Top 10 Growth Opportunities in Defense, 2024

New Operational Concepts to Meet a Mix of Advanced Technology and Traditional Military Equipment

The defense industry will continue to face several challenges in 2024 as armed forces with limited financial resources worldwide will seek to modernize their equipment. Countering new threats, such as hypersonic missiles and unmanned loitering munitions, requires new operational thinking and technology advancements from the defense industry. This study highlights 10 growth opportunities for the defense industry that will advance military capabilities.

Globally, defense firms are pressured by commercial companies that offer advanced technologies at low prices. In addition, domestic defense firms that formerly enjoyed repeat contracts, are now forced to compete with foreign defense companies that produce products proven under recent combat conditions. The insertion of advanced commercial information technology (IT) such as 5G, cloud, AI, and gaming products into communications networks, targeting sensors, and intelligence analysis operations also increases competition. Large traditional defense firms continue to have an opportunity to partner with small, innovative, and commercially successful firms and government acquisition officials to meet their modernization goals.

Adversaries have demonstrated excellent long-range rapid targeting for hypersonic and conventional weapons. Layered, integrated, and effective theater air defenses are also deployed and combat-proven. Because of this, governments will continue to invest heavily in research and development (R&D) to improve long-range weapons and missile defense systems.

Efforts to support Ukraine, Israel, and other nations have left some defense organizations with reduced stocks of missiles, artillery ammunition, and weapon systems. Many defense leaders have also come to the realization that the former levels of munitions manufacturing and stocks are inadequate for current and future needs, necessitating an expanded industrial base and increased production.