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

Full Report

First half 2025 results for VITA technology suppliers who publish financial reports continue the strong double-digit growth trend achieved in the first quarter of 2025. Average revenue growth achieved in H1 for companies reporting publicly compared to the same period in 2024 was 11.7%.

A recent study has suggested that the total addressable European defense equipment market in 2024 is estimated to be around $155 billion, representing about 30% of the core defense budget. Since the invasion of Ukraine, equipment spending has increased significantly, as a percentage of core expenditures, mainly due to quicker access to equipment compared to recruiting and training personnel. This may become the new normal for European defense equipment spending as the U.S. equivalent is around $290 billion in equipment expenditure which has actually remained at around 30% of total U.S. defense expenditure over the past decade.

VITA member companies have released details of several new contract wins in Q3. The flow of new equipment orders in Q4 may however be temporarily interrupted by the U.S. Federal government shutdown. This may oblige DoD personnel to handle related impacts with a resulting delay in defense contract awards.