration signals Saronic’s ambition to secure dedicated, scalable production capabilities needed to compete for major naval programs and meet broader defense and commercial demand. Bollinger Delivers the First MCM USV Crucially, the transition from development to operational deployment is underway. Bollinger Shipyards delivered the first three full-rate production Mine Countermeasures Unmanned Surface Vehicles (MCM USVs) to the U.S. Navy. This marks a significant milestone, representing the first unmanned surface vessels produced at scale under an official Navy program of record. The delivery signals a concrete shift in the Navy’s mine warfare strategy, moving away from legacy manned platforms like the MCM-1 Avenger-class ships and MH-53E Sea Dragon helicopters towards autonomous systems. The MCM USVs are designed to perform minesweeping, minehunting, and mine neutralization tasks, reducing risks to personnel while offering greater operational resilience, endurance, and adaptability for operations in high-threat maritime environments. These modular vessels can be deployed from various platforms ... - Advanced Fighter Market Update Apr 18, 2025
This article is part of our weekly DefenseTech Brief. While major powers like the USA, Europe, and China push forward with 6th-generation fighter concepts, significant global interest and procurement activity remain focused on advanced 4th-, 4.5-, and 5th-generation platforms. Nations balance sophisticated capability requirements against acquisition costs, operational sustainment, and industrial participation goals. Recent developments show notable competition, particularly in Latin America and the Indo-Pacific, involving both established platforms and emerging contenders. Indonesia – Joining the Turkish KAAN Program? Indonesia is exploring participation in Türkiye’s fifth-generation fighter program, known as KAAN (formerly TF-X). During a visit to Ankara, Indonesian President Joko Widodo, also known as Prabowo Subianto, expressed formal interest in joining the program, reflecting Indonesia’s goals to modernize its diverse and aging air fleet and diversify its international defense partnerships beyond traditional suppliers. The KAAN, developed by Turkish Aerospace Industries (TAI) with technical support from BAE Systems, features advanced stealth characteristics, supercruise capability (Mach 1.8), integrated AI, and significant payload capacity. Following its maiden flight in February 2024 and a second test flight in May 2024, TAI targets initial operational deliveries to the Turkish Air Force between 2028 and 2029. Indonesia’s interest represents a significant potential export opportunity for Türkiye’s ambitious program, although financial and technical integration challenges remain. More Gripens for Latin America In Latin America, Saab’s JAS 39 Gripen E/F is gaining considerable traction. The Swedish government has formally requested parliamentary approval to negotiate a government-to-government (G2G) agreement with Peru for the potential sale of up to 12 Gripen E/F aircraft, along with associated air defense systems. This responds to Peru’s requirement to procure 24 new multirole fighters to replace its aging MiG-29 and Mirage 2000P fleets. The Gripen E/F is shortlisted alongside the Lockheed Martin F-16V Block 70 and Dassault Rafale F4. Peru is reportedly seeking financing for an ... - NATO AI Modernization: Palantir’s Maven Smart System Acquisition Apr 18, 2025
This article is part of our weekly DefenseTech Brief. NATO has taken a significant step in modernizing its warfighting capabilities by rapidly acquiring an AI-enabled platform from Palantir Technologies. On March 25, 2025, the NATO Communications and Information Agency (NCIA) finalized the procurement of the Palantir Maven Smart System NATO (MSS NATO) for employment within NATO’s Allied Command Operations (ACO), headquartered at SHAPE. The procurement process was notably swift, completed in just six months from the initial outlining of the requirement to the final agreement – one of the fastest acquisitions in NATO’s history. Deployment within ACO is expected to commence within 30 days of the contract signing. MSS NATO is designed as an AI-enabled warfighting platform intended to provide a common, data-enabled capability across the Alliance. Its core purpose is to empower commanders and warfighters by leveraging AI applications, including large language models (LLMs), generative AI, and machine learning, to enhance critical military functions. Key areas of improvement targeted by the system include intelligence fusion, targeting processes, battlespace awareness, operational planning, and accelerating decision-making cycles. The system aims to achieve this by integrating and processing structured