The global defense technology landscape has entered a period of accelerated transformation, shaped by intensifying geopolitical threats, battlefield-driven innovation, and increasing fiscal complexity. The ongoing war in Ukraine remains a crucible for next-generation conflict, where attritable unmanned systems, electronic warfare, and counter-drone capabilities are no longer experimental but essential. This real-world testing ground is rapidly influencing global procurement priorities, with nations across Europe and the Indo-Pacific launching large-scale modernization programs and sovereign capability roadmaps.
Amid this volatile environment, the defense sector is bifurcating into two dominant arenas: one centered on software-defined, high-volume technologies like counter-UAS and AI-enabled command systems; the other on capital-intensive programs such as hypersonic weapons and long-range precision strike capabilities. Together, these areas now define the strategic high ground in the global defense competition.
At the core of this transformation is the ascendance of agile, venture-backed companies—often referred to as “neoprimes”—which are beginning to eclipse traditional primes in critical technological areas. Firms like Anduril and Palantir are redefining the competitive landscape by rapidly fielding software-centric, scalable capabilities that address urgent operational gaps. Anduril’s displacement of Northrop Grumman as the U.S. Army’s next-generation C-UAS fire control provider stands as a landmark moment, signaling that market incumbency is no longer a reliable predictor of future dominance.
Simultaneously, the industry is undergoing significant structural change through mergers and acquisitions. Boeing’s vertical integration via the Spirit AeroSystems acquisition, AeroVironment’s merger with BlueHalo, and Molex’s purchase of Smiths Interconnect all reflect a common strategic imperative: control the supply chain, secure proprietary technology, and build integrated capability stacks that span platforms, payloads, and software.
In parallel, the U.S. hypersonic weapons enterprise is gaining operational traction. The Army’s “Dark Eagle” system is expected to field its first fully loaded battery by the end of 2025, a notable milestone in the race to counter Chinese and Russian hypersonic capabilities. This accelerated development cycle marks a broader shift in Pentagon acquisition, which increasingly values speed and adaptability over legacy processes.
Internationally, U.S. allies are acting with urgency to establish sovereign defense capabilities. Taiwan is building a fully integrated air defense architecture with the “T-Dome” initiative, Japan is extending the range and lethality of its missile systems, and the EU is pursuing a continent-wide “drone wall” to counter Russian incursions. These moves underscore a shared recognition that tomorrow’s threats demand both indigenous innovation and tighter industrial partnerships with firms capable of rapid adaptation.
Despite budgetary turbulence within the U.S. domestic landscape—including the looming risk of government shutdowns—the underlying demand for advanced defense technologies remains robust. Long-term procurement programs, such as the $151 billion SHIELD missile defense initiative, continue to move forward, ensuring that the sector remains a growth market for both incumbents and insurgents.
The strategic picture that emerges is one of a fundamentally reshaped defense industrial base—one that favors innovation, speed, and vertical integration. Competitive advantage is shifting decisively toward those who can master software-defined warfare, deliver scalable solutions, and navigate the evolving alliance landscape. In this new era, agility is not merely a differentiator; it is a prerequisite for survival and success.
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Listen to or download the “Drone Wall” report to explore the intelligence, analysis, and market insights shaping Europe’s new air defense architecture.
In early October 2025, a coordinated wave of unmanned aerial system (UAS) incursions—widely attributed to Russia—targeted critical infrastructure across at least ten European nations. The unprecedented campaign exposed the fragility of Europe’s air defenses and triggered a continent-wide response now known as the “Drone Wall” initiative.
The new report, Drone Wall: Europe’s Response to the October 2025 Drone Incursions, offers a detailed account of these events and their far-reaching implications for defense strategy, procurement, and industry dynamics. The report traces the evolution from initial attacks to the rapid formation of a unified European effort to counter the growing drone threat.
A Strategic Wake-Up Call
The October attacks underscored a new reality of hybrid warfare: adversaries can achieve strategic effects using low-cost drones that overwhelm traditional defenses. Expensive missile systems and fighter aircraft were forced into reactive roles—unsustainable against swarms of expendable aerial threats.
The Drone Wall initiative emerged as a direct response. Backed by the European Commission, NATO, and several EU member states, the program aims to establish a multi-layered, networked defense grid across the continent, integrating detection, electronic warfare, and kinetic interception capabilities.
Inside the Report
The Drone Wall study examines:
The chronology and scope of the European drone incursion campaign.
The tactics, systems, and motivations behind the attacks.
The operational and psychological impact on European states.
Identified defense gaps and the architecture of the “Drone Wall” response.
The complex procurement framework involves the EU, member states, and NATO.
Market opportunities for counter-UAS (C-UAS) systems, radars, and C2 integration.
Industry Implications
The creation of the Drone Wall represents the most significant market opportunity for C-UAS technology in a generation. Demand is rising for integrated, affordable, and scalable systems capable of delivering the full kill chain—from detection to interception—within networked command-and-control frameworks.
Firms that can offer cost-effective, multi-layered, and interoperable solutions, or partner with local European manufacturers, stand to benefit most. The report highlights the importance of collaboration with Ukrainian companies, whose frontline experience provides valuable insight into countering evolving drone tactics.
Why It Matters
The European “Drone Wall” will reshape defense cooperation, funding, and industrial alignment across the continent. For policymakers, defense contractors, and investors, understanding its structure and decision-making process is essential to identifying where real opportunities lie.
Listen to or download the “Drone Wall” report to explore the intelligence, analysis, and market insights shaping Europe’s new air defense architecture.
J-35 5Gen fighter takes off from the flight deck of China's new aircraft carrier Fujian.
Executive Summary
The past week (September 18-25, 2025) represents an inflection point where strategic defense concepts have transitioned from doctrine to tangible reality. An analysis of global events reveals four primary, interconnected trends shaping an increasingly contested international order.
#1 – European defense postures are materially hardening, with a strategic shift from deterrence by reinforcement to deterrence by denial, led by Germany’s military expansion and a firmer NATO stance on airspace violations.
#2 – the character of future warfare is rapidly maturing, driven by the industrial-scale development of collaborative combat aircraft (CCAs), the democratization of long-range precision strike capabilities, and a doctrinal revolution in armored warfare inspired by the conflict in Ukraine.
#3 – The Middle East is undergoing a profound realignment of security partnerships, catalyzed by Israeli technological breakthroughs in laser defense and a crisis of confidence in the U.S. security umbrella, culminating in a historic mutual defense pact between Saudi Arabia and Pakistan.
#4 – The Indo-Pacific theater is characterized by a sharpening of strategic competition, with the U.S. and its allies operationalizing new trilateral security structures while China intensifies its multifaceted campaign of coercion against Taiwan. Underpinning these shifts is a renewed global focus on the industrial and organizational foundations of military power, signaling that nations are now making the hard investments and difficult choices required to posture for a more dangerous and uncertain future.
National Harbor, Md. — At the Air, Space & Cyber (AS&C) Conference, U.S. Air Force and Space Force leaders unveiled updates on modernization efforts, from sixth-generation fighters to space surveillance satellites. This review is based on Pleronix’s OSINT news alerts and reports, which are available to subscribers.
The Air Force confirmed that Boeing has begun building the F-47 Next Generation Air Dominance (NGAD) fighter, which is slated for its first flight in 2028. Designed to replace the F-22, the aircraft promises extended range, Mach 2-plus speeds, and advanced stealth, with a goal of acquiring at least 185 jets.
Northrop Grumman’s B-21 Raider bomber expanded testing as a second prototype flew in September. Congress has added $4.5 billion in funding, although commanders have warned that the Air Force may need 145 aircraft to sustain operations in the Pacific.
The Sentinel ICBM program, plagued by an 81% cost overrun, was restructured and capped at $141 billion, with fielding delayed until at least 2027. Meanwhile, the Next Generation Air-Refueling System remains undefined, with options ranging from conventional designs to stealth tankers.
Unmanned systems are gaining traction. General Atomics flew its YFQ-42A Loyal Wingman in August, while Anduril’s Fury drone is scheduled to fly semi-autonomously by October. AI copilots from GE and Merlin Labs may soon ease workloads in tankers and transports.
Air Force Secretary Troy E. Meink warned of severe readiness shortfalls and stressed that China’s rapid military innovation is the service’s pacing challenge.
