This report reviews highlights and developments during the second trading quarter of 2025 and the trends that are driving technology development for VITA technology boards and systems.

Full Report

First quarter 2025 results for VITA technology suppliers who publish financial reports continue the strong revenue growth trend achieved in FY 2024 (14%). Average revenue growth achieved in Q1 for companies reporting publicly compared to the same period in 2024 was 16%.

Since Q1, the security challenges in Europe and the Middle East continued to increase and against that backdrop, commitments to increasing defense budgets continue to firm-up. Details of the U.S. defense budget request are available to view, program by program and the overall spending increase proposed is in the order of 14%. European NATO-member countries are finally recognising that they have underspent on defense in recent years and are proposing to increase spending to 3.5% of GDP on modernising and equipping their defense forces with an overall spend of 5% by 2035.

This also comes at a time when defense procurement strategy in the U.S. and increasingly in Europe, is focused on rapid deployment of innovative technology based on commercial off the shelf solutions with modular open standards. VITA standards based products are already the building blocks for many such systems.

A key challenge for the industry may be to build supply chain capacity quickly enough to meet the expected output demand. The order books of VITA members are growing as is order backlog, and shipment rates need to rise to ensure customers experience timely deliveries. There is evidence this quarter that planning for increasing present and future demand is happening in the VITA community via the reported corporate activity to grow supply chain capacity or by commissioning new production facilities. The increasingly bullish demand outlook described in this quarterly report may provide adequate evidence to support the business case for increasing supply chain capacity and output.