Back
Farnbororugh Air Show 2026

Farnborough 2026: The Defense Industry's Capacity Challenge

Walking through London before the Farnborough International Airshow, one image was impossible to ignore. Ukrainian flags continue to fly from government buildings across the United Kingdom, just as they do throughout much of Europe, a visible reminder that the war in Ukraine continues to reshape the security landscape.

Europe has made its intentions clear through both investment and action. Nations are increasing defense spending, accelerating modernization, and strengthening industrial partnerships. But as conversations unfolded across the show floor, one question surfaced again and again:

Can the defense industrial base deliver capability at the speed today's security environment demands?

While aircraft orders have traditionally dominated Farnborough headlines, this year's show was defined by something different. Collaboration between large defense companies and smaller innovators was everywhere, and nearly every discussion centered on the same themes: speed, capacity, partnerships, and mission readiness.

Here are four trends that stood out.

1. Speed Has Become a Military Capability

"If you wait for the requirement, you're already too late."

That message was echoed by military leaders, industry executives, and technology developers throughout the week.

Modern threats evolve in days—not years. As lessons from Ukraine continue to shape defense priorities, traditional acquisition and development timelines are no longer keeping pace. Success increasingly depends on an organization's ability to rapidly develop, integrate, test, and field new capabilities.

That means:

  • Faster capability development and integration

  • Modular software that enables rapid updates

  • Real-time operational feedback from the field

  • Procurement models that move at the speed of technology

  • Open architectures that simplify integration

The solution requires removing unnecessary bureaucracy while maintaining the governance and safety standards required to deliver trusted capability.

This shift reinforces why Terma has invested in platform-agnostic hardware and modular software architectures. By allowing individual applications and capabilities to be updated independently rather than rewriting entire systems, operators can integrate new sensors, electronic warfare capabilities, navigation systems, and mission applications significantly faster while reducing both cost and risk.

2. Capacity Has Become a Strategic Capability

Throughout Farnborough, one word surfaced in nearly every conversation:

  • Capacity to engineer

  • Capacity to manufacture

  • Capacity to sustain

  • Capacity to scale

Defense spending continues to grow, but funding alone doesn't create capability. From engineering talent and production capacity to supply chain resilience and long-term sustainment, there is a growing gap between what militaries require and what industry can currently deliver.

Procurement priorities are evolving accordingly. Organizations are increasingly looking for:

  • Proven technologies built on open industry standards

  • Resilient supply chains with multiple sourcing options

  • Partners that can demonstrate performance in modern operational environments

  • Companies capable of scaling production without sacrificing innovation or quality

The conversation is also shifting from stockpiling finished products to strengthening the industrial base itself. Securing critical suppliers, digital infrastructure, and manufacturing capacity has become just as important as acquiring new equipment.

In today's environment, industrial resilience is a strategic capability.

 

3. Partnerships Are Accelerating Innovation

Perhaps the biggest shift at Farnborough wasn't technological—it was cultural.

Companies are asking less, "What can we build ourselves?" and more, "Who should we build it with?"

As defense demand accelerates, few organizations can develop, manufacture, integrate, certify, and sustain every capability on their own. Instead, success increasingly depends on strong industrial partnerships where each organization contributes its core expertise.

This year's record U.S. participation at Farnborough reflected that trend. American companies are looking beyond export opportunities and investing in long-term partnerships with European industry to improve access to regional customers, strengthen supply chains, and increase production capacity.

For companies like Terma, operating across both Europe and the United States creates a unique opportunity to help bridge those ecosystems. Our investments in European capabilities, growing U.S. presence, and expanding regional partnerships position us to support customers on both sides of the Atlantic while contributing to a more resilient defense industrial base.

4. Mission Readiness Depends on More Than New Aircraft

The future of defense isn't simply about acquiring next-generation platforms.

It's about maximizing the capability of the fleets already in service.

Fourth-generation aircraft—including more than 2,200 operational F-16s—will continue to play a critical role in global security for decades to come. Modernizing those platforms through modular upgrades, layered defenses, and affordable capability enhancements often delivers operational value much faster than waiting for new aircraft production, rapidly upgrading 4th generation aircraft to 4.5 generation capabilities.

Mission readiness requires balancing new acquisition with sustainment, modernization, and training.

As recent conflicts have demonstrated, nations cannot scale overnight. The ability to rapidly enhance existing fleets while continuing to invest in future capability has become essential to maintaining operational readiness.

Looking Ahead

Farnborough 2026 made one thing clear: the defense industry's greatest challenge is delivering operational capability at scale.

No single government, prime contractor, or technology company can solve these challenges alone. The future belongs to connected industrial ecosystems capable of designing, integrating, manufacturing, and sustaining capability faster than threats evolve.

The conversations at Farnborough suggest that transformation is already underway and the organizations that invest in flexibility, resilient supply chains, and trusted partnerships today will be the ones shaping the future of defense tomorrow.