Ballistic missile buildup amid Iran and Ukraine wars

The intensive use of long‑range ballistic missiles in the Iran‑Israel and Russia‑Ukraine conflicts has highlighted the limitations of existing air‑defence systems, particularly the shortage of PAC‑3 interceptors needed by Ukraine. This operational reality has spurred a renewed global arms race, with governments across Europe, Asia and North America expanding budgets for both offensive and defensive missile capabilities.

The collapse of the INF Treaty and the demonstrated effectiveness of intermediate‑range rockets have accelerated proliferation. Iran’s medium‑range missiles—including Ghadr, Emad, Sejjil and Khorramshahr—have been employed extensively, with thousands of projectiles launched since February, prompting NATO to earmark roughly $50 billion for long‑range weapons. New development programmes have emerged, such as South Korea’s Hyunmoo‑5, Japan’s hypersonic‑capable missiles, a joint European long‑range strike initiative, and the U.S. nearing operational status for the Dark Eagle hypersonic system.

Defense manufacturers stand to benefit from rising procurement, as the renewed emphasis on ballistic missiles reshapes strategic thinking and force‑deployment decisions worldwide.