PUBLISHER: Blueweave Consulting | PRODUCT CODE: 1719085
PUBLISHER: Blueweave Consulting | PRODUCT CODE: 1719085
Europe Defense Market, By Platform; By Equipment; By End User; By Country, Trend Analysis, Competitive Landscape & Forecast, 2019-2031
Europe Defense Market Booming to Reach Value of USD 969 Billion by 2031
Europe Defense Market is flourishing because of escalating European defense budget, coupled with a strategic emphasis on military modernization and collaborative defense initiatives.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Europe Defense Market size at USD 490.8 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Europe Defense Market size to expand at a CAGR of 10.2% reaching a value of USD 968.7 billion by 2031. The growth of Defense Market across Europe is propelled by escalating national defense budgets and a burgeoning demand for advanced weaponry and ammunition crucial for augmenting regional military capabilities. Amplified geopolitical tensions, most notably the protracted Russia-Ukraine conflict, have compelled European nations to significantly increase their defense expenditures and allocate substantial investments towards research and development endeavors aimed at effectively addressing modern warfare technologies. Moreover, the considerable financial support extended by NATO member states to Ukraine is further catalyzing market growth. While these strong tailwinds prevail, the market faces a potential moderating factor in the form of stringent regulatory frameworks present in several European nations, which can pose challenges to the efficient procurement and production of cutting-edge defense systems. Nevertheless, the anticipated integration of advanced defense technologies, particularly artificial intelligence, is projected to unlock significant opportunities for market participants in the forecast period, fostering innovation and the development of next-generation defense solutions.
Opportunity - Technological Innovation
Technological innovation is emerging as a key growth driver for Europe Defense Market, with the European Defense Fund (EDF) playing a pivotal role in accelerating advancements across the sector. The European Commission's 2025 Work Program allocates EUR 1.065 billion toward collaborative defense R&D initiatives aimed at enhancing Europe's defense capabilities and industrial competitiveness. This investment focuses on developing next-generation technologies in areas, such as ground and air combat, cyber defense, space, and energy resilience. A portion of the funding is dedicated to disruptive technologies, including autonomous triage systems, advanced sensors, chiplets for defense applications, and human-AI interaction. To further strengthen innovations, the EU Defense Innovation Scheme (EUDIS) supports SMEs and startups through grants, business accelerators, and matchmaking services, helping new entrants overcome market barriers. Additionally, 4% of the EDF budget targets breakthrough technologies, while 6% supports non-thematic calls focused on future defense solutions. By promoting cross-border collaboration, industrial cooperation, and high-impact research, the EDF not only drives technological advancement but also reinforces Europe's strategic autonomy and defense readiness in a rapidly evolving global landscape.
Impact of Escalating Geopolitical Tensions on Europe Defense Market
Intensifying geopolitical tensions could impact the growth of Europe Defense Market. Conflicts like the ongoing Russia-Ukraine war have intensified the urgency among European nations to enhance their defense preparedness through the acquisition of advanced systems and reinforced regional cooperation. This has led to greater investments in modern defense technologies, cybersecurity infrastructure, and joint military initiatives, particularly among NATO allies. While such tensions boost demand for defense solutions, they can also lead to fiscal pressure and supply chain disruptions, posing long-term challenges for balanced and sustained market growth.
Russia Continues to Dominate Europe Defense Market
Russia currently commands the largest share of European Defense Market and is projected to maintain its market dominance in the coming year as well. The country's leadership position is underpinned by the nation's consistent robust military expenditure and strategic emphasis on advancing its defense technologies. Russia is the fifth-largest global defense spender. Hence, the country defense sector is a crucial economic driver, generating substantial employment and significantly contributing to the international arms trade. Notably, SIPRI data indicates Russia as the second largest global exporter of conventional arms in 2021, with exports valued at USD 14.6 billion. In 2022, Russia significantly increased its defense budget to USD 69 billion, a 54% surge over the initial allocation, underscoring its strategic imperatives amidst the conflict with Ukraine. The ongoing war has intensified the deployment of advanced missile systems, resulting in inventory depletion and a renewed strategic focus on replenishment and modernization of its military capabilities. This augmented investment in restocking and upgrades is anticipated to further solidify Russia's preeminent position in Europe Defense Market over the forecast period.
