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    DefenseTech Weekly Brief – April 21-27, 2025

    By
    News Desk
    -
    LTAMDS radar. Photo: Raytheon

    This edition of the DefenseTech Brief covers the week of April 21-27, 2025, a period marked by significant developments across multiple defense technology domains. Key highlights include the US Army’s critical decision to move the LTAMDS radar into production, bolstering Patriot air defenses, alongside a major funding proposal for the ambitious “Golden Dome” homeland missile defense initiative. The underwater realm saw continued focus on seabed infrastructure security and advancements in uncrewed systems. Counter-UAS activity remained intense with new partnerships, technologies, and international deals, including the notable effectiveness of systems like the Iranian Project 358 missile. European land forces modernization featured updates on major programs like Challenger 3, Leopard 2A8, Leclerc XLR, Ajax, and the successful CV-90, while future tank development showed signs of fragmentation. Other notable events included major defense spending announcements, hypersonic program contracts, and space domain activities. This brief provides summaries, assessments, and investor insights for each key area.

    Air & Missile Defense Developments

    Key developments included the US Army approving Low-Rate Initial Production (LRIP) for Raytheon’s LTAMDS radar, a critical Patriot system upgrade now attracting significant international interest. LTAMDS technology is also enhancing NASAMS via the GhostEye MR radar. Concurrently, Congressional Republicans proposed $27 billion initial funding for the ambitious “Golden Dome” homeland missile defense initiative, expanding US policy scope significantly beyond previous rogue-state focus. This initiative, stemming from EO 14186, aims to counter diverse threats including hypersonics, involving major contractors like SpaceX and Lockheed Martin. Debates intensified over balancing costly active interceptors ($406M for 12 SM-3s) against passive defenses like hardened aircraft shelters (HAS), given rising airbase vulnerability to missiles and drones and constrained military construction budgets. Other updates included USAF orders for Lockheed Martin’s TPY-4 radars, exploration of low-cost C-UAS interceptors, and accelerated development of advanced Precision Strike Missile (PrSM) variants.

    Assessment: The AMD landscape shows a dual focus: pursuing high-end, technologically advanced systems (LTAMDS, Golden Dome) to counter sophisticated peer threats, while simultaneously grappling with the proliferation of low-cost threats (drones) and the economic unsustainability of current countermeasures. The Golden Dome initiative represents a major, potentially destabilizing policy shift with significant technical and fiscal hurdles. Airbase vulnerability highlights a critical tension between investing in expensive interceptors versus affordable passive defenses like HAS, with current funding potentially misaligned with operational realities.

    Investor Insights: Significant opportunities exist for prime contractors like Raytheon [NYSE: RTX] (LTAMDS, GhostEye MR, potentially Coyote C-UAS) and Lockheed Martin [NYSE:LMT] (THAAD, TPY-4, F-35 upgrades). The Golden Dome initiative, despite uncertainties, signals massive long-term investment potential, particularly in space-based sensors and interceptors, attracting interest from established players and newer entrants like SpaceX, Palantir [NASDAQ: PLTR], and Anduril. The C-UAS market remains hot, with demand for cost-effective interceptors. Investment in base hardening and military construction, though currently constrained, represents a potential growth area driven by clear operational needs.

    Underwater Warfare & Seabed Security

    Focus intensified on seabed security following infrastructure sabotage incidents (Nord Stream, Balticconnector), establishing the seabed as a distinct operational domain vulnerable to hybrid warfare tactics. Nations (France, EU) are developing specific doctrines and strategies. Uncrewed Underwater Vehicles (UUVs) are central to future capabilities (CUI protection, ASW, MCM, ISR), with R&D focused on autonomy, interoperability, data exploitation, and multi-platform deployment. Industry players like BAE Systems (XLAUV) and HII (Lionfish SUUV) showcased progress. Key naval platform news included Italy receiving its 9th FREMM frigate (Spartaco Schergat) in a new enhanced ASW/GP hybrid configuration, Russia announcing serial production readiness for the Arctic-focused Husky-10 hovercraft, and Denmark planning a major 25-vessel naval expansion.

    Assessment: The seabed is now a recognized critical infrastructure battleground, demanding new technologies and doctrines. UUV/AUV advancements are key, but the underwater environment poses persistent challenges (pressure, communication, power). Mastering autonomy is crucial for future dominance, but UUV proliferation creates significant asymmetric threat risks. Naval investments reflect these trends, with a continued focus on advanced ASW platforms (FREMM) and specialized regional capabilities (Husky-10).

    Investor Insights: The UUV/AUV market shows strong growth potential, driven by defense needs for seabed monitoring, ASW, and MCM. Companies specializing in underwater autonomy, sensors, power systems, and data analytics are well-positioned (e.g., BAE Systems [LON: BAES], HII [NYSE: HII], Thales [EPA: TCFP], Leonardo [BIT: LDO]). Investment in seabed infrastructure protection technologies and services is likely to increase. Major naval shipbuilding programs (FREMM, Danish expansion) offer opportunities for large shipbuilders (Fincantieri [BIT:FCT]) and their supply chains. Arctic-specific platforms (Husky-10) represent a niche but growing market.

    Counter-Unmanned Aircraft Systems (C-UAS)

    The C-UAS sector saw intense activity. The USAF issued RFIs for EW and sensor (radar/camera) capabilities. NATO tested a prototype sensor against GNSS threats. AI integration was prominent, with partnerships formed between MSI Defense/OVES Enterprise and Sentrycs/Xtend, and development efforts by ELT Group. The US Army conducted M-LIDS training. DZYNE Technologies launched a new Dronebuster variant for Europe. Raytheon signed a term sheet for potential Coyote C-UAS co-production in the UAE. Domestically, Florida considered legislation against drone misuse, and the DSCA added the “DRAKE” C-UAS system to FMS lists. New systems like the Hellhound, developed by Cummings Aerospace, offer modular payloads (ISR, EW, kinetic) and potential swarming capabilities. A hypersonic variant is also planned. Meanwhile, the Iranian-supplied Project 358 (Saqr-1) loitering surface-to-air missile has proven effective, used by Houthis and Hezbollah to down numerous high-value drones, including over 20 US MQ-9 Reapers over Yemen, and three Israeli Hermes 900s over Lebanon, highlighting the growing threat from sophisticated, lower-cost SAMs.

    Assessment: The C-UAS field is highly dynamic, driven by urgent operational needs demonstrated in conflicts like Ukraine. Key technology trends include heavy reliance on AI/ML for detection/classification, sophisticated EW solutions for jamming/spoofing/neutralization, and exploration of diverse effectors (kinetic, directed energy, cyber). The emergence of modular systems like Hellhound and the proven effectiveness of systems like the Iranian 358 missile underscore the rapid evolution of both C-UAS solutions and the threats they face. International cooperation and localized production are increasing. Establishing effective legal and regulatory frameworks remains an ongoing challenge.

    Investor Insights: The C-UAS market continues its rapid expansion, offering opportunities across the kill chain (detect, track, identify, defeat). Companies strong in AI/ML (e.g., Palantir [NASDAQ: PLTR], Anduril via partnerships), EW (e.g., ELT Group), sensor fusion, and specialized interceptors (e.g., Raytheon’s – [NYSE:RTX] Coyote) are likely beneficiaries. Handheld and mobile systems (e.g., DZYNE, M-LIDS platforms) are in demand. Modular systems like Hellhound offer potential. The success of systems like the 358 missile highlights the market for capable, potentially lower-cost interceptors. International partnerships and FMS deals indicate a growing global market.

    IV. European Land Systems Modernization

    Modernization efforts focus on both upgrading existing platforms and developing next-generation capabilities. The UK’s Challenger 3 program is converting 148 Challenger 2s, with 4 prototypes delivered and 4 in build; trials are ongoing, focusing on the new Rheinmetall 120mm smoothbore gun and enhanced ammunition, aiming for IOC in 2027 and FOC by 2030. The program faces criticism for the limited number of tanks being upgraded and past delays. Germany’s Leopard 2A8 is seeing wider interest, with the Netherlands acquiring 46 tanks to form a new battalion based in Germany. Germany is also in talks with the Czech Republic, Lithuania, and Sweden for joint procurement under a framework agreement potentially covering over 100 tanks. The 2A8 features Trophy APS and other survivability/digital upgrades.