Other highlights included progress on directed energy weapons, the debut of Radia’s WindRunner strategic airlifter, and Space Force’s new Future Operating Environment plan for the next 15 years.
The D3 prototype on display at TADTE 2025 mounted a 105mm Mobile Gun that features a low-recoil 105mm cannon, paired with an advanced recoil mechanism, which significantly reduces recoil forces by over 70% (from 60 tons to less than 20). Max speed 100 km/h. The weapon’s combat range is 1500 – 2500 m, range: 500 km, 12,7mm HMG, 7.62mm coax.
The Taipei Aerospace & Defense Technology Exhibition (TADTE) 2025 crystallized around four dominant strategic themes that collectively illustrate Taiwan’s comprehensive approach to defense modernization amid escalating regional tensions. This report is published in association with Pleronix, providing personalized business intelligence services for defense professionals and enterprises worldwide.
The mid-tier interceptor of the Tien Kung III surface-to-air missile system is on display at TADTE 2025.
Indigenous Defense and Self-Reliance
The most prominent theme was Taiwan’s accelerated pursuit of defense self-sufficiency, showcased through historic indigenous achievements. CSBC Corporation’s unveiling of the Hai Kun submarine represented a landmark milestone as Taiwan’s first domestically designed and built defense submarine. The National Chung-Shan Institute of Science and Technology (NCSIST) demonstrated this self-reliance momentum with the confirmation of mass production for the enhanced Tien Kung III surface-to-air missile system, alongside breakthrough platforms including the D3 105mm mobile gun system and Taiwan’s first electric autonomous reconnaissance-strike tactical vehicle.
This indigenous focus extends across all defense domains, with major shipbuilders like CSBC, Lungteh Shipbuilding, Jong Shyn, and Corum making their exhibition debuts, displaying comprehensive unmanned naval platforms. The theme reflects a strategic imperative to reduce dependence on foreign suppliers while building sovereign defense capabilities.
This land-mobile AESA radar system is the primary sensor for the Taiwanese Tien Kung III surface-to-air missile system.
Unmanned Systems and Asymmetric Warfare
Unmanned platforms emerged as the centerpiece of the exhibition, representing Taiwan’s strategic pivot toward asymmetric warfare capabilities. This theme permeated all domains—air, sea, and land—with innovations ranging from loitering munitions to extra-large uncrewed underwater vehicles. The government’s commitment to this theme includes procuring up to 100,000 unmanned aircraft systems and investing NT$68 billion in coast guard unmanned vehicles.
Key demonstrations included GeoFly Technology’s TU-30VG VTOL UAV, CSBC’s Manta trimaran uncrewed surface vessel, and LungTeh Shipbuilding’s “Black Whale” program. This theme positions unmanned systems as both a technological force multiplier and a strategic entry point for domestic companies into the defense supply chain.
Taiwan’s ‘Black Whale’ XLUUV unmanned submarine unveiled by LungTeh Shipbuilding at TADTE 2025
Civil-Military Technology Integration
A transformative theme emerged through Taiwan’s world-class electronics and ICT sectors, rapidly pivoting into defense applications. Companies like Qisda Group, Adlink Technology, Altek, and Ta Ya Electric demonstrated how civilian technological prowess translates into military-grade capabilities. This integration leverages Taiwan’s semiconductor expertise, precision manufacturing, and AI systems for communications, satellite systems, and intelligent control modules.
The theme represents a strategic advantage, enabling rapid development of sophisticated defense systems while utilizing Taiwan’s established industrial strengths. First-time exhibitors from the electronics sector showcased infrared imaging, AI-enabled target tracking, and superconductive materials for drone motors.
Anduril’s Barracuda 500 cruise missile on display at TADTE 2025.The American defense company Kratos Defense and Taiwan’s NCSIST unveiled a new cruise missile designed primarily for maritime operations.
International Collaboration and Strategic Partnerships
The final dominant theme centered on deepening international partnerships, particularly with the United States and emerging relationships with India. U.S. collaboration emphasized co-development and co-production agreements, including Anduril Industries’ Barracuda-500 underwater missile partnership with NCSIST and AeroVironment’s collaboration on autonomous systems.
The breakthrough India-Taiwan space corridor represented a new strategic dimension, with five Indian space startups participating for the first time. Companies like Kepler Aerospace and Insight360.ai offer complementary satellite and AI intelligence capabilities that align with Taiwan’s hardware expertise, creating mutually beneficial security partnerships.
These four themes—indigenous development, unmanned asymmetric capabilities, civil-military integration, and international partnerships – collectively define Taiwan’s comprehensive defense modernization strategy. They reflect lessons learned from recent conflicts, particularly Ukraine, while addressing the specific challenges of Taiwan’s geopolitical environment through technological innovation and strategic alliances.
NCSIST electric-powered autonomous recconaissance-strike tactical wheeled vehicleThe NCSIST electric-powered autonomous reconnaissance-strike tactical wheeled vehicle on display at TADTE 2025 was equipped with a remotely controlled weapon station mounting a 12.7mm machine gun and a drone launcher capable of launching six Iron Horse drones.
NCSIST displayed at TADTE 2025 an electric-powered autonomous recconaissance-strike tactical wheeled vehicle featuring an electric drive system with high energy efficiency and strong environmental adaptability. The autonomous driving system is equipped with functions such as autonomous driving, convoy following, and obstacle avoidance. In terms of reconnaissance mission execution and weapon payload capability, it features a wireless datalink for image transmission and remote control. The electric motor delivers 360 hp with immediate torque response dynamically distributed between the front and rear wheels. It is also compatible with hybrid propulsion systems.
The Iron Beam 450 beam director is designed to deliver over 100 kW of laser energy over 10 km, focusing its energy on a coin-sized target. Image: IMOD
Israel has reached a significant milestone in its efforts to modernize its air defense. After years of development and a series of successful tests, the Iron Beam 450 high-power laser system has completed its final trials, signaling the start of a new era in cost-effective, precision air defense.
Jointly developed by Rafael Advanced Defense Systems, the Israeli Air Force, and the Israel Ministry of Defense’s (IMOD) Directorate of Defense Research & Development (DDR&D), the Iron Beam project has now transitioned from R&D to production. Backed by over $500 million in government funding, Rafael is preparing to deliver the first operational Iron Beam systems to the Israel Defense Forces (IDF) before the end of 2025.
The Iron Beam is configured as a self-supported, relocatable system, housed in an ISO container-sized module with an adjacent electrical generator. Photo: IMOD
Precision Interception with Game-Changing Cost Efficiency
The Iron Beam 450 is a ground-based, high-energy laser system designed to intercept a wide spectrum of aerial threats, including rockets, mortars, and unmanned aerial systems (UAS). In recent operational readiness tests at Rafael’s Shdema test range, the system demonstrated its full combat configuration, engaging targets with high precision in a variety of scenarios—including One-Way Attack (OWA) drone threats that have become increasingly common in modern combat zones.
Notably, the tests featured a dual-effector setup mounted on an ISO container platform. Only a single aim point was visible during engagements, indicating a high level of accuracy and beam stability even in multi-effector configurations, which is an important attribute for complex salvo scenarios.
Integrating Lasers into Israel’s Multi-Layered Defense Architecture
Designed to operate autonomously or in conjunction with the Iron Dome’s command and control systems, Iron Beam introduces a strategic shift by enabling low-cost intercepts without depleting expensive missile stockpiles. According to Brig. Gen. (Res.) Dr. Daniel Gold, head of DDR&D, “Combining laser and missile interceptors will significantly strengthen our defense envelope against rockets, missiles, UAVs, and emerging threats.”
The Iron Beam system is expected to reduce Israel’s cost per intercept for short-range threats significantly. While Iron Dome interceptors cost tens of thousands of dollars per shot, a single Iron Beam engagement may cost only a few dollars in electricity. This economic edge is especially vital during prolonged conflicts or saturation attacks, where traditional interceptor stocks could quickly run low.