Competitive Landscape
Major companies in Europe Defense Market include RTX Corporation, Leonardo S.p.A. (Italy), Lockheed Martin Corporation, Safran SA (France), Airbus SE (France), Northrop Grumman Corporation, BAE Systems (United Kingdom), Saab AB (Sweden), Rheinmetall AG (Germany), General Dynamics Corporation, and Thales Group (France). The presence of high number of companies intensify the market competition as they compete to gain a significant market share. These companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches to further enhance their market share.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and Europe Defense Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Europe Defense Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
Table of Contents
1. Research Framework
- 1.1. Research Objective
- 1.2. Product Overview
- 1.3. Market Segmentation
2. Executive Summary
3. Europe Defense Market Insights
- 3.1. Industry Value Chain Analysis
- 3.2. DROC Analysis
- 3.2.1. Growth Drivers
- 3.2.1.1. Increasing Defense Budget
- 3.2.1.2. Focus on Military Modernization
- 3.2.1.3. Collaborative Defense Initiatives
- 3.2.2. Restraints
- 3.2.2.1. Supply Chain Constraints
- 3.2.2.2. High Development Costs
- 3.2.3. Opportunities
- 3.2.3.1. Technological Innovation
- 3.2.3.2. Joint Procurement Program
- 3.2.4. Challenges
- 3.2.4.1. Geopolitical Uncertainty
- 3.2.4.2. Economic Constraints
- 3.2.1. Growth Drivers
- 3.3. Technological Advancements/Recent Developments
- 3.4. Regulatory Framework
- 3.5. Porter's Five Forces Analysis
- 3.5.1. Bargaining Power of Suppliers
- 3.5.2. Bargaining Power of Buyers
- 3.5.3. Threat of New Entrants
- 3.5.4. Threat of Substitutes
- 3.5.5. Intensity of Rivalry
4. Europe Defense Market, Pricing Analysis
5. Europe Defense Market: Marketing Strategies
6. Europe Defense Market Overview
- 6.1. Market Size & Forecast, 2019-2031
- 6.1.1. By Value (USD Billion)
- 6.2. Market Share & Forecast
- 6.2.1. By Platform
- 6.2.1.1. Terrestrial
- 6.2.1.2. Aerial
- 6.2.1.3. Naval
- 6.2.2. By Equipment
- 6.2.2.1. Armament
- 6.2.2.2. Military Vehicles
- 6.2.2.3. Military Aircraft
- 6.2.2.4. Naval Vessels
- 6.2.2.5. Communication
- 6.2.2.6. Personnel Training & Protection
- 6.2.2.7. Unmanned Systems
- 6.2.3. By End User
- 6.2.3.1. Army
- 6.2.3.2. Navy
- 6.2.3.3. Air Force
- 6.2.3.4. Joint Forces
- 6.2.3.5. Paramilitary & Homeland Security
- 6.2.4. By Country
- 6.2.4.1. Germany
- 6.2.4.2. United Kingdom
- 6.2.4.3. Italy
- 6.2.4.4. France
- 6.2.4.5. Spain
- 6.2.4.6. Belgium
- 6.2.4.7. Russia
- 6.2.4.8. The Netherlands
- 6.2.4.9. Rest of Europe
- 6.2.1. By Platform
7. Germany Defense Market
- 7.1. Market Size & Forecast, 2019-2031
- 7.1.1. By Value (USD Billion)
- 7.2. Market Share & Forecast
- 7.2.1. By Platform
- 7.2.2. By Equipment
- 7.2.3. By End User
8. United Kingdom Defense Market
- 8.1. Market Size & Forecast, 2019-2031
- 8.1.1. By Value (USD Billion)
- 8.2. Market Share & Forecast
- 8.2.1. By Platform
- 8.2.2. By Equipment
- 8.2.3. By End User
9. Italy Defense Market
- 9.1. Market Size & Forecast, 2019-2031
- 9.1.1. By Value (USD Billion)
- 9.2. Market Share & Forecast
- 9.2.1. By Platform
- 9.2.2. By Equipment
- 9.2.3. By End User
10. France Defense Market
- 10.1. Market Size & Forecast, 2019-2031
- 10.1.1. By Value (USD Billion)
- 10.2. Market Share & Forecast
- 10.2.1. By Platform
- 10.2.2. By Equipment
- 10.2.3. By End User
11. Spain Defense Market
- 11.1. Market Size & Forecast, 2019-2031
- 11.1.1. By Value (USD Billion)
- 11.2. Market Share & Forecast
- 11.2.1. By Platform
- 11.2.2. By Equipment
- 11.2.3. By End User
12. Belgium Defense Market
- 12.1. Market Size & Forecast, 2019-2031
- 12.1.1. By Value (USD Billion)
- 12.2. Market Share & Forecast
- 12.2.1. By Platform
- 12.2.2. By Equipment
- 12.2.3. By End User
13. Russia Defense Market
- 13.1. Market Size & Forecast, 2019-2031
- 13.1.1. By Value (USD Billion)
- 13.2. Market Share & Forecast
- 13.2.1. By Platform
- 13.2.2. By Equipment
- 13.2.3. By End User
14. The Netherlands Defense Market
- 14.1. Market Size & Forecast, 2019-2031
- 14.1.1. By Value (USD Billion)
- 14.2. Market Share & Forecast
- 14.2.1. By Platform
- 14.2.2. By Equipment
- 14.2.3. By End User
15. Rest of Europe Defense Market
- 15.1. Market Size & Forecast, 2019-2031
- 15.1.1. By Value (USD Billion)