and unstructured data from multiple sources, both classified and open, into a unified, searchable platform, thereby breaking down traditional data silos that hinder multinational operations. While leveraging concepts from the US military’s Project Maven, MSS NATO is positioned as a distinct NATO capability. Its open architecture is designed to allow for the integration of additional AI models, simulation tools, and potentially third-party applications developed across the Alliance. The acquisition carries significant strategic implications. The remarkable speed of the procurement process signals NATO’s recognition of an urgent need to integrate operational AI capabilities and demonstrates institutional agility in adopting disruptive technologies rapidly, likely influenced by the current security environment and the pace of technological advancements. The system’s focus ... - Loitering Munition Developments: Enhancing Precision Strike Apr 18, 2025
This article is part of our weekly DefenseTech Brief. Loitering munitions (LMs), which provide relatively low-cost precision strike capabilities with surveillance potential, continue to proliferate. Development efforts focus on increasing range, autonomy, and resilience. AeroShul to Develop Multi-Barrel Loitering Munition The Indian Army is leveraging domestic innovation, partnering with Gurugram-based startup AeroShul Technologies Pvt Ltd to develop a Multi-Barrel Loitering Munition (MBLM) system. This project, under the Defence Minister’s ADITI 2.0 initiative and the Innovations for Defence Excellence (iDEX) scheme, aims to convert existing artillery rocket systems, including the Pinaka Multiple Launch Rocket System (MLRS), into long-range precision strike platforms. The requirement specifies extending the range up to 500 kilometers, utilizing satellite-based command, control, and communication. The MBLM system will feature UAVs capable of loitering, surveillance, combat strikes, and post-strike damage assessment. Key features include salvo-launching, swarming capabilities, and onboard Artificial Intelligence (AI) applications. The inclusion of a minimum purchase quantity in the contract signals the Army’s firm intent to procure the system upon successful development, highlighting a strategy to enhance existing assets cost-effectively while integrating modern AI-driven capabilities. STARK introduces the Virtus OWE-V In Europe, German startup STARK announced that its “One Way Effector – Vertical” (OWE-V), also marketed as Virtus, has successfully demonstrated operational readiness during tests in Ukraine and is currently undergoing military qualification. This marks the company’s first public statement on the system’s capabilities demonstrated in a relevant operational environment. The OWE-V is a vertically launching and landing (VTOL) system weighing approximately 30 kg, designed to engage targets up to 100 km away. Its AI-supported control system enables real-time reaction to changing conditions and effectiveness in electronically contested environments, a critical factor given the prevalence of electronic warfare (EW) in conflicts like Ukraine. The system boasts a 60-minute flight time, a 5 kg modular payload, cruise speed of 120 km/h ... - Integrating Intelligence into Unmanned Systems Apr 18, 2025
This article is part of our weekly DefenseTech Brief. The integration of artificial intelligence (AI) and autonomous capabilities into military platforms and software continues at a rapid pace, aiming to enhance operational effectiveness, reduce personnel workload, and enable novel concepts of operation across different domains. In ground systems, Overland AI, initially known for its OverDrive autonomy software stack utilized in various military unmanned ground vehicles (UGVs) like the Textron Ripsaw and General Dynamics S-MET, is now producing its own UGV, the “Ultra”. Designed for logistical support roles such as supply transport, communications enhancement, and drone launching, several Ultra units are reportedly already undergoing military testing. This move signifies the maturation of specialized autonomy software providers, who may potentially expand into integrated hardware solutions, meeting the growing demand for versatile autonomous ground support platforms in the military. Major platform integrators are also deepening their focus on software and AI through strategic partnerships. General Dynamics Land Systems (GDLS) announced several new collaborations to bolster its combat capabilities. These include partnerships with Applied Intuition for expertise in autonomy and software-defined vehicles, Palantir Technologies for data fusion and user experience, GD Mission Systems and GD Information Technology (GDIT) for AI, cybersecurity, digital