The defense industry is still investing heavily in innovation against a backdrop of increasing global conflict and global advancements in national security and defense capabilities. In this context, new defense companies are developing advanced defense equipment, situational awareness, immersive technologies, and artificial intelligence (AI). This article delves into the details of the defense sector, providing detailed insights into:
- Profiles of 10 Pioneering New Military Tech Companies
- How to Spot Top Innovative Defense Companies in a Few Clicks
Key Takeaways
Using data from the Big Data & AI-powered StartUs Insights Discovery Platform, which covers 3.7 million companies worldwide across sectors, we present significant trends, industry statistics, and practical insights related to the defense industry. This sector is marked by key trends and a substantial workforce, shaping its future. In January 2025, we last updated this report. Notice something that’s not right? Let’s fix it together. Here are some key insights at a glance:
- Defense Trends: The defense industry is characterized by trends such as the development of advanced military equipment with enhanced capabilities, modernization in defense manufacturing processes, and the adoption of immersive technologies for training and operations. Further, there is growing interest in cyber warfare in national security strategies and the integration of the IoMT for intelligent defense systems.
- Defense Industry Stats: The defense sector encompasses more than 1329K organizations. It is experiencing a marginal annual growth rate of 0.43%. The sector also commands a workforce of approximately 12 million, especially with the establishment of more than 19K new defense companies. The average number of employees in those companies stands at 28, with 2020 being the average founding year. Further, these companies have an average funding per round of USD 13 million.
- 10 New Defense Companies to Watch:
- Brasa Defence Systems – Adjustable Tactical Equipment
- Icarus Swarms – Autonomous Drone Swarms
- SmartIR – Graphene-based Tiles for Infrared Control
- Terasynth – Modeling, Simulation & Training (MS&T)
- Tess Defence – Advanced Military Vehicle
- ARX Robotics – Autonomous Unmanned Systems
- Avalor AI – Autonomous Mission Execution
- Hawking – Anti-drone Systems
- ASGARD – Decision Support Systems
- Defence-Grid – Lightweight Defense Equipment
Discover 10 0ut of 19K+ New Defense Companies
In recent years, the defense industry has experienced a significant influx of new players, heralding an era of robust innovation and expansion. This wave represents a dynamic and adaptive sector poised to address the intricate challenges of modern defense and security.
Here, we spotlight 10 emerging defense companies that are at the forefront of military advancement. Through the development of cutting-edge defense equipment, camouflage solutions for personnel protection, and utilization of immersive technologies for military training & more, these companies are forging novel and effective defense capabilities.
Note on Signal Strength
One of the unique metrics we feature for each company is Signal Strength, a proprietary data point generated by our Discovery Platform. Signal Strength gauges the extent to which a company’s influence has permeated the global ecosystem of startups, scaleups, and emerging companies. This proprietary metric serves as a valuable guidepost for understanding a company’s standing in the broader market landscape.
1. Brasa Defence Systems
- Founding Year: 2021
- Employee Range: 11-50
- Location: Latvia
- Signal Strength: Very Strong
Brasa Defence Systems creates multi-layer functional clothing and adjustable tactical equipment for military and security forces. It develops the Natrix system, a mobile platform designed for various military applications.
It offers unit support by transporting equipment, armament, and ammunition, and provides combat support through the installation and relocation of sensors and surveillance systems.
2. Icarus Swarms
- Founding Year: 2020
- Employee Range: 11-50
- Location: France
- Signal Strength: Very Strong
Icarus Swarms offers autonomous drone swarms for military, police, and emergency responses. Its drones, equipped with custom hardware and software, provide infrared visibility, radioactivity detection, and versatile payloads like photosensors and signal jammers.
It operates effectively in GPS-denied areas, these drones deliver reliable, real-time data for various defense and security missions.
3. SmartIR
- Founding Year: 2020
- Employee Range: 2-10
- Location: UK
- Signal Strength: Very Strong
SmartIR develops graphene-based tiles for controlling infrared emissivity and visible color. These tiles manipulate visible color and infrared light, enabling adaptive camouflage.
SmartIR’s technology enhances survivability and force protection by managing thermal signatures, making it harder for enemy forces to detect and target assets based on heat emissions.
The ability to produce dynamic and updatable infrared patterns also adds a layer of security against falsification, further safeguarding military personnel and assets.