- 15.2. Market Share & Forecast
- 15.2.1. By Platform
- 15.2.2. By Equipment
- 15.2.3. By End User
16. Competitive Landscape
- 16.1. List of Key Players and Their Offerings
- 16.2. Europe Defense Company Market Share Analysis, 2024
- 16.3. Competitive Benchmarking, By Operating Parameters
- 16.4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
17. Impact of Escalating Geopolitical Tensions on Europe Defense Market
18. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- 18.1. RTX Corporation
- 18.2. Leonardo S.p.A. (Italy)
- 18.3. Lockheed Martin Corporation
- 18.4. Safran SA (France)
- 18.5. Airbus SE (France)
- 18.6. Northrop Grumman Corporation
- 18.7. BAE Systems (United Kingdom)
- 18.8. Saab AB (Sweden)
- 18.9. Rheinmetall AG (Germany)
- 18.10. General Dynamics Corporation
- 18.11. Thales Group (France)
- 18.12. Other Prominent Players
19. Key Strategic Recommendations
20. Research Methodology
- 20.1. Qualitative Research
- 20.1.1. Primary & Secondary Research
- 20.2. Quantitative Research
- 20.3. Market Breakdown & Data Triangulation
- 20.3.1. Secondary Research
- 20.3.2. Primary Research
- 20.4. Breakdown of Primary Research Respondents, By Country
- 20.5. Assumptions & Limitations
*Financial information of non-listed companies can be provided as per availability.
**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable
List of Figures
- Figure 1 Europe Defense Segmentation
- Figure 2 Europe Defense Market Value Chain Analysis
- Figure 3 Company Market Share Analysis, 2023
- Figure 4 Europe Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 5 Europe Defense Market Share, By Platform, By Value, 2019-2031
- Figure 6 Europe Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 7 Europe Defense Market Share, By End User, By Value, 2019-2031
- Figure 8 Europe Defense Market Share, By Country, By Value, 2019-2031
- Figure 9 Germany Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 10 Germany Defense Market Share, By Platform, By Value, 2019-2031
- Figure 11 Germany Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 12 Germany Defense Market Share, By End User, By Value, 2019-2031
- Figure 13 United Kingdom Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 14 United Kingdom Defense Market Share, By Platform, By Value, 2019-2031
- Figure 15 United Kingdom Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 16 United Kingdom Defense Market Share, By End User, By Value, 2019-2031
- Figure 17 Italy Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 18 Italy Defense Market Share, By Platform, By Value, 2019-2031
- Figure 19 Italy Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 20 Italy Defense Market Share, By End User, By Value, 2019-2031
- Figure 21 France Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 22 France Defense Market Share, By Platform, By Value, 2019-2031
- Figure 23 France Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 24 France Defense Market Share, By End User, By Value, 2019-2031
- Figure 25 Spain Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 26 Spain Defense Market Share, By Platform, By Value, 2019-2031
- Figure 27 Spain Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 28 Spain Defense Market Share, By End User, By Value, 2019-2031
- Figure 29 Belgium Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 30 Belgium Defense Market Share, By Platform, By Value, 2019-2031
- Figure 31 Belgium Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 32 Belgium Defense Market Share, By End User, By Value, 2019-2031
- Figure 33 Russia Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 34 Russia Defense Market Share, By Platform, By Value, 2019-2031
- Figure 35 Russia Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 36 Russia Defense Market Share, By End User, By Value, 2019-2031
- Figure 37 The Netherlands Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 38 The Netherlands Defense Market Share, By Platform, By Value, 2019-2031
- Figure 39 The Netherlands Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 40 The Netherlands Defense Market Share, By End User, By Value, 2019-2031
- Figure 41 Rest of Europe Defense Market Size, By Value (USD Billion), 2019-2031
- Figure 42 Rest of Europe Defense Market Share, By Platform, By Value, 2019-2031
- Figure 43 Rest of Europe Defense Market Share, By Equipment, By Value, 2019-2031