engineering, and quantum technology, and Strategic Technology Consulting (STC) for advanced Model Based Systems Engineering (MBSE). This reflects a strategic approach by GDLS to leverage specialized expertise from across the industry, highlighting the centrality of software, AI, data fusion, and digital engineering in developing future ground combat systems and fostering an ecosystem for innovation. The US Army is embracing advanced simulation for integrating complex AI systems. To incorporate an AI-powered anti-drone capability, the AI Target Detection and Recognition system (AiTDR), into the future XM30 combat vehicle (a replacement for the Bradley), the Army is using Duality AI’s Falcon digital simulation platform. This “digital-first” strategy uses Falcon’s digital ... - Rocket Systems & Production Dynamics: Meeting Surging Demand Apr 18, 2025
This article is part of our weekly DefenseTech Brief. The critical role of long-range precision fires, particularly Multiple Launch Rocket Systems (MLRS), demonstrated in recent conflicts, continues to drive significant activity in production and international cooperation. Global demand for proven systems is surging, prompting manufacturers to increase output and nations to bolster sovereign capabilities through procurement and industrial partnerships. Reflecting this demand, Lockheed Martin confirmed it produced 96 M142 High Mobility Artillery Rocket System (HIMARS) units over the past year, effectively doubling its previous annual production rate. This ramp-up, directly influenced by the system’s combat effectiveness observed in Ukraine and elsewhere, allows the company not only to meet growing global orders but also to accelerate deliveries for existing contracts and offer more favorable schedules for new agreements. This development underscores the responsiveness of the US defense industrial base to urgent global requirements and solidifies HIMARS’ position as a central element in modern artillery doctrine. Simultaneously, nations are pursuing long-term strategies to enhance domestic defense manufacturing. Poland finalized a significant contract with South Korea’s Hanwha Aerospace to establish local production of guided missiles for its K239 Chunmoo MLRS variant, designated HOMAR-K. The agreement, involving Hanwha and WB Electronics (a subsidiary of Poland’s WB Group), specifically covers the 80-kilometer-range CGR-80 guided missile. WB Group anticipates producing the first Polish-made long-range precision missiles within three years, aligning with previous statements targeting local manufacturing commencement by 2029. This contract builds upon a series of substantial procurements by Poland from Hanwha, including initial agreements for 290 Chunmoo systems in 2022, a follow-on contract for 218 systems later that year, and an April 2024 deal for 72 additional launchers along with both CGR-80 and longer-range 290km CTM-290 missiles. The move towards local missile production signifies a deeper level of industrial cooperation and a major step in Poland’s strategy to enhance ... - Moving Forward With Golden Dome for America Missile Defense Initiative Apr 18, 2025
This article is part of our weekly DefenseTech Brief. A significant new defense initiative, dubbed “Golden Dome for America,” was launched on January 27 by President Donald Trump via an executive order, aiming to develop a comprehensive missile defense shield for the U.S. homeland. The initiative seeks protection against a range of aerial threats, including ballistic, hypersonic, and cruise missiles. The name, initially “Iron Dome for America,” evokes Israel’s successful short-range rocket defense system. However, the US concept involves a far more complex and multi-layered approach, heavily reliant on space-based assets. The Pentagon is currently in the early stages of evaluating options, having received more than 360 responses to a request for information from industry. The proposed architecture centers on constellations of satellites in low-Earth orbit. This includes a “custody layer” for detecting and tracking missiles, and potentially a separate “attack layer” of space-based interceptors armed with kinetic kill vehicles, missiles, or lasers to neutralize threats, possibly during their boost phase. This revives concepts similar to the Reagan-era Strategic Defense Initiative (SDI), also known as “Star Wars”. Elon Musk’s SpaceX, reportedly partnering with software firm Palantir and drone-builder Anduril, has emerged as a frontrunner for developing key parts of the Golden Dome, particularly the custody layer. This consortium has pitched a plan involving 400 to over 1,000 sensing satellites. SpaceX’s existing launch capabilities and potentially adaptable satellite technology are seen as advantages for meeting accelerated deployment timelines called for by the administration. Unusually, SpaceX has proposed structuring its involvement as a “subscription service,” where the government pays for access rather than owning the system outright. This approach can potentially speed up deployment but raises concerns about long-term control and costs. Traditional defense contractors, such as Lockheed Martin, Northrop Grumman, Boeing, and RTX, are also expected to be major players. Lockheed Martin, for instance, is ... - DefenseTech Brief – Week Ending April 13, 2025 Apr 13, 2025