    France’s Leclerc XLR upgrade continues, with 200 tanks ordered (34 delivered by end of 2024). The upgrade integrates the tank into the SCORPION network and adds protection, but the key PASEO digital sights with AI won’t arrive until 2028. The UK’s Ajax program reached the 100th vehicle milestone, though FOC remains delayed until 2028-2029 due to past noise/vibration issues. The CV-90 IFV saw continued success: Denmark ordered 115 new vehicles, joint procurement of hundreds of vehicles by the Nordic countries, and an MLU for the existing fleet, while the Netherlands invested €400M+ for production destined for Ukraine, including partial manufacturing in the Netherlands. Future European tank development fragmented further with the launch of the EDF-funded FMBTech project (Thales coordinating 26 partners) running parallel to the MARTE project (KNDS/Rheinmetall coordinating 47 partners) underway for the second year.

    Assessment: European land modernization shows divergence. Upgrades to existing MBTs (Challenger 3, Leclerc XLR) and procurement of the latest Leopard 2 variant (2A8) are progressing, enhancing capabilities and NATO interoperability. Proven IFV platforms like the CV-90 thrive, benefiting from upgrades, new orders, and innovative multinational production models supporting Ukraine. However, ambitious next-generation programs face hurdles. Ajax’s recovery is slow, highlighting program management challenges. The fragmentation of the future European tank efforts (MGCS, MARTE, launch of FMBTech) suggests a lack of strategic cohesion, potentially delaying a common European capability despite EDF R&D funding.

    Investor Insights: BAE Systems Hägglunds [art of BAE Systems, LON: BAES] benefits significantly from CV-90’s success (new orders, upgrades, Ukraine support). The Dutch production model for Ukraine could signal new collaborative industrial approaches. General Dynamics UK [part of General Dynamics, NYSE: GD] sees incremental progress on Ajax, but program risks remain. KNDS (including former KMW) and Rheinmetall [FWB: RHM] are central to Leopard 2A8 production and upgrades, as well as the Challenger 3 program (via RBSL) and the uncertain future tank landscape (MGCS, MARTE, potential German-led project). KNDS France leads the Leclerc XLR upgrade. Thales [EPA: TCFP] coordinates the FMBTech R&D project.

    V. Other Significant DefenseTech News

    Rocket Lab secured major contracts supporting US/UK hypersonic programs. Space activities included concerns over a Russian satellite event, a German-American intel satellite partnership (OHB/Lockheed Martin), SpaceX’s continued involvement (Golden Dome, launches), and Germany planning a Starlink alternative. Significant defense spending increases were announced by Spain ($12B plan) and Estonia (to 5.4% GDP), alongside continued large aid packages for Ukraine from Norway ($7.8B) and Spain (€1B). Major industry moves included Boeing selling digital aviation assets ($10.55B) 1 and facing challenges with fixed-price contracts, Lockheed Martin integrating NGAD tech into the F-35, Italy ordering AeroVironment JUMP 20 UAS ($46.6M), Gecko Robotics/L3Harris partnering on maintenance drones, Netherlands selecting Oshkosh JLTV, and Otokar forming a JV in Romania for Cobra II production.

    Assessment: The broader defense sector shows high activity driven by geopolitical tensions. Hypersonics and space remain key investment areas, with increasing reliance on commercial partners and growing concerns about space weaponization. European defense spending is rising significantly, driven by NATO targets and the war in Ukraine. Major industry players are making strategic portfolio adjustments (Boeing divestment, Lockheed F-35 enhancement) while securing numerous international contracts, reflecting a dynamic global market.

    Investor Insights: Hypersonics R&D offers opportunities for specialized firms like Rocket Lab [NASDAQ: RKLB]. The space domain sees investment in ISR (OHB/Lockheed) [FWB: OHB] and constellations (SpaceX), but also faces geopolitical risks. Increased European defense budgets benefit many suppliers across land, sea, and air domains. UAS procurement continues strongly (AeroVironment [NASDAQ: AVAV]). Strategic moves by primes like Boeing [NYSE: BA] and Lockheed Martin [NYSE: LMT] signal portfolio optimization. Maintenance/sustainment tech (Gecko/L3Harris) [NYSE: LHX] and tactical vehicles (Oshkosh [NYSE: OSK], Otokar [part of Koç Holding, IST: KCHOL]) remain active markets.

    Analyst Outlook

    The week highlighted a drive for high-end systems (LTAMDS, Golden Dome) alongside struggles to counter low-cost threats cost-effectively, stressing the active vs. passive defense debate. The seabed emerged as a critical, contested domain requiring new UUV/AUV tech and doctrines, with autonomy mastery being key but proliferation a risk. C-UAS remains hyper-dynamic, driven by AI/EW innovation and urgent demand, but facing increasingly capable threats like the Iranian 358 missile. European land systems show mixed progress: upgrades and procurements of current-generation MBTs (Challenger 3, Leopard 2A8, Leclerc XLR) advance alongside successful IFV programs like CV-90, while Ajax recovers slowly and future tank programs fragment despite EDF funding. Overall activity is high, fueled by geopolitical tensions, leading to budget hikes, rapid tech development, and strong industry response, though strategic challenges in resource allocation and collaboration persist.

    Assessment: Key tensions persist between investing in exquisite platforms versus affordable mass/resilience. Mastering new domains (seabed, C-UAS) requires balancing technological advancement with managing proliferation and counter-capability risks. European defense collaboration shows promise in specific areas (Ukraine support via CV-90) but struggles at the strategic level (MGCS). The defense industrial base responds dynamically but faces challenges in scaling production and aligning investments with evolving threats and economic realities.

    Investor Insights: Continued growth is expected in AMD, UUV/AUV, C-UAS, and space domains. Balancing investments between high-end systems and cost-effective solutions presents opportunities for innovative companies. Autonomy and AI are critical enabling technologies across domains. European budget increases offer broad opportunities, but program fragmentation (e.g., future tanks) creates uncertainty for specific long-term projects. Companies demonstrating agile production, strong supply chains, and effective international partnerships will likely outperform. Key MBT players include KNDS, Rheinmetall [FWB: RHM], and BAE Systems via RBSL [LON: BAES].

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    DefenseTech Market Brief – Q1 2025

    By
    News Desk
    -
    In April 2022 Northrop Grumman's announced it had to absorb $477 million due to manufacturing and material changes incurred on the B-21 Raider program which is a fixed-cost contract. However, these changes will eventually benefit the company in the future, enabling a faster production rate and accelerated deliveries if the Air Force requires such acceleration and fleet growth. Photo: US Air Force

    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. Check Part II of the Q1 market review published on May18, 2025

    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 to the fixed-cost contract, these changes will eventually benefit the company in the future, enabling a faster production rate and accelerated deliveries if the Air Force requires them.
    • Boeing’s F-47 NGAD fighter program secured its first U.S. Air Force contract, signaling a major leap into sixth-generation combat aviation and the autonomous air combat ecosystem. Yet, this win has not been included in Q1 earnings results.
    • GE Aerospace progressed on its XA102 adaptive cycle engine, which is destined for the NGAD future fighter jet. The company also secured a $5 billion F110 contract, bolstering its role in future propulsion technologies for fighters and rotorcraft.

    Tariffs and Supply Chain Disruptions Challenge Margins

    Despite healthy earnings and expanding backlogs, defense firms grapple with cost pressures. U.S. tariffs on metals and high-tech components have created significant headwinds, with RTX projecting an $850 million impact in 2025, GE Aerospace estimating $500 million, and Boeing absorbing $150 million.

    To offset these pressures, companies are pursuing trade zone exemptions, renegotiating contracts, and sometimes shifting their supply chains domestically or to tariff-exempt regions. Still, the combination of tariffs and fixed-price contract risk—as highlighted by Boeing’s margin squeeze on the B-21—may limit earnings upside in the near term.

    Sector Outlook: Resilience with Caution

    The defense technology sector enters the remainder of 2025 on a strong footing, supported by:
    • Robust backlogs that extend over multiple years
    • Next-generation programs (B-21, F-47, new engines) entering low-rate or full-scale production, Sentinel ICBM, Golden Dome on the horizon.
    • Geopolitical tensions that sustain elevated defense procurement rates globally, despite political tensions.

    However, several factors will influence sector momentum:
    1. Execution discipline on high-profile programs like the F-35 Lot 22, submarine builds, and space systems
    DoD procurement trends, including increased use of Indefinite Delivery/Indefinite Quantity (IDIQ) contracts and accelerated purchasing authorities such as Other Transaction Authority (OTA)

    2. International market recalibration, particularly as European partners pursue industrial sovereignty in defense systems

    Investor Perspective

    Defense primes such as Lockheed Martin (NYSE: LMT), RTX (NYSE: RTX), Northrop Grumman (NYSE: NOC), and General Dynamics (NYSE: GD) remain well positioned for long-term growth. Valuation upside hinges on improved margin performance and successful delivery of next-gen platforms.