- Figure 44 Rest of Europe Defense Market Share, By End User, By Value, 2019-2031
List of Tables
- Table 1 Europe Defense Market Size, By Value (USD Billion), 2019-2031
- Table 2 Europe Defense Market Size, By Platform, By Value, 2019-2031
- Table 3 Europe Defense Market Size, By Equipment, By Value, 2019-2031
- Table 4 Europe Defense Market Size, By End User, By Value, 2019-2031
- Table 5 Europe Defense Market Size, By Country, By Value, 2019-2031
- Table 6 Germany Defense Market Size, By Value (USD Billion), 2019-2031
- Table 7 Germany Defense Market Size, By Platform, By Value, 2019-2031
- Table 8 Germany Defense Market Size, By Equipment, By Value, 2019-2031
- Table 9 Germany Defense Market Size, By End User, By Value, 2019-2031
- Table 10 United Kingdom Defense Market Size, By Value (USD Billion), 2019-2031
- Table 11 United Kingdom Defense Market Size, By Platform, By Value, 2019-2031
- Table 12 United Kingdom Defense Market Size, By Equipment, By Value, 2019-2031
- Table 13 United Kingdom Defense Market Size, By End User, By Value, 2019-2031
- Table 14 Italy Defense Market Size, By Value (USD Billion), 2019-2031
- Table 15 Italy Defense Market Size, By Platform, By Value, 2019-2031
- Table 16 Italy Defense Market Size, By Equipment, By Value, 2019-2031
- Table 17 Italy Defense Market Size, By End User, By Value, 2019-2031
- Table 18 France Defense Market Size, By Value (USD Billion), 2019-2031
- Table 19 France Defense Market Size, By Platform, By Value, 2019-2031
- Table 20 France Defense Market Size, By Equipment, By Value, 2019-2031
- Table 21 France Defense Market Size, By End User, By Value, 2019-2031
- Table 22 Spain Defense Market Size, By Value (USD Billion), 2019-2031
- Table 23 Spain Defense Market Size, By Platform, By Value, 2019-2031
- Table 24 Spain Defense Market Size, By Equipment, By Value, 2019-2031
- Table 25 Spain Defense Market Size, By End User, By Value, 2019-2031
- Table 26 Belgium Defense Market Size, By Value (USD Billion), 2019-2031
- Table 27 Belgium Defense Market Size, By Platform, By Value, 2019-2031
- Table 28 Belgium Defense Market Size, By Equipment, By Value, 2019-2031
- Table 29 Belgium Defense Market Size, By End User, By Value, 2019-2031
- Table 30 Russia Defense Market Size, By Value (USD Billion), 2019-2031
- Table 31 Russia Defense Market Size, By Platform, By Value, 2019-2031
- Table 32 Russia Defense Market Size, By Equipment, By Value, 2019-2031
- Table 33 Russia Defense Market Size, By End User, By Value, 2019-2031
- Table 34 The Netherlands Defense Market Size, By Value (USD Billion), 2019-2031
- Table 35 The Netherlands Defense Market Size, By Platform, By Value, 2019-2031
- Table 36 The Netherlands Defense Market Size, By Equipment, By Value, 2019-2031
- Table 37 The Netherlands Defense Market Size, By End User, By Value, 2019-2031
- Table 38 Rest of Europe Defense Market Size, By Value (USD Billion), 2019-2031
- Table 39 Rest of Europe Defense Market Size, By Platform, By Value, 2019-2031
- Table 40 Rest of Europe Defense Market Size, By Equipment, By Value, 2019-2031
- Table 41 Rest of Europe Defense Market Size, By End User, By Value, 2019-2031
- Table 42 RTX Corporation Company Overview
- Table 43 RTX Corporation Financial Overview
- Table 44 Leonardo S.p.A. (Italy) Company Overview
- Table 45 Leonardo S.p.A. (Italy) Financial Overview
- Table 46 Lockheed Martin Corporation Company Overview
- Table 47 Lockheed Martin Corporation Financial Overview
- Table 48 Safran SA (France) Company Overview
- Table 49 Safran SA (France) Financial Overview
- Table 50 Airbus SE (France) Company Overview
- Table 51 Airbus SE (France) Financial Overview
- Table 52 Northrop Grumman Corporation Company Overview
- Table 53 Northrop Grumman Corporation Financial Overview
- Table 54 BAE Systems (United Kingdom) Company Overview
- Table 55 BAE Systems (United Kingdom) Financial Overview
- Table 56 Saab AB (Sweden) Company Overview
- Table 57 Saab AB (Sweden) Financial Overview
- Table 58 Rheinmetall AG (Germany) Company Overview
- Table 59 Rheinmetall AG (Germany) Financial Overview
- Table 60 General Dynamics Corporation Company Overview
- Table 61 General Dynamics Corporation Financial Overview
- Table 62 Thales Group (France) Company Overview
- Table 63 Thales Group (France) Financial Overview
