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DSEI 2025: Likely spending boosts outlined this year turn spotlight on show

4th September 2025 - 09:40 GMT | by Damian Kemp in London, UK

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AM General's JLTV A2 was displayed for the first time at IDEX 2025 and will be on display at DSEI. (Photo: author)

A surge in budgeted and planned defence spending across European NATO countries in the past year has come in the face of the war in Ukraine and demands from the Trump administration that the countries take on more of the load. This is likely to be reflected in what can be expected from DSEI.

The grinding war in Ukraine’s east and the nature of the conflict is likely to reflect new systems and spotlighted products and services at this year’s DSEI.

Aside from uncrewed aerial vehicles (UAVs), which have been prominent in the Ukraine war, and air platforms, several companies have already developed land products which reflect the conflict and also systems developed from the conflict.

Elsewhere on the continent, Shephard analysts, using a range of sources, expect NATO Europe’s annual defence spending to reach more than US$1 trillion by 2035 and this is likely to increase companies’ R&D and jumpstart increased production capability.

Babcock and Patria join up to compete for the British Army’s medium vehicle requirement

GM Defense teams up with NP Aerospace for British Army vehicle requirement

DSEI 2025: ARX Robotics unveils combat version of Gereon UGV

A further indication of increased defence spending comes from the European Defence Agency (EDA) which published its annual Defence Data report for 2024-2025 on 2 September, detailing the total spend from all 27 EU countries. In 2024, defence expenditure across the member states reached €343 billion (US$400 billion), a 19% rise on 2023 which brought spending to 1.9% of GDP.

EU defence spending is projected to reach €381 billion in 2025 and amount to 2.1% of GDP, exceeding the previous NATO 2% target for the first time since EDA records began.

UGVs already play a key role

The use of uncrewed ground vehicles (UGVs) in the Ukraine war has seen increased investment in the discipline both for research and development, platforms and spiral innovation.

While Milrem Robotics has played a substantial role, other companies such as ARX Robotics have also invested and developed platforms with the latter rolling out a new combat variant of its Gereon UGV at DSEI.

Less than a week before the start of the show, Milrem Robotics announced it was to “deliver a record number of Tracked Hybrid Modular Infantry System (THeMIS) UGVs to Ukraine in collaboration with an EU member country”. The number of platforms to be supplied was not disclosed but the company noted that “the new units will join the initial 15 THeMIS UGVs already deployed in Ukraine”.

The ARX Robotics Gereon UGV has also already seen service in Ukraine and the company is working with local partners in the country to keep the platform fresh and fit for purpose based on operational experience and user feedback.

The armed version being exhibited at DSEI is a result of the company working with Valhalla Turrets to integrate weapons systems, and the platform will be shown with Valhalla’s Loki remote-controlled weapon station (RCWS).

The big prize in the UK

The UK’s Land Mobility Programme (LMP) remains a rewarding and tantalising – if elusive – prospect for local vehicle manufacturers as well as international companies looking to partner with a UK company. DSEI is another chance, and maybe the last chance before competitions begin, to get the word out.

The LMP plans to replace more than a dozen vehicle types in British Army service with three classes: the Medium Protected Mobility Vehicle (MPM) at less than 20,000kg; Light Protected Mobility (LPM) at less than 10,000kg; and Light Mobility Vehicle (LMV) at less than 3,500kg.

The LMV is expected to be run first and replace around 6,000 utility vehicles with an estimated value of $1.2 billion.

In September 2024, the UK Ministry of Defence (MoD) set a November 2025 target for when a tendering programme for LMV would begin, meaning partnering and pushing is becoming more urgent. The main targets for the programme are tender and trial from November 2025 to June 2026, with tender selection in October 2026. Minimum Deployable Capability has been planned for before 2029.

The main contenders are Thales with Hawkei, General Motors (GM) Defense with Infantry Squad Vehicle (ISV), Babcock – Defence and Security with General Logistics Vehicle and Rheinmetall with Caracal.

All four vehicles have been front and centre at events like DVD in Millbrook last year but GM pushed itself centre stage on 3 September with the announcement of Team LionStrike. This is an expansion of an existing deal between GM and NP Aerospace which brings in the country’s biggest player, BAE Systems.