    Short-term risks include exposure to tariff volatility, labor disruptions (e.g., at General Dynamics Electric Boat), supply chain disruptions (such as raw materials and component availability), and certification delays, notably in engine programs and commercial defense crossovers.

    Conclusion

    Q1 2025 affirmed that the defense tech sector remains a cornerstone of strategic and economic resilience. As the industry pivots toward sixth-generation capabilities, autonomous systems, and space-based defense architectures, sustained government investment and agile supply chain adaptation will determine its trajectory.

    For stakeholders—governments, investors, and allied defense firms—the message is clear: the modernization wave is accelerating, but navigating fiscal and geopolitical turbulence will require both innovation and operational discipline.

    DefenseTech Weekly Brief | April 14-21, 2025

    By
    News Desk
    -

    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 features both established primes emphasizing mission-tested integration and newer players pushing potentially disruptive models. Success depends on the ability to integrate diverse technologies and partners under a tight timeline, with continuity across political administrations.

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    Investor Takeaway: This initiative presents a massive, long-term investment opportunity in space systems, sensors, interceptors, command & control, and software/AI. Key beneficiaries include companies in satellite manufacturing (SpaceX), interceptor systems (Lockheed Martin [NYSE: LMT], L3Harris [NYSE: LHX], Boeing [NYSE:BA] and RTX [NYSE: RTX]), AI and data fusion (Palantir [NYSE: PLTR]), and advanced command and control networks. Investment risks include high R&D costs, feasibility of space-based interception, political changes, and novel acquisition models (e.g., leased defense services).

    Rocket Systems – Meeting Surging Demand

    Summary: The demand for multiple-launch rocket systems (MLRS) is surging, driven by recent conflicts. Lockheed Martin has doubled HIMARS production. Poland is partnering with South Korea’s Hanwha Aerospace to locally produce guided rockets for the Chunmoo system (HOMAR-K). This represents a trend of balancing immediate capability needs with long-term sovereign manufacturing. However, the proliferation of different MLRS systems within NATO raises concerns about interoperability. South Korea’s rise as a global arms exporter is also notable. (Read the article)

    Assessment: The Ukraine conflict is a significant driver of global artillery procurement strategies. Countries seek rapid fielding of capabilities while ensuring future industrial autonomy. The success of South Korean firms like Hanwha Aerospace marks a shift in global arms markets. Elbit Systems [NASDAQ/TASE: ESLT], Diehl Defense, Roketsan, and Avibras are also active in this field. Interoperability among NATO systems will be crucial, especially as diverse systems proliferate. Parallel trends, including local production by non-state actors, further underscore the strategic value of sovereign MLRS production.

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    Investor Takeaway: The MLRS market is expanding rapidly. Investors should watch Lockheed Martin (NYSE: LMT), Hanwha Aerospace (KRX: 012450), Elbit Systems [NASDAQ/TASE: ESLT], and suppliers of subsystems and launch platforms. Countries that prioritize local production (e.g., Poland) offer opportunities for industrial partnerships and technology transfer. Watch for competition from firms in Turkey, Israel, Brazil, and others seeking to enter or expand in the MLRS segment. Risks include challenges with standardization and market fragmentation within alliances.

    Loitering Munitions: Enhancing Precision Strike

    Summary: Loitering munitions are advancing rapidly, with new systems emphasizing autonomy, extended range, and AI. India is developing a Multi-Barrel Loitering Munition (MBLM) system with a 500 km range, based on artillery rocket launchers like the Pinaka. Germany’s STARK tested its OWE-V (Virtus) VTOL LM in Ukraine, featuring AI support, EW resilience, and GNSS-free navigation. Other developments include Helsing’s swarming-capable AI drones and AV’s DIU-backed one-way attack drone. (Read the article)

    Assessment: Loitering munitions are evolving into hybrid precision strike tools, merging features of artillery, drones, and cruise missiles. AI and EW resilience are becoming baseline requirements. Battlefield testing, especially in Ukraine, is accelerating innovation and adoption. India’s approach highlights cost-effective capability expansion by leveraging existing platforms and infrastructure.

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    Investor Takeaway: The LM segment is dynamic, presenting opportunities across hardware, software, and platform integration. Key players include AeroVironment [NASDAQ: AVAV], ELBIT SYSTEMS [NASDAQ/TASE: ESLT], IAI, Uvision Air, Andurill, AEVEX, Xtend Defense, STARK, HELSING, and other emerging AI/drone firms. Technologies in AI-guided navigation, electronic warfare (EW) countermeasures, and multi-launch systems are promising. Real-world combat performance is increasingly important for credibility and adoption.

    Mission Control, AI & Autonomy

    Summary: AI and autonomy integration is advancing across ground and air systems. Overland AI introduced its autonomous UGV (Ultra) for logistics. General Dynamics Land Systems is collaborating with Palantir, Applied Intuition, and others on AI for next-generation platforms. The U.S. Army is using Duality AI’s simulation for developing the AI-based anti-drone system AiTDR for the XM30. In Australia, BAE Systems secured a deal for the Vehicle Management System on Boeing’s Ghost Bat MQ-28. (read the article)

    Assessment: Software and AI are central to defining next-generation military platforms. Defense primes are increasingly partnering with tech firms to integrate advanced AI and simulation into their development cycles. Simulation-first development is accelerating timelines while reducing risk.

    Investor Takeaway: Investment is growing in defense-focused AI firms, simulation platforms, and developers of autonomous systems. Notable participants include Overland AI, Applied Intuition, Palantir [NYSE: PLTR], Duality AI, Boeing [NYSE: BA], and BAE Systems [LSE: BA]. The emerging Collaborative Combat Aircraft (CCA) market offers long-term potential.

    NATO Modernizes Battle Command with AI

    Summary: NATO rapidly procured Palantir’s Maven Smart System (MSS NATO), an AI-enabled warfighting platform that uses LLMs and ML to fuse data for improved planning, targeting, and decision-making. The platform reflects lessons from the U.S. Project Maven but is a separate NATO system. The six-month acquisition cycle highlights urgency. (Read the article)

    Assessment: NATO’s adoption of MSS NATO demonstrates an organizational shift toward digital and AI-enabled operations. The platform enhances intelligence fusion and decision speed. It also underscores reliance on U.S. technologies, creating tension with European efforts for digital sovereignty.

    Investor Takeaway: Palantir [NYSE: PLTR] continues to benefit from demand for battlefield AI integration. Companies developing LLM-based decision tools, sensor fusion systems, and battle management software are well-positioned. Open architecture encourages ecosystem development and third-party integration within NATO-aligned firms.

    Fighter Aircraft Market Update

    Summary: Colombia selected Saab’s Gripen to replace its Kfirs, despite potential ITAR-related complications. Saab also proposed the Gripen E/F to Peru.
    Indonesia may join Türkiye’s KAAN 5th-gen program. The UAE is exploring South Korea’s KF-21 and FA-50 platforms. (Read the full report)

    Assessment: Nations are pursuing varied strategies—balancing 5th-gen ambitions with cost-effective 4.5-gen platforms. ITAR compliance and offset demands significantly influence procurement. Türkiye and South Korea are becoming credible competitors in fighter exports, challenging traditional suppliers.

    Investor Takeaway: The fighter market remains robust. Key players include Saab [STO: SAAB-B], Korea Aerospace Industries (KAI) [KRX: 047810], Turkish Aerospace (private), and Lockheed Martin [NYSE: LMT]. Brazil’s Gripen program may strengthen Saab’s position in Latin America and Portugal. Monitor geopolitical and regulatory risks such as ITAR.

    Autonomy Takes to the Seas

    Summary: The UMS sector is accelerating. Saronic acquired shipbuilder Gulf Craft to build USVs domestically. France’s Exail reported 519% growth in Q1, driven by European naval demand. Anduril and Ultra Maritime announced an ASW-focused subsea sensing system. The U.S. Navy received its first production-rate Mine Countermeasures (MCM) Unmanned Surface Vessel (USV) from Bollinger Shipyards. (Read the full report)

    Assessment: Maritime autonomy is transitioning from experimentation to deployment. Unmanned Maritime Systems (UMS) are now essential for mine countermeasures, intelligence, surveillance, and reconnaissance (ISR), and anti-submarine warfare (ASW). Sensor fusion, acoustic systems, and undersea autonomy are critical technology drivers.

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    Investor Takeaway: The UMS market is expanding rapidly. Key companies include Anduril (private), Exail Technologies (EPA: EXA), Ultra Maritime (subsidiary of Cobham), and BAE Systems [LSE: BA]. Enabling tech providers like Kraken Robotics [TSXV: PNG] and Coda Octopus [NASDAQ: CODA] also offer potential. Watch for vertical integration and sensor partnerships.

