Why Defence Is Emerging As A Long-Term Investment Theme

Geopolitical tensions and evolving warfare strategies are bringing defence stocks back into focus for investors. Experts believe defence is no longer a short-term trade but a decadal investment theme, driven by structural changes in how wars are fought and how nations allocate their defence budgets. The global defence landscape is shifting toward advanced technologies such as missiles, drones, and cyber warfare, transforming procurement priorities. Europe is emerging as a key driver of higher defence spending, with several Western and Eastern European nations ramping up budget allocations amid concerns over reduced US security support. As defence expenditure rises globally, the sector is expected to remain in focus for years, making it a critical theme to watch for long-term portfolios.