Strategic Imperative

What is YOUR Organization doing to survive the Defense Industry Transformation?

  • Strategic
  • Growth
  • The Yellow Brick
  • Transformational

Strategic Imperatives For Defense Industry


Hypersonic missiles are disrupting military tactics as nations look for ways to defend against them. Detecting, intercepting, and neutralizing such weapons poses an intricate and costly challenge.


The US Armed Forces are not hiring enough personnel, including those who can operate advanced equipment, resulting in the need for better recruitment and technical training for military success.


There exists a pressing need to seamlessly integrate new technology with legacy systems to upgrade military capabilities and leverage standards-based commercial technologies.


How do you shift from where you are to what you want to become? How do you fill the gap?

Based on those strategic imperatives the gap between where you are now and where you need to be to achieve transformational growth is daunting.


Growth Opportunities in Defense Industry

Multi-Domain Networks

  • Best commercial practices for cloud computing, AI, and mobility
  • Software-as-a-service (SaaS) for space, air, maritime, ground, and cyber networks
  • Developing zero-trust, self-healing, and resilient deployable networks

Munitions Production

  • Enhanced production of artillery, tank, and missile ordnance to replenish required stocks
  • Upgraded, modernized, and newly constructed ordnance factory facilities

Training and Simulation

  • Commercial gaming technology for distributed military training
  • Modern simulations and scenarios for individual and unit exercises
  • Live-fire range training and platform operator training with augmented reality (AR) technologies

Manned/Unmanned Teaming

  • New software for air, maritime, and ground vehicles to control unmanned systems
  • Research small form-factor sensors that can share data with larger systems
  • Integrate unmanned systems into existing surveillance and fire support networks

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2022 North American Defense Decision Intelligence Enabling Technology Leadership Award

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2022 North American Rogue Device Mitigation Enabling Technology Leadership Award

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2022 Australia Hypersonic Systems New Product Innovation Award

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2021 European Armored Vehicle Product Leadership Award

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Growth Council Think Tank Series

Growth Opportunities in the Defense Industry in Americas

How can the economic downturn affect US defense readiness?

Growth Opportunities in the Defense Industry in Asia-Pacific

Rising tensions in the region: an opportunity for transformational growth?

Growth Opportunities in the Defense Industry in the Middle East

Breaking the monopoly: Collaborative tactics for small and mid-sized defense players

Growth Opportunities in the Defense Industry in Europe

Growth avenues in the time of crisis: how to grow your defense business

Competitive Strategy in the Defense Industry in Americas

Can a future-proof defense growth strategy invite smaller players to participate?

Competitive Strategy in the Defense Industry in MEASA

How improved Saudi-Iranian relations is great news for regional contractors

Growth Opportunities in the Global Defense Industry

New possibilities: are we at the cusp of hypersonic weapon deployment?

Mergers & Acquisitions in the Global Defense Industry

Exploring advantages for low-cost manufacturers in the land defense tech race

Technology Strategy in the Global Defense Industry

Directed-energy technologies: an untapped gold-mine for defense opportunities?

New Product Development in the Global Defense Industry

5G and Cloud Computing: how can they solve the multi-domain operations challenge?

Companies2Action in the Global Defense Industry

How can companies leverage machine learning to transform intelligence operations?

New Product Development in the Global Defense Industry

How can advanced systems in the maritime environment enrich naval security?


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Trumping Obsoletion with Innovation: Emerging Growth Avenues in the Dynamic Defense Industry

Military superiority centers around the accumulation of traditional defense systems and the assembly of formidable armies. However, technological disruptions can shift the tides, elevating the effectiveness of everything from satellites to aircraft, ships to ground vehicles, sensors to networks.

This transformation doesn’t just mark a shift; it proliferates unprecedented growth opportunities and innovative business models. It, in fact, challenges the dominance of large defense players, who monopolize government contracts. Today, government and military departments, technology providers, dynamic startups, mid-sized entities, and cross-industry collaborators are driving the industry onward through strategic partnerships.

However, entry barriers remain firm. Military modernization competes with other national spending priorities, and the supply chain is yet to fully recover from the pandemic. In essence, despite the opportunities, only companies who can capably adapt, confront evolving geopolitical complexities, and leverage the right megatrends, are succeeding in this realm. The rest, unfortunately, are losing out to competitive intensity.

  • Are your teams ready for the defense transformation despite its challenges?
  • Can your teams handle defense growth opportunities at a best practices level?
  • Are your teams united in a shared vision, marching towards the same end goal?
  • Have you identified innovative business models that hold the promise of success?

CROSSING THE DEFENSE OBSTACLE COURSE: What will it take to thrive despite challenges?

Companies find themselves navigating a new defense landscape, without expertise derived from monitoring this transformation. Even though certain obstacles have become glaringly evident, it is essential to identify the right growth paths to close the growth gap. Let’s delve into these key challenges and the questions that emerge from them:

Recently, companies have taken bold steps to confront these challenges head-on, with some effectively setting themselves apart from the crowd. Regrettably, others have been compelled to cease operations due to the formidable nature of this transformation. Nevertheless, there are inspiring success stories that offer valuable insights into overcoming obstacles.

