Strategic Intelligence: Scaling Rearmament (2025)

Strategic Intelligence: Scaling Rearmament (2025)

Summary

This report will examine some of the specific drivers of large-scale rearmament today, as well as the challenges involved, with some specific value chain case studies in artillery ammunition, missile systems, and the submarine-industrial base, which all serve to highlight that this is a tumultuous but pivotal point in time for the defense industry.

Defense budgets are growing across the globe, primarily in response to the rising possibility of conventional, high-intensity warfare (HIT). Unlike the ‘small’ wars and counterinsurgencies that militaries have largely adapted to in the last 30 years—particularly in the West—the conflicts that NATO, its allies, and other countries are re-arming for are anticipated to be led by tensions between nation-states, and mostly the nuclear-armed superpowers of the US, China, and Russia. This would entail large-scale and likely protracted fighting between uniformed regular armies involving large fleets of armored vehicles, aircraft, and powerful surface vessels.

Key Highlights

• Studies of emerging technological trends and their impact on scaling rearmament.
• Analysis of several countriesand their position in the global defense supply chain and production picture, along with an overview of government actions and regulations pertaining to large-scale defense production.

• The key supply challenges that defense sector suppliers face are covered.The investment and security-of-supply opportunities for armed forces, suppliers, and institutional investors, across much of the defense value chain are covered. An overview of some of the most critical defense products and efforts to scale production capacity is covered.

• Determine potential investment companies based on trend analysis and market projections.
• Gaining an understanding of the market challenges and opportunities surrounding the scaling rearmament theme.
• Understanding how spending scaling rearmament will fit into the overall defense market and which supply chains and defense products are being prioritised.