    Other Industry & Operational Updates

    Key Developments and Geopolitical Impacts

    Summary: An explosion at a Northrop Grumman solid rocket facility in Utah could affect solid rocket motor (SRM) production, but, according to the company’s assessment, will not impact strategic programs like the Sentinel ICBM.

    Norway pledged nearly $1 billion in aid for the training of a new Ukraine’s brigade.

    Hyundai Heavy Industries offered to build Aegis destroyers for the U.S. Navy, citing U.S. shipyard bottlenecks.

    Assessment: Critical infrastructure incidents (Northrop) highlight vulnerability in defense supply chains. Growing allied contributions (Norway) and foreign industry offers (HHI) show evolving global defense collaboration and supply flexibility.

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    Investor Takeaway: Industrial resilience is vital. Disruptions may shift opportunities toward other suppliers. Current Arleigh Burke Aegis destroyers are being built by Huntington Ingalls Inc. [NYSE: HII] in Pascagoula, Mississippi, and Bath Iron Works [NYSE:GD] in Bath, Maine. Relevant companies include Northrop Grumman [NYSE: NOC], Hyundai Heavy Industries [KRX: 329180], and BWX Technologies [NYSE: BWXT]. Increased focus on allied naval construction may shift long-term investments in shipbuilding and propulsion systems.

    Investor Watchlist:

    Companies Related to this week’s DefenseTech Brief

    Autonomy Takes to the Seas

    By
    Tamir Eshel
    -

    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 and integrated into broader network-centric naval operations.

    DIU Solicits Proposals for Combat Autonomous Maritime Platform (CAMP)

    Further indicating the drive for advanced UMS capabilities, the Defense Innovation Unit (DIU) has an open solicitation for the Combat Autonomous Maritime Platform (CAMP). This initiative seeks commercially available, demonstration-ready uncrewed systems capable of deploying large payloads (up to 21ft long) over extended ranges exceeding 1000nm and operating at depths greater than 200m. Key focus areas include payload emplacement, ISR, bathymetric surveys, communications across the air/water interface, and autonomous operation in GPS-denied environments. Desired attributes emphasize modularity, open architecture for integrating third-party payloads and control systems (including pathways for UMAA compliance), transportability, and minimal surface presence. Responses are due by May 1, 2025.

    Exail Growth Order Intakes by reported a dramatic 519%

    Established players are also experiencing strong growth. Exail Technologies, the French high-tech group specializing in UUVs and navigation equipment, reported a dramatic 519% surge in order intake during the first quarter of 2025, reaching €487 million ($554.3 million). This growth was primarily attributed to increased defense spending by European governments. A major contract for drone systems, valued at several hundred million euros and placed by an unspecified “leading Navy,” was a key driver. Exail’s order backlog reached €1.1 billion ($1.25 billion) by the end of Q1, with the defense sector accounting for 75% of total orders. Group sales increased by 18%, supported by its core navigation and maritime robotics business. Exail confirmed its outlook for double-digit revenue growth in 2025, reflecting the buoyant market for maritime autonomy solutions.

    Andurill Joins Ultra Maritime To Establish a Seabed Sentry

    Collaborations are also shaping the development of advanced capabilities. Anduril Industries and Ultra Maritime announced an exclusive partnership to develop a novel autonomous subsea sensing capability focused on ASW. The initiative combines Ultra Maritime’s Sea Spear deployable acoustic arrays and AI-enabled acoustic processing technology with Anduril’s UUV platforms (Dive XL), modular undersea payload systems (Seabed Sentry), and Lattice command and control framework. The operational concept involves an Anduril Dive XL UUV autonomously deploying the Seabed Sentry system, which hosts the Sea Spear array as a payload. Sea Spear will perform sonar processing using AI at the tactical edge, with data relayed in near real-time via acoustic communications integrated into the Lattice network. The partners plan end-to-end in-water testing in 2025, aiming to provide a rapidly deployable, potentially low-cost, distributed ASW capability to counter increasingly quiet submarine threats.

    Summary

    The Bollinger delivery and Saronic’s shipyard investment clearly indicate the unmanned maritime sector is maturing beyond R&D into series production and fielding, particularly for well-defined mission sets like MCM. The focus on MCM and ASW, along with DIU’s push for long-range, large-payload platforms, highlights these traditionally dangerous and resource-intensive tasks as key drivers for adopting autonomy, leveraging the inherent advantages of unmanned systems in persistence, payload capacity, and risk reduction. The contrasting strategies observed – Saronic’s vertical integration versus the Anduril/Ultra collaboration – reflect a dynamic industrial landscape where companies are exploring different models (building in-house capacity vs. partnering for specialized expertise) to deliver complex integrated systems and capture market share in this rapidly growing field.

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    Advanced Fighter Market Update

    By
    Tamir Eshel
    -

    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 initial batch of 12 aircraft, matching the number in the Swedish proposal.
    More decisively, Colombian President Gustavo Petro confirmed the selection of the Saab Gripen E/F as the replacement for the Colombian Air Force’s veteran IAI Kfir fighters. This decision follows a letter of intent signed with Sweden and concludes a lengthy evaluation process that previously considered the Dassault Rafale and Lockheed Martin F-16. While the exact number of aircraft and contract value are yet to be finalized, reports suggest a total requirement of 15-24 aircraft, likely acquired in batches. The agreement reportedly includes significant industrial and social offset commitments from Sweden, covering projects in solar energy, water infrastructure, and medical facilities. Saab has highlighted the potential for leveraging its existing Gripen production and technology transfer infrastructure in neighboring Brazil to support the Colombian program. A potential complication involves the Gripen E/F’s use of the US-made General Electric F414 engine, subjecting the sale to US International Traffic in Arms Regulations (ITAR). While unconfirmed reports suggested a potential US veto, Saab has stated it possesses the necessary licenses and permits for Colombia.
    Portugal is also reportedly reconsidering its planned acquisition of the F-35A, with Saab confirming that ongoing talks are underway regarding the Gripen as a potential alternative. Citing concerns over geopolitical unpredictability and the need to evaluate European options, Portugal is assessing both the modernized Gripen C/D and the newer Gripen E/F. The Gripen is positioned as a cost-effective and operationally flexible option compared to the F-35, with lower operating costs and the potential for industrial cooperation, possibly leveraging Saab’s existing partnership with Embraer in Brazil. However, the Gripen’s reliance on a US-made engine could still pose political hurdles.   

    China Joins the Fighter Race

    China is also actively marketing its fighter aircraft, particularly in Central Asia and the Middle East. Uzbekistan is reportedly considering a major purchase of Chinese fighters, potentially including the JF-17 Block III, J-10C, or even the 5th-generation J-35, to replace its aging Soviet-era Su-27 and MiG-29 fleet. This potential deal follows Uzbekistan’s earlier acquisition of Chinese air defense systems (HQ-9B, FM-90, KS-1C) and reflects a broader trend of seeking cost-effective, readily available alternatives to Russian or Western suppliers, often with fewer political conditions attached. While unconfirmed, reports suggest China has authorized the sale and Uzbek pilots may have trained on the JF-17 in China.
    In a significant confirmed sale, Azerbaijan received its first JF-17C Block III fighters from Pakistan in September 2024. The deal, reportedly worth $1.6 billion for an unspecified number of aircraft (potentially around 30), marks a major export success for the Sino-Pakistani program and provides Azerbaijan with advanced capabilities, including AESA radar and modern munitions like the PL-15E. This acquisition allows Azerbaijan to modernize its fleet beyond its older MiG-29s and Su-25s, shifting its reliance away from Russian suppliers.

    KF-21 Launches Marketing campaign

    Elsewhere, South Korea’s aerospace industry, (KAI), continues to attract international interest. A high-level delegation from the United Arab Emirates (UAE) visited KAI’s facilities to inspect production lines for the KF-21 Boramae 4.5-generation fighter and the FA-50 light combat aircraft. The UAE had previously expressed interest in the KF-21 program in 2023 as part of its evaluation of next-generation fighter options. KAI officials briefed the delegation on the KF-21’s development status and future potential, including planned integration of AI capabilities. This engagement underscores ongoing export prospects for both the developing KF-21 and the successful FA-50, particularly in the Middle East market. Egypt has also been frequently cited as a potential customer for Chinese J-10C or J-35/FC-31 fighters, though reports of a finalized deal in late 2024 were officially denied by China in March 2025.
    The Philippines is also actively pursuing fighter modernization amidst regional tensions. The US State Department recently approved Manila’s request to purchase 20 F-16 fighter jets, along with missiles, as part of a $5.6 billion package. The F-16 was previously shortlisted for the Philippines’ Multi-Role Fighter (MRF) project. Competing for this requirement is South Korea’s KF-21 Boramae, which has also been shortlisted. The Philippine Air Force (PAF) has expressed interest in the KF-21, and Korea Aerospace Industries (KAI) has reportedly offered 10 KF-21 Block 1 aircraft to meet the initial Medium Range Fighter (MRF) budget of approximately $1.1 billion. The KF-21 is presented as a modern, potentially cost-effective option. Although the initial Block 1 variant focuses primarily on air-to-air capabilities, enhanced air-to-ground functions are planned for Block 2, around 2028.

