A Relatively Quiet August…
This August has seen a slower pace for the Defence sector, particularly in the world of bids and tenders. This is not to say that this industry is static, as it never truly stands still, with activity continuing in other areas of the sector. However, Autumn 2025 is shaping up to be an even busier season. With tightening cybersecurity regulations to the introduction of new technologies and the possibility for a few major contracts on the horizon, companies should be preparing themselves for this shift in pace. Below, we highlight what we think are the most important upcoming developments.
Cyber Security
In the Defence Industry, security and compliance remain a top priority. With recent high-profile cyber-attacks on large companies, protection measures are expected to become even more stringent. The new ‘Cyber Security and Resilience Bill’ is expected to get its first reading towards the end of the year, which introduces increased regulation and mandates stricter cyber-security requirements, particularly on sub-contractors.
In the meantime, the new Cyber Security Certification, a joint accreditation between the Ministry of Defence and the International Security and Management Education Association (IASME), will open for Level One registrations at the end of August. This three-level scheme is designed to demonstrate compliance and resilience across a large set of standards. For developers, remember the government’s ‘secure by design’ mindset – for example, by embedding encryption and authentication into systems from the start.
Emerging technologies
There is growing anticipation around new technologies and capabilities the industry can harness. In the world of AI, developments are rapid and increasingly accessible. Companies should look at how they can use AI effectively to support complex processes and enhance national security – reflecting the government’s ambition for Britain to lead in AI, a commitment reinforced in the Strategic Defence Review.
Going hand in hand with this, the theme for DSEI this year is ‘Preparing the Future Force.’ We can expect to see advancements particularly in autonomous systems, unmanned ariel vehicles and decision supporting tools – technologies which have already proven decisive in the conflict in Ukraine.
Major Contracts
The past month has been quiet in contract opportunities, but we should see this pick up as we go into Q4. One of the recent significant moves was the UKDI merger, which will influence how smaller actors interact with the Defence sector. The merger aims to give smaller, specialist suppliers, including SMEs, a clearer path to interacting with the MOD. UKDI won't be fully established until July 2026, but its development is one to watch.
Following the SDR, the government has set out its objectives for the industry in the coming years. This includes a restructuring of the forces, an embrace of technologies and a whole load of investment. However, the details of how much the investment will be, and where it will be allocated, will not be clear until after the Autumn budget. Once these are confirmed, we expect a wave of bid opportunities – potentially including high-value contracts. Companies should be preparing their bid strategies now, and Day 1 People is available to support at every stage, from bid planning to proposal writing, for organisations of all sizes.
We will be watching these developments closely.
Next month, we’ll be looking at the new social value guidelines – and how we can help you get prepared for them.