The war in Ukraine contributes to a surge in world investments into defense technology since states will invest in air defense, countering drones, and intercepting hypersonic rockets.

The current war in Ukraine has brought to the limelight air defense systems, and defense technology has taken the front line in the new aspect of war. Increased aggression of Russia with its hypersonic missiles and swarms of drones led to the realization that more advanced methods of defense are required at an accelerated rate.

The dependency of Ukraine on Western defense mechanisms such as the U.S. Patriot and Norway's NASAMS has been faulty. However, world supply is pressured by bottlenecks in production. Lockheed Martin has a 500-per-year limitation on production of their PAC-3 MSE. This shortage limits the number that can actually be supplied and so impedes user consumption. Political uncertainty, particularly on the part of President Trump, since 2022 has been added to the U.S. supplying up to 50 billion dollars in aid since then.

There has been a boom in defense technology. Corporations such as the Raytheon Company, Lockheed Martin, and BAE Systems take the lead in weaponry such as missile interceptors, AI-driven radars, and countermeasures against drones. EU funding and regional integration are the advantages of European firms such as Airbus Defence.

As the NATO allies reaffirm their commitment to the defense contribution, analysts regard it as a structural change. Existing funds such as ITA and XAR provide access to this increasingly popular market of defense technologies, which has the potential to reach a sales size of more than 45 billion dollars by the year 2030.