INDUSTRY REPORT

Win contracts under the Ministry of Defence's biggest budget since the Cold War

Written 
20th May 2025
 by 
Xavier Garnham
Get the report
INDUSTRY REPORT

Win contracts under the Ministry of Defence's biggest budget since the Cold War

Written 
20th May 2025
 by 
Xavier Garnham
Get the report
In this report

Introduction

On 25 February 2025, the UK Prime Minister announced a significant boost to defence spending, the largest sustained increase since the Cold War. The plan sets a firm commitment to raise defence expenditure to 2.5% of GDP by April 2027, aiming to reach 3% in the next Parliament, subject to economic and fiscal conditions.

This investment surge has generated a new wave of upcoming commercial opportunities for suppliers selling into the Ministry of Defence (MoD) and defence-adjacent public sector organisations.

£62.2b

spent by the MoD over the last five years.

6,413

contracts awarded by the MoD over the last five years.

£54.4b

in planned announced spending by the MoD.

The MoD is spending billions over the next five years. Thousands of contracts are on the table, and a fast-growing pipeline of tenders is taking shape across every part of the department. However, without a bullet-proof strategy, suppliers risk falling short and not capitalising on this budget increase.

Read ahead to learn how to:

  • Create a focused strategy with the MoD to uncover your total addressable market (TAM), target the right buyers, and compete where you are most likely to win.
  • Build a stronger pipeline by spotting contract expiries and buyer signals - so you are always in the right place at the right time.
  • Win more public sector work by using AI to speed up bid/no-bid decisions and create winning proposals faster.

Create a focused strategy with the MoD

Approaching the MoD without a clear strategy is a fast way to waste resources. Monitoring dozens of procurement portals and chasing every opportunity, regardless of fit, will leave you stretched thin. This section presents the key components that form the foundation of a best-in-class sales strategy for the MoD.

Suppliers who pre-engage with buyers before a tender is published are 11x more likely to win. Knowing what’s coming, who’s buying, and when to act is the key to unlocking MoD revenue. Below is a graphic depicting data showing that suppliers with proactive strategies have stronger win rates than those without.

Services in demand by the MoD

Zooming out, the MoD has spent more than £61.2b with suppliers since the start of 2019. Using our platform to break that down by CPV codes, the services in demand over the last five years are visualised below.

Yes, high-value manufacturing still dominates total spending - but when it comes to volume, software, IT, and technical support make up over 65% of contracts. These are frequent, fast-moving contracts ideal for suppliers looking to grow, especially in tech. MoD departments regularly re-buy services like cloud, cyber security, and data support. That means more entry points, shorter sales cycles, and better chances to build long-term relationships.

Stotles Tip

To learn what specific services within each sector the MoD has invested in, map your TAM in any sector, and target tenders relevant to your business, sign up to Stotles for free.

Your key competitors and potential partners

Knowing who already has a foothold in the MoD helps you effectively position yourself against incumbents and approach opportunities strategically. We've surfaced the most successful suppliers by focusing on tech procurement and filtering MoD procurement activity by the volume of contracts awarded. These companies have built strong relationships, secured repeat work, and carved out space in the defence market.

Understanding this landscape gives you two key advantages:

  1. Know who you’re up against: Use this list to size up the competition and refine your bid positioning.
  2. Find potential partners: These suppliers may already be on frameworks or hold valuable relationships you can collaborate through.

You can go one step further by digging into individual supplier profiles. With our platform, you can see exactly who they’re working with, which contracts they’ve won, and when those contracts are due to expire. That means you’re not just reacting to the market, you’re anticipating it.

You’ll see their active contracts, upcoming expiries, and how they’ve moved across the public sector. It’s everything you need to shape your strategy and spot your edge.

Stotles Tip

Want to outmanoeuvre competitors, spot partners, and sharpen your public sector strategy? Start using Stotles for free today.

Build a more qualified pipeline with the MoD

With a clear view of where the MoD is investing, who’s winning work, and who to partner with, you’re ready to focus your sales team on building pipeline around real buying signals, like expiring contracts.

Spot the right opportunities before they go to tender

One of the most effective ways to build qualified pipeline is by tracking which MoD contracts are approaching expiry. These expiries often lead to re-procurements, allowing you to engage early, reach decision makers, and position your offer before tenders go live.

Focusing on the tech space, defined here as contracts tagged with CPV codes starting with 72 and 48, we uncovered:

340

contracts coming up for expiry.

£2.5b

is the total value of these contracts coming up for expiry.

These are live, time-sensitive buying signals. Below are some flagship upcoming expiries in IT services and software that could be a strong fit for your pipeline.

Stotles Tip

If these contracts aren’t relevant to your company, jump into Stotles and find opportunities relevant to your company across the entire public sector.

Use documents to qualify demand

Some of the strongest buying signals aren’t in live tenders. They’re hidden in strategy documents, procurement plans, and policy updates. That’s why our platform surfaces and centralises key MoD documents to help you spot demand earlier and qualify opportunities with more confidence.

For example, the MoD Acquisition Pipeline is a powerful resource for suppliers looking to plan ahead. It gives a forward look at potential procurement activity across the MoD. Stotles flags this kind of insight so sales teams can stay one step ahead. Here’s a link to the latest MoD Acquisition Pipeline.

The MoD Acquisition Pipeline reveals:

  • The categories the MoD is planning to invest in
  • Expected timelines for upcoming procurements
  • Which departments are leading the work
  • Value ranges for each tranche of opportunity

Documents like this give you real insight into intent, helping you build pipeline that’s rooted in what buyers are planning.

Engage MoD decision makers

One of the most overlooked parts of public sector sales is timing. By the time a tender goes live, the buyer has often scoped out the market, spoken to suppliers, and shaped their requirements.

In a complex organisation like the MoD, relationships matter. Different departments handle procurement differently, and decision makers are often embedded deep within specialised teams. That’s why early engagement is critical. Reach out before a tender is published, moulding the tender to your service offering.

By engaging early, you can:

  1. Start conversations while procurement plans are still being formed
  2. Position your solution in the context of the buyer’s priorities
  3. Build trust early, so your name is known before your bid is read
Stotles Tip

Chat to our team to learn how we can put you in contact with the right decision makers at the right time.

Next steps to win bids

You’ve identified where the MoD is investing, qualified your pipeline, and engaged decision-makers. Now it’s time to act.

Winning with the MoD is all about speed, timing and focus. Tenders can land with little notice, and the response window is tight. If your team can’t move fast, opportunities slip away.

That’s why more teams are turning to AI to support their bidding process. It’s not about replacing your expertise. It’s about giving you a head start. Our public sector-focused drafting tool helps you get a solid first version on paper, fast. That way, your team can spend less time starting from scratch and more time refining the proposal using the insight you’ve already gathered.

Summary

The MoD is one of the UK’s most complex and competitive public sector buyers. But with the right strategy, the right signals, and the right tools, suppliers of all sizes can cut through the noise and secure their share of the opportunity.

In summary:

  • Target the right departments by understanding where the MoD is investing and what services are in demand
  • Map your market using contract data to identify competitors and potential partners
  • Build pipeline from buying signals like expiring contracts, acquisition plans, and procurement documents
  • Engage decision makers early to shape opportunities before tenders go live
  • Track MoD tenders in real time with smart filters and tailored alerts
  • Respond faster and better with AI-generated bid drafts built for public sector work

Whether you're a first-time defence supplier or looking to expand your foothold, the steps outlined in this report are designed to help you focus your resources and move with confidence.

Sources:

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