*UKHotViewsExtra* Strategic Defence Review 2025: A technology transformation agenda

The UK's Strategic Defence Review has been published, and beneath the headlines about increased spending and NATO commitments lies something more significant: an ambitious technology transformation agenda that could reshape the defence market. However, the word 'could' carries considerable weight in this sentence, given the MOD's track record on complex technical integration.

The scale of transformation envisioned is unprecedented. The MOD is proposing a "digital targeting web" connecting sensors and weapons across all domains at machine speed, while the Army alone plans a '20-40-40' mix where 20% crewed platforms control 40% autonomous systems and 40% consumable assets. With £2.9bn annually ringfenced for novel technologies, new regional tech clusters planned, and the Royal Navy emerging as a major beneficiary through autonomous fleet development, the opportunities extend far beyond traditional defence suppliers.

But significant questions remain. With nine out of ten defence cross-service enabling programmes currently rated amber or red, procurement averaging 6.5 years for projects above £20m, and the Institute for Fiscal Studies (IFS) warning of "chunky tax rises" needed to fund commitments, the gap between ambition and delivery capability is stark. NATO's reportedly planned 5% GDP spending target would make even the UK's 3% ambition look modest.

In our latest UKHotViewsExtra - Strategic Defence Review 2025: A technology transformation agenda - we analyse which sectors stand to benefit most, what the MOD is proposing to ensure the success of the proposed technical architecture, considering previous struggles to achieve information advantage, and whether this represents genuine transformation or follows the familiar pattern of ambitious digital visions that have struggled to materialise.

TechMarketView subscribers can read the in-depth analysis now. If you are not yet a subscriber or are unsure if your organisation has a corporate subscription with us, contact Jean-Luc De Jonge to find out how to access this and more insightful research. 

Posted by Georgina O'Toole at '09:31' - Tagged: defence   strategy   funding   investment   innovation   MoD   public sector   defencetech