Trends in Defence and Security

The main theme of the largest European defence gathering, DSEI UK, which took place last week in London, was defence and security. The exhibition hosted 1,700 exhibitors and, according to preliminary estimates, was attended by 70,000 visitors and professionals from the defence industry.

EY exhibited in the technology section alongside highly renowned peers. It is practically impossible to summarise and describe this unique event briefly, but several trends and key themes are worth highlighting.

• Security is not just about weapons manufacturing – Security needs to be perceived in a much broader sense than we have been used to. The approach must be holistic. Cybersecurity has long been an important topic, but with the rise of AI tools, it is gaining an entirely new level of significance. EY presentation at DSEI UK, within the technology section, focused precisely on AI-related topics. At EY, we can support clients in adapting to various new scenarios they may encounter in this area.
• Drones – The war in Ukraine has acted as a catalyst for the development of this sector and has effectively rewritten many established military doctrines. A drone costing USD 500 can easily destroy a tank worth USD 3 million. The mass production of cost‑efficient drones, the customised production of highly specialised units, and the continuous development of their capabilities are all highly resonant topics.
• Electronic warfare – In connection with the development of drones, there has been an exponential increase in activity in this area as well. It is essentially a cat-and-mouse game, driving new innovations both in drones and in countermeasures against them. This does not apply only to aerial drones—since the conflict in Ukraine is also taking place at sea, it also includes surface and underwater drones.
• Building national security capabilities – Global attention is focused on strengthening the defence capabilities of individual countries. Many states supported domestic manufacturers by exhibiting under their national flags. It is no surprise that the United States had the largest national presence, but countries such as Turkey, Sweden, Germany, Belgium, and Australia were also highly visible. More than 170 national delegations – primarily from defence ministries but also from other public institutions – attended DSEI UK. National interests are taking priority, without calling into question participation in alliances such as NATO.
• Czech footprint – Although there was no “national” umbrella presentation, there was a strong Czech presence at DSEI UK. A prominent and visible representative was CSG, which exhibited both under the holding brand and through its subsidiary Fiocchi. Companies such as COLT CZ, Sellier & Bellot, and PBS were also clearly visible. Interest in strengthening domestic defence industry capabilities is a very clear current trend.
• Dynamic development – The robustness of the sector’s growth is remarkable. This year, 40% of exhibitors were new, and visitor interest was enormous. The defence industry is undoubtedly receiving substantial financial investment, alongside a significant deployment of human capacity in research and production. This global exhibition demonstrated that defence and security are strong, long-term trends, not limited to the current situation in Ukraine, but with much broader and lasting relevance.

EY covers the defence and security sector through a wide range of advisory services, including support for the defence industry. At DSEI UK, we had the opportunity to meet colleagues and share experiences. The EY Defence team includes more than 80 members, including senior advisors as well as former members of armed forces and institutions from around the world. We are ready to share our experience and expertise with you in this rapidly evolving sector.