Two Iron Beam 450 beam directors are operating in synch to deliver the Iron Beam’s 100 kW laser effect over a 10 km distance. Photo: IMOD
From Prototype to Production
This leap to operational readiness follows the system’s combat debut in 2024, during which earlier prototypes of Rafael’s tactical laser systems successfully neutralized dozens of airborne threats in ongoing conflicts. The Iron Beam 450 now builds on those battlefield lessons with increased power, range, and system integration. In October 2024, IMOD announced investments of $500 million in the production of the Iron Beam system. This amount was part of a $5.2 billion US military aid to bolster Israel’s air defense (the majority of the investment covers the replenishment of Arrow 3, David’s Sling Stunner, and Iron Dome’s Tamir interceptors). The majority of the funding is expected to be allocated to Rafael. At the same time, Elbit Systems announced that it had received approximately $200 million for the serial production of high-power lasers for the program.
“Rafael’s Iron Beam system will fundamentally change the defense landscape,” stated Rafael CEO Yoav Tourgeman. “It enables precise, rapid, and cost-effective interception unmatched by any existing system.”
Rafael is also investing in next-generation directed energy weapons, including higher-energy lasers with extended reach and faster engagement timelines. Among these future systems is the ‘Laser Dome’, based on Rafael’s adaptive optics, promising unprecedented strategic capabilities for Israel’s air and missile defense.
A Broader Vision for Directed Energy
With Iron Beam as its flagship, Israel is laying the groundwork for a broader deployment of directed energy across multiple operational domains. Tactical systems, such as Lite Beam and Iron Beam M, are already being designed to protect mobile forces and border installations. Long-term concepts also include airborne and mobile laser platforms to overcome visibility constraints, such as weather and smoke.
Brig. Gen. Yehuda Elmakayes of the DDR&D R&D Unit noted, “We’ve reached a point where high-power lasers are essential to Israel’s air defense array. Iron Beam is just the first step toward integrating directed energy weapons across all IDF defense systems.”
Implications for Global Defense Trends
The successful development and testing of Iron Beam reflect a broader global trend toward high-energy laser weapons as a core component of future warfare. With increasing drone saturation, the rise of precision-guided munitions, and the escalating cost of traditional interceptors, laser-based systems offer a strategic, scalable solution.
As Israel moves toward full deployment in 2025, the world will be watching closely to see how this pioneering system performs in real-world combat and influences defense postures beyond the Middle East.
At the MSPO defense exhibition, the WB Group introduced a comprehensive warfighting concept centered on the integration of manned, unmanned, and autonomous assets for intelligence gathering, situational awareness, precision targeting, and strike missions—both at close range and deep behind enemy lines.
The concept leverages WB Group’s existing portfolio, including the Gladius long-range loitering weapon, the Warmate family of short- and medium-range attack drones, and the FlyEye reconnaissance UAV. At its core is the new Future Task Force (FTF), an integrated manned-unmanned formation that combines unmanned ground vehicles, loitering weapons, and mine-scattering capabilities into a cohesive operational framework.
Addressing Force Restructuring
The FTF concept aligns with the Polish Army’s plan to reduce the size of armored and mechanized battalions from 58 armored fighting vehicles (AFVs) to 44. By introducing a manned-unmanned combat team in place of one company, the FTF could preserve the battalion’s overall firepower and combat effectiveness. The hybrid structure is designed to autonomously dominate sectors of the front line or flank up to 50 km deep, while significantly reducing manpower, vehicle, and logistical requirements.
The FTF ZMU and associated minelaying trailer (FTF MM) on display at MSPO. Photo: Defense-Update
Hybrid-Electric Combat Vehicle
The FTF relies on a new, optionally manned, hybrid-electric combat vehicle equipped with the ZMU-05 remote weapon station, which mounts advanced optronic sensors, a machine gun, and smoke grenade launchers. Mission modules can be carried on the vehicle itself or towed on a trailer, enabling flexible payload options including UAV launchers, loitering munition packs, or a mine-scattering system.
Its hybrid-electric drive provides silent operation and energy storage for sustained mobility and troop support. Operational control is maintained at distances of up to 50 km from the command post.
The Warmate launch module can be mounted on armored vehicles or UGV platforms; it can deploy reconnaissance (TL-R) or loitering weapon attack (TL-C) variants of the Warmate TL. Photo: Defense-Update
Warmate TL Family
A central element of the FTF is the Warmate TL (tube-launched) series.
Warmate TL-C: A loitering weapon fitted with modular warheads weighing up to 2 kg, including blast-fragmentation with an EFP insert, shaped-charge HEAT, and thermobaric options. It can loiter for 45 minutes and strike at speeds of 150–180 km/h.
Warmate TL-R: A reconnaissance variant using the same airframe, fitted with EO sensors in place of a warhead. It is recoverable via parachute and airbag, allowing payload reuse.
Launch tubes can be reloaded manually and made ready for use within 45 seconds, enabling rapid multi-drone operations for reconnaissance, attack, or communications relay.
The tube-launched Warmate TL-R unmanned recce system. Photo: WB GroupDifferent warheads designed for the Warmate loitering weapon include blast-fragmentation with an EFP insert, shaped-charge HEAT, and thermobaric options. The armor penetration capability is demonstrated below. Photo: Defense-UpdateThe minelaying trailer can autonomously scatter MN-123 under operator supervision two kilometers behind the line. Photo: Defense-Update
Minelaying and Future Modules
The trailer-mounted module currently employs MN-123 anti-tank mines, with future growth potential for missile launchers or other mission payloads.
All components are operated by a small team from a tactical vehicle, utilizing WB Group’s Topaz integrated combat management system. Integration with the EyeQ AI-enabled target acquisition suite allows real-time image processing and sensor fusion across drones, weapon stations, and observation platforms.
By fusing hybrid combat vehicles, loitering munitions, mine-scattering systems, and AI-enabled battle management, WB Group’s Future Task Force introduces a scalable solution for Poland’s evolving force structure. It aims to deliver autonomous combat power across extended battlespaces while reducing dependence on manpower and heavy mechanized assets.
The 33rd International Defence Industry Exhibition (MSPO), taking place from September 2 to 5, 2025, in Kielce, Poland, represents one of Europe’s most significant military transformations, as Poland leverages unprecedented defense spending to forge a new model of strategic autonomy.
With a defense budget projected to reach $48.7 billion in 2025—accounting for a significant 4.7% of GDP and the highest share among NATO allies—Poland has shifted from being solely a defense importer to a key market influencer. This financial strength is prompting a major change in how international defense contractors work with Warsaw, evolving from basic sales to full industrial partnerships.
Three Pillars of Polish Strategy
“Polonization” Doctrine: Poland is systematically demanding technology transfer and local production as non-negotiable elements of major contracts. Every significant procurement must contribute to building sovereign industrial capability, from ammunition factories to the assembly of complex platforms.
The Unmanned Revolution: Drawing lessons from Ukraine, Poland has created a dedicated Inspectorate of Unmanned Systems to quickly develop a “drone army.” This institutional innovation demonstrates a commitment to multi-domain unmanned operations across air, land, and sea.
Comprehensive Force Modernization: Massive programs are underway for the K2 Black Panther tanks, HIMARS and Homar-K rocket systems, Apache helicopters, and the strategic “Orka” submarine program, creating a modernization pipeline worth tens of billions.
Hanwha Ocean is presenting its KSS-III submarine as a solution for Poland’s Orka submarine program. Photo: Hanwha Ocean
Polish Industry Steps Forward
MSPO 2025 marks a critical inflection point for Poland’s domestic defense industry, showcasing the transition from research and development to serial production and the integration of complex systems. These programs are pursued by local industries and by joint ventures with international partners.
Polska Grupa Zbrojeniowa (PGZ) will showcase several new programs transitioning from development to full-scale production, including the first serial Borsuk amphibious IFV and Baobab-K mine-laying vehicle. A model of the future heavy CBWP infantry fighting vehicle, based on the K2PL chassis, reveals long-term armored force planning. Through its subsidiary Cenzin, PGZ will premiere new Heckler & Koch weapons, including the HK421 light machine gun and the HK G210 sniper rifle, alongside Polish-made unmanned systems from Spectre Defence Solutions, featuring VTOL UAVs and fixed-wing loitering munitions.
Baobab minelaying vehicle. Photo: PGZ
WB Group presents its “multi-domain unmanned revolution” through the “Future Task Force” concept, a networked ecosystem of manned and unmanned systems controlled by a unified command architecture. New systems include enhanced Warmate loitering munitions and the X-FRONTER reconnaissance drone.
