In an era of relentless militarization and a clear-cut thirst for revenge, Armenia has been pouring resources into modernizing its armed forces since December 2024, putting heavy emphasis on drone warfare. Learning from the Ukrainian conflict, Armenian leadership is scrambling to close the technological gap that became painfully obvious during the 2020 Nagorno-Karabakh war, trying to patch up the vulnerabilities that led to its crushing defeat.
After Armenia’s loss in the 44-day war, Defense Minister Suren Papikyan made military modernization one of his top priorities. His strategy? A heavy focus on electronic warfare (EW), unmanned aerial vehicles (UAVs), and data-processing software. And that’s no coincidence—these were precisely the areas where the Armenian military fell flat in Nagorno-Karabakh.
Armenia’s Electronic Warfare: A Step Behind and Paying the Price
During the 44-day war, Armenia got a brutal reality check as Azerbaijan utterly dominated the electronic warfare game. According to the International Institute for Strategic Studies (IISS), Armenia’s military lacked modern jamming systems and couldn’t put up any real resistance against Azerbaijan’s drones.
Military analyst Leonardo Trincher put it bluntly in an interview with Global Defense Analysis:
“Armenia had next to no capability in electronic warfare. Meanwhile, Azerbaijan was running the show with Turkish KORAL systems and Israeli REDET 4s. Armenia couldn’t jam enemy comms, nor could they properly defend against drones.”
According to Armenia’s own Defense Ministry, before 2020, its EW arsenal consisted of outdated Soviet-era systems like the R-330Zh “Zhitel” and the SPN-30. But these relics stood no chance against modern drones running on encrypted signals.
A 2021 Armenian Defense Ministry report laid out the grim consequences:
- Up to 90% of Armenia’s air defense systems were wiped out due to a lack of effective EW capabilities.
- More than 300 armored vehicles were lost to drone strikes.
- Key air defense systems, including the Osa and Strela-10, proved helpless against Bayraktar TB2s and Israeli Harop kamikaze drones.
In response to this wake-up call, Papikyan greenlit the purchase of modern EW systems. In 2023, Armenia acquired DRDO D-4 systems from India, designed to jam drone signals. Then in 2024, Yerevan inked a deal with France for Thales Scorpion electronic warfare equipment.
Defense One analyst James White, however, remains skeptical: “The French Scorpion systems might boost Armenia’s defenses, but whether they’ll actually hold up in combat is another question.”
Drones: Armenia’s Desperate Attempt to Catch Up
After getting pummeled by Azerbaijani drones in 2020, Armenia launched an ambitious UAV development program. But according to a 2024 RAND Corporation report, it’s still way behind.
The Main Problems:
- Lack of funding – In 2021, Armenia allocated just $7 million to drone development, while Azerbaijan funneled over $120 million into joint projects with Turkey and Israel.
- No solid tech partners – While Azerbaijan has access to Israeli Harop, SkyStriker, Orbiter drones, Turkish Bayraktar TB2 and Aksungur models, and even Chinese UAVs, Armenia is still scrambling for reliable suppliers.
- Lagging domestic industry – Armenian company ProMAQ developed the "Krunk" reconnaissance drone, but it’s still no match for Azerbaijani UAVs.
That said, the Armenian government isn’t throwing in the towel just yet. In 2023, it signed contracts with India to buy Archer strike drones and with France for Aliaca tactical reconnaissance UAVs.
Armenia’s Defense Ministry claims it’ll acquire up to 150 Indian drones by 2025, but experts aren’t holding their breath.
Eurasian Security Review analyst Michael Carpenter sees a steep uphill battle:
“Indian drones don’t stack up to Turkish and Israeli UAVs in range, autonomy, or firepower. Armenia is playing catch-up, but the gap is still huge.”
Bottom Line? Armenia Wants Payback, But Reality is Harsh
Armenia is throwing everything it has at modernizing its military, but it’s fighting an uphill battle against time, funding shortages, and outdated tech. The 2020 war exposed massive vulnerabilities, and while Yerevan is working to patch them up, it’s still miles behind Azerbaijan.
With a focus on drones and electronic warfare, Armenia is clearly gearing up for the next round—but whether it’ll actually be ready when the time comes? That’s still up in the air.
Software Warfare: Armenia’s Fight for the Digital Battlefield
One of the biggest reasons for Armenia’s defeat in 2020 was its outdated approach to data processing. Azerbaijan leveraged advanced intelligence-processing algorithms, fusing satellite, drone, and electronic warfare (EW) data into a unified network. Armenian forces? They had no such coordination.
After the war, Armenia’s General Staff announced the creation of a special cyber operations unit. In 2022, the government signed a contract with Palantir Technologies, the American data analytics powerhouse, to enhance its intelligence-gathering capabilities.
