BI-WEEKLY MARKET INTELLIGENCE REPORT 15.07.2025 to 31.07.2025
- harrygeisler2
- 6 days ago
- 6 min read
Welcome to the latest edition of Dual-Use Dispatch – your bi-weekly briefing on the intersection of commercial innovation and national security.
In this issue: Europe has accelerated its rearmament drive, slashing red tape and tripling R&D budgets to field AI‑enabled systems and large-scale procurements. The UK has demonstrated its expeditionary reach, from carrier operations in Australia to harmonising cyber‑defence with NATO partners, while France grapples with an APT breach of its premier naval shipbuilder. Israel is expanding its defence spending and in Africa’s Sahel, political upheaval and insurgent pressure spotlight regional fragility. Meanwhile, across critical national infrastructures, new maritime cybersecurity mandates took effect, and state‑linked hackers stepped up attacks on ports, power grids and even Russia’s flagship airline.
MAJOR PROCUREMENT DEVELOPMENTS
Germany Fast-Tracks Procurement: Germany’s cabinet approved a draft law on July 23 to accelerate defence procurement and base construction, aimed at overcoming red tape as Europe confronts a more assertive Russia. The bill raises tender thresholds and even waives bidding in urgent cases, allowing Berlin to “focus on what matters” for Bundeswehr readiness, said Defence Minister Boris Pistorius. It also broadens “military needs” to include certain civilian items, such as medical supplies, reflecting lessons from Ukraine on total defence. Environmental and building regulations will be eased for barracks and airfields, with the law set to remain in force for 10 years.
Germany’s Mega-Orders Plan: In parallel, Berlin is preparing a wave of multi-billion-euro arms orders to transform its forces. It was reported that Germany will procure 20 new Eurofighter jets, up to 8,500 armoured vehicles, and 3,500 Patria infantry fighting vehicles, among other systems. The Eurofighters alone are estimated at €4–5 billion, with the Boxer and Patria deals worth around €10 billion and €7 billion, respectively. Additional buys of IRIS-T air defence batteries and hundreds of SkyRanger counter-drone systems are also in the works. Chancellor Friedrich Merz has vowed to build “Europe’s most powerful conventional army,” backing defence spending exemptions to hit 3.5% of GDP by 2029.
Poland’s US-Backed Modernisation: On July 24, Poland’s defence ministry announced it will sign a $4 billion US loan guarantee to help fund an ongoing military buildup. This extends Washington’s support after $11 billion in prior US financing for Polish arms programs since 2022. With Russia’s war in neighbouring Ukraine unabated, Warsaw is surging defence outlays to 4.7% of GDP in 2025 (rising to 5% by 2026) – the highest level in NATO. The US loan will bolster purchases of systems like Patriot SAMs, HIMARS rockets and Apache helicopters. It cements Poland’s role as a forward bulwark on NATO’s eastern flank, as well as a major client for Western defence firms amid the European arms race.
Israel Boosts Defence Spending: Facing ongoing conflict on multiple fronts, Israel approved an extra 42 billion shekels (~$12.5 billion) for defence in 2025–26 to address “intense security challenges”. Announced July 17, the budget deal will allow the Defence Ministry to “advance urgent and essential procurement deals” needed to replenish depleted missile stockpiles and munitions after recent fighting. Officials said funds will immediately flow to sign contracts for more Arrow ballistic missile interceptors (co-produced with the US) after Arrow batteries saw heavy use intercepting Iranian and Hezbollah rockets. A $20 million order for new machine guns to boost IDF ground firepower was also inked.
STARTUP RADAR: DUAL-USE IN FOCUS
Project Q (Germany) – AI-Powered Defence Data Integration Platform
Berlin-based defence tech startup Project Q has raised €7.5 million in Seed funding (July 28) led by Project A Ventures, with participation from Poland’s Expeditions Fund and Estonia’s Superangel.
Founded in 2024, Project Q is building an “Internet of Defence” software platform (Q-OSP) that integrates diverse sensors, data feeds, and AI tools into real-time battlefield intelligence for military users.
In practical terms, the system can fuse inputs from areas like radar, optical cameras, and acoustic sensors to alert troops of incoming drones or provide a common operating picture, even when using mostly off-the-shelf civilian technologies.
The team, which includes ex-Bundeswehr officers and AI engineers, aims to break down the data silos of traditional defence systems.
“Modern defence requires faster innovation cycles, and the transformation of siloed systems into an integrated network that can be leveraged on European scale,” noted CEO Leonard Wessendorff.
Following the new funding, Project Q is expanding from 20 to 30+ employees and ramping up pilot projects with European armed forces. It already counts the German Bundeswehr as a customer for prototype deployments and is in talks with other NATO militaries. Notably, the startup prioritises defence applications first, with commercial uses like critical infrastructure protection to follow later.