One of the most anticipated developments expected this week is the formal establishment of a WB Group-Hanwha joint venture for domestic missile production—creating Poland’s first sovereign guided munitions capability. Additional contract signings and industrial agreements are expected, building on the $515 million in announced deals for 2024.
Rosomak S.A.: The Legwan 4×4 Light Reconnaissance Vehicle program exemplifies a successful “Polonization” strategy. Based on South Korea’s proven KLTV platform from KIA Corporation, the program involves significant local production, assembly, and system integration by Rosomak in Poland. MSPO 2025 is expected to witness the signing of new annexes formalizing the industrial plan for nearly 400 vehicles, solidifying long-term partnerships and anchoring supply chains in Poland.
MSPO 2025 illustrates a fundamental shift in global defense market engagement with Poland. The absence of a single designated “Lead Nation”, departing from previous years’ focus on countries like South Korea (2023) or the USA (2019), signals Poland’s multi-vector partnership strategy designed to maintain maximum negotiating leverage.
The K2PL tank variant designed for local production in Poland includes active protection systems, here illustrated by Rafael’s Eurotrophy APS. (Photo: Rafael)
Strategic Significance
MSPO 2025 demonstrates that Poland has successfully leveraged financial power to achieve genuine strategic autonomy while maintaining NATO integration. The technologies, partnerships, and contracts emerging from Kielce will reshape European defense supply chains and establish new benchmarks for international industrial cooperation.
With over 800 companies from 35+ countries converging on 40,000 square meters of exhibition space, MSPO 2025 confirms Poland’s emergence as both a military and industrial powerhouse—one whose transformation will influence European security architecture for decades to come.
Turkey’s extensive military modernization has established the country as a key emerging player in Middle Eastern geopolitics, as evident at the 2025 IDEF defense exhibition in Istanbul. Held from July 22 to 27, the event showcased Turkey’s rapidly growing military-industrial capabilities and strategic goals, which extend from the Caucasus to the Red Sea.
Defense Export Success Drives Strategic Autonomy
Turkey now ranks 11th globally in defense exports, generating $7.1 billion in sales during 2024, marking a 29% increase from the previous year. The country’s defense sector employs 95,000 workers across 3,500 companies, with about 80% of Turkish military requirements now met domestically. This shift aligns with President Erdoğan’s strategic goal of achieving full defense autonomy by 2030.
The Turkish government has set a clear goal: to be among the world’s top 30 defense exporters by the end of the decade. Five Turkish companies are now listed in Defense News Top 100, including Aselsan at 42nd and Turkish Aerospace Industries (TAI) at 50th. Government investments and self-sufficiency initiatives have enabled Turkey to produce approximately 80% of its defense needs domestically.
Military Platforms Driving Regional Influence
The centerpiece of Turkey’s military modernization remains the Turkish Aerospace Industries’ (TAI) KAAN fifth-generation fighter jet, which is set to replace some of its F-16 fleet in the future. As an early partner in the program, Indonesia has already committed to purchasing 48 aircraft, and Egypt is considering cooperation to join the program. The ALTAY main battle tank, after years of development challenges, has finally entered serial production with BMC. Turkey’s unmanned aerial systems (UAS) capabilities, led by Baykar’s TB2 and AKINCI platforms, have demonstrated combat effectiveness across multiple theaters, including Ukraine, Syria, Libya, and Nagorno-Karabakh. Baykar’s international expansion has recently been boosted by the acquisition of Italian aviation company Piaggio and the LBA Joint Venture with Leonardo, dedicated to UAS development. This partnership leverages Baykar’s industry-leading unmanned platforms with Leonardo’s advanced electronics and radar systems. The planned 50-50 joint venture envisions drone assembly in Turkey, as well as at Leonardo facilities in Italy, which would facilitate certification for selling in a European market worth $100 billion over the next decade.
Regional Tensions Shape Defense Priorities
The recent conflict between Israel and Iran prompted President Erdoğan to focus on developing stronger deterrent capabilities. Turkey responded by unveiling its “STEEL DOME” multi-layered air defense system and the TAYFUN BLOCK-4 hypersonic ballistic missile. These advances show Turkey’s commitment to achieving military parity or advantage over regional powers.
The Steel Dome system, which relies solely on domestically produced assets, demonstrates Turkey’s commitment to independent airspace security, developed specifically in response to regional tensions. President Erdoğan has stressed the importance of improving deterrence capabilities against perceived regional threats.
Turkey’s naval power has grown significantly, with shipyards producing advanced frigates, corvettes, and helicopter carriers. This naval strength supports strategic interests in contested Eastern Mediterranean waters, where disputes with Greece, Cyprus, and Egypt involve maritime borders and energy resources.
The export of naval platforms has become a key part of Turkey’s diplomatic efforts, particularly in Southeast Asia, through major agreements with Indonesia and Malaysia. Turkey is also increasing its influence in Africa, exemplified by its donation of COBRA armored vehicles to Zambia as part of a broader strategic relationship-building effort on the continent.
A notable development at IDEF 2025 was the improvement in the relationship with Syria. A large delegation from the Syrian Ministry of Defense attended the exhibition. High-level discussions led to Syrian requests for Turkish assistance in maintaining territorial integrity and rebuilding their military. This growing alliance positions Turkey as a key power broker in post-conflict Syria, potentially reducing Iranian influence and creating new strategic realities on Israel’s northern border.
The war in Ukraine has served as both a showcase and a laboratory for Turkish defense industry capabilities. The combat-proven effectiveness of platforms like the Bayraktar TB2 has cemented its global reputation. Turkey has also adapted several models of Ukraine’s Unmanned Surface Attack boats, which were successfully used against the Russian navy in the Black Sea. Turkish defense firms are analyzing lessons from conflicts, driving significant investment in autonomous systems, including unmanned ground vehicles, “Loyal Wingman” drone concepts under Project OKU, and various electronic warfare systems and techniques that have evolved from lessons learned from the conflict.
Recognizing the vulnerabilities of manned platforms, Turkey emphasizes the development of autonomous systems within a fully integrated ecosystem of platforms, propulsion, weapons, and avionics optimized for unmanned and autonomous operations. The conflict highlighted the need for UAS survivability, leading companies like ASELSAN to develop advanced electronic warfare pods. This demonstrates Turkey’s commitment to updating technology in line with modern battlefield realities.
Strategic Implications
Turkey’s extensive military buildup, including the development of fifth-generation fighters and hypersonic missiles, along with the cultivation of strategic alliances in Syria, northern and eastern Africa, and the Arabian Gulf, reflects a calculated strategy. At the same time, Turkey expands its alliances and security relationships with countries regionally and globally, through naval port calls, donations of military equipment, security and military training, aid, and the establishment of military bases and other measures.
Government involvement in strategic military export deals is increasing, especially in key markets such as Europe, the Caucasus, the Arabian Gulf, and East Asia. The country is shifting from a regional NATO partner to a self-reliant, top-tier military power capable of influencing multi-continental events. Through developing its domestic defense industry, forming strategic partnerships, and modernizing its military, Turkey is positioning itself as a major regional power with influence extending far beyond its traditional areas.
Toward a future of BVLOS, crewed and uncrewed drones. (AI Illustration)
On June 6, 2025, President Donald J. Trump signed an executive order that marks a decisive shift in the United States’ approach to unmanned aircraft systems (UAS)—commonly known as drones—and the emerging field of electric vertical takeoff and landing (eVTOL) aircraft. The order, titled “Unleashing American Drone Dominance,” is designed to accelerate the safe commercialization and integration of these technologies into the national airspace, while strengthening the domestic industrial base and expanding the export of trusted, American-made drone technologies.
The executive order begins by recognizing the transformative potential of drones across a wide range of industries, including logistics, infrastructure inspection, precision agriculture, emergency response, and public safety. The document highlights that emerging technologies such as electric Vertical Takeoff and Landing (eVTOL) aircraft are poised to modernize cargo delivery, passenger transport, and advanced air mobility. To maintain global leadership, the order calls for accelerated testing, routine drone operations, and the scaling up of domestic production—all aimed at reducing reliance on foreign sources and ensuring the benefits of this technology reach the American people.