One standout example is, distinguished by Frost & Sullivan with the esteemed 2022 North American Defense Decision Intelligence Enabling Technology Leadership Award. has pioneered decision intelligence solutions that empower defense leaders to harness technologies like artificial intelligence and modeling and simulation. These innovative solutions bolster operational efficiency, streamline autonomous system management, elevate situational awareness, and pinpoint vulnerabilities to safeguard vital assets. By establishing trust within governmental circles and becoming an indispensable tool for North American Defense organizations, has illuminated a successful path to surmounting challenges.

  • Drawing inspiration from, has your team embraced a future-proof growth pipeline?
  • Is your product equipped with the innovative edge necessary to secure government support?
  • Is your team poised to recalibrate its objectives to thrive in this dynamic landscape?


Frost & Sullivan has over six decades of experience in connecting global mega trends, emerging technologies, and new business models to drive radical growth. We help companies identify, evaluate, and prioritize best-fit opportunities that empower them to thrive through change. In the realm of defense, our extensive repository of reports has consistently forecasted advancements across diverse regions, uncovering a multitude of prospects and pathways where pioneering ventures have achieved unparalleled triumph.

Let us guide you through your transformation journey by working collaboratively with the ecosystem of defense contractors, defense departments and forces, and present collaborators who lead by example. Four powerful components fuel this journey, ensuring your success in navigating industry changes:

  • Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
  • Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
  • Join Frost & Sullivan’s Growth Council and gain access to think tanks focused on the transformational growth strategies of the healthcare & life sciences industry.
  • Designate your company as a Company to Action to increase exposure to investors, new M&A opportunities, and other growth prospects for your business.

Act now to thrive in the face of industry transformation!


The ongoing transformation in the defense industry represents a significant shift towards strategic alliances and collaboration. Geopolitical chaos in recent years has prompted nations to actively seek defense partnerships, whether with longstanding allies or new ones. This approach serves the dual purpose of strengthening defense capabilities while harnessing disruptive technologies reshaping the industry.

An increase in funding for joint defense initiatives further fuels this collaborative landscape, creating new growth opportunities for defense contractors. Another notable trend is the growing emphasis on medium to small contractors. These entities not only provide critical supply chain support to larger counterparts but also play a vital role in driving innovation.

Within this landscape, several critical questions arise for industry participants:

  • Is your business intelligence department tracking emerging growth opportunities?
  • Has your team crafted a partnership strategy to build long-term business relationships?
  • Are you equipped with an action plan designed to outpace your competitors?

Despite the transformative nature of this industry shift, it is vital to acknowledge that the path to successful strategic partnerships in the defense sector is filled with challenges and constraints. Several factors must be carefully considered:

  • How will the political landscape in which strategic alliances take place impact growth prospects?
  • To what extent can defense technology be exchanged between partnering entities?
  • Does the regulatory environment provide sufficient opportunities for growth avenues?

These challenges, when viewed collectively, reveal a fundamental aspect that industry players must address to succeed amid the defense transformation: The growth gap. To navigate the defense industry effectively, players must first identify the key challenges that constitute the growth gap. Subsequently, they must formulate strategies to overcome these challenges and thrive in the face of competition.

In the defense realm, where strategic alliances have become paramount, the growth gap is shaped by several key factors:

Varying regulatory environments: Regulatory frameworks can introduce compliance challenges, encompassing local laws, international treaties, export controls, and intellectual property regulations.

Geopolitical uncertainty: The current geopolitical scenario is marked by regional conflicts, emphasizing the need for robust defense infrastructure. However, this very uncertainty makes it challenging to accurately predict the most opportune areas for growth.

Technological framework misalignment: Successful alliances are often built on technological exchange. However, considerations like regulatory factors and policies can tilt the balance in favor of one participant. Striking the right equilibrium is imperative.

These considerations surrounding the growth gap prompt both governments and defense contractors to address critical questions:NAVIGATING DEFENSE’S

  • Have your strategists devised a growth strategy that addresses all growth gap challenges?
  • What obstacles may impede your progress in bridging the growth gap, and how will you overcome them?
  • Have your analysts identified the key megatrends ripe for exploration?
  • Has your intelligence team equipped you with a go-to-market strategy to maximize growth?

While asking the right questions and identifying growth opportunities are vital initial steps, they merely mark the beginning of the journey. Defense industry participants must also employ a structured four-step growth pipeline to systematically bridge the growth gap:

Powerful questions: Effective growth begins with asking the right questions. These inquiries serve as the foundation for success.
Identifying growth opportunities: Not every path leads to success. It’s imperative to discern the most promising opportunities.
Effective go-to-market strategies: Execution is paramount, and a well-crafted strategy is indispensable.
Grit and determination: Persistence is invaluable in the ever-evolving defense landscape.

As you embark on shaping your growth pipeline, consider pivotal questions such as:

  • Have your strategists outlined distinct objectives for each phase of the growth pipeline?
  • Is your intelligence team prepared to adapt your strategy as the defense landscape evolves?

In this dynamic industry, seizing growth opportunities and addressing challenges systematically will be key to staying ahead of the curve. Our transformation journey is fueled by four powerful components ensuring your success in navigating the ever-changing landscape of the defense industry:

  • Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
  • Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
  • Join Frost & Sullivan’s Growth Council and gain access to think tanks focused on the transformational growth strategies of the healthcare & life sciences industry.
  • Designate your company as Companies2Action to increase exposure to investors, new M&A opportunities, and other growth prospects for your business.

Act now to thrive in the face of industry transformation!