DSEI UK 2025: Closing the loop on defence procurement 

According to six exhibitors at DSEI UK 2025, demand signals, innovation bottlenecks and slow decision-making are among the challenges standing in the way of industry’s investment. Clearer messaging and a greater government stake in defence investment may solve the issue. 

By Calibre Defence in partnership with DSEI UK 2025. 

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It is clear that there are growing opportunities in the defence and security sphere. Much of that opportunity growth is coming from the 32 NATO members, which have pledged to increase their defence budget to 5% of GDP by 2035. If all members spent 5% in 2024, that spend would reach $2.816 trillion, close to double what was spent. The opportunity is also significant in the UK: The defence budget for 2025/26 is around £59.8 billion, if the UK had committed 5% of its GDP the same year, its budget would have been £144 billion. This is slightly more than the entire forecasted GDP for Kuwait. And there are hundreds of procurement opportunities across defence as forces are re-equipped, armories replenished, and new technological concepts embraced. 

It is the same across Europe, with some countries like Germany and Poland placing enormous orders for large quantities of equipment and munitions. This environment is generating benefits throughout the defence supply chain and society. From new jobs to increased exports and tax revenue, the whole of society stands to benefit from the new defence dividend. DSEI UK plays a key role within this ecosystem, providing exhibitors, visitors, and defence the opportunity to gather and meet. However, that role is now becoming more important, as defence, national security, and national prosperity become inextricably linked. “We have been through several wars of choice where a country could contribute to a conflict depending on what it can afford. Things have changed now, and we have to be prepared for war in the next five years. We need a supply chain that can scale and turn itself up or down as needed,” Gary Waterfall, senior military advisor to DSEI UK, told Calibre Defence in February 2025. 

In a nutshell, DSEI UK provides suppliers and integrators, manufacturers and software companies to come together, to meet and develop relationships that can contribute to the security and prosperity of the UK and Europe. In this sense the event is “gold dust”, as Gary recalled during our interview. So, Calibre Defence met with several DSEI UK exhibitors to learn more about the challenges and opportunities that they see in the defence ecosystem, as well as how they aim to use DSEI UK to help address them.

Andy Challen, Account Director Aerospace and Defence, KX
Stand: ADS Pavilion, stand N4-337
Challenges: There is movement in the right direction for procurement timelines; everyone appreciates that there is a difference between procuring software and a submarine, but companies cannot afford to put all of their eggs in the defence basket because it is risky. Sometimes, the longest bit is the procurement cycle, and I’m sure everyone welcomes the fact that the MoD is going to break procurement down into three different scales, but we really need the details. We can’t hire, train, and retain people for requirements that may not occur. That demand signal needs to be a lot clearer than it is at present. 

Opportunities: We are aiming to enable decision-makers to have access to that data and gain decision advantage. Data is mentioned a lot in the SDR and the digitisation of a lot of defence equipment already, means that the SDR is a really useful step in the right direction for KX.

Solutions: In the commercial world, from first discussions through to delivery is sometimes weeks, but months at most. This is because KX is providing a proven product that directly meets a customer’s needs. The MoD could adopt a similar approach, and determine what products are already out there that could meet its needs, and what the minimal assurances are that would get it into service quickly.

Sam Foreman, Business Development Director, NP Aerospace.
Stand: Land zone, stand N2-410
Challenges: To continue to export, we have to be backed by and have opportunities in your home market, and get government backing to succeed abroad. There is a sovereign capability, but it needs prime and government support.

Opportunities: The recapitalisation of the vehicle fleet is a huge opportunity. We are hoping that there will be more investment in the supply chain to support the SMEs like NP Aerospace. In large vehicle programmes, a lot of work is done on the land industrial strategy, but it is less present within the smaller programmes. All of those programmes would make a considerable dent in onward export, we just need to ensure that the tenets of the strategies are embraced to fully exploit the returns, it’s a massive export opportunity if we can achieve that. 

Solutions: We are pinning a lot of hope on the National Armaments Director approach, but whether that gets the speed we are hoping for or not is unclear. Furthermore, there is a lot of innovation in the UK, considerable amounts of it. Pulling it through properly from British companies is something that will ensure that the capabilities are there when needed. For instance, keeping ahead of the latest threats material science will put us in a leading position when new opportunities emerge. 

Lee Evans, Director Aerospace & Defence Northern Europe, Dassault Systèmes
Stand: Aerospace Zone, stand S2-130
Challenges: Defence remains a significant and strategic focus for Dassault Systèmes, and we’re proud to support partners across the sector as they embrace digital transformation. Today, Model-Based Systems Engineering (MBSE) and simulation are at the heart of our approach—reflecting the growing complexity of defence programmes and the need for integrated, agile solutions. However, with this comes challenges, particularly around data security, legacy integration, and keeping pace with regulatory change. But with the right mindset and the right tools, these are challenges we can overcome together.

