Military Platforms Market 2025 - Growth Outlook, eVTOL Military Innovations & Strategic M&A

The Military Platforms Market is projected to grow from USD 49.87 billion in 2024 to USD 84.41 billion by 2032, at a CAGR of 6.8%. Growth is driven by rising geopolitical tensions and increasing defence spending for modernization of air, land, and naval platforms. The integration of AI, machine learning, and robotics enhances operational efficiency and mission capabilities. Unmanned and autonomous systems are expanding, reducing human risk and extending mission durations.

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Recent Developments for Military Platforms Market (August 2025)

Russia Restricts Telegram and WhatsApp Calls: Russia has begun restricting voice calls on Telegram and WhatsApp, accusing both foreign-owned messaging platforms of failing to comply with legal obligations in cases related to fraud and terrorism. This move is part of Russia's broader effort to assert control over its internet space and promote digital sovereignty by replacing foreign services with domestic alternatives. While general messaging on the apps remains unaffected, voice call services have been significantly disrupted since August 11, with WhatsApp calls rendered nearly unusable.

Joby Aviation Partners with L3Harris Technologies: Joby Aviation has announced a collaboration with L3Harris Technologies to develop a hybrid electric vertical takeoff and landing (eVTOL) aircraft designed for military applications. The partnership aims to create a versatile platform capable of performing contested logistics and intelligence, surveillance, and reconnaissance (ISR) missions. The aircraft will feature flexible payload capacities ranging from 1,000 to 2,000 lbs and autonomous operation capabilities.

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Military Platforms Market Trends and Growth Opportunities 2025

In North America, the U.S. and Canada are leading modernization efforts. Elbit Systems reported Q2 2025 earnings exceeding expectations, with a 13% year-over-year increase in order backlog, signaling strong demand for defense technologies. Additionally, V2X secured a $4.3 billion contract with the U.S. Air Force to support T-6 aircraft, resulting in a 10.4% rise in its stock price.

Europe is also accelerating defense initiatives. Germany approved a historic €400 billion defense spending plan, marking its largest rearmament since World War II, while Japan is emerging as a significant arms exporter, with Mitsubishi Heavy Industries securing a $6.5 billion contract to supply frigates to Australia the company's first international sale of a complete defense platform since World War II.

In India, domestic defense self-reliance is advancing through the efforts of Hindustan Aeronautics Limited (HAL) and other Defense Public Sector Units (DPSUs), which are strengthening the aerospace and defense manufacturing ecosystem. Reliance Infrastructure has also secured major defense contracts, including a ₹20,000 crore deal with a U.S. firm for servicing Indian jets and helicopters and a ₹600 crore export order from Germany's Rheinmetall.

Key market opportunities include the integration of AI and robotics to enhance platform capabilities, investment in indigenous manufacturing to reduce reliance on foreign suppliers, and strategic partnerships between nations and defense contractors to foster innovation and expand market reach.

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Military Platforms M&A Activity 2025

In July 2025: Chesapeake Technology International Corp. (CTI), a portfolio company of Bluestone Investment Partners, was acquired by Parsons Corporation for $89 million. CTI specializes in advanced simulation and modeling solutions for defense applications.

In June 2025: Thyssenkrupp announced plans to spin off 49% of its defense division, Thyssenkrupp Marine Systems (TKMS), to shareholders through a listing scheduled for later in 2025. TKMS manufactures frigates, submarines, and advanced sensor technologies.

In June 2025: Porsche SE, through its holding company, is seeking partnerships with German family offices to invest in the defense sector. The group plans to establish a platform for investing in emerging defense technology companies.

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