The Security Supercycle: Investing in Innovation, Resilience, and Rearmament

Global rearmament is reshaping industrial policies and drawing new sectors into the defense economy, with far-reaching implications for businesses and investors. Geopolitical competition, active conflict, technological innovation, and a widening definition of national security are driving a supercycle of investment.

This shift is about more than just increased military spending. Cheap unmanned systems are changing the economics of warfare, and capital is flowing to defense tech start-ups alongside established contractors. Governments and companies are turning to cross-border partnerships and industrial policy to expand production.

The focus on security is also lifting other segments of the industrial economy, such as advanced manufacturing and energy technology. Dual-use technologies are finding commercial applications beyond the battlefield, from drones for critical infrastructure inspection to distributed power systems for military and civilian users.

Going forward, defense is poised to become a pillar of industrial policy and economic strategy. As governments prioritize resilience, the strongest opportunities in the supercycle will capture a readiness premium, rewarding businesses whose scare capabilities deliver the assured capacity that customers must structurally maintain across cycles.

Learn more about how the security supercycle is reshaping global defense investment in our latest report.