Analysis & Reports

Leonardo Rheinmetall Military Vehicles delivered the first four Lynx KF-41 infantry fighting vehicles to the Italian Army at the Multifunctional Experimentation Centre in Montelibretti on 27 January 2026. This delivery marks the official launch of the Army Armoured Combat Systems (A2CS) programme, which aims to modernize the Italian Army's heavy armor formations with advanced technology. The event was attended by key military and defense leaders.

On January 27, 2026, the Israel Ministry of Defense announced a multi-year order for air-launched munitions from Elbit Systems, valued at approximately USD 183 million. This agreement aims to expand Israel's defense-industrial base and enhance the capabilities of the Israel Defense Forces. The initiative is part of a broader strategy to strengthen national security and economic resilience through domestic defense production.

LEMT unveiled a portable drone-based counter-drone system at the ADNEC Centre in Abu Dhabi from January 20 to 22, 2026. The system features a hand-held launcher and interceptor drones capable of automatic flight after target detection. The interceptor drone has a range of 6 km and is equipped with a fragmentation warhead.

The United States Marine Corps is training and certifying operators for small attack drone missions at Marine Corps Base Camp Pendleton, California. The course focuses on the combat use of first-person view (FPV) drones, teaching Marines to prepare payloads, assemble drones, and execute missions. This initiative aims to standardize drone operations across units and enhance battlefield capabilities with unmanned systems.

The U.S. Navy is enhancing the survivability of its supercarriers against Chinese anti-ship missiles by implementing advanced technologies such as the MQ-25 Stingray drone, which extends the operational range of carrier-based aircraft. The Navy is also integrating layered defense systems, including Electronic Warfare and laser weapons, to counter threats. These developments are part of a broader strategy to maintain operational readiness in contested maritime environments.

The U.S. Marine Corps approved the HANX, its first fully compliant 3D-printed drone, developed by the 2nd Marine Logistics Group at Camp Lejeune. This drone is designed for multiple missions, including reconnaissance and logistics, and aims to enhance U.S. drone capabilities by 2028. The project emphasizes low-cost production and compliance with security standards.

DSIT Solutions launched the GhostFin sonar suite for unmanned underwater vehicles on January 27, 2026. This advanced system enhances surveillance capabilities for Anti-Submarine Warfare and Anti-Surface Warfare, featuring multiple sonar types and autonomous operation. GhostFin is designed for integration with various UUV sizes and can be utilized for real-time surveillance and acoustic signal collection.

Elbit Systems secured a $228 million contract to provide the Iron Fist Active Protection System for the US Army's Bradley Infantry Fighting Vehicles. This contract enhances the defensive capabilities of the Bradley IFVs, ensuring better protection against threats.

Israel's Ministry of Defense signed a contract exceeding $183 million with Elbit Systems for aerial munitions to enhance its defense industrial base. This procurement is part of a multi-year military buildup plan aimed at ensuring future equipment supply and improving military readiness over the next decade. The Defense Minister highlighted the expansion of domestic production as a core national security interest.

Four NATO nations, including Lithuania, the Netherlands, Czech Republic, and Croatia, selected Rafael's Trophy Active Protection System for their Leopard 2 A8 Main Battle Tanks. The contract, valued at approximately $390 million, was signed between EuroTrophy GmbH and KNDS Deutschland. This selection reflects confidence in the system, which is combat-proven and aligned with NATO standards, and includes logistical support for long-term availability.

Israel's Ministry of Defense signed a $183 million contract with Elbit Systems for the procurement of air-delivered munitions. This agreement is intended to support the operational requirements of the Israeli Defense Forces (IDF) and enhance the domestic defense industrial base. The deal reflects a strategic shift towards increasing local production capabilities amid ongoing regional conflicts.

SYOS Aerospace has been selected to advance to the next stage of Project NYX in the United Kingdom, focusing on developing wingman drones to operate alongside Apache attack helicopters. This initiative is part of the UK government's Strategic Defence Review, aiming to integrate uncrewed aircraft into combat formations. The project emphasizes rapid development and collaboration with industry partners to enhance military capabilities.

The Kronos Grand Naval radar was installed at the Shore Integration Facility in Saint-Mandrier, France, on 17 December 2025, marking a significant milestone in the Horizon Mid-Life-Upgrade Programme. This installation is crucial for the qualification and acceptance of the PAAMS system, with operational testing planned for the coming year. The upgraded anti-air warfare frigates are expected to be delivered between 2028 and 2030.

South Korea is commencing mass production of the KF-21 fighter jet in 2023, aiming to produce at least 40 units by 2028 and 140 by 2032. The KF-21, priced significantly lower than competitors like the F-35 and Eurofighter Typhoon, is attracting international interest, particularly from NATO countries. Korean Aerospace Industries is positioning the KF-21 as a viable low-cost alternative in the global defense market.

Various militaries are evolving their minefield breaching systems to address increasing threats from UAVs and precision strikes, particularly in the context of the ongoing conflict in Ukraine. Armoured breaching vehicles (ABVs) and unmanned ground vehicles (UGVs) are being developed to enhance breaching capabilities while minimizing personnel risk. Artillery is also being considered for breaching operations, although it presents its own challenges.

President Donald Trump announced the development of a new class of U.S. Navy battleships, the Trump-Class, on December 22, 2025. The first ship is projected to cost between $14.3 billion and $22 billion, with construction expected to begin in the early 2030s. The fleet may include 10 to 25 vessels equipped with advanced weapon systems, although challenges in the shipbuilding industrial base could affect costs and timelines.

The U.S. Air Force is pursuing $50 million in FY 2026 funding to upgrade the B-1B Lancer with External Heavy-Stores Pylons, enhancing its capacity to carry standoff weapons. This upgrade aims to increase the volume of fires from safer ranges and is seen as a temporary measure until the B-21 Raider becomes operational. The B-1B will be able to carry advanced munitions, including the Long-Range Anti-Ship Missile and AGM-158 JASSM, while also integrating hypersonic capabilities.

The Space Force is planning to procure RG-XX neighborhood watch satellites on a rolling basis through an indefinite delivery, indefinite quantity contract. This new satellite system is designed to be more maneuverable and capable of refueling in orbit, enhancing the Space Force's ability to monitor potential threats from Russia and China. Proposals for the RG-XX program are due by February 12, 2024, with the first task orders expected to be issued shortly thereafter.

China critiques the U.S. F-47 fighter jet, claiming it is already obsolete due to design flaws, particularly its canards which may compromise stealth. The Chinese J-36 and J-50 prototypes are reportedly already flying, with initial operational capability expected by the mid-2030s. The F-47, linked to Trump's presidency, faces significant technical and budget challenges, aiming for a combat radius of 1,000 nautical miles, which would surpass existing U.S. 5th-generation aircraft.

The U.S. Navy has ordered 24 Arleigh Burke Flight III destroyers, enhancing naval capabilities with advanced AN/SPY-6(V)1 radar and Aegis Baseline 10 combat systems. These destroyers, known for their multi-mission flexibility, are crucial for modern naval warfare and are currently under construction. The integration of these systems significantly improves ballistic missile defense and operational effectiveness in various maritime environments.