In the latest Industrials Sector Report for the first quarter of 2025, we look at the boom in the security and defense sector and analyze how specialized steel distributors are benefiting from record defense budgets worldwide. Global military spending of over USD 2.4 trillion in 2023 not only marks a historic high, but also establishes a fundamental demand base for high-strength, armor-grade, and wear-resistant steels. Government investment programs, combined with protectionist procurement strategies in Europe and North America, are creating long-term framework agreements and stable margin environments for suppliers who complement their technological expertise with value-added services such as heat treatment, precision cutting, and surface coating.
Technological advances – from high-alloy HSLA materials to nanostructured composite steels – are increasing the performance requirements for modern armor and protection systems. Dual-use applications, such as drone components or security barriers for critical infrastructure, are expanding the traditional defense segment with new sources of revenue. Companies that focus on these specialized material solutions early on will gain a clear competitive advantage in an environment of increasing demands for weight efficiency and ballistic safety.
An example of a deal in the specialized steel industry is the acquisition of Ambo-Stahl by Kloeckner Metals Germany. With this strategic move, Kloeckner secures access to a highly specialized portfolio of safety steels while further expanding its service ecosystem across all value-added processes. The deal illustrates how top players are strengthening their technological depth and supply chain control through targeted acquisitions.
In this report, we provide you with in-depth insights into market volumes and growth drivers in the security and defense sector.
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