The global geopolitical situation significantly drives investment growth in defense technologies, linked to deteriorating international relations.
Rising Investments in Defense Technology
According to recent reports, defense tech companies are attracting significant investments due to escalating situations, such as strikes on Iranian nuclear facilities. Shares of Palantir, a key player in this sector, have risen by more than 80% this year, with a market capitalization of $325 billion.
Collaborations Among Defense Companies
Companies in the defense sector are striving to secure their supply chains and connect with prime contractors. Airo has already noted 'limited suppliers' in Europe and Canada. In response, Helsing and Anduril are making strategic investments and acquisitions, including Helsing's plan to buy Grob Aircraft.
EU Support for the Defense Industry
Given the increased demand, access to financing has become tricky for smaller players. This month, the EU's lending arm reportedly tripled its loan plan to €3 billion for SMEs within the defense sector, under the EIB's initiative.
Emerging crises present new opportunities for defense technologies, serving as both challenges and chances for companies and investors.
