Well, we hope everyone has had a few decent nights’ sleep since DSEI wrapped on Friday and that our friends in London are enjoying the return of the Tube. (If you don’t understand why this is such a big deal, bless you.)
With the weekend behind us (and Trump planned to hop across the pond this week), we thought we’d take a look back at the international defense lollapalooza and what it can tell us about our little corner of the defense tech world.
(P.S. Reply to this email with your thoughts. If you were at DSEI, what did you notice?)
The future is here: Well, nerds, the cat’s out of the bag. We’re not the only ones who care about drones and AI anymore. One of the most noticeable changes at this year’s DSEI was the omnipresence of unmanned systems. We’re talking all flavors, all shapes, all sizes.
Aerial drones from the tiny to the fighter jet-sized were suspended over the hall, and it really seems like everyone and their mom was talking about the “future of warfare.” Companies from Anduril, to Stark, to Quantum Systems (just to name a few) had their UAS on display, while Kraken, L3Harris, and a slew of other USV companies whizzed their unmanned boats on the Thames outside.
As if we didn’t know this, it really seems like the industry—companies big and small—are going all in on unmanned and automation. The question we were left with, though, is how can this many companies possibly find their niche (or sliver of defense budgets)? And how quickly can they get from development into full-scale production?
Shoot ‘em down: The counter-drone companies seem to have gotten the memo, too. DSEI was swarming (get it) with everything from tiny drone-missiles, to advanced radar and EW systems, to jamming guns. Even the big stuff—like Volvo’s military trucks—were kitted out with anti-drone systems made by companies like Nordic Air Defense.
Cambridge Aerospace—the stealthy missile and drone defense company we wrote about last week—officially unveiled their cheap(er) interceptors, while DroneShield, MyDefence, and DeDrone all showed us their nifty systems for detecting and taking down aerial threats.
AI on the battlefield: This one deserves an entire article unto itself, but we’ll try and keep it brief. If one thing was clear on the floor of the Excel Centre, it was that people are beginning to realize that all of these autonomous systems we know and love, like, really need to work together. There was a lot of emphasis (looking at you, Helsing and Anduril) on building multi-domain C2 systems that can control all of these drones—and make sure they have the data they need to work. Plus, a lot of companies have started teaming up to cross domains, like the c-UAS firms we mentioned above.
Data itself was a pretty big topic, too—on a panel we moderated with Applied Intuition (self-plug, sorry), the company emphasized the need for data architecture, access, and availability to support the testing and development of autonomous systems. After all, if the digital infrastructure isn’t there, not a whole lot is going to work.
Let’s hold hands: If you read this newsletter last week, you’ll know that it was a hell of a time for defense mash-ups. Just to name a few:
- Helsing and Systematic have teamed up on a C2 system.
- Helsing and ARX Robotics teamed up to “develop an AI-based reconnaissance and strike network for European defence.”
- Frankenburg and MARSS signed an MoU to integrate the former’s mini-missiles into the latter’s cUAS system. Frankenburg also partnered up with Advanced Protection Systems (APS).
- Thales UK announced a small and medium enterprise (SME) partner program.
- BAE and Lockheed Martin teamed up to build a new drone.
- Project Octopus, where UK firms and the MoD will team up with Ukraine to build interceptor drones.
We all remember Anduril’s partnership with Rheinmetall at the Paris Air Show, Kraken’s team-up with NVL (which Rheinmetall are now buying), and ARX’s partnership with RENK. The sense we’re getting is that these kinds of prime-non-prime partnerships will become all the more common—the fastest way to build up capabilities, after all, is to use the infrastructure already in place.
Dolla dolla bill: If there was one thing that became very, very clear at DSEI this week, it’s this: the Americans are coming. Not only was DSEI more packed than we’ve ever seen it, but it was packed with lots and lots of people from across the pond.
American defense tech darlings, including Anduril, Saronic, Red Cat, and Applied Intuition (along with crowd favorites like Lockheed Martin and Northrop) all had massive stands. There was also a pretty heavy number of US investors floating around the conference. Our sense was that American firms have a keen eye on Europe—as do the VCs who back them.
Especially with Trump’s push for allies to buy from American defense companies, this could mean a lot more greenbacks floating around in the UK and on the continent. But it will also be very interesting to see how this plays against Europe’s simultaneous push for defense sovereignty.
Our take? Seems likely that we’ll see the big ol’ US firms trying to bridge the gap—building domestically in Europe or with European partners using their know-how from back home.
It’s a strategy: Lest we forget, the mega-conference happened just three months after the UK released its long-awaited (and unfunded) Strategic Defence Review. The strategy called for a massive build-up in UK defense capabilities—especially the fun, cutting-edge stuff we write about every day.
The country has said its Army will adopt a “20-40-40” structure, where:
- 20 percent of its combat capability will come from traditional crewed platforms
- 40 percent will come from expendable or attritable capabilities
- 40 percent will come from higher-end platforms
The Air Force and Navy are also pushing for rapid adoption of next-gen and unscrewed systems. This was on full display in UK Defence Secretary John Healey’s closing speech, where he emphasized the need for the government to work with industry to better build and adopt cutting-edge tech. “We are seeking to build a radically different relationship with industry, with investors and with innovators,” he said, “Because these are the relationships that are required to meet this new era for defence, to meet this new era of threat.”
Looks like the defense tech hype has well and truly made its way across the pond.