New Ruling on BVLOS Drones Operations
For federal agencies, the order sets forth a clear and ambitious policy framework. It directs the Federal Aviation Administration (FAA) to issue a proposed rule within 30 days enabling routine Beyond Visual Line of Sight (BVLOS) operations for commercial and public safety drones, with a final rule to follow within 240 days. This rapid timeline is intended to address longstanding regulatory bottlenecks and unlock new opportunities for drone applications. The FAA is also required to establish clear metrics for assessing the performance and safety of Beyond Visual Line of Sight (BVLOS) operations and to identify any additional regulatory barriers, providing recommendations for legislative or rulemaking action. Within 120 days, the FAA must deploy artificial intelligence tools to expedite the review of UAS waiver applications, streamlining the approval process and reducing administrative burdens for operators.
Pilot Program for eVTOL Operations
The order further mandates the establishment of an eVTOL Integration Pilot Program (eIPP), an extension of the BEYOND program, to accelerate the deployment of safe and lawful eVTOL operations. State, local, tribal, and territorial governments are invited to submit proposals within 90 days, with private sector partners required for each project. At least five pilot projects will be selected within 180 days, focusing on advanced air mobility, medical response, cargo transport, and rural access. These projects are expected to begin operations quickly after selection, and the program will run for three years, with regular reports to inform future regulatory and legislative actions.
Establishing a US-Based Supply Chain
For industry players, the order represents a significant opportunity to expand commercial operations and innovate in both drone and eVTOL technologies. The emphasis on safe and secure manufacturing, production, and integration—along with reduced regulatory uncertainty and streamlined approvals—is expected to foster industry-led innovation and accelerate the commercialization of new applications. The order also prioritizes the integration of U.S.-manufactured drones and components over foreign alternatives, supporting the growth of a robust domestic industrial base. Export promotion is another key focus, with the Secretary of Commerce tasked with reviewing and, if necessary, amending export control regulations to facilitate the expedited export of American-made civil unmanned aerial systems (UAS) to global markets.
Defense & Security Implications
From a defense and national security perspective, the order is equally consequential. The Department of Defense is directed to ensure that all platforms on the Defense Innovation Unit’s Blue UAS List can operate on military installations without requiring exceptions and to expand the list to include all compliant drones and critical components. Procurement of U.S.-made drones is prioritized, with exemptions granted only when absolutely necessary. The order also streamlines airspace access for UAS training and directs the military to identify programs that could be made more cost-efficient or lethal through the use of drones.
The public stands to benefit from these changes in several ways. The accelerated integration of drones and eVTOL aircraft into the national airspace will enable new services such as rapid medical response, efficient cargo delivery, and improved access to remote areas. The focus on domestic manufacturing and supply chain security will help ensure that the technology is safe, reliable, and free from foreign interference. Moreover, the order’s emphasis on routine advanced operations and public-private partnerships will create high-skilled jobs and stimulate economic growth nationwide.
By accelerating regulatory reform, fostering industry innovation, and strengthening national security, the order positions the United States to reap the full benefits of drone and eVTOL technologies—for agencies, industry, defense, and the public alike. The implications are far-reaching, setting the stage for a new era of advanced air mobility and technological sovereignty.
This week in the defense technology sector is marked by significant international partnerships, advancements in unmanned systems, and substantial investments in next-generation capabilities. From major naval contracts in the Middle East to the expansion of fifth-generation fighter jet fleets in Asia, these developments underscore key trends for industry stakeholders, highlighting the growing importance of interoperability and strategic industrial partnerships.
Revamping UAS & eVTOL Market Dominance?
On June 6, 2025, President Donald J. Trump signed an executive order that marks a decisive shift in the United States’ approach to unmanned aircraft systems (UAS)—commonly known as drones—and the emerging field of electric vertical takeoff and landing (eVTOL) aircraft. The order, titled “Unleashing American Drone Dominance,” is designed to accelerate the safe commercialization and integration of these technologies into the national airspace while strengthening the domestic industrial base and expanding the export of trusted, American-made drone technologies. In our coverage, we discuss the goals, timeline, and implications of this action. (Read our analysis)
Aerospace & Counter-UAS
In the air domain, several procurements and upgrades reflect the growing emphasis on fifth-generation platforms, tanker capacity, and counter-UAS munitions.
China offers Pakistan the Shenyang FC-31 (J-35A) 5Gen fighters.
FC-31/J-35A Fifth-Gen Fighters for Pakistan
China is reportedly finalizing delivery of its Shenyang FC-31 (J-35A) fifth-generation fighter jets to Pakistan within months, marking Islamabad’s first operational stealth-capable platform. According to some sources, these aircraft will carry PL-17 air-to-air missiles with a maximum range of 400 km, exceeding the PL-15 that successfully debuted in recent engagements with Indian fighters. The J-35A reportedly features an internal weapons bay, active electronically scanned array (AESA) radar, and low-observable coatings, making it the most modern combat jet in Pakistan’s inventory. Pakistan is also seeking to acquire long-range air defense systems from Turkey and China to improve its air defense by adding a higher tier against Indian missile attacks.
Indonesia Considers Used Chinese J-10 Fighters
Indonesia is evaluating the procurement of Used Chengdu J-10 multi-role fighters from China. If acquired, it will be its first major Chinese platform. The J-10 fleet aims to replace aging F-5 and F-16A/B models, filling capability gaps in air sovereignty and tactical strikes. For Beijing, these sales reinforce its role as a major exporter in Southeast Asia, even as Jakarta’s defense strategy balances U.S. and Russian legacy systems.
Turkey’s KC-46 Tanker Acquisition
Turkey is considering acquiring new aerial tankers, evaluating both Boeing KC-46A Pegasus and Airbus A330 MRTT. These tankers, will supplement and eventually replace its existing aerial refueling fleet (KC-135R).
Missiles for German F-35s
Germany will purchase Kongsberg Joint Strike Missiles (JSM) to equip its upcoming F-35A fleet, adding long-range, low-observable maritime strike capability to its missions. JSM integration underscores Berlin’s focus on deep-strike deterrence and interoperability with U.S. and NATO partners. The missile’s two-way datalink and sea-skimming profile will enhance Germany’s maritime interdiction and anti-access/area denial (A2/AD) operations in Northern Europe.
Air-Launched Rapid Response Weapon (ARRW) Revival The U.S. Air Force is planning to resume the development and testing of the AGM-183A ARRW hypersonic missile program in its Fiscal Year 2026 budget request—reviving a capability shelved in March 2023. ARRW utilizes boost-glide technology to achieve speeds exceeding Mach 5 and is slated for integration with the B-52H. This decision reflects a strategic pivot to diversify the U.S. hypersonic portfolio alongside the smaller Hypersonic Attack Cruise Missile (HACM).
DIRCM for Airbus A400M
Airbus contracted Elbit Systems to equip German A400M transport aircraft with Directional Infrared Countermeasure (DIRCM) systems. This deal leverages the J MUSIC DIRCM developed by the Israeli company, systems that have already been implemented in other NATO aircraft, including A400M, A330MRTT, and KC-390.
Alpha-Airbus Manned-Unmanned Teaming
The Alpha (Airborne) and Airbus are launching a joint initiative for a manned-unmanned teaming concept that integrates crewed helicopters with autonomous aerial platforms. The collaboration builds on recent joint exercises with the Spanish Army, including live demonstrations where Alpha’s A900 UAVs flew alongside Airbus H135 helicopters from the Spanish Air Force, with crews directly piloting the drones from the helicopter cockpits.
Naval Warfare
Deepsea Detection Escalates: China’s Submarine Tracking
According to open-source reporting, Chinese research facilities have developed undersea sensors capable of tracking submarine movements near Alaska—prompting a U.S. Navy “national alert” for improved counter-surveillance measures. This technology signals Beijing’s push to close the undersea detection gap in strategic waterways, heightening the urgency for U.S. and allied navies to invest in acoustic masking, unmanned sensor deployment, and enhanced antisubmarine warfare (ASW) tactics.
UUV Integration Milestone: USS Delaware
The U.S. Navy’s Virginia-class submarine USS Delaware successfully launched and recovered an unmanned underwater vehicle (UUV) through its torpedo tube—a first for any U.S. nuclear-powered submarine. This proof-of-concept signifies the deepening integration of UUVs into undersea warfare, enabling clandestine surveillance, mine countermeasures, and payload delivery without compromising the host submarine’s stealth. Observers expect this capability to accelerate the development of larger, fleet-wide UUV programs and shift undersea tactics toward networked, manned-unmanned task forces.
