Defence markets for manufacturers

In the July/August issue of ISMR, we present drivers, trends, opportunities and challenges in global defence markets for manufacturers.

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Defence encompasses a spectrum of activities including the manufacture of military equipment for air, land and sea (comprising support and auxiliary components such as radar, satellites, sonars and related equipment). Defence also involves the maintenance, repair and overhaul (MRO) of military equipment. The primary defence categories include air-, land-and sea-based defence equipment, maintenance, repair and overhaul (MRO) services for defence equipment, defence support and auxiliary equipment.

“The defence manufacturing sector entered 2026 with renewed momentum driven by heightened global security priorities, technological advancement and the need for resilient domestic capability. Compared to 2025, when supply chain disruption and programme uncertainty created operational friction, the current climate reflects greater stability and sustained demand across defence platforms, systems and support infrastructure,” commented Morgan Ryder, a supplier into the UK defence sector.

“Manufacturers are responding to increased programme activity and export demand by strengthening production capability, modernising facilities and investing in advanced manufacturing technologies. Digital engineering, automation and precision machining continue to enhance productivity and quality assurance, enabling organisations to meet stringent defence standards while improving efficiency.”

Moody’s Ratings maintains a positive outlook for the global aerospace and defence sector, underpinned by strong commercial demand and sustained growth in defence spending. It forecasts that operating profit for the 25 largest aerospace and defence (A&D) companies will grow by over 10% on average in 2026-2027.

To read the rest of this article in the July/August 2026 issue of ISMR, see https://joom.ag/BqUd/p16