    Table 1: Recent Fighter Jet Negotiations/Selections (as of April 2025)

    Country Aircraft Considered/Selected Status Potential Quantity Notes
    Indonesia KAAN (Türkiye) Expressed Interest / Partnership Talks Unspecified Seeking 5th-gen capability, diversifying partners
    Peru Gripen E/F (Sweden), F-16V (US), Rafale F4 (France) Shortlisted / Swedish G2G Proposed Up to 12 (initial), 24 (total) Replacing MiG-29/Mirage 2000; Swedish proposal includes Air Defense systems
    Colombia Gripen E/F (Sweden) Selected (LoI Signed) Unspecified (Est. 15-24 total) Replacing Kfirs; potential US engine veto concern (denied by Saab); offsets included
    Portugal Gripen C/D/E (Sweden), F-35A (US), Rafale (France), Typhoon (Europe) Reconsidering F-35 / Gripen Talks Ongoing Unspecified Replacing F-16s; exploring European options due to US policy concerns
    Philippines F-16 (US), KF-21 (South Korea) F-16 Sale Approved / KF-21 Shortlisted & Offered 20 (F-16), ~10 (KF-21 initial offer) MRF Project ongoing; F-16 approved via $5.6B package; KAI offered 10 KF-21 Block 1 for ~$1.1B budget
    Uzbekistan JF-17 Blk III (China/Pak), J-10C (China), J-35 (China) Reportedly Considering / Sale Authorized (Unconfirmed) Unspecified Replacing Su-27/MiG-29; seeking cost-effective options; pilot training reported
    Azerbaijan JF-17C Blk III (China/Pak) Acquired / Deliveries Started (Sep 2024) Unspecified (Est. ~30) Replacing MiG-29/Su-25; $1.6B deal reported; advanced capabilities
    UAE KF-21 (South Korea), FA-50 (South Korea) Interest / Site Visit / LoI Signed (Cooperation) Unspecified Exploring next-gen options; KAI promoting KF-21 potential; LoI for comprehensive cooperation signed
    Egypt J-10C (China),
    J-35/FC-31 (China)    		 Reportedly Considered / Sale Denied (Mar 2025) Unspecified Seeking diversification; reports of deal denied by China

    Summary

    The diverse activities in the fighter market illustrate distinct procurement strategies. While some nations pursue cutting-edge 5th-generation capabilities, potentially through partnerships on developmental programs like KAAN, a significant market exists for advanced 4.5-generation aircraft, such as the Gripen, F-16V, and Rafale. In this segment, factors such as acquisition and operating costs, sustainment, industrial offsets, and technology transfer often weigh heavily in decision-making, areas where the Gripen appears competitive. The potential influence of US ITAR regulations on the Colombian Gripen sale, due to its US-sourced engine, highlights how component dependencies can create geopolitical leverage points, potentially impacting procurement outcomes irrespective of the technical or financial merits of competing offers. Furthermore, the interest shown in Türkiye’s KAAN and South Korea’s KF-21 signals a growing willingness by nations to consider advanced platforms from emerging aerospace powers, potentially challenging the long-held dominance of established manufacturers. China’s success with the JF-17 in Azerbaijan and potential inroads in Uzbekistan demonstrate its increasing competitiveness, offering modern capabilities often at lower costs and with fewer political restrictions, particularly appealing to nations seeking alternatives to traditional suppliers.

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    NATO AI Modernization: Palantir’s Maven Smart System Acquisition

    By
    Tamir Eshel
    -

    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 on fusing data from disparate sources suggests that NATO views effective data integration as the foundational layer necessary for successfully implementing more advanced AI-driven functionalities at the operational command level. However, the selection of a US technology company, Palantir, for such a central, Alliance-wide system highlights the ongoing tension between the need to leverage readily available, cutting-edge technology (often originating from the US) for immediate capability enhancement and the longer-term European aspiration for greater strategic autonomy and reduced technological dependence on non-European suppliers for critical defense systems. This decision highlights the complex trade-offs the Alliance faces in its modernization efforts.

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    Loitering Munition Developments: Enhancing Precision Strike

    By
    Tamir Eshel
    -

    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 (up to 250 km/h in terminal dive), and an operational altitude of 2 km. Key AI-supported functions include GNSS-free navigation (claiming 1m accuracy), object recognition, tracking, and automatic target approach, coupled with a hardened data link. The VTOL capability allows operation without launch infrastructure and enables the use of inert versions for cost-effective training. STARK has established a production facility in Bavaria and mentioned a broader portfolio including the “Minerva” mission system for controlling multiple unmanned systems.  

    US Army Explores One Way Attack UAS under Project Artemis

    In the United States, the Defense Innovation Unit (DIU) is advancing its Project Artemis, selecting four companies—Swan, Dragoon, Aerovironment, and Auterion—to prototype long-range, one-way unmanned platforms. Notably, Swan and Auterion are US software firms partnering with Ukrainian UAS companies. The project aims to evaluate these platforms, which use loitering munitions, in operationally relevant Electronic Warfare (EW) and Global Navigation Satellite System (GNSS)- denied environments. Key requirements include ground launch, affordability, a range of 50 to over 300 km, rapid deployment, low-altitude navigation, payload flexibility, rapid upgradability, and robust operation in contested electromagnetic environments. This initiative aims to deliver low-cost, adaptable LMs suitable for mass deployment, with a focus on speed to the warfighter.

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    Integrating Intelligence into Unmanned Systems

    By
    Tamir Eshel
    -

    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 twin technology to generate high-quality synthetic data across diverse simulated operational conditions, including varying speeds, weather, drone types, and terrain. This data is used to train and refine the AiTDR’s AI models before physical hardware integration, aiming to improve system development efficiency and reduce the gap between test results and real-world performance. The project involves phased development, iteratively optimizing the AI algorithms and simulation methodologies within the Falcon environment. This approach is expected to shorten development timelines, reduce costs, and allow for robust pre-deployment testing and validation of the C-UAS system, a critical capability for future armored vehicles.

    In the air domain, long-term partnerships are solidifying for key autonomous programs. BAE Systems Australia and Boeing Defence Australia signed a 10-year Head Agreement concerning the MQ-28 Ghost Bat Collaborative Combat Aircraft (CCA). Under this agreement, BAE Systems will continue delivering its sovereign Vehicle Management System (VMS) software, which enables the MQ-28’s autonomous flight. BAE also provides elements of the Ground Control Station and the Independent Flight Termination System. This long-term commitment strengthens the strategic partnership established in 2017 and ensures ongoing development and support for the critical flight control systems of Australia’s pioneering uncrewed teaming aircraft program.

    These developments collectively signal that software, AI, and autonomy are becoming increasingly core components that define the capabilities of modern military platforms. The emphasis on partnerships suggests that major primes are adopting an ecosystem model, collaborating with specialized tech firms to access cutting-edge capabilities, rather than relying solely on in-house development. Concurrently, the use of advanced simulation and digital engineering tools represents a methodological shift toward more agile, software-centric design, integration, and testing processes, aiming to accelerate the deployment of complex AI-enabled systems.

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    Rocket Systems & Production Dynamics: Meeting Surging Demand

    By
    Tamir Eshel
    -

    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 sovereign defense capabilities amid regional security concerns. Hanwha Aerospace leadership emphasized a commitment to full localization, aiming to guarantee local capability and readiness. This progression positions Poland to become a significant hub within NATO’s missile defense architecture, supported by indigenous production capacity.