Danish Frigate Modernization Cancelled
Denmark’s Chief of Defence has recommended scrapping the planned upgrade to its Iver Huitfeldt-class frigates, citing escalating costs and uncertain capability benefits. The frigate encountered critical weapon and mission systems malfunctions during the ship’s deployment to the Red Sea in 2024. The cancellation of this mid-life modernization could leave the Royal Danish Navy reliant on older sensor and weapon systems, potentially affecting NATO’s Baltic maritime balance.
Abu Dhabi Ship Building (ADSB), EDGE Group’s naval arm and the UAE’s leading shipbuilder, has been selected as the build subcontractor for the Falaj3 program for Kuwait. (Illustration: ADSB)
ADSB to Build Falaj3-Class Missile Boats for Kuwait for $2.4 Bn.
In a landmark export, UAE-based EDGE Group won an AED 9 Billion ($2.4 billion) contract to supply Falaj3-class missile boats and Offshore Patrol Vessels (OPVs) to the Kuwaiti Navy. Abu Dhabi Ship Building (ADSB), EDGE Group’s naval arm and the UAE’s leading shipbuilder, has been selected as the build subcontractor for the program. FALAJ3 is a 62-meter vessel designed for operation in littoral and blue waters. This deal—one of the largest ever for a Middle Eastern shipbuilder—underscores the region’s growing ambition to develop indigenous naval platforms and expand its influence in Gulf security architectures.
Defense Investment & Industrial Cooperation
Joint programs and industrial partnerships are driving scale and interoperability across multiple domains.
Latvia and Estonia Acquire Advanced Anti-Tank Missiles
Latvia finalized the procurement of Israeli Spike anti-tank guided missiles (ATGMs), with German forces to coordinate logistical transit. Spike’s tandem warhead and fire-and-update features enhance Latvia’s deterrent against armored threats on NATO’s eastern front. The Latvian decision comes in contrast to Spain’s announcement to suspend an order worth €285 million for 168 Spike LR2 missile systems motivated by political anti-Israeli pressure. The Spanish Army already uses thousands of Spike missiles, and replacing them would negatively impact combat readiness and capabilities, as such missiles are not readily available for procurement in the short term. The U.S. State Department authorized the sale of FGM-148 Javelin ATGMs to Estonia, continuing a program to bolster Baltic defense against potential aggression. Leveraging fire-and-forget technology, Javelin complements Spike in strengthening anti-tank defenses across the Baltic nations bordering Russia.
EU SAFE Defense Investment Program
The European Union unveiled a €150 billion joint defense program—dubbed the “Strategic Autonomy Framework for Europe” (SAFE)—designed to accelerate research, procurement, and cross-border collaboration among member states. SAFE allocates funding for dual-use technology, next-generation combat systems, and cybersecurity resilience. By pooling national budgets, the initiative aims to narrow capability gaps and reduce fragmentation in defense research and development.
Dassault Assigns Rafale Fuselage Production to TATA in India Dassault Aviation partnered with Tata Advanced Systems to establish a Rafale fuselage production facility in Hyderabad; Tata will set up a production facility in the southern city of Hyderabad to manufacture key structural sections of the Rafale. The joint venture leverages India’s offset obligations and advances Modi’s “Make in India” initiative, with first deliveries slated for 2028. Apparently, in joining TATA, Dassault relinquished its plans to expand cooperation with India’s Reliance group, which was established in 2017 to support offsets for the first acquisition of 36 Rafale aircraft.
Vantage ATS undergoing firing tests in Australia. (Photo: BAE Systems)
Research & Development
ATLAS CCV: Live-Fire Validation
BAE Systems Australia validated its ATLAS Collaborative Combat Vehicle (CCV) by live-firing the Vantage unmanned turret. The Vantage turret—equipped with a stabilized 25 mm M242 Bushmaster cannon and modular mission payloads—leverages an existing medium‐caliber weapon while leveraging robotics to enable teleoperated or autonomous operation and increase battlefield persistence.
MAXAR-SAAB Space-Based Imagery Collaboration
MAXAR Intelligence and Saab collaborate in the development of image-based positioning and navigation capability, utilizing MAXAR’s geospatial intelligence to develop GPS-resilient navigation and targeting capabilities. The initiative aims to develop robust and intelligent systems that can operate effectively even in GPS-denied environments, thereby enhancing operational capabilities on the modern battlefield.
Warfighter Cognition Monitor
The Department of Defense is advancing a “Warfighter Cognitive Health” program, deploying wearable sensors and AI analytics to track cognitive load, stress, and fatigue in high‐intensity training and deployment settings. By correlating biometrics (EEG, heart rate variability) with performance metrics, the program aims to identify cognitive degradation and recommend tailored interventions pre-emptively. Eventually, this data could be integrated into mission-planning suites to balance task assignments and mitigate human error.
DefenseTech Business
Anduril Raises $2.5 Billion to Scale Defense Manufacturing.
CNBC reported that Anduril Industries has secured $2.5 billion in a late-stage funding round that boosts its valuation to $30.5 billion—double its August 2024 valuation—underscoring investor confidence in the company’s aggressive growth strategy. Led by Peter Thiel’s Founders Fund, which contributed $1 billion (its largest single investment to date), the rise coincides with Anduril’s recent takeover of Microsoft’s multibillion-dollar augmented reality headset program with the U.S. Army and a new partnership with Meta to develop AR/VR devices for the Army. By introducing an agile Silicon Valley approach to the defense business, Anduril is positioned to challenge defense incumbents such as Lockheed Martin, Northrop Grumman, and General Atomics. The company is preparing for a public listing in the medium term, though no IPO timetable has been set.
With the upgraded director, IRON BEAM 450 now delivers longer range, higher accuracy, and faster engagement—all while maintaining its operational edge.Photo: Rafael.
Rafael will display the new system and its complete High-Energy Laser Weapon Systems (HELWS) family at the Paris Air Show taking place at Paris’ Le Bourget airport on June 16, 2025.
Following the announcement of successful intercepts using Rafael’s laser systems during the current conflict, Rafael Advanced Defense Systems Ltd. has announced the release of the IRON BEAM 450 HELWS fitted with a laser beam director designed specifically for the maximum power ratings provided by Iron Beam.
Rafael will officially unveil its breakthrough HELWS family—developed in collaboration with the Directorate of Defense R&D (MAFAT) at the Israeli Ministry of Defense. At the airshow, Rafael will present the export-configured HELWS family, composed of three systems: the light beam mobile variant designed for light vehicles, the truck-mounted mid-range Iron Beam M fitted with a beam director with a 250mm aperture, and the full-scale relocatable (containerized) Iron Beam, now equipped with a larger 450mm aperture. The system is equipped with Rafael’s unique Coherent Beam Combining and Reverse Adaptive Optics technologies, enabling it to track and lock on coin-sized targets beyond 10 km continuously. The system is designed with open architecture enabling flexible integration with land, naval, and other air defense systems.
The IRON BEAM system currently under development is slated for delivery to the IDF this year. These systems are built on decades of technological innovation within Rafael and MAFAT, adding a critical layer to Israel’s air defense architecture.
After demonstrating live intercepts in 2022, IRON BEAM is now on track for operational delivery to the Israeli defense establishment by the end of 2025. The system development is led by Rafael and developed in cooperation with MAFAT and additional Israeli defense industries including Shafir, SCD, and Elbit Systems.
“Rafael has long been the home of Israel’s most advanced air defense systems and is now a global leader in high-energy laser technology,” said Yoav Tourgeman, President and CEO of Rafael. “Our HELWS systems are based on a scientific breakthrough in adaptive optics and represent the result of years of intense development by Rafael’s scientists and engineers, in close partnership with the Ministry of Defense’s R&D Directorate. These systems combine high precision and rapid response with exceptionally low interception costs. Rafael remains committed to innovation in the service of Israel’s security.”
Rafael’s Iron Beam family. Right: Lite Beam. Center – Iron Beam M. Left: Iron Beam 450. Photo: Rafael
The new laser beam director enhances IRON BEAM’s operational range, accuracy, and efficiency, significantly advancing the system’s performance. These upgrades enable longer-range interceptions, faster engagement cycles, and more precise targeting—while maintaining its unique advantages: threat neutralization at the speed of light, negligible per-intercept cost, and wide-area defense against rapid and complex aerial threats.
