The global defense sector is witnessing significant growth, particularly in Europe and the U.S., driven by increased defense spending amidst geopolitical uncertainties. Europe’s defense budget is projected to reach €326 billion by 2024, emphasizing a shift toward strategic autonomy with initiatives like the €800 billion ReArm Europe plan, which mandates local procurement. Meanwhile, the U.S. defense budget seeks modernization with a focus on technological superiority, highlighted by a $849.8 billion request for 2025. Collaborative efforts between U.S. and European firms aim to address interoperability challenges, despite the European market’s fragmentation, revealing both opportunities and structural weaknesses in defense capabilities.