    These parallel developments reveal a broader trend in artillery modernization. Nations appear to be adopting a dual-track approach: acquiring readily available, combat-proven systems like HIMARS to meet immediate operational needs, while concurrently investing in long-term sovereign production capabilities. Poland’s engagement with South Korea exemplifies this, securing immediate access to advanced MLRS technology while building the industrial base for future self-sufficiency and potentially diversifying its supplier base beyond traditional Western sources. This diversification, however, introduces complexities. The proliferation of different advanced MLRS systems within NATO (e.g., US HIMARS, Polish HOMAR-K, Israeli European PULS, and French FLP-T) requires focused efforts to ensure interoperability in command, control, and logistics, maintaining cohesive alliance capabilities. Hanwha’s success in Poland also highlights South Korea’s growing stature as a major global defense exporter, offering technologically advanced systems often coupled with attractive technology transfer and industrial cooperation agreements, challenging established market players.

    This article is part of our weekly DefenseTech Brief.

    Moving Forward With Golden Dome for America Missile Defense Initiative

    By
    Tamir Eshel
    -

    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 actively promoting its existing combat-proven systems (such as Aegis, THAAD, PAC-3, C2BMC, and SBIRS) and integration expertise as a foundation for the Golden Dome, advocating a “whole-of-industry” approach that combines established and newer players. Booz Allen Hamilton has also proposed its “Brilliant Swarms” concept involving thousands of small interceptor satellites. L3Harris Technologies has recently completed a $125 million expansion at its space manufacturing facility in Fort Wayne to support the urgent need for on-orbit technology for the Golden Dome. Boeing suggests using its X-37B space plan for deployment and servicing for new space assets. Two of these space planes are currently operational, but more can be built, company executives said.

    The overall cost is estimated to reach hundreds of billions of dollars potentially. Initial capabilities, likely technology demonstrators of parts of the program, are targeted for delivery starting in early 2026. SpaceX’s preliminary estimate for the custody layer’s engineering and design alone is reportedly $6 billion to $10 billion. Significant technical and strategic challenges remain, including the feasibility and cost-effectiveness of space-based interceptors against potentially large numbers of offensive missiles, as well as concerns about destabilizing strategic deterrence.

    The Space Force has established a planning team to map its contributions, focusing on existing and planned missile warning and tracking satellite constellations, such as Next-Gen OPIR, HBTSS, and SDA’s Proliferated Warfighter Space Architecture.

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    DefenseTech Brief – Week Ending April 13, 2025

    By
    Tamir Eshel
    -

    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.

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    “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 Chinese export controls on crucial rare earths. This highlights US vulnerability, particularly in processing, and risks hindering diversification efforts while potentially benefiting China. Rebuilding secure domestic/allied supply chains is a recognized long-term challenge.

    Investor Takeaway: Significant risk for manufacturers heavily reliant on Chinese-controlled rare earths. Opportunities exist for companies involved in domestic/allied mining, processing, recycling, developing alternative materials, or designing systems less dependent on these specific minerals. High geopolitical risk remains a factor.

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    Pentagon Overhauls IT Strategy, Cuts $5.1B in Consulting Contracts

    The Pentagon is undertaking a major overhaul of its IT strategy, marked by the cancellation or modification of $5.1 billion in IT contracts primarily affecting large consulting firms. Defense Secretary Pete Hegseth has directed the Pentagon’s Chief Information Officer (CIO) to develop a plan within 30 days for in-sourcing IT consulting and management services, collaborating with the Department of Government Efficiency (DOGE) team. While this action has the potential for considerable savings on wasted expenses, IT services for current operations could be degraded due to a lack of immediate service alternatives that could have been established in a more orderly process with commercial CRM, automation, and AI tools.

    Impact: Major consulting firms are significantly affected. Deloitte has reportedly faced 124 federal contract terminations/modifications since January, leading to layoffs. Accenture warned of contract delays and cancellations impacting its federal services unit, affecting its stock price.

    New Strategy:     The shift emphasizes leveraging the internal DoD civilian workforce, reducing reliance on external contractors, negotiating more favorable software/cloud rates, adopting commercial-off-the-shelf (COTS) technology, using automation and data analysis for enhanced cybersecurity, reducing procurement times, and implementing agile development practices. An audit of software licensing is also planned.

    Investor Takeaway: Significant headwinds for large consulting firms with major Pentagon IT portfolios (Accenture, Deloitte). Potential opportunities for providers of cost-effective COTS software, specialized cybersecurity solutions aligned with DoD needs, automation tools, and niche firms supporting specific in-sourcing or efficiency efforts.

    Air Defense Demand Continues to Surge Globally

    Driven by global conflicts, UAS proliferation, and missile advancements, demand for air/missile defense is soaring. Market forecasts predict robust growth (CAGR 5-7%+). Nations are boosting budgets for multi-layered, networked systems against diverse threats. Key trends include C-UAS, directed energy, AI integration, and hypersonic defense.

    Investor Takeaway: Strong positive outlook for established air/missile defense leaders (e.g., Raytheon, Lockheed Martin, Northrop Grumman, European firms like MBDA, Thales, and Israeli firms like Rafael, IAI, Elbit) and their supply chains (radars, sensors, interceptors). Counter-drone technology is a particularly high-growth niche.

    Competition Heats Up for Greek Defense Modernization

    Greece continues its ambitious military modernization program (“Achilles Shield”), attracting significant international competition and mandating at least 25% domestic industry participation.

    Key Competitors & Local Partners: Major US (Lockheed Martin), French (Naval Group, Dassault), and German (Rheinmetall, KMW) firms are active. Israeli companies are also deeply involved: Elbit Systems manages the Hellenic Air Force flight training center ($1.65B deal) and is reportedly favored for PULS rocket launchers; Rafael Advanced Defense Systems secured a major Spike missile contract (~€370M) and Greece is evaluating its SPYDER air defense system; Israel Aerospace Industries (IAI) acquired Greek firm Intracom Defense, leased Heron UAVs to Greece, and is in advanced talks to supply Barak MX air defense systems. Greek firms like HAI, EODH, Hellenic Shipyards, ONEX Shipyards, and MILTECH are key local partners.

    Ongoing Procurements:         Include IFVs, MBTs, fighters (Rafale, F-16 upgrades, F-35), frigates (Belharra), and potentially corvettes, air defense systems, and rocket artillery.

    Investor Takeaway:         Significant opportunities for international suppliers across air, land, and sea domains, provided they offer substantial local industrial cooperation/co-production. Israeli defense firms are proving particularly successful in securing major deals alongside European and US competitors.

    Europe Explores Independent Long-Range Strike Capabilities

    European nations are increasingly focused on developing sovereign long-range strike capabilities, driven by Ukraine and strategic autonomy goals.
    Key Initiatives: The multi-nation European Long-Range Strike Approach (ELSA) aims for a European deep-strike missile. France is also pursuing a domestic HIMARS alternative (FLP-T) with potential for extended range.


    Investor Takeaway:         Long-term growth potential for European defense primes (MBDA, Thales, Safran, ArianeGroup, etc.) involved in these new sovereign missile programs. This trend could gradually reduce European reliance on US systems in this category.

    Artillery Production Ramps Up Amidst Growing Demand

    The global artillery market is booming (projected CAGR 6-7%+), driven by conflicts, modernization, and demand for range/precision.

    Market Focus: High demand for systems (mobile howitzers, rocket launchers) and especially ammunition (both conventional and PGMs). Key players include US, European, South Korean (Hanwha), Israeli (Elbit), and others.

    Investor Takeaway: Strong market for established artillery manufacturers and ammunition producers. Companies investing heavily in expanding production capacity and developing advanced/longer-range munitions are particularly well-positioned to capture growth.

    Read this week’s DefenseTech Brief 

    International Defence Conference (IDC) 2025

    By
    Tamir Eshel
    -

    The International Defence Conference (IDC) 2025 will take place on February 16 under the theme “Defence Reimagined: Innovation, Integration and Resilience”. The event coincides with IDEX and NAVDEX 2025, held under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan, UAE President and Supreme Commander of the Armed Forces.

    Organized by ADNEC Group in partnership with the UAE Ministry of Defense and the Tawazun Council, IDC 2025 will serve as a global platform for top defense and security leaders, policymakers, and industry experts. Discussions will focus on key global threats and the future of defense technologies, emphasizing international collaboration and innovative solutions.

    Key Sessions:

    • Global Disruptions & Defense Preparedness – Addressing challenges in critical supply chains, including cyberattacks, pandemics, and geopolitical tensions.
    • Disinformation & Influence Operations – Analyzing the weaponization of information, the role of AI and deepfakes, and countering misinformation in modern conflicts.
    • Space: The New Arena for Defense & Security – Exploring space warfare, satellite security, counter-space threats, and the need for space alliances.

    Renowned experts, including Dr. Yossi Sheffi (MIT) and senior military officials, will provide insights on shaping future defense strategies. The event will conclude with strategic recommendations to enhance global defense resilience.