Rafael’s HELWS platforms incorporate advanced detection systems (radars) with inherent classification and tracking algorithms, supporting ultra-short engagement cycles and prioritization. The fact that the targeting cycle follows a detailed visual analysis of the target reduces the probability of friendly fire by the laser. Proprietary adaptive optics enable ultra-precise long-range beam focusing.
With the distinctive advantages of unlimited magazine depth (eliminating ammunition constraints) and near-zero cost per interception compared to kinetic or missile-based systems, Rafael’s HELWS family offers an additional layer of air and force protection, providing scalable, effective laser-based solutions for a wide array of airborne threats.
With the upgraded director, IRON BEAM 450 now delivers longer range, higher accuracy, and faster engagement—all while maintaining its operational edge. Photo: Rafael
Hermeus Corporation successfully achieved the first flight of its Quarterhorse Mk 1 hypersonic demonstrator on May 27, 2025, moving from a clean sheet to flight-ready status in just over a year. Photo: Hermeus
The defense technology landscape continued its rapid evolution during the first week of June 2025, marked by significant operational milestones, technological breakthroughs, and strategic business developments. This week’s developments underscore several critical trends reshaping modern defense capabilities: the maturation of unmanned systems from tactical tools to strategic weapons platforms, the operational deployment of directed energy weapons, and the accelerating integration of artificial intelligence across defense applications.
The period was punctuated by Ukraine’s demonstration of long-range precision strike capabilities using commercial drone technology, Israel’s confirmation of operational laser weapon deployments, and substantial capital market activity reflecting investor confidence in next-generation defense technologies.
Unmanned Systems
Long-Range Precision Strike Capabilities
Ukraine’s “Operation Web” represents a watershed moment in unmanned aerial warfare, demonstrating how First-Person-View drones can execute precision strikes at unprecedented distances of 4,300 kilometers. The operation targeted Russian strategic bomber fleets across four airbases, resulting in damage or destruction of at least 41 bombers, transport aircraft, and one Airborne Early Warning and Control aircraft. The estimated $2 billion in asset destruction achieved through relatively low-cost unmanned aerial systems illustrates the asymmetric potential of commercially derived drone technology. (Read the article)
A screenshot from the drone’s view (FPV) during the attack on the Russian Olenya air base shows a line of Tu-95 “Bear” bombers, some already burned by previous drone attacks.
Next-Generation Unmanned Platforms
The U.S. Air Force’s $100 million contract with General Atomics Aeronautical Systems for the “GHOST” drone development program marks the integration of hybrid-electric propulsion with stealth capabilities. The system’s electric propulsion design eliminates contrails and audible signatures, allowing undetected operation in contested environments. Development is expected to be completed by mid-2028, with capabilities including intelligence, surveillance, reconnaissance, and strike missions.
AI-Enhanced Swarm Technologies
Lockheed Martin’s collaboration with Red Hat enhances autonomous swarm operations through containerization capabilities and lightweight, modular architecture. This system facilitates real-time threat detection and response while ensuring open architecture compatibility for blending commercial and defense technologies. The tactical quadcopter platform provides 360-degree reconnaissance capabilities, enhanced by artificial intelligence and machine learning for multi-step tasking in complex environments.
By incorporating new AI and machine learning capabilities, customers can now deploy smarter swarms that are capable of multi-step tasking and mission re-tasking in complex environments. Photo: Lockheed Martin
Directed Energy Weapons: From Prototype to Operational Deployment
Israel’s Ministry of Defense confirmed the operational use of high-energy laser weapons in combat operations since 2024 during the Swords of Iron War. Rafael Advanced Defense Systems’ high-energy laser weapon prototypes have successfully destroyed dozens of loitering weapons and One-Way Attack drones across multiple fronts, demonstrating large-scale operational laser interception capabilities.
Rafael’s Iron Beam systems are scheduled for production delivery by the end of 2025, with integration planned for Iron Dome Counter-Rocket, Artillery, and Missile batteries. The systems will provide close-range defense against unmanned aerial vehicles, loitering weapons, and similar threats. Elbit Systems, as the supplier of laser systems, has received a preliminary order from the Ministry of Defense worth $200 million. (Read the article)
Since late 2024 Israel’s high power laser weapon prototype, likely of the Iron Beam M class, has been used in combat and successfully engaged multiple enemy suicide drones. Photo: IMOD
Defense Manufacturing
European Production Capabilities
European defense manufacturers are accelerating domestic production of Armored Fighting Vehicles amid regional security tensions. Patria and General Dynamics European Land Systems (GDELS) initiated ASCOD Infantry Fighting Vehicle assembly of 42 vehicles in Latvia under a €373 million contract. At the same time, Tatra Defence Vehicle unveiled its PANDUR II EVO 8×8 at IDET 2025 in the Czech Republic. Czechia plans to buy 68 new Pandur II EVOs and upgrade 107 of its existing Pandur II CZ 8×8 APCs. Both platforms will use a common turret system based on Elbit Systems’ UT30MMK2 system.
Patria and General Dynamics European Land Systems (GDELS) initiated ASCOD Infantry Fighting Vehicle assembly of 42 vehicles in Latvia under a €373 million contract. Photo: Patria
These developments reflect technology transfer models and geographic diversification of armored vehicle production, addressing supply chain resilience and domestic job creation requirements.
Morocco’s decision to locally produce the Indian WhAP 8×8 Infantry Fighting Vehicle, developed by Tata Advanced Systems Ltd (TASL) and featuring Elbit Systems turrets, including the UT30MK2 30mm and possibly the Crossbow 120mm mortar, demonstrates the expanding defense relationship between Israel and Arab states following the Abraham Accords framework. The contract covers approximately 150 Wheeled Armoured Platform vehicles and builds upon Elbit’s previous ATMOS howitzer deal with Morocco. (Read the article)
Barrett Firearms to Produce Advanced Grenade Launcher
Barrett Firearms Manufacturing won the U.S. Army’s xTech Soldier Lethality competition, securing a contract for an advanced 30mm precision grenade rifle system featuring programmable air-bursting capabilities and specialized ammunition designed for modern battlefield applications. (Read the article)
Barrett Firearms successfully designed and demonstrated the Precision Grenadier System (PGS) in just six months. The shoulder-fired, semi-automatic weapon system is designed to engage personnel targets behind cover and counter unmanned aerial systems at close range. Photo: Barrett Firearms.
Aerospace Systems Development
India’s Fifth-Generation Fighter Program
India formally approved its Advanced Medium Combat Aircraft program, joining the fifth-generation stealth fighter market with a twin-engine advanced fighter jet. The program departs from mandatory development by Hindustan Aeronautics Limited, introducing competitive bidding opportunities for private sector companies.
The AMCA roadmap targets the completion of the first of five prototypes by 2027 at ₹1,000 crore ($115 million), the first flight in 2028, and serial production to begin in 2034 at a unit cost of below $100 million. The program supports India’s Atmanirbharta self-reliance objectives while building domestic technological capabilities for future aerospace projects. (Read the article)
F-35 Program Update
The F-35 program continues to evolve with proposed “F-35+” enhancements, including improvements in low-observable characteristics (coatings, surfaces, intake and nozzle, sensors, electronic warfare, and weapon integration) beyond the current Block 4 phase. One capability Lockheed Martin is exploring is the optionally unmanned operation of the aircraft. Improvements are also suggested to the helmet-mounted display to address emerging neck injury concerns. The study published by the Aerospace Medical Association represents the first investigation into neck and back pain among F-35 pilots. It shows a higher rate of both back and neck pain compared to F-16 pilots. The study indicates equipment and seat angle appear to be the main contributing factors. Targeted interventions are needed to prevent structural injuries, improve performance, and increase deployability.
Hypersonic Technology Advancement
Hermeus Corporation successfully achieved the first flight of its Quarterhorse Mk 1 hypersonic demonstrator on May 27, 2025, moving from a clean sheet to flight-ready status in just over a year. The test campaign validated the high-speed takeoff and landing capabilities of large uncrewed aircraft, with data confirming the design and performance models, including aerodynamics, stability, and control systems.