US Defense Acquisition & Export Reforms Gain Momentum Recent executive actions signal a renewed push to reform the US defense acquisition system and streamline Foreign Military Sales (FMS). Signed by President Trump earlier this week, the directives aim to prioritize speed, flexibility, and execution in defense procurement. Key aspects include mandating reviews of major defense programs, encouraging the use of commercial solutions and Other Transaction Authority (OTA), and developing plans to reduce regulatory burdens. The administration is also focused on revitalizing US maritime industries. The overall goal is to accelerate innovation and improve defense trade with allies. Investor Takeaway: Companies excelling in rapid development, integrating commercial technology, and possessing strong FMS/international partnership capabilities may see advantages. Monitor firms with successful OTA contracts and those aligned with maritime revitalization efforts. Read this week’s DefenseTech Brief “Golden Dome for America” Initiative Takes Shape Inspired by Israel’s Iron Dome, the “Golden Dome for America” initiative aims to create a comprehensive, next-generation missile defense shield for the US homeland against ballistic, cruise, hypersonic missiles, and drone swarms. Plans involve integrating existing systems with advanced technologies, potentially including space-based assets. Lockheed Martin is prominently involved. The Pentagon is actively planning to shift funds from non-lethal programs for this “Manhattan Project-scale” effort, with a comprehensive plan expected soon. Investor Takeaway: Represents a potentially massive, long-term investment area. Prime contractors (like Lockheed Martin) and specialists in C4ISR, advanced radars (including space-based), interceptors, directed energy, and secure networking stand to benefit significantly. High-tech innovators focused on missile defense are key. Nevertheless, participants are advised to be cautious, as this uber-mega project has little chance to endure beyond the four years of the Trump administration. Trade Wars & Sanctions Squeeze Critical Mineral Supply Chains The defense sector faces growing pressure from disruptions in critical mineral supply chains, exacerbated by US tariffs (including on Canadian minerals) and ...
Research Focus: The Pakistani Defense Industry to 2016
Pakistan is a major non-NATO ally of the US and a significant collaborator with China in the area of defense development. The annual increases in the Pakistani defense budget are largely due to the country’s long-standing territorial dispute with neighboring India and the internal instability caused by radical terrorist groups. Furthermore, the country receives substantial military aid from the US for its participation in the ‘war on terror’, which is used to procure advanced fighter jets and missile systems.
Over the forecast period Pakistan is expected to make procurements in areas such as submarines and submarine technology, drones for attack-grade unmanned aerial vehicles (UAVs), surveillance equipment and satellites for ground monitoring, fighter jets and associated support systems, air-to-air missile systems, attack helicopters and engines for the development of aerial refueling aircraft.
Pakistan has been subjected to more than 5,000 terrorist attacks in the past five years, which have not only resulted in the death of many civilians, but have also adversely affected the country’s economy as several foreign companies have ceased operations and new ones are reluctant to establish new business.
Historically, US defense firms have entered the Pakistani defense industry through government initiated foreign military sales. Furthermore, Pakistan promotes the joint development of defense systems, which has resulted in a number of joint ventures with Chinese and German companies in areas such as submarines, trainer aircraft, fighter jets and UAVs.
For more information on “The Pakistani Defense Industry to 2016″ (product ID: # Defense-Update DF0066MR Request for Quotation). The report is available in electronic form from ICD. Single User License costs: $1,250.-
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