Sumit Ahlawat
A momentous shift is underway in the US defense market. Dominated by the big five for decades, a slew of new-age military tech firms are challenging the dominance of traditional defense manufacturers.
For years, the lucrative US defense market has been dominated by the big five: Lockheed Martin, RTX, Boeing, General Dynamics, and Northrop Grumman. They still account for an overwhelming portion of the Pentagon’s budget.
However, their dominance is no longer unchallenged. A bunch of new-age military tech firms in the fields of AI, autonomous vehicles, satellite connectivity, and communications are challenging the traditional dominance of the big five.
Leveraging emerging technologies, the rapidly changing nature of warfare, combined with traditional influence-building strategies such as financing election campaigns, bankrolling influential politicians, and funding think tanks, these new-age military tech firms —such as SpaceX, Anduril Industries, and Palantir —are breaking the glass ceiling of the US defense market.
However, these firms are not the only challenge facing the dominance of the Big Five. Traditional tech firms such as Microsoft, Google, and IBM are also eyeing a slice of the ever-expanding US military budget.
It’s a silent revolution that can change the face of the world’s most lucrative defense market.
The Dominance Of The Big Five
Over the last three decades, the US defense market has been dominated by private companies. Their share in the Pentagon’s defense spending budget has gradually increased.
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