Quarterhorse Mk 2, which is currently being manufactured in Atlanta and scaled to F-16 dimensions, is designed to reduce risks associated with uncrewed supersonic flight and is scheduled for flight testing later this year. The iterative development approach emphasizes hardware richness through the rapid succession of multiple prototypes. (Read the article)
Midnight eVTOL Transition from Autonomous to Piloted Flight
Archer Aviation has begun the next phase of Midnight’s flight test program showcasing piloted flight. This phase builds on years of safe, autonomous flight testing across its various aircraft platforms, which have validated its proprietary 12-tilt-6 vertical takeoff and landing (VTOL) configuration. Midnight cruised at speeds up to 125 mph and reached a maximum altitude of over 1,500 feet above ground level during the flight.
Vertical Aerospace successfully conducted the first piloted electric Vertical Takeoff and Landing flight in uncontrolled open airspace over the UK, with the VX4 prototype completing takeoff, flight, and landing operations using wing-generated lift. The aircraft is scheduled for piloted transition flight testing in the second half of 2025.
AI and Software Integration
Strategic Technology Partnerships
Anduril Industries and Meta Platforms have announced a joint venture to develop extended reality (XR) military training systems, building on over a decade of investment in advanced hardware, software, and artificial intelligence. This privately funded initiative aims to equip warfighters with improved perception and intuitive control of autonomous battlefield platforms.
Microsoft’s integration with Figure Eight Federal combines data labeling technology capabilities with Azure Platform-as-a-Service for data governance, data pipelining, MLOps, generative AI, and analytics. The collaboration integrates Azure OpenAI services to enhance data operations and drive innovation across mission-critical data environments for the Department of Defense and the intelligence community.
Capital Markets and Business Development
Major Acquisitions and Investments
Significant capital market activity reflected investor confidence in defense technology sectors.
Elbit Systems raised $512 million on Nasdaq to expand European production capacity and invest in High Energy Laser research and development.
Motorola Solutions acquired mesh network radio specialist Silvus Technologies for $4.4 billion, strengthening its position in tactical communications and unmanned aerial systems solutions.
Rocket Lab entered the payload market through its $275 million acquisition of Geost, positioning the company as a growing force in the national security space. The acquisition adds electro-optical and infrared payload capabilities with over 20 years of classified and unclassified mission heritage.
Trident Solutions After the sale of Geost to Rocket Lab, ATL launched a new subsidiary—Trident Solutions. The new company combines ATL’s two remaining divisions, LightRidge, Trident Systems, and Ophir Corporation, into a newly integrated platform.
Northrop Grumman invested $50 million in Firefly Aerospace to advance production of their co-developed Eclipse medium launch vehicle. The system offers significant improvements in power, performance, production cadence, and payload capacity, with first launch from Wallops Island, Virginia, scheduled for 2026.
TAT Technologies raised $124 million last week through a public offering, which is expected to generate approximately $42.3 million to support continued expansion and strategic growth initiatives. TAT provides products and services to the commercial, military aerospace, and ground defense industries.
Market Outlook and Investment Themes
Growth Sectors
Counter-unmanned aerial systems and air defense technologies represent rapidly expanding segments, driven by operational lessons from the Ukraine-Russia conflict and rising global demand for rear-area protection systems. Hypersonic technologies encompass both offensive and defensive applications, with companies demonstrating commercial viability while established contractors invest in the development of countermeasures.
Geographic Opportunities
Eastern European markets prioritize localized production and NATO standardization as regional security imperatives drive substantial increases in defense budgets and technology transfer partnerships. Countries in this region invest in defense capabilities above the NATO member averages due to the acute threats they face and the realization that they must maintain a defensive posture until broader alliance support arrives. As for ground combat systems opportunities, Elbit Systems paces well, offering modular, integrated turret systems for combat vehicles produced in Europe and abroad.
Indo-Pacific regional tensions drive investments in credible deterrent capabilities, with nations seeking naval capabilities, combat aircraft, missiles, and drone systems. Abraham Accords countries continue to integrate Israeli defense technologies despite ongoing regional conflicts, creating new opportunities for export and cooperation in system development and procurement that were previously unavailable to Arab militaries.
Summary
The first week of June 2025 demonstrated the accelerating convergence of commercial technology with military applications, particularly in unmanned systems and artificial intelligence. Ukraine’s long-range drone operations and Israel’s operational laser weapon deployments confirm the transition of emerging technologies from experimental to battlefield-proven capabilities.
The substantial capital market activity, including over $6 billion in defense-related acquisitions and investments, reflects strong confidence in the defensetech sector. The emphasis on localized production capabilities across European, Middle Eastern, and Asian markets indicates a fundamental shift toward supply chain resilience and technological sovereignty.
As artificial intelligence integration advances through strategic partnerships between traditional defense contractors and technology companies, the defense industry continues its digital transformation. The combination of operational validation, financial investment, and technological advancement positions the sector for continued growth and innovation in addressing evolving security challenges.
Barrett Firearms Manufacturing has been selected as the winner of the U.S. Army’s xTech Soldier Lethality competition, securing a contract to develop an advanced 30mm precision grenade rifle system. The new system features programmable air-bursting capabilities and specialized ammunition designed to provide tactical advantages on modern battlefields.
The Tennessee-based firearms manufacturer, working alongside partners MARS Inc, AMTEC Corp, and Precision Targeting, successfully designed and demonstrated the Precision Grenadier System (PGS) in just six months. The shoulder-fired, semi-automatic weapon system is designed to engage personnel targets behind cover and counter unmanned aerial systems at close range.
The PGS represents a significant advancement in soldier-portable weaponry, combining a magazine-fed launcher with integrated fire control systems and a new family of 30mm ammunition types, including high-explosive rounds and close-quarter battle variants.
As traditional defense primes face mounting competition from agile “neoprimes” such as Anduril, Palantir and Helsing, the balance of innovation is shifting toward software-defined warfare and scalable, dual-use technologies, while global industry consolidation—marked by Boeing’s integration of Spirit AeroSystems and other strategic mergers—signals an intensified race to secure control over the defense technology value chain. Our Defense-Tech weekly report highlights these trends.
In early October 2025, a coordinated wave of unmanned aerial system (UAS) incursions—widely attributed to Russia—targeted critical infrastructure across at least ten European nations. The unprecedented campaign exposed the fragility of Europe’s air defenses...
Executive Summary
The past week (September 18-25, 2025) represents an inflection point where strategic defense concepts have transitioned from doctrine to tangible reality. An analysis of global events reveals four primary, interconnected trends shaping an...
At the 2025 Air, Space & Cyber Conference, U.S. Air Force and Space Force leaders unveiled major updates on next-generation fighters, bombers, unmanned systems, and space initiatives, highlighting both rapid innovation and critical readiness challenges as the services race to outpace global competitors. A short version is available here, with a more detailed version for subscribers.
The Taipei Aerospace & Defense Technology Exhibition (TADTE) 2025 crystallized around four dominant strategic themes that collectively illustrate Taiwan's comprehensive approach to defense modernization amid escalating regional tensions. Based on a detailed report by Pleronix (available upon request). Includes a Podcast discussion on TADTE 2025's highlighting Taiwan's four strategic themes beyond the post's coverage.
Israel’s Iron Beam 450 high-power laser system has completed final testing, marking a major leap in air defense. Developed by Rafael, it offers precise, cost-effective interception of rockets, UAVs, and mortars, and is set for IDF deployment by 2025.
WB Group unveiled its Future Task Force (FTF) at MSPO, a new warfighting concept integrating manned, unmanned, and autonomous systems. Combining hybrid-electric vehicles, loitering munitions, and AI-enabled command tools, the FTF is designed to sustain firepower and autonomy while reducing battalion size and logistical footprint.
The global defense technology landscape has entered a period of accelerated transformation, shaped by intensifying geopolitical threats, battlefield-driven innovation, and increasing fiscal complexity. The ongoing war in Ukraine remains a crucible for next-generation conflict, where attritable unmanned systems, electronic warfare, and counter-drone capabilities are no longer experimental but essential. This real-world testing ground is rapidly influencing global procurement priorities, with nations across Europe and the Indo-Pacific launching large-scale modernization programs and sovereign capability roadmaps.
Defense & Security Implications
