Defence

An industry that protects

After decades of low investment, the European defence industry received more attention following the Russian invasion of Ukraine. The EU and its Member States took several steps to improve security and resilience of the region. This includes boosting the defence budget of EU Member States to a combined total of €290bn a year in 2025. The European Defence Fund (EDF) started operation on 1 January 2021 with a total budget of nearly €8.0bn for the period of 2021–2027. 

Defence turnover 2022

€135.3 bn

+10% year-on-year

Employment Defence 2022

516,000

+4,4% year-on-year

European defence sector figures for 2022

  • 135.3 bn

    Defence industry turnover

    10.0% increase in turnover compared to the preceding year.

  • 22,000

    Employment growth in the defence industry

    4.4% increase compared to the previous year.

  • 52.4 bn

    Military exports

    8% increase compared to the previous year.

  • ~2,500

    Estimated number of SME's engaged in the defence sector

New challenges

The supply-chain bottlenecks caused by the pandemic, with a lack of raw materials and semiconductors, created challenges for military equipment manufacturers. The increased demand for ramping up production in the wake of the Russian