Analysis & Reports

ARES Shipyard is establishing ARES Naval in Saudi Arabia, with shipyards planned in Dammam and Jeddah. The initiative aims to manufacture naval platforms and support the Saudi Navy, aligning with the Kingdom's Vision 2030 for defense production localization. ARES will hold the majority of shares and is also exploring co-production opportunities in the Gulf Cooperation Council region.

China's J-35 stealth fighter is in low-rate initial production and undergoing testing aboard the Type 003 Fujian aircraft carrier. The J-35, designed for carrier operations, features a twin-engine configuration and aims to enhance China's naval aviation capabilities. It is expected to operate alongside the J-20 in a dual-stealth fighter strategy, marking a significant advancement in China's military capabilities in the Indo-Pacific region.

Embraer is advancing discussions with Thai Aviation Industries to establish TAI as a local authorized service center for the Royal Thai Armed Forces' ERJ135 fleet. This initiative, expected to be implemented by the end of 2026, aims to enhance in-country maintenance capabilities and is part of a broader Memorandum of Understanding to strengthen Thailand's aerospace and defense ecosystem.

The USS Nimitz (CVN-68) has completed its final cruise and is en route to Naval Station Norfolk for decommissioning. The process is expected to take over two years and cost at least $500 million, involving the defueling of its nuclear reactors and eventual scrapping. Despite calls to extend its service life, the Department of Defense plans to proceed with its retirement.

Russian defense companies were absent from the Singapore Airshow from February 3-8, 2025, indicating a significant shift in their arms-export strategy. This absence reflects a shrinking and increasingly concentrated arms-export industry, exacerbated by the war in Ukraine. Meanwhile, Russia is actively pursuing military cooperation agreements in the Middle East, as evidenced by recent engagements with countries like Myanmar and Algeria.

China is testing a new variant of the J-20A fighter aircraft, featuring a redesigned rear canopy and the WS-15 engine, enhancing its capabilities. Recent tests focused on manned-unmanned collaboration and air-ground coordination. Chengdu Aircraft Industry Group aims to have approximately 1,000 J-20A airframes operational by 2030, positioning the aircraft as a key combat and command node.

The U.S. Navy's Littoral Combat Ships (LCS) are actively deployed in the South China Sea and Caribbean for patrol and counter-drug operations. By 2024, crews have significantly improved maintenance capabilities, handling 70% of maintenance tasks. The USS Charleston completed a notable 26-month deployment in the western Pacific, while the fleet size has been reduced from 55 to 35 due to various operational challenges.

India significantly increased military procurement from the U.S., signing a $1 billion deal for 113 F404 engines in November 2023. The U.S. also approved arms sales worth $92.8 million, including Javelin missiles. India is negotiating to co-produce F414 engines for advanced fighter jets and is considering purchasing 114 Rafale jets from France. These developments reflect the strengthening defense ties between India and the U.S. amid regional security concerns.

ST Engineering unveiled the Terrex s5 HED armored vehicle at the Singapore Airshow, capable of generating 400 kWh of electrical power to support various systems. The vehicle can carry 10 fully equipped troops and 2 crew members, weighing 35 tons. It features a remote control weapon station with a 30mm cannon optimized for counter-UAS operations. The Singapore Army will receive the Titan variant starting in 2028, equipped with advanced digital systems.

The 2nd Armored Brigade Combat Team of the 3rd Infantry Division conducted drone bomber training using the C100 Medium Range Reconnaissance drone during the Spartan Focus exercise. The training involved operators from the Multi-Function Reconnaissance Troop and focused on integrating drone-delivered munitions into ground operations, reflecting battlefield lessons from Ukraine. The C100 drone was employed in a bomber configuration to simulate missions supporting ground forces.

France delivered 1,000 infantry reconnaissance drones to the Armée de Terre as part of a rapid acquisition program. The drones, known as "drone du combattant," are equipped with optronic observation sensors and are intended to enhance situational awareness for infantry units. This delivery follows an order placed on June 30, 2025, and supports small-unit operations during Exercise ORION 2026 and beyond.

Overland AI raised $100 million to enhance the production of its ULTRA unmanned ground vehicles (UGVs) for the U.S. military, transitioning from experimental use to operational integration. The UGVs are designed for autonomous operations in challenging environments and have already supported missions with the 82nd Airborne Division. The funding will facilitate expanded manufacturing and field support as the technology is adopted by various military units.

Leonardo signed a Letter of Intent with the Indonesian Ministry of Defence to supply M-346F light fighters for the Indonesian Air Force. This agreement aims to modernize Indonesia's aircraft fleet by replacing older platforms and includes provisions for local support and training. The M-346F will serve dual roles in advanced pilot training and light combat, enhancing operational capabilities.

Chinese defense exports are under scrutiny as multiple countries report reliability failures and inadequate after-sales support for various military systems. Thailand's Type 69-II tanks were retired by 2004 due to unreliability, while Myanmar grounded its JF-17 fighter jets in late 2022 over structural issues. Jordan expressed dissatisfaction with its CH-4B UAVs, and Pakistan's F-22P frigates faced persistent operational problems. These issues raise concerns about the operational effectiveness of Chinese military equipment in active conflicts.

Ukraine is discussing the acquisition of JAS 39 Gripen jets and Meteor missiles from Sweden to enhance its air combat capabilities. These discussions were confirmed by Ukrainian Defense Minister Mykhailo Fedorov and Saab officials at the Singapore Airshow. The Meteor missile, known for its long range and advanced technology, would significantly improve Ukraine's operational effectiveness against Russian aircraft. A letter of intent for the export of up to 150 Gripen jets was signed last year, although no final deal has been concluded.

The Armed Forces Bill, currently at its second reading in Parliament, will soon authorize UK troops to take down drones that are harassing military sites. This legislative change is aimed at enhancing security around military installations.

Ukrainian forces launched a joint attack on Bryansk Oblast, Russia, on February 4, using HIMARS rocket systems, fixed-wing drones, and Neptune missiles. The assault resulted in damage to 20 residential buildings and injuries to one woman. Russian air defense successfully intercepted the Neptune missile and 11 drones during the attack.

Hanwha Aerospace signed a $922 million agreement with the Norwegian Defence Materiel Agency to supply the Chunmoo multiple rocket launcher system (MRLS) to Norway's armed forces. This deal aims to enhance Norway's military capabilities with advanced artillery systems.

On February 3, a drone strike by the Rapid Support Forces targeted a health center and residential areas in Kadugli, South Kordofan, resulting in 15 civilian deaths. Eyewitnesses reported that five drones were involved, with three being shot down. The attack caused panic among the local population, and the majority of casualties were patients receiving treatment at the health center.

ST Engineering showcased the Axios delivery kit at the Singapore Airshow 2026, a modular, drone-agnostic solution for last-mile operations. This system can be integrated with various unmanned platforms and is designed for urban environments, emphasizing precision and responsiveness. It supports multiple payload types, including logistics and medical supplies, and is part of a broader C5ISR architecture.