The landscape of national security is undergoing a profound transformation. As the United States shifts its global focus, allies are compelled to rebuild capabilities once reliant on external support. Simultaneously, the scope of national security has expanded to encompass energy, computing, and critical infrastructure, alongside traditional defense assets.
This shift is driven by a broader threat environment and the vulnerabilities inherent in foreign supply chains. Governments now face the dual challenge of assuming greater responsibility for their security while achieving sovereignty across a wider array of technologies and industrial capabilities.
The Evolution of Sovereignty-as-a-Service
Historically, governments acted as the primary architects of national security systems. Projects like the Manhattan Project and the Apollo Program exemplify this state-led approach. However, the dynamic has shifted. Today, private companies are at the forefront of developing the technology and infrastructure, while governments define strategic requirements and act as customers.
This model, termed Sovereignty-as-a-Service (SaaS) enables governments to acquire capabilities that are strategically essential but too complex or expensive to develop internally. Companies like SpaceX and Anduril are pioneering this approach, providing end-to-end solutions that include technology, integration, training, and maintenance.
The Market Potential of Sovereignty-as-a-Service
The market for Sovereignty-as-a-Service is vast. The 2026 Fortune 500 companies generated over $21 trillion in revenue, with approximately 5% allocated to technology spending. Meanwhile, NATO members have committed to spending 5% of their GDP on defense and security-related investments by 2035, amounting to roughly $60 trillion.
This presents a significant opportunity for tech companies to build solutions for national budgets measured in trillions. The United States remains the largest market, but the customer base is expanding to include the broader Western alliance and aligned sovereign nations.
Israel’s Unique Position in the Sovereignty-as-a-Service Landscape
Israel is uniquely positioned to capitalize on this trend. The country combines deep technical and entrepreneurial talent with a government and military that can serve as demanding design partners. Recent years have created urgent needs across autonomy, energy, advanced manufacturing, and critical materials, driving rapid technological deployment.
Companies like KelaAitan and Civan are at the forefront of this movement, spanning defense autonomy, critical materials, energy, and advanced industrial capabilities. The goal is not merely to export Israeli technology but to build companies that can deliver comprehensive sovereign capabilities.
The future of national security lies in the collaboration between governments and tech companies. As the definition of national security continues to evolve, the Sovereignty-as-a-Service model will play an increasingly critical role in shaping the capabilities of nations worldwide.
