Defence Tech Surges as Nations Invest in Cyber, AI, and Autonomous Systems

Recent geopolitical events have thrust the defence technology sector into the spotlight, driving unprecedented investment and innovation. The UK alone allocated £61.4 billion to defence tech in 2025, a clear indicator of the sector’s growing importance. As wars increasingly extend into the cyber-sphere, nations are racing to develop technologies that enhance security, minimise casualties, and bolster defence capabilities. From drones and AI to cybersecurity and autonomous vehicles, the defence tech industry is at the forefront of a new era in military operations.

To understand what 2026 holds for defence tech, we turned to industry experts for their insights. Their perspectives reveal a sector on the cusp of transformative change, driven by technological advancements and strategic investments.

Matthew Wragg, CEO of Gattaca Plc, highlights the UK’s commitment to increasing defence spending by 2030, with significant funds allocated to cyber resilience, autonomous systems, and advanced R&D. “The UK’s defence sector is entering a new era of investment and innovation,” Wragg notes. This surge in funding is not only enhancing military capabilities but also fueling demand for highly skilled tech talent. “Defence is no longer defined by boots on the ground, but by brains behind the code,” he adds, underscoring the shift towards tech-driven defence strategies.

Ash Alexander-Cooper OBE, VP Europe, EMEA, and APAC at Dedrone by Axon, points to the growing threat of hostile drones. “The last year has shown how easily hostile drones can be transported and then activated deep inside a country,” he says. This has spurred the need for fully networked Counter Unmanned Aerial Systems (CUAS) that operate through shared intelligence layers. Alexander-Cooper predicts that European nations will lead the way in establishing regional CUAS coalitions, exchanging real-time data to enhance airspace sovereignty.

Rick Harlow, CEO of NovaSpark Energy, envisions a future where defence tech is defined by the integration of autonomy, energy, and data at the edge. “Forces are shifting from a few exquisite, centralized assets to networks of smaller, attritable, and increasingly autonomous systems,” Harlow explains. He anticipates rapid growth in mobile, self-contained energy nodes and the embedding of AI in various operational support roles. “The winners in DefenceTech won’t just build smarter hardware; they will design systems that assume disruption, operate in degraded conditions, and still give commanders trusted information and power when everything else is breaking.”

Idan Levy, CEO and Co-Founder of Skana Robotics, emphasises the industry’s shift towards hybrid fleets and operationalising autonomy. “Rather than relying solely on singular, high-value platforms, maritime forces are restructuring around hybrid fleet deployment and orchestration,” Levy states. He predicts a gradual move towards manned-unmanned teaming, with autonomy expanding around human decision-makers. Software-defined maritime systems will also advance, allowing for continuous updates to mission logic and coordination behaviour.

Loris Petro, Marketing Manager at Kratom Earth, highlights the focus on Micro Automation and Compact Sensor Intelligence. “The military seeks technology that can scale without significantly increasing equipment costs,” Petro notes. Sensor grids made of low-cost units are replacing older surveillance systems, increasing surveilled areas while maintaining low power consumption. Petro also points to the preference for single-mission drones and ground units over multifunction platforms, driven by the need for dependable, narrow mission sets.

Paul DeMott, CTO of Helium SEO, predicts that AI will shift towards operational decision support in threat detection, logistics optimisation, and predictive maintenance. “Defence organisations will prioritise confidence and clarity in AI outputs, requiring systems to justify recommendations before action is taken in high-stakes environments,” DeMott explains. Cybersecurity will also evolve, adopting breach-assumed models where systems presume adversaries have already gained access. Continuous authentication and zero-trust architectures will become standard, with supply chain security dominating procurement decisions.

As the defence tech sector continues to evolve, these expert insights provide a glimpse into the future of military innovation. The focus on integrating advanced technologies, enhancing cybersecurity, and developing autonomous systems underscores the sector’s critical role in shaping the future of defence. With significant investments and strategic collaborations, the defence tech industry is poised to drive transformative change in 2026 and beyond.

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