Ukraine, DSEI 2025, Land Mobility Programme, AM General, GM Defense, Openworks Engineering, Milrem Robotics — LionStrike, a teaming of GM Defense, NP Aerospace and BAE Systems, is offering ISV for LMP. (Photo: GM Defense)

The team said in a statement: “BAE Systems is working with GM Defense to enhance and upgrade commercial trucks and sport utility vehicles for military use.

“In addition, the companies will work with NP Aerospace to ensure that the vehicles comply with UK operational requirements, [and] the work will be done by BAE Systems’ Weapon Systems UK business.”

It is likely LPM, a requirement covering approximately 2,000 vehicles and expected to be worth at least $1.69 billion, may run parallel with LMV.

Hawkei is again potentially in the running for this requirement with improved protection along with Supacat HMT 400 and Armoured Closed Cab HMT, URO Vehículos Especiales VAMTAC (Vehículo de Alta Movilidad Táctico) LTV, AM General Joint Light Tactical Vehicle (JLTV), Oshkosh Defense JLTV and Nurol Makina ve Sanayi (NMS) Yörük.

Speaking to Shephard in February last year, Supacat CEO Nick Ames said: “Supacat fits in LMP but some of the thinking is about what is medium and what is light. We are trying to work out how that balance is going to go.”

NMS UK announced in January that it had established an eight-acre manufacturing centre in Leamington Spa, UK and was aiming its vehicles at the light and medium LMP contracts with its NMS-L 4×4 for LPM. The larger Dragon 4×4 is being aimed at the MPM requirements.

The approach of Oshkosh Defense in possibly bidding its JLTV is unclear as they are not exhibiting at DSEI but AM General, with the next generation JLTV A2, is rolling into town with a vehicle on show for the first time in Europe. The company is also seizing the chance to hold demonstration trials for the British Army after the show.

The MPM programme is expected to be worth at least $1.69 billion for about 2,000 vehicles with a 2026 contract award date.

Aside from Supacat and NMS, as mentioned, Thales is likely to bid Bushmaster, Patria its Patria 6x6 (which could be within the Common Armoured Vehicle System (CAVS) programme) and KNDS its Dingo 3.

Thales, like Supacat, has the advantage of the vehicle already being in the hands of British forces in limited numbers.

In January, the UK’s Babcock International Group and Finland’s Patria signed an agreement to offer the 6x6 CAVS to meet MPM. Under the agreement Patria will lead on the design and development of the system, providing bespoke enhancements to its existing 6x6 platform.

Babcock will lead on the build solution, in keeping with the UK MoD’s Land Industrial Strategy, and develop a platform support package that will maintain operational readiness of the vehicle, through life.

More than just vehicles

The Leopard tank has had a rebirth this decade with new orders and a strong programme for upgrades. Seeing this opportunity, Germany’s Flensburger Fahrzeugbau Gesellschaft (FFG) has teamed with Rolls-Royce Power Systems and ZF to develop a new power pack for the Leopard 1 Main Battle Tank.

The new power pack, being shown at DSEI for the first time, was assembled and integrated into the Leopard 1 chassis before being run for the first time in July 2015.

This engine is available in both V6 and V8 configurations with applications of the latter including the Boxer 8×8 multi-role armoured vehicle, Polish Borsuk infantry fighting vehicle (IFV), Austrian Spanish Cooperative Development (ASCOD) family of vehicles and Eitan 8×8 IFV.

Allen-Vanguard is launching the new Securis mobile counter drone trailer at DSEI 2025 in collaboration with Metis, Blighter, OpenWorks Engineering and EdeyFX. It features Skyperion UAS detector from Metis, Blighter’s A400 radar series and the optical recognition system Vision Flex from OpenWorks as well as Allen-Vanguard’s Ancile counter-UAS radio frequency effectors.

OpenWorks will also be releasing its new Vision Pace autonomous optics system which is designed to provide dynamic multi-threat engagement and targeting to kinetic defeat chains. It is intended to provide capability to expeditionary force protection, ground-based, short-range and mobile short-range air defence across land and naval domains.

Shephard’s DSEI 2025 coverage is sponsored by: