Strategic Intelligence - NATO

"NATO" is part of the analyst's Strategic Intelligence series of reports on cybersecurity and its impacts across different industries. NATO is essential in the defense industry, as a the political and military Alliance includes many of the largest spenders on defense. To overcome an era of heightened geopolitical risk, companies, nations, and militaries are increasingly adopting a collaborative approach. This approach involves acquisitions, sharing information on threats with their NATO Allies, and reporting overall defense spending.

This report explores emergent trends within the NATO market, examining use cases and the implementation of emerging technologies such as drones, and what challenges must be considered in pursuing effective strategies for brand building in this market.

In 2025, NATO faces four significant challenges stemming from Russia’s invasion of Ukraine and the rise of isolationist sentiments in America. Recent years have created several challenges for the North Atlantic, including defense spending complacency, defense industrial supply chain issues, a disjointed approach to Russia’s war in Ukraine, and a wavering commitment from the most powerful member of the Alliance. While a supermajority of NATO’s 32 members spends more than 2.0% of GDP on defense, some of the largest members do not meet NATO’s target or spend the minimum to do so. Moreover, widespread low economic growth has limited defense spending and austerity has often slowed the growth of defense budgets.

The transatlantic defense industry has shrunk since the Cold War and NATO Allies have struggled to put together a defense industrial base to deter aggression from Russia, as well as threats in NATO’s “southern neighborhoods” and the wider world. Russia’s war in Ukraine is the driving factor for NATO’s recent resurgence in importance. By the start of 2025, Europe and the US had contributed $180 billion in military aid to Ukraine. Despite this, the Alliance’s messaging about the war has been fragmented, particularly since the reelection of US President Donald Trump in November 2024. The victory raised questions about US commitment to the Alliance. During his campaign, President Trump did not pledge his commitment to the Washington Treaty’s Article 5 which stipulates an obligation to collective defense, and said he would “encourage” aggressors “to do whatever the hell they want” to Allies that, in his eyes, did not spend enough on defense.

There are positives for NATO. At its summer 2025 summit, members are expected to agree to raise defense spending to 5% of GDP by 2035.

Key Highlights

• Studies of emerging technological trends and their broader impact on the defense market.
• Analysis of the various NATO solutions, programs and projects currently under development

Scope

• The key defense challenges that forces and defense sector suppliers face are covered.
• The investment opportunities for armed forces, suppliers, and institutional investors, across the whole NATO value chain are covered.
• Highlights from the range different NATO Allies and their progress toward NATO spending goals

Reasons to Buy

• Determine potential investment companies based on trend analysis and market projections.
• Gaining an understanding of the market challenges and opportunities surrounding the NATO in defense theme.
• Understanding how spending on NATO and related segments will fit into the overall market and which spending areas are being prioritized.