Analysis & Reports

The global arms trade has increased by 9.2% over the past five years, driven primarily by European demand, particularly in response to the threat from Russia. European countries now account for 33% of global arms imports, with significant contributions from the U.S. and Germany. Germany has emerged as the fourth largest arms exporter, with a substantial portion of its exports directed to Ukraine. Meanwhile, Russia's arms exports have sharply declined due to the ongoing conflict and international pressure.

Saab proposed a dual fleet of Gripen fighters and F-35s to the Royal Canadian Air Force, emphasizing the need for modernization and local aerospace job creation. This proposal comes as Canada is in the process of replacing its aging CF-18 fleet with F-35s, having confirmed orders for 16 aircraft and payments for parts for 14 more. The discussion is timely, given recent NORAD scrambles against Russian aircraft.

Eric Trump and Donald Trump Jr. invested in drone technology through a merger between Aureus Greenway Holdings and Powerus Corporation in the United States. This investment aims to enhance the production of autonomous drones for the U.S. military, addressing current gaps in military capabilities amid geopolitical tensions. The merger follows recent military actions in the Middle East, highlighting the urgent need for advanced drone technology.

Eric Trump and Donald Trump Jr. invested in drone technology through a merger between Aureus Greenway Holdings and Powerus Corporation in the United States. This investment aims to enhance the production of autonomous drones for the U.S. military, addressing current gaps in capabilities amid rising geopolitical tensions, particularly with Iran. Powerus intends to leverage experiences from Ukraine to improve U.S. military drone operations.

The U.S. Army approved the M111 Offensive Hand Grenade for service, marking the first new offensive grenade since 1968. Developed at Picatinny Arsenal, the grenade utilizes blast overpressure for incapacitation, making it safer for use in confined spaces. This approval allows the Army to transition the grenade from development to production, enhancing its close combat capabilities.

Robinson Helicopter launched Robinson Unmanned in Washington, focusing on developing a range of unmanned drones for military and commercial applications. The new division will produce Group 1 to Group 4 drones and is involved in a Defense Department program for the R66 Turbinetruck, designed for logistics in contested environments. This initiative aims to enhance operational capabilities and reduce risks in military logistics.

The Department of the Air Force is pursuing advancements in battery and energy storage technology to enhance military capabilities. Eglin Air Force Base is set to host an industry day to explore promising technologies, with potential contracts starting in fiscal 2027. Key objectives include significantly improving battery energy density and ensuring reliability under extreme conditions. The JOULES-1K program aims to quadruple battery energy density, which could unlock new capabilities for military vehicles and systems.

The U.S. Department of War is integrating the Patriot Advanced Capability-3 Missile Segment Enhancement interceptor onto Navy destroyers, with $65 million allocated for fiscal year 2026. This integration aims to enhance missile defense capabilities against complex threats, utilizing the Aegis combat system. Lockheed Martin has successfully tested the interceptor from a naval launcher, indicating its operational readiness for maritime use.

The U.S. Army has approved the M111 Offensive Hand Grenade for operational use, marking the first new lethal hand grenade since 1968. This new grenade replaces the aging Mk3A2 series and utilizes blast overpressure to neutralize enemy personnel, reducing risks in confined environments. Developed at Picatinny Arsenal, the M111 enhances operational readiness and training flexibility, with a training variant, the M112, also introduced.

The U.S. Navy is gradually retiring its Los Angeles-class submarines, with 23-26 remaining in service. In 2026, the USS Newport News, USS Alexandria, and USS Scranton will be retired as the Navy transitions to the newer Virginia-class submarines. A recent operational success included a Los Angeles-class submarine sinking an Iranian warship during Operation Epic Fury, demonstrating its continued relevance despite aging technology.

The U.S. Navy is retiring the Ticonderoga-class cruisers by 2027, creating a significant firepower gap due to their high missile capacity of 122 VLS cells per ship. The transition to the Arleigh Burke-class destroyers, which only have 96 VLS cells, exacerbates this issue. Concurrently, the Navy faces a shortage of Tomahawk missiles, complicating its operational readiness in potential conflicts, particularly in the Indo-Pacific region.

The U.S. military has extensively used Tomahawk cruise missiles in strikes against Iran during the ongoing conflict in 2026, leading to a critical shortage of these weapons. With an estimated pre-war stockpile of 4,000 missiles and production historically limited to 90 units annually, the U.S. faces significant challenges in replenishing its arsenal. RTX plans to increase production capacity to 1,000 missiles per year, but rebuilding the stockpile may take years due to complex supply chains and ongoing military demands.

The U.S. Navy is facing a strategic crisis as it prepares to retire Ohio-class submarines between 2026 and 2028, which could lead to a significant reduction in missile capacity. Plans are being considered to convert Columbia-class submarines into guided-missile submarines capable of carrying 200-300 Tomahawk missiles. However, the high costs of conversion and the Navy's preference for distributed lethality may complicate these efforts.

Switzerland reduced its F-35 acquisition to 30 jets due to rising costs and confirmed plans to buy additional air defense systems. The Israeli Air Force achieved its first air-to-air kill with an F-35 over Tehran, while British F-35s shot down drones in Jordan. Canada is currently reviewing its F-35 purchase decision, considering alternatives like the Gripen.

The U.S. Navy faces a significant reduction in strike capacity as 2,080 Vertical Launch System (VLS) cells will be phased out by 2027 due to the retirement of four Ohio-class SSGNs and Ticonderoga-class cruisers. This loss of missile capacity raises concerns about the Navy's ability to respond effectively in potential conflicts, particularly with China. The Virginia Payload Module may offer some replacement, but the overall reduction in Tomahawk missile availability poses a strategic challenge.

Joint Interagency Task Force 401 and the Federal Aviation Administration conducted a high-energy laser test in the United States to advance counter-drone systems. This test aims to enhance capabilities against unmanned aerial threats.

Lockheed Martin is conducting integration and testing of the MBDA Meteor missile on the F-35 stealth fighter at Edwards Air Force Base, California. The Meteor, capable of speeds over Mach 4 and a range of 200 km, is expected to enhance aerial combat capabilities significantly. The missile's integration is part of the F-35's Block 4 upgrade, with operational deployment anticipated by the 2030s.

In 1997, the U.S. Military purchased 21 MiG-29 fighter jets from Moldova, including 14 nuclear-capable MiG-29C variants, to prevent Iran from acquiring them. This acquisition was part of the Cooperative Threat Reduction Program and aimed to neutralize a potential nuclear threat from Iran. The jets were subsequently sent to Wright-Patterson Air Force Base for evaluation and training.

Aero-Sentinel confirmed on March 9 that it received a new order for silent unmanned aerial vehicles from a U.S. customer. The company stated that its systems will support intelligence, surveillance, and reconnaissance missions, highlighting the importance of low acoustic signatures for covert operations. This order reflects ongoing cooperation between Israeli and U.S. defense partners.

Steadicopter signed a services agreement with flyAlchemy to evaluate the Black Eagle 50E rotary unmanned aerial system in the United States. The agreement, announced on March 9, aims to support operational deployment, flight demonstrations, and mission development activities. The collaboration will focus on adapting the drone for U.S. operational environments and includes efforts for certification pathways and training programs.