The latest analysis from GlobalData on the aerospace, defense, and security sectors, released live on September 2nd, reveals significant growth opportunities driven by the intensification of global tensions. Key players, including Lockheed Martin, Northrop Grumman, and Rheinmetall, are seeing increased demand for advanced defense technologies and military equipment.
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Illustration provided by EU defense initiative (Picture source: European defence cooperation)

GlobalData is an analytics and consulting company specializing in providing data, analysis, and insights across various industries, including defense. It offers services and reports to businesses, governments, and investors to help them understand market trends, competition, and investment opportunities.

In the defense sector, GlobalData provides in-depth analyses of the defense and security industries, covering topics such as military acquisitions, technological trends, defense spending, and major market players. GlobalData's data and reports are often used to guide strategic decisions and investments in this sector.

GlobalData predicts continued growth in the defense sector as countries continue to invest in advanced technologies. Emerging areas such as space systems, cybersecurity, and unmanned technologies are likely to drive future defense trends globally.

Rheinmetall stands out with plans to produce 700,000 artillery shells in 2024, a tenfold increase compared to 2022. The company is benefiting from increased defense spending in Europe, particularly in response to the conflict in Ukraine. The war in Ukraine has spurred demand for artillery, military vehicles, and unmanned systems across Europe. GlobalData notes that Rheinmetall, in particular, has seen significant growth in sales of Puma and Boxer vehicles, with sales up 28%. The company's production of Puma infantry fighting vehicles (IFVs) is particularly notable. These vehicles have played a key role in replacing older Marder infantry fighting vehicles donated to Ukraine, further bolstering Rheinmetall’s reputation in military vehicle manufacturing.

Lockheed Martin's performance in Q2 2024 also showed strong growth, with sales reaching $18.1 billion, up 9% from the previous year. Demand for the F-35 fighter jet and GMLRS missiles is driving revenue, particularly in the aeronautics and missile segments. Northrop Grumman experienced solid growth in Q2 2024, with sales up 7% to $10.2 billion. The company’s diversified product portfolio, including the MQ-4C Triton drone, has seen increased demand, reflecting growing investment in unmanned systems. Boeing continues to face challenges, with revenue down 15% compared to Q2 2023. Ongoing issues with the KC-46 tanker and T-7 trainer aircraft have negatively impacted the company’s financial performance, despite continuing demand for its commercial aircraft. RTX, formerly known as Raytheon, reported strong sales growth, with revenue up 8% to $19.7 billion. Major contracts for Patriot missiles and Javelin anti-tank missiles are driving growth, while the company continues to invest in advanced missile defense systems and cybersecurity solutions.

Cybersecurity remains a key area of focus for defense companies. GlobalData’s analysis highlights increased investments in IT systems and digital security as hybrid warfare and cyberattacks become more common in modern defense strategies. Both Northrop Grumman and Lockheed Martin are investing in space defense technologies, recognizing the growing importance of space systems in modern warfare. Rheinmetall is also entering the space domain, signaling its ambition to expand into new areas of defense technology.

According to GlobalData, the integration of unmanned systems into military operations is a key trend. Companies like Lockheed Martin and Northrop Grumman are prioritizing innovation in this area, focusing on drones, loitering munitions, and autonomous systems.

Rheinmetall’s expansion into the U.S. market is another significant development. The company is positioning itself to win contracts for the U.S. Army’s XM30 vehicle program and the Common Tactical Truck (CTT) program, both representing major growth opportunities.

Rheinmetall recently presented skyranger 35 turret dedicated to Air defense, presented during Eurosatory exhibition  mounted of leopard hull ( Picture source: Rheinmetall )

GlobalData's analysis indicates that despite challenges, companies like Boeing and RTX remain essential to Western defense capabilities. Boeing, in particular, continues to face increased scrutiny over safety but remains critical in the aerospace and defense sectors. Defense companies are also focusing on supply chain consolidation and production expansion. Lockheed Martin and Northrop Grumman, for example, have increased hiring in engineering and manufacturing, reflecting their emphasis on ramping up production to meet rising demand. The European defense market is growing rapidly, particularly due to increased defense spending by NATO member states, including Finland and Sweden. According to GlobalData, Rheinmetall, with its artillery and vehicle production, is well-positioned to capitalize on this trend.