Analysis & Reports

Thales is accelerating defense production across Europe, planning to increase capital expenditure by over 40% to approximately €830-850 million by 2026. The company aims to recruit over 9,000 employees globally, with a focus on expanding production capacities for various military equipment, including Ground Master radars and Laser Guided Rockets, across multiple European countries.

Finland, Norway, and Latvia signed a Statement of Intent in Ankara on 7 July 2026 to cooperate on the development and procurement of Patria TRACKX armoured tracked vehicles. This agreement aims to enhance military mobility and interoperability among NATO nations, supported by the European Defence Fund. The TRACKX vehicle is part of the Future Highly Mobile Augmented Armoured Systems program, addressing the need for modernized armored vehicle fleets in Europe.

Lockheed Martin and Rheinmetall signed a memorandum of understanding on July 7, 2026, to co-produce ATACMS guided missiles at Rheinmetall's Unterluess facility in Germany. This partnership aims to enhance European defense capabilities and meet the growing demand for locally produced munitions. Production of rocket motors and missile components is expected to start in 2027, supported by the U.S. and German governments.

Canada selected Germany's TKMS as the preferred supplier for the Type 212CD submarines to enhance its naval capabilities. This decision aims to address the country's defense needs in the Arctic and North Atlantic, with the first four submarines expected by 2034. The report highlights the importance of developing a comprehensive strategy to support this procurement.

NATO has initiated formal negotiations with Saab for the acquisition of up to ten GlobalEye Airborne Early Warning & Control systems in Ankara, Türkiye. This decision aims to modernize NATO's surveillance capabilities, replacing existing systems. The GlobalEye, equipped with advanced radar and sensors, will enhance NATO's threat detection and response capabilities. Saab's CEO expressed confidence in GlobalEye as the leading solution for NATO's future AEW&C needs.

China showcased the DF-17 medium-range missile in a video, emphasizing its operational capabilities during U.S.-led military exercises in the Philippine Sea and Taiwan. The DF-17, capable of precise strikes and maneuvering, poses a significant challenge to U.S. naval forces. This demonstration serves as a reminder of the evolving military dynamics in the region, particularly concerning Taiwan and Japan.

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Azerbaijan's air force began operating JF-17 Thunder fighter jets on July 6, 2024, with two aircraft confirmed at Nasosnaya Air Base. The JF-17C Block III fighters are part of a larger procurement deal for 40 jets from Pakistan, enhancing Azerbaijan's air capabilities. The new fighters are conducting training alongside existing aircraft, indicating integration into the current fleet.

NATO announced major new procurements and industrial initiatives during the Defence Industry Forum in Ankara on 7 July 2026. The initiatives include the delivery of the 10th Airbus A330 MRTT and the procurement of Northrop Grumman MQ-4C Triton for maritime surveillance. NATO emphasizes the need for improved industrial capacity to meet defense requirements, particularly in light of the ongoing conflict in Ukraine.

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Germany's military is developing a satellite fleet of up to 1,200 satellites by 2030 to enhance its communications and reconnaissance capabilities. This initiative, known as SATCOMBw Stufe 4, aims to provide secure military communications independent of foreign infrastructure. The project is a response to lessons learned from Ukraine's reliance on commercial satellite networks during conflict. The defense ministry has allocated approximately $40 billion for these military space capabilities, with initial operations expected by 2029.

Germany and Rheinmetall will co-produce ATACMS missiles in Unterlüss, Lower Saxony, starting in 2027 to meet a projected demand of 600 to 800 missiles annually. This initiative, supported by both the American and German governments, aims to address Europe's reliance on American technology for precision long-range weapons. The production is set to ramp up in 2028 and 2029, but concerns remain about Europe's overall defense autonomy and capability.

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China showcased the DF-17 ballistic missile on state television in June 2023, emphasizing its capabilities as a strategic military asset. This display coincided with U.S.-led military exercises in the Asia-Pacific, signaling China's intent to deter U.S. actions. The DF-17, equipped with a hypersonic glide vehicle, poses a significant threat to large surface targets, enhancing the PLA's operational confidence.

Ukrainian drones launched a large-scale attack on industrial areas near the Kama River, damaging several enterprises in Nizhnekamsk. In Kiev, a tram depot was struck, resulting in damage to 42 tram cars. Russian air defense intercepted 415 drones during the night of the 7th to the 8th, while Russian forces targeted Ukrainian military facilities, including a missile parts production site.

On July 6, 2023, the People's Liberation Army Navy conducted a test launch of a long-range missile from a nuclear submarine in the Pacific Ocean. The missile, which carried a simulated warhead, flew approximately 7000 kilometers, landing near Nauru and Tuvalu. This marks China's first known submarine-launched ballistic missile test since 1982, raising concerns among regional nations about nuclear proliferation in the South Pacific.

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Israel deployed the Iron Dome air defense system to the UAE on July 5, 2026, during the Iran War, along with Israeli personnel to operate it. This move indicates the UAE's need for rapid point defense amid regional tensions. Despite its partnership with Israel, the UAE faced increased targeting during the conflict, raising concerns about political and operational dependencies on Israeli technology.

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On July 6, 2026, the People's Liberation Army Navy conducted a test launch of a submarine-launched ballistic missile from a strategic nuclear submarine, traveling approximately 7000 kilometers towards the Pacific Ocean, landing near Nauru and Tuvalu. This event raised concerns from New Zealand and Australia regarding its implications for the South Pacific nuclear-free zone, despite China's assertion that the missile was a training simulation.

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NATO announced plans to procure 10 Saab GlobalEye aircraft to replace the aging E-3 Airborne Warning and Control System, with the deal valued at approximately $4.5 billion. This decision was made during the Defence Industry Forum in Ankara, Turkey, and is influenced by the U.S. budget's lack of funding for the E-7 Wedgetail. The procurement involves multiple NATO member countries, including Belgium, Canada, and Germany.

The United States Air Force introduced the F-15EX Eagle II, a new fighter aircraft featuring advanced digital fly-by-wire controls, capable of carrying up to twelve air-to-air missiles. This aircraft includes a new radar system, mission computer, and touchscreen cockpit, significantly enhancing its operational capabilities. The redesigned airframe is rated for 20,000 flight hours, and the integrated EPAWSS electronic-warfare suite improves its survivability in modern combat scenarios.

The U.S. Navy evaluated the F-15N Sea Eagle as a potential carrier-based aircraft in the 1970s but rejected it due to its inability to carry the AIM-54 Phoenix missile, critical for fleet defense. The Navy ultimately chose the F-14 Tomcat, which offered unmatched capabilities for protecting carrier battle groups against Soviet threats. McDonnell Douglas attempted to modify the F-15N to meet naval specifications, but the project was ultimately terminated.

The U.S. military has commenced a series of strong strikes against Iran in response to Iranian attacks on commercial vessels in the Strait of Hormuz. The strikes target Iranian air defense systems, coastal surveillance systems, and missile launch sites. This follows multiple incidents of drone attacks on vessels in the region, raising concerns over maritime security.

The Pentagon is pursuing a new hunter-killer drone to replace the MQ-9A Reaper following significant combat losses in Iran. The new Massed Modular Aircraft (MMA) is expected to be operational by fiscal 2031, with a focus on high production at low costs. The project aims to produce 20 mission-ready drones, capable of carrying various payloads and self-deploying over long distances.