    Controp: Defining Clarity with End-to-End EO/IR Solutions

    By
    Tamir Eshel
    -
    The SPEED LR is one of many EO/IR payloads on display at Controp's IDEX booth, highlighting the latest advancements in EO/IR, and Smart-Vision AI-enhanced technologies. Image: Controp

    Controp traces its origins to the late 1980s, emerging as a boutique developer of electro-optical technologies and solutions designed to meet the evolving needs of Israel’s defense and security forces. From the outset, the company’s core vision centered on creating innovative, high-performance Electro-Optical and Infrared (EO/IR) sensor payloads and solutions across multiple domains—aerial, naval, ground, and perimeter security.

    Over the decades, Controp became a world-class provider of integrated EO/IR systems, seamlessly merging advanced optics, precision line-of-sight stabilization, sophisticated image processing, and AI-driven analytics. Today, the company leverages this experience beyond sensor payloads, defining unique operational solutions through superb VISINT by integrating multiple sensor types, data processing, and analytics into a complete solution in air defense, Counter-UAS (C-UAS), Security systems, and more.

    According to Hagay Azani, President & CEO, Controp’s motto — “Defining Clarity” — reflects the company’s emphasis on converting raw visual data into actionable intelligence. “We accomplish this through the latest advancements in electro-optics, artificial intelligence, machine learning, and advanced analytics. These battle-proven technologies automate processes to minimize operator workload, ensuring rapid identification of high-value targets. Recognizing that military programs often span decades, we design our products with modularity and growth in mind, enabling upgrades that accommodate ever-evolving threats and requirements.” Azani said in an interview with Defense-Update.

    Controp will debut the T-STAMP XED payload at IDEX 2025. The new payload is optimized for Group 2 UAS, offering extended-range performance. Photo: Controp

    A Multi-Domain Capability

    Over the years, Controp’s portfolio has grown to encompass multiple operational environments. The company has developed lightweight payloads for high- and low-altitude UAVs that provide day-and-night vision, continuous zoom, target designation, and leading-edge image stabilization suitable for use in the airborne domain. Meanwhile, maritime-oriented systems are designed to withstand punishing sea conditions. At the same time, land-based platforms excel in border and coastal security missions, offering crystal-clear imagery at distances of 70 kilometers and above.

    Within air defense, Controp’s sensors and targeting solutions integrate smoothly with various effectors — RF, laser, and kinetic — to ensure seamless target acquisition and engagement. “Air Defense is one application where Controp’s full system integration offerings are most competitive,” Doron Zalts, VP of International Marketing & Business Development, told Defense-Update. “These applications are already proven in Close-In Weapon Systems (CIWS) and counter-UAS defenses operating worldwide. Similar electro-optical capabilities are found in the company’s ground-focused solutions, where rugged, vibration-resistant sensors are critical for armored combat vehicles, remotely operated weapon stations, and tank fire-control systems.

    Smart Vision – the AI Advantage

    “A major advantage of our group is the analytics embedded into our systems; we use our analytics and AI-driven processing near the sensor.” Said Hagay Azani. “The proximity to the sensor preserves the high-fidelity data gathered by our EO/IR systems before this data is compressed, transmitted, and decompressed. This process enables faster, highly sensitive target detection, classification, and tracking without relying on centralized processing. The result is faster, more accurate threat identification, and reduced latency in delivering data to the user.” Azani explained.

    A key differentiator is Controp’s Smart Vision analytics suite, which exploits AI to deliver automatic target recognition (ATR), real-time tracking, and object classification. By integrating these analytics at the sensor level, operators gain superior situational awareness while reducing cognitive load. Whether deployed in maritime patrol, border security, or counter-UAS missions, Smart Vision enhances both speed and precision in the decision-making process.

    Controp SIGHT mast-mounted EO/IR kit. Photo: Controp

    Pioneering at Home, Growing Abroad

    In recent years, Controp has formed a global group structure to extend its market reach and fuel technological breakthroughs. The company’s approximately 500 employees are distributed across several corporate entities, subsidiaries, and partnerships:

    • Controp, founded in 1988, was an early innovator in line-of-sight stabilization and electro-optics technologies. Rafael and Aeronautics acquired the company in 2012.

    • ESC Baz, acquired by Controp in 2021, focuses on short- and medium-range observation solutions for perimeter security, complementing Controp’s medium- and long-range systems.

    • Microcon Vision, established in 2022, addresses the surging demand for micro-sized payloads for small UAVs and loitering munitions. Controp holds a 73% share in Microcon Vision, which leverages Controp’s expertise to create compact payloads with advanced image processing and sensor fusion.

    • Controp-USA, established in 2004, is responsible for the group’s operations in the USA. The company provides EO/IR systems, payloads, and sensors to US Government program offices and end users.

    • ControPARAS is a joint venture company established by Controp and Paras Defence in India; it provides local manufacturing of Electro-Optical systems through technology transfer, following the Make in India and Atmanirbhar Bharat (Self Reliance) initiatives.

    Close collaboration with Israel’s Ministry of Defense, Directorate of Defense Research & Development (DDR&D), the Israeli Defense Forces (IDF), the Air Force, and the Navy provides an intensive testing environment. Operating in high-tempo conflict scenarios, Controp systems have repeatedly proven their resilience in battle under extreme conditions, paving the way for the company’s global expansion strategy.

    “Within Israel, Controp is part of Rafael and its subsidiary Aeronautics. As the “electro-optics house” for various Rafael programs” Azani said, “Our systems are integrated with air defense systems, UAS platforms, unmanned ground/surface vessels, and turreted solutions. Aeronautics relies on Controp’s payloads across its UAV portfolio, reflecting a deep trust in Controp’s design and performance.”

    Controp-USA, ControParas, and representative offices in key markets serve as local branches for prime contracting, marketing, product demonstrations, manufacturing, and in-country support. This structure enables rapid response to regional requirements, including customer demands for localized production and shorter logistics timelines.

    According to Doron Zalts, Controp is forging long-term partnerships in strategic markets to meet the growing worldwide demand for locally produced or sustained defense equipment. “Beyond our wholly owned U.S. subsidiary and our JV in India, Europe presents a high priority for our marketing and sales, where we seek to find the right partners for joint production through technology transfers,” Zalts added that, since Israel’s establishing diplomatic relations with the UAE under the 2020 Abraham Accords, Controp has expanded its activities by establishing a representative office to align with the UAE’s objectives of promoting domestic defense capabilities. Given the wide acceptance of its systems, Controp is operating a local service center for its systems, in partnerships with prominent organizations such as EDGE, Etimad, and additional local partners.

    This commitment to localized support and co-development is central to Controp’s model. It enables customers to adopt advanced electro-optical solutions while building Indigenous technical expertise. A similar approach has proved effective in India, where Controp’s solutions are integrated into programs that combine local production with cutting-edge electro-optics.

    Product Spotlight at IDEX

    Controp’s appearance at IDEX underscores its reputation as a versatile, high-performance EO/IR system provider. Event visitors can expect to see the SPEED series, which is globally recognized for its long-range, stabilized surveillance capabilities. The SPEED ER remains a flagship product that has been continuously updated since 2014 to retain its edge in extended-range observation, enduring extreme heat, wind, and sand abrasion. The more compact SPEED MR embodies the same design principles in a medium-range form factor, making it ideal for border protection. Controp’s Smart Vision analytics suite will also be on display.

    The STAMP family of miniature UAV payloads, on display at IDEX, highlights a newer STAMP XED variant tailored for Group 2 UAVs requiring extended-range optics and stabilized tracking. In parallel, Microcon Vision features micro payloads for loitering munitions and drones, representing Controp’s focus on using specialized subsidiaries to accelerate innovation in emerging markets like small drone payloads.

    Controp’s evolution exemplifies a defense firm at the forefront of electro-optics, emphasizing integrated, analytics-driven solutions. By pushing more processing power to the sensor itself, Controp simultaneously boosts performance, cuts latency, and lowers power consumption—advantages particularly relevant in a world of increasingly swift maneuver warfare, AI-driven technologies, and swarming UAV threats.

    An Overview of Vietnam Defence 2024

    By
    Dan Zeevi
    -
    T-90SK in the version of the T-90S licensed for local production for the Vietnamese Army service. Photo: Defense Update

    The Vietnam Defence 2024 exhibition (DSE 2024), held at Gia Lam Airport in Hanoi, marked its second edition. The Ministry of National Defense organized it to coincide with the 35th anniversary of the Vietnamese military and the 80th anniversary of national independence. The event served as a major platform for showcasing Vietnam’s rapidly developing defense industry, fostering international partnerships, and highlighting its military modernization efforts. With 140 companies from 28 countries participating, the exhibition reflected Vietnam’s growing strategic importance in the global defense sector.

