The defence sector is growing rapidly, perhaps unsurprisingly given a world stage that is more unstable than we have seen for decades. Alongside geopolitical tensions, advances in technology are providing both an impetus for, as well as the means of, innovation in this sector. In this briefing, we look at the challenges facing governments as they move to increase global defence spending, and the opportunities that are likely to arise in this era of strategic disruption.

Key takeaways

• Tectonic changes in great power politics and rapid technological advancements are reshaping the geopolitical landscape and creating the impetus for greater growth and investment in the defence sector.
• In Europe, a key concern is how enhanced defence capabilities will be funded, with private capital positioned to play an important role if terms palatable to governments can be agreed.
• In the US, the Trump administration’s ambition dramatically to boost defence expenditure presents opportunities not only for established industry players, but also new entrants and start-ups.