International Defense Industry Report – March 2025

Photo by: U.S. Air Force

​Summary – International Defense Industry Report – March 2025

March 2025 witnessed significant developments across the global defence landscape, marked by major contract awards, strategic policy shifts, and escalating geopolitical tensions. In the United States, Boeing emerged as the winner of the U.S. Air Force’s F-47 next-generation fighter jet contract, signalling a pivotal shift in defence procurement and impacting Lockheed Martin’s F-35 program amid waning international support. The Department of Defense also initiated a civilian workforce reduction to streamline operations and modernize infrastructure.

​In the United Kingdom, the government announced a £2.2 billion defence funding increase alongside the launch of a new defence growth board aimed at boosting industrial capacity and innovation. Meanwhile, the European Commission unveiled “Readiness 2030,” an ambitious defence investment plan targeting enhanced continental security and autonomy with potential funding of up to €800 billion.

Asia-Pacific tensions intensified as the U.S. expanded military aid and strategic cooperation with Taiwan, reinforcing its posture in the Indo-Pacific. Ukraine accelerated domestic drone production to counter evolving Russian electronic warfare tactics, signalling an increasing emphasis on unmanned systems and electronic resilience.
​
Overall, March 2025 reflected a clear trend toward modernization, regional rearmament, and the pursuit of strategic autonomy amid a complex global security environment.

United States:

• Boeing Secures F-47 Fighter Jet Contract: On March 21, President Donald Trump announced that Boeing won the engineering and manufacturing development contract for the U.S. Air Force's next-generation F-47 fighter jet, valued at over $20 billion. This decision aims to revitalize Boeing's military aviation division and enhance U.S. air superiority capabilities.
• Pentagon Workforce Reduction Initiative: Defense Secretary Pete Hegseth signed a memorandum to reduce the Department of Defense's civilian workforce by 5 to 8%. The "Initiating the Workforce Acceleration and Recapitalization Initiative" seeks to enhance efficiency through automation and streamlined processes.

United Kingdom:

• Defense Spending Increase: Chancellor Rachel Reeves announced an additional £2.2 billion in military funding for the upcoming year and plans to establish a defence growth board. This initiative aims to position Britain as a "defense industrial superpower" by focusing on emerging technologies like drones and AI-enabled systems.

European Union:

• Readiness 2030 Initiative: European Commission President Ursula von der Leyen proposed "Readiness 2030," a strategic defence plan to mobilize up to €800 billion to strengthen Europe's defence infrastructure. This initiative responds to geopolitical threats and seeks to reduce reliance on external allies.

Asia-Pacific:
​

• Taiwan-U.S. Defense Relations: The Trump administration increased support for Taiwan, including $870 million in military aid and enhanced political and military contacts. These actions aim to bolster Taiwan's defence capabilities amid rising tensions with Beijing.
• Ukrainian Drone Production: Ukrainian company 3DTech ramped up the production of drones, including first-person view (FPV) drones resistant to electronic jamming. Anticipating the output of 1,200 drones in March, these efforts aim to strengthen Ukraine's defence against Russian forces.

These developments underscore a global emphasis on enhancing defence capabilities through increased spending, strategic initiatives, and technological advancements.​
​
Key Defense Industry Updates from March 2025