By bridging civilian tech and military needs – such as using open architecture to let clients plug in their own data or even modify Q’s software – the company is positioning itself as a nimble integrator for Europe’s push toward network-centric warfare.
Recent developments (July 2025):
Project Q will use the seed capital to accelerate Q-OSP development and scale its engineering team.
The startup confirmed ongoing pilot contracts with the German Ministry of Defence and is working with unnamed defence primes on broader deployments.
Its approach has drawn comparisons to bigger players like Helsing (the European “defence unicorn”), but Project Q argues its focus on connecting commercial, off-the-shelf technologies into mission-ready systems sets it apart.
As Europe races to improve battlefield data integration and situational awareness, Project Q’s progress highlights investor appetite for dual-use platforms that can be rapidly fielded.
Company snapshot:
Name: Project Q GmbH
HQ: Berlin/Munich, Germany
Founded: 2024
Funding: €7.5 million Seed (July 2025)
Investors: Project A, Expeditions Fund, Superangel
Website: https://project-q.ai
MAJOR DEFENCE AND SECURITY DEVELOPMENTS
Europe – Tech-Driven Rearmament Surge Germany is slashing procurement red tape and boosting R&D to integrate AI, drones and other “disruptive” technologies into the Bundeswehr. The new draft law (approved July 23) lifts tender thresholds, allows urgent contracts without full bids, and fast‑tracks civil–military tech transfers, all backed by plans to nearly triple defence spending (to roughly €162 billion annually by 2029).
UK Carrier Strike Group in Talisman Sabre
The UK’s Carrier Strike Group, centred on HMS Queen Elizabeth, joined Exercise Talisman Sabre off Australia from July 17–26. The group conducted integrated air‑sea strike drills with F‑35Bs and allied ships, demonstrating the Royal Navy’s expeditionary reach and reinforcing UK‑Australia interoperability in the Indo‑Pacific security framework.
UK Seeks Cyber‑Defence Interoperability
On July 22, the UK Ministry of Defence published a strategy to harmonize its cyber‑defence tools and protocols with NATO allies. Key initiatives include adopting common incident‑response playbooks, federated threat‑sharing platforms, and joint training exercises—aimed at ensuring seamless cross‑border cyber operations during crises.
Sahel Instability and Counterinsurgency
Security in the Sahel remains fragile: On July 26, the US paused all routine visa services at its embassy in Niamey, Niger, citing “concerns with the Government of Niger” under the ruling junta.
INFRASTRUCTURE SECURITY DEVELOPMENTS
Naval Group France Data Breach French shipbuilder Naval Group disclosed on July 28 that a “sophisticated” cyber‑attack earlier this month exfiltrated design documents for next‑generation frigates and submarines. The breach, attributed to a state‑linked advanced persistent threat (APT), has prompted an urgent review of supply‑chain security and strengthened network segmentation across France’s naval industry.
Maritime Cybersecurity Rules: The US Coast Guard issued new cybersecurity regulations for ports and vessels, with mandatory compliance beginning July 16, 2025. The final rule requires owners of key maritime infrastructure, including flagged ships, port facilities and offshore rigs, to implement cybersecurity plans, designate Cybersecurity Officers, and institute measures like password controls, network monitoring, and incident response drills. These rules aim to harden the Marine Transportation System against rising cyber threats as ports become more digitised and inter-connected.
Singapore Flags UNC3886 Cyber‑Espionage
On July 18, Coordinating Minister K. Shanmugam warned that UNC3886 — a China‑linked APT — has been probing Singapore’s critical infrastructure (energy, transport, finance, communications), prompting an elevated national cyber threat level and active investigations.
Cyber War Spillover – Aeroflot Hack: Pro‑Ukraine hacktivists “Silent Crow” and the Belarusian Cyber Partisans disrupted Russia’s flagship carrier Aeroflot on July 28, grounding over 50 flights and prompting a Kremlin probe. Though restored within 48 hours, the attack underlined the potency of hacktivism against civilian infrastructure.
YAVA’S TAKEAWAYS:
European Defence Renaissance: Germany’s procurement overhaul and R&D surge illustrate Europe’s transition from underinvestment to a robust, tech‑centric rearmament. Expect accelerated collaboration between EU governments and local defence‑tech startups.
Britain’s Global Posture: From carrier strike operations in the Indo‑Pacific to NATO‑aligned cyber‑defence frameworks, the UK is reasserting its expeditionary and digital-security capabilities post‑Brexit.
Cyber as a Front Line: The Naval Group breach, cyberattacks on Singapore's critical infrastructure, maritime cyber rules and hacktivist strikes on Aeroflot reveal that both state and non‑state actors now see civilian and industrial networks as strategic targets, and regulators are responding in kind.
Regional Fragility in the Sahel: The US visa suspension in Niger and Nigerian counterinsurgency gains underscore that political instability and jihadist threats in West Africa demand sustained security partnerships and training.
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