Opportunities: The opportunities are clear, MBSE and simulation are driving better outcomes, faster innovation, and more resilient supply chains. The move to integrated digital environments is unlocking new ways of working, and the potential of digital twins and AI is only just beginning to be realised.

Solutions:  Solving these challenges starts with collaboration—across industry, government, and academia. Open, interoperable platforms like 3DEXPERIENCE are key to breaking down silos and enabling true digital continuity. As an Aerospace Zone exhibitor, we’re showing how MBSE and simulation can empower teams to innovate with confidence, accelerate delivery, and maintain the highest standards of security and compliance. DSEI UK is a fantastic opportunity to connect, share ideas, and shape the future of defence. Our focus for 2025 is on demonstrating the real-world impact of MBSE, simulation, and digital collaboration.

Daniel Stapleton, CEO, Caeli Technologies LTD
Stand: Medical Zone, stand N2-155
Challenges: The operational environments we’re focused on are among the most complex in modern defence: subterranean warfare, urban combat, irregular warfare, CBRN scenarios, and high-risk rescue operations. These environments test not only personnel but the technology they rely on—particularly respiratory systems.

Opportunities:  From an opportunity standpoint, the feedback we’ve consistently heard from end-users is that existing solutions for prolonged oxygen supply still face significant logistical hurdles. Our mission is to address that gap. We’ve developed systems that are lighter, leaner, and capable of keeping operators on mission for far longer than current alternatives—while reducing the logistical footprint. 

Solutions: This opens the door for a whole new category of tactical respiratory systems. Our technology is adaptable, making it possible to evolve capabilities beyond the battlefield. And so our primary objective at DSEI UK 2025 is positioning—making sure the defence industry knows who we are, what we do, and why our technology matters. It’s an opportunity to connect directly with partners, colleagues, and end-users; to strengthen existing relationships and form new ones. It’s not just about showcasing our technologies—it’s about listening. Understanding the operational challenges our users face is central to our innovation process. We’re already part of the conversation, particularly with US SOF, but DSEI UK allows us to expand that dialogue globally.

Simon Humphrey, Vice President, Hanwha Aerospace UK
Stand: South Korean Pavilion, stand N10-270.
Challenges: Although Hanwha Aerospace has a strong presence across Europe, it’s often seen as a new player in the defence acquisition space. This creates tension due to limited staff capacity and established relationships with existing suppliers. While the MOD and government must adapt to new ways of thinking and embrace new partners, this shift has been slow. Other European countries are moving faster, with Hanwha receiving orders monthly, while the UK MOD’s demand remains uncertain.

Opportunities: I’m quite optimistic, I am starting to see some voices thinking differently about the problem. There is a growing openness to new ideas, which presents a significant opportunity. For years, Hanwha Aerospace has been a leader in advanced, rapidly-evolving technology. This has resulted in the development of products that are delivered on time, within budget, and can be easily upgraded. This success is rooted in Hanwha as a company and South Korea as a country, which has learned valuable lessons over the past 70 years—lessons that are highly relevant to Europe and the UK in a time of increasing threats.

Solutions: A change in mindset is necessary. Poland serves as an excellent example; it ordered over 600 artillery platforms from Hanwha and received the first delivery before the contract was even finalized. The next six months are crucial for the UK government and MoOD to demonstrate a new, more decisive approach. We will be meeting some of our stakeholders at DSEI UK to learn more. But bold and rapid decision-making is essential to avoid missing the opportunity to provide the armed forces with the tools they need.

Jack Cadman, Military Group Manager, Beretta Defence Technologies
Stand: Italian Pavilion, stand S7-215.
Challenges: While the government’s intent and user demand for new equipment are clear, the communication often lacks impact, causing breakdowns. Although this will improve over time, the current messaging makes it difficult for companies to work with the MoD. There is also a lack of understanding from the customer’s perspective regarding what businesses need to operate, which creates further issues. I think that could also create some issues given the feeling of promise that has been made.

Opportunities: Several projects for different weapon platforms are beginning to materialize. Specifically for Project GRAYBURN, the opportunity is present, but there are challenges. If the MoD seeks a strategic partner and domestic capability, the timelines are tight, and the pace of decision-making must accelerate.

Solutions: To improve efficiency, there needs to be an incentivization structure for MoD procurement teams. A micro-level change like incentivizing rapid decision-making would make a significant difference. On a macro level, the government should consider joint ventures (JVs) with industry. Taking a stake in these projects would drive growth, as seen with Qatar’s profitable partnership with Beretta. Qatar is breaking even on production with Beretta after six years and will soon start making a profit. The UK could realise similar benefits if it was willing to establish JVs with industry.