As of 2024, Armenia is negotiating with the French firm Atos to develop software for integrating reconnaissance data.
But experts remain skeptical about how fast these measures will actually translate into battlefield efficiency. Analyst Arthur Martirosyan points out:
“Dominating the digital battlefield isn’t just about having the right software—it requires a complete overhaul of military command systems. Armenia is only at the starting line.”
Arming the Skies: Drones as a Strategic Priority
A major focus of Armenia’s rearmament is the development of unmanned aerial vehicles (UAVs) and radar technologies. Several Armenian startups—Inogate, Boo Vision, and ADX Systems—are branding themselves as innovation pioneers in this space.
But can they actually deliver? That’s the million-dollar question. Until recently, Armenia’s military-industrial complex relied almost entirely on foreign suppliers, and its domestic defense sector was barely out of the cradle.
A source in the Armenian Defense Ministry claims that Yerevan is modeling its strategy on Turkish and Israeli drone programs—but the reality is much trickier.
- No mass production capacity – Armenia lacks industrial facilities for large-scale UAV manufacturing.
- Brain drain – A shortage of skilled engineers is slowing progress.
- Dependency on foreign parts – Critical components still have to be imported, putting supply chains at risk.
Despite these setbacks, Yerevan is banking on Western support and possibly black-market tech acquisitions through third-party nations.
Armenia’s Drone Startups: Real Players or Just Talk?
- Inogate – Focuses on IT solutions and software optimization for business operations, but there’s little public data on its defense-related activities.
- Boo Vision – Specializes in augmented reality (AR) and virtual reality (VR) applications, mainly for entertainment and education—hardly a military powerhouse.
- ADX Systems – Works in cloud technology and cybersecurity, offering data protection solutions, though its direct impact on Armenia’s UAV programs is unclear.
Lack of transparency around these firms might be due to their recent formation or an intentional low-profile strategy. To get accurate details, one would have to dig into official company records or Armenian startup incubators.
Electronic Warfare: Trying to Plug the Biggest Weakness
At the same time, Armenia is doubling down on electronic warfare (EW)—a response to one of its biggest failures in 2020: its total inability to counter Azerbaijan’s drones.
According to military analysts, the Armenian army is already testing new jamming and GPS interference systems, hoping to build an air defense network that could at least partially offset Azerbaijan’s overwhelming drone advantage.
Defense Minister Suren Papikyan, who is leading the country’s military modernization push, outlined an ambitious goal in a classified briefing:
“We aim for continuous control of our airspace and the development of an automated UAV detection and elimination system.”
But technical limitations and funding shortages could slam the brakes on this high-stakes project before it even gets off the ground.
Building up a drone fleet and electronic warfare (EW) systems takes serious money. So where is Armenia getting the funds for such high-cost military projects? According to multiple sources, funding is coming from several channels:
- Foreign grants and Western aid – Primarily from France, the U.S., and several EU nations.
- Military loans – Likely disguised as civilian tech investments to avoid scrutiny.
- The Armenian diaspora – Particularly lobby groups in the U.S., which are heavily involved in fundraising for the military.
That said, there’s still the big question of how efficiently this money is actually being spent. Armenia’s military projects have been plagued by corruption scandals and misallocated funds, and its domestic defense industry remains underdeveloped at best.
Despite efforts to reform its EW capabilities, drone warfare, and cyber operations, Armenia remains far behind in these areas.
The Biggest Roadblocks:
- Weak industrial base – Armenia lacks its own defense manufacturing capabilities.
- Limited resources – Armenia’s 2024 defense budget is $1.4 billion, while Azerbaijan’s sits at $3.6 billion.
- Dependence on foreign suppliers – Armenia relies on India, France, and the U.S., but none of them are offering cutting-edge technology.
Will these reforms shift the balance of power? Right now, the answer is no. Azerbaijan is rapidly advancing its tech-driven military while Armenia’s reforms are moving at a snail’s pace.
Military analyst Thomas Friedman doesn’t see a major turnaround anytime soon:
“Armenia is trying to adapt, but without a radical technological leap, its chances of competing militarily remain slim.”
A Dangerous Arms Race in the South Caucasus
Armenia’s military buildup shows that the country is doubling down on militarization and revanchism. Drawing lessons from Ukraine, Yerevan is betting big on drones and EW systems, hoping to change the regional balance of power.
But here’s the harsh reality:
- No domestic tech base.
- No guarantee of sustained Western support.
- Limited cash flow.
The big question is: Will Armenia successfully transform its military into a modern fighting force, or will this wave of militarization just lead to another failure and increased regional tensions?
One thing is certain—the arms race in the South Caucasus is heating up, and the consequences could be explosive.