While we are witnessing significantly increased defense spending in drones, weaponry, radars and other military systems, there are certain industries, which maintain relatively low profile compared to traditional defense primes or young defense unicorns.
In this article I wanted to briefly highlight some of the sectors, which are accelerating alongside defense, while not being major defense contractors traditionally. Particularly, let's talk about telecommunications, life sciences, logistics and infrastructure.
There are more very interesting sectors to talk about (like cybersecurity, data infrastructure, energy resilience, etc.), but this will be covered in my next article.
1. Telecom
Shift into Defense. The invisible infrastructure that keeps us connected is more than just a convenience, but a vital backbone of modern society. Today, the telecommunications industry is undergoing a profound transformation, shifting from a provider of everyday connectivity to a crucial pillar of national security.
Telecom companies are increasingly vital to defense strategies, leveraging 5G and beyond for secure, resilient networks amid geopolitical tensions. The recent trend in many countries is that telecom leaders are connecting commercial innovation with military mission assurance, adapting carrier-grade 5G specifically for military and defense operations. Recent partnerships and launches in Europe and the USA highlight this shift.
One of the most recent and interesting examples in Europe is Nokia. The company significantly stepped up its efforts to offer tailored telecom capabilities across the continent. For instance, among the recent announcements were collaboration with Rheinmetall subsidiary to develop next-generation battlefield networks for German forces, a strategic agreement with LMT to build a 5G-based tactical system for the Baltic region, a deal with Norwegian Kongsberg to integrate advanced 5G and future 6G connectivity into tactical systems and many more.
The same applies to other players in the industry - like Telia and Ericsson’s 5G innovation program to enhance military communications and interoperability with the Swedish Armed Forces. And these are only a couple of examples in Europe.
M&A and Defense Investments. To accelerate this defense pivot, telecom giants are actively pursuing M&A activities and R&D spending. Nokia recently completed the acquisition of Fenix Group, a specialist in tactical communications for defense communities. Furthermore, Nokia and Tesi announced a €100 million investment in NestAI, a physical AI lab focused on building next-generation autonomous vehicles, surveillance, and command and control platforms. Also worth mentioning is the German Deutsche Telekom investment in Quantum Systems to develop solutions for the protection of critical infrastructure.
2. Life Sciences
Strategic Importance. NATO and its allies are increasingly viewing biotechnology as the fundamental pillar of defense. About the importance of this tells NATO Secretary General Mark Rutte, who has emphasized recently that modern defense requires more than just "tanks and the jets," asserting that allies need “to develop, to acquire, and to integrate biotechnology” into their capabilities to maintain a military edge.
Key Beneficiaries. “Life Sciences” is a broad definition, but when it comes to defense, it usually refers to the following: 1) Healthcare Preparedness. This covers CBRN (Chemical, Biological, Radiological, and Nuclear) defense, including vaccines, antivirals, and diagnostics; 2)Human Performance. Defense-relevant life sciences include wearable biomarkers, fatigue monitors, neuro-AI interfaces, and specialized trauma systems like nanofluid aids and implants; and 3) Industrial Biotechnology. Beyond medicine, life sciences produce biofuels, lubricants, and resilient food sources, which are essential for reducing reliance on vulnerable supply chains in contested areas.
Recent Investments. NATO’s strategy, particularly through the NATO Innovation Fund (NIF), focuses on biotechnology at the intersection of defense, security, and resilience. Major deals highlight growing commitments. NIF led a $35 million Series A in the UK startup Portal Biotech (2025), its first biotech investment, for nanopore protein sequencing to detect biothreats and boost drug development.
The NATO DIANA program has selected several biotech startups for its cohorts, such as 52 North Health (biosensors for radiation syndrome), Swaza (respiratory aids), and Cohesys (biomedical adhesives).
What’s Next. Defense-related biotechnology actors will be at the forefront of investors' radar, with funding coming from diverse sources. This includes European initiatives like the 2026 European Defence Fund commitments for CBRN protection and human resilience projects (decontamination systems, medical countermeasures, biosensors, etc.), NATO DIANA funding for startups, and state-funded strategic investments.
3. Logistics and infrastructure
Need for Modern Logistics and Infrastructure. Modern defense capability depends not only on modern armaments but also on the ability to move them quickly and securely. Across Europe, logistical readiness has become a central concern: large-scale troop and equipment transport remains constrained by civilian infrastructure, administrative barriers, and uneven standards. This challenge is most pressing along the EU’s eastern borders, where reinforcement routes must be capable of handling heavy military vehicles and supplies under crisis conditions.
The EU Military Mobility Package. To address these gaps, the European Commission announced the EU Military Mobility Package, a flagship initiative to make the Union’s transport network fit for dual civilian–military use, with the ambition to spend around €18 billion. Apart from regulatory harmonization to enable seamless cross-border troop movements, the initiative aims to modernize defense infrastructure.
The sectors set to benefit most are rail and road transport, port operations, civil engineering, and energy infrastructure, creating synergies between defense requirements and civilian economic development.
Earlier, the EU allocated €1.7 billion to co-fund 95 dual-use infrastructure projects under the Connecting Europe Facility 2021-2027. Among the completed projects are icebreaking fleet modernization in the Gulf of Riga for secure maritime access, aeronautical surveillance systems for the Portuguese Air Force’s air traffic control, and upgrades to Franjo Tuđman Airport in Croatia for improved maneuvering capacity, among others. These projects illustrate how the EU is already improving practical mobility for military and civilian transport alike, particularly at key ports, airports, and cross-border nodes.
Next Steps: Looking ahead, the European Commission plans to intensify efforts by targeting around 500 priority projects addressing critical “hotspots” along four priority military mobility corridors. The next phase under the post‑2027 budget foresees raising funding to €17.65 billion, reflecting the growing demand and strategic urgency.
Considering the current priorities, there will be plenty of opportunities for businesses to engage in a variety of dual-use infrastructure projects, including developing rail infrastructure, reinforcing and cyber-protecting bridges, tunnels, ports, and energy links, and ensuring reliable fuel and energy supplies for military logistics and more.