4. Terasynth
- Founding Year: 2022
- Employee Range: 11-50
- Location: USA
- Signal Strength: Very Strong
Terasynth specializes in innovative modeling, simulation & training (MS&T) solutions, integrating VR technology and generative AI for defense organizations.
Its ultra-realistic simulations and immersive training environments benefit industry and government partners, enhancing operational readiness and strategic decision-making.
5. Tess Defence
- Founding Year: 2020
- Employee Range: 11-50
- Location: Spain
- Signal Strength: Very Strong
Tess Defence manufactures the VCR 8×8 Dragon, a military vehicle equipped with advanced systems and sensors for enhanced situational awareness. Its modular design and advanced armor protection ensure adaptability and safety for military forces in various operational scenarios.
6. ARX Robotics
- Founding Year: 2021
- Employee Range: 11-50
- Location: Germany
- Signal Strength: Very Strong
- Funding: USD 9 394 200
ARX Robotics specializes in autonomous unmanned systems and sensors for the defense sector. Its robot platforms, like Gereon 2 and Gereon 3, offer modular, adaptable solutions for training, simulation, and operational support. Benefiting both armed forces and civilian emergency services, the products enhance mission readiness and operational efficiency.
7. Avalor AI
- Founding Year: 2021
- Employee Range: 2-10
- Location: Netherlands
- Signal Strength: Very Strong
- Funding: USD 2 080 800
Avalor AI enhances military operations with its ISTAR Kit, using AI for the autonomous execution of missions. Designed for flexibility and real-time interaction, the kit is platform-agnostic, fitting any Mavlink-based UAV, and benefits armed forces with improved situational awareness and decision-making capabilities.
8. Hawking
- Founding Year: 2021
- Employee Range: 11-50
- Location: India
- Signal Strength: Very Strong
Hawking specializes in advanced anti-drone systems and unmanned aerial vehicles for military applications.
Its products, including modular anti-drone systems and long-endurance remotely piloted aircraft, provide solutions for surveillance, tactical missions, and critical infrastructure protection.
Hawking caters to military organizations looking for enhanced security and operational capabilities.
9. ASGARD
- Founding Year: 2020
- Employee Range: 11-50
- Location: Israel
- Signal Strength: Very Strong
- Funding: USD 31.2 million
ASGARD develops AI-driven defense, HLS, and aerospace solutions. Its products include C4I systems for military logistics, full management and monitoring systems for soldiers, and advanced simulators for training.
These solutions provide military and operational personnel with enhanced situational awareness, resource optimization, and realistic training environments.
10. Defence-Grid
- Founding Year: 2020
- Employee Range: 2-10
- Location: Oman
- Signal Strength: Strong
- Funding: USD 2.2 billion
Defence-Grid specializes in AI-based lightweight defense equipment. Its autonomous units like BARBARIK and Zulfiqar, along with AI-driven drones and smart bombs, offer self-aware threat identification and neutralization. Benefiting all defense sectors, these solutions enable human-independent operations to enhance safety and effectiveness.
Tips for Quickly Getting a List of Top Defense Companies
Leveraging a SaaS platform like the Discovery Platform to identify burgeoning defense companies offers marked improvements over traditional scouting methods:
- Streamlined Efficiency: The Discovery Platform introduces automated tools that significantly streamline the scouting process. This innovative approach transcends conventional research methods, optimizing time and resources while unveiling cutting-edge developments in defense technology.
- Access to Real-time Insights: Establish a strategic vantage point with access to the most current trends shaping the defense industry. The platform provides you with near-instantaneous updates on rising defense companies, empowering you to make swift, well-informed strategic decisions.
- Tailored Exploration: Personalize your search to zero in on specific domains within the defense sector, such as military drones, defense manufacturing, IoMT, or immersive technologies. The Discovery Platform’s advanced filtering capabilities allow you to refine your scouting efforts, ensuring you connect with the most relevant startups in the field.
Ready to Explore All New Defense Industry Companies?
We’ve navigated the evolving terrain of the defense and military sector, scrutinizing the latest trends and highlighting remarkable companies at the forefront of innovation. To delve further, download our comprehensive defense & military industry report or schedule a demo of the Discovery Platform for a tailored exploration of these pivotal advancements.
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