06 Feb Defence Procurement: Innovating for the Future in 2026
in Features
Major-General Mohammad Al-Smadi, a seasoned veteran from the Royal Jordanian Army, explores how the defence sector is embracing digital engineering, AI simulations, and high-performance computing to meet urgent demands and modernize its approach to procurement.
Transformative Changes in the Defence Sector
The landscape of the defence industry is evolving rapidly. As governments increase their defence budgets, there’s a parallel rise in technological innovations that are reshaping how defense is procured and managed. However, this growth is not uniform; some companies are adapting more effectively than others. In this climate of heightened risk, characterized by threats both familiar and new, governments are pressing manufacturers to deliver more capabilities, more quickly, and at lower costs.
Heightened Threats and Government Investment
The year 2025 was marked by significant disruptions within global defence and security, leading to unprecedented levels of government investment in this sector. According to the International Institute for Strategic Studies (IISS), defence budgets experienced a record growth of 7.4% in 2024 alone. As we move into 2026, this trend appears to be continuing, with ongoing conflicts in regions like Ukraine and tensions in the South China Sea further spurring government spending.
Multiple Threats Influence Planning and Strategy
In particular, Gulf nations are grappling with numerous regional challenges, which forces them to broaden their strategic planning efforts. As these governments strive for economic sustainability beyond oil, they are increasingly focused on meeting security objectives efficiently while fostering the development of local industries. This evolving threat landscape suggests a continued and robust expansion within the defence sector, with Global Growth Insights forecasting a 4.9% growth rate in 2025.
Advantages of Innovation in Defence Procurement
The current focus on innovation is set to enhance procurement outcomes not just for ongoing projects but also to reshape future defence systems entirely. Here are some key areas to watch in 2026:
Digital Engineering: A New Era in Procurement
Digital engineering (DE) has become a cornerstone for future procurement strategies. It involves digitizing every stage of the procurement process, ensuring that everyone involved has access to real-time, accurate information. This eliminates missed opportunities and mitigates against information silos, resulting in reduced costs and development timelines. The UK’s Ministry of Defence is prioritizing DE, especially in testing practices, leveraging digital twins.
The Role of Digital Twins and AI-Driven Simulations
Digital twins are a game-changing method that utilizes DE specifically for testing. By creating virtual replicas of equipment, these models can undergo various simulated scenarios, significantly reducing the costs associated with physical testing. Since testing can be conducted continuously in a digital environment, it accelerates development timelines. However, the effectiveness of this technology hinges on the accuracy of the underlying models. Here, AI plays a crucial role, enhancing the realism of simulations through iterative analysis, thereby fostering trust in these innovative testing methods.
High-Performance Computing (HPC): Powering Innovation
Harnessing the full potential of these emerging technologies such as digital engineering and AI requires substantial computational power. Traditionally, access to supercomputers has been limited, but new approaches are emerging. Modern high-performance computing systems can operate in clusters, pooling resources from multiple smaller machines to deliver vast computational capabilities. Countries like the USA are already integrating HPC into their defence frameworks, providing on-ground soldiers with access to cutting-edge computing power.
Implications for Defence Customers
As defence companies rapidly adopt these innovative technologies, customers can expect to see substantial reductions in costs and accelerated timelines for project delivery. Beyond initial deployment, these advancements will facilitate ongoing improvements and lifecycle maintenance, supporting future projects through continuous data collection and analysis of real-world performance.
This shift toward transparent processes means customers can participate more actively in the procurement journey, fostering genuine partnerships. In contrast to more rigid procurement approaches, these innovations offer not just equipment but lasting knowledge and collaboration.
With 2026 on the horizon, the defence industry is poised for exciting developments. By embracing new technologies and fostering more collaborative working relationships, both governments and producers stand to gain significantly in this evolving landscape.
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