    A key focus of the exhibition was Vietnam’s drive for self-reliance in defense production. The government has invested heavily in its domestic arms industry, prioritizing research and development, technology transfer, and local manufacturing. New laws have been enacted to provide financial and infrastructural support for Vietnamese defense firms, ensuring the country can produce its military equipment rather than relying on imports. The exhibition displayed locally manufactured weapon systems prominently, signaling a shift toward greater autonomy in defense production. Industries’ displays also highlighted the sophistication and advanced level of automation of some of the local industries, enabling Vietnamese manufacturers to take on relatively complex projects from Eastern and Western origins.

    Another dominant theme was Vietnam’s gradual reduction of dependence on Russian arms, a trend accelerated by concerns over Western sanctions on Russia and the impact of the Ukraine war on Moscow’s defense industry. Traditionally, Russian weapons accounted for 75-80% of Vietnam’s military imports, but the country is now actively diversifying its suppliers. At the exhibition, this shift was evident in the wide participation of American, European, Middle Eastern, and Asian defense companies, many of which presented advanced alternatives to Russian systems.

    Given the ongoing territorial disputes in the South China Sea, its naval and coastal defense capabilities remain one of Vietnam’s highest defense priorities. Significant investments have been made in acquiring submarines, frigates, and anti-ship missiles, as well as enhancing the Vietnamese Coast Guard’s capabilities through new patrol vessels and maritime surveillance aircraft. The exhibition displayed a range of advanced missile systems and maritime defense solutions, reflecting the government’s commitment to protecting its maritime interests.

    Another critical focus of the event was the modernization of the Vietnamese Air Force. The country is upgrading its fighter jet fleet, expanding its use of UAVs, and improving its air surveillance systems. Unmanned aerial vehicles (UAVs) were particularly prominent at the exhibition, with manufacturers from Vietnam, Iran, China, and Israel presenting cutting-edge drone technologies. These ranged from reconnaissance UAVs to loitering munitions and anti-UAV defense systems, highlighting the growing importance of drone warfare in Vietnam’s strategic planning.

    Another weapon system upgraded by the Vietnamese industry is the Russian S-125 upgraded to the Pechora-2M standard. Photo: Defense-Update
    The VPK-57 counter-UAV and air defense system produced by Viettel is based on a modernization of Vietnamese AZP (S60) 57 mm anti-aircraft canons). The system utilizes a new, mobile AESA radar for medium-range surveillance. The guns were modernized with a digital fire direction, controlled by an associated EO/IR targeting system and the new radar, to deliver accurate fire against aerial threats.

    In addition to air and naval defense, the exhibition showcased Vietnam’s increasing investments in cyber warfare and electronic warfare technologies. Modern conflicts place a greater emphasis on digital battlefields, electronic intelligence, and cyber security, so the Vietnamese military is enhancing its capabilities in these domains. Several UAV jamming systems, electronic warfare tools, and cyber defense platforms were unveiled, illustrating Vietnam’s ambition to develop a technologically advanced military.

    The international presence at Vietnam Defence 2024 was particularly diverse, demonstrating the country’s balanced and strategic approach to defense partnerships. Despite its declining arms sales to Vietnam, Russia maintained a strong presence at the exhibition. ROSOBORONEXPORT and ROSTEC showcased a variety of military systems, including air defense systems, armored vehicles, missiles, and UAVs. Russia eyes Vietnam as a lucrative market for its latest weapon systems, including the SU-57, Russia’s 5th Gen fighter plane. Russia continues to offer Vietnam technology transfers and licensed production agreements, allowing Vietnamese factories to produce and manufacture Russian weaponry domestically. Some examples of these projects include the local version of the Lancet loitering weapon, the Rubezh coastal defense system, the RPG-30 anti-tank weapon, and others, slightly altered weapon systems that are likely utilizing Russian designs locally manufactured in Vietnam under local designations.

    The VU-C2 is a locally produced loitering weapon developed and produced by Viettel. The weapon uses AI-aided optronic guidance. Photo: Defense-Update

    China also played a significant role in the exhibition. NORINCO, one of China’s leading state-owned defense corporations, presented a variety of military equipment, including tanks, anti-aircraft systems, and guided missiles. Meanwhile, Iran debuted at Vietnam Defence 2024, displaying an impressive lineup of UAVs, anti-tank missiles, and rocket systems. The Iranian CM-200 anti-ship missile drew particular attention as a potential alternative to Russian coastal defense systems.

    The United States has steadily increased its defense ties with Vietnam since the lifting of the arms embargo in 2016. At the exhibition, it showcased military equipment used by the U.S. Armed Forces, emphasizing its growing role as an arms supplier to Vietnam. Discussions revolved around potential sales of Coast Guard vessels, transport aircraft, and fighter jets, further strengthening the U.S.-Vietnam defense relationship.

    Israel also played a notable role in Vietnam Defence 2024, reinforcing its emerging status as a key defense technology partner for Vietnam. Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems were among the major exhibitors, presenting a range of advanced solutions. IAI showcased its Heron UAV series, known for intelligence, surveillance, and reconnaissance (ISR) capabilities, alongside the BARAK MX air and missile defense system, designed to counter multiple airborne threats. Rafael, on the other hand, featured the SPYDER air defense system, which Vietnam has been operating since 2015. The SPYDER system’s Python-5 and Derby missiles, combined with its ability to track 1,200 targets simultaneously, have made it a cornerstone of Vietnam’s air defense network. Israeli firms also expressed interest in establishing joint ventures with Vietnamese companies, particularly in UAV development and radar technology, highlighting the potential for long-term defense collaboration.

    In addition to the major powers, France, Singapore, India, and Turkey were actively engaged in the exhibition, aiming to expand their defense footprint in Vietnam. Turkey, particularly, attracted attention with its guided missile technology and UAVs, offering Vietnam additional options for modernizing its military forces.

    The UAV-BXL.01, loitering munition, was locally developed by Factory Z131. The design is believed to be based on an early version of the Russian Lancet, although neither Russian nor Vietnamese sources have confirmed such relations. Photo: Defense-Update

    At the heart of Vietnam Defence 2024 was the growing role of Vietnamese defense firms, many of which operate under the Ministry of Defense (MOD) and Ministry of Public Security (MPS). Companies such as VIETTEL, VAXUCO, and GAET demonstrated their military production, telecommunications, and cyber defense capabilities. The Vietnamese government has actively encouraged joint ventures with foreign companies, and the exhibition provided a platform for new partnerships in weapons manufacturing and technology transfers.

    The broader defense landscape reflected a clear shift in Vietnam’s military strategy. While Russia remains an important supplier, its dominance in the Vietnamese arms market is declining, with Vietnam increasingly turning to the United States, Europe, Israel, and regional partners for advanced weaponry. Israeli and Iranian companies exhibiting side by side underscored Vietnam’s neutral, pragmatic approach to defense procurement, prioritizing national security over geopolitical alignments.

    As Vietnam continues its military modernization, its defense budget is projected to reach $10.2 billion by 2029, focusing on naval forces, air defense, and electronic warfare. The exhibition made it clear that Vietnam is determined to build a self-reliant, technologically sophisticated military capable of addressing both traditional and emerging security threats. With a commitment to strategic autonomy and regional stability, Vietnam Defence 2024 reaffirmed the nation’s ambition to become a modern military power while maintaining its policy of neutrality in global conflicts.

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    Skunk Works and XTEND Simplify Multi-Drone Command

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    Lockheed Martin Skunk Works® and XTEND have achieved a major milestone in JADC2 by integrating the XOS operating system with the MDCX™ autonomy platform. This technical breakthrough enables a single operator to simultaneously command multiple drone classes, eliminating the friction of mission handoffs. From "marsupial" drone deployments to operating in GPS-denied environments, explore how this collaboration is abbreviating the data-to-decision timeline and redefining autonomous mission execution.
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    From Ukraine to Taiwan: The Global Race to Dominate the New Defense Tech Frontier

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    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.
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    Europe’s “Drone Wall”

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    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...
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    Weekly Defense Update & Global Security Assessment

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    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...
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    U.S. Air and Space Forces Push Next-Gen Programs at the AS&C 2025 Conference and...

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    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.
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    TADTE 2025: Reflecting Taiwan’s Strategic Themes

    Tamir Eshel - 0
    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.
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    Iron Beam 450 Completes Testing, Soon to Join With Operational Air Defense Units

    Tamir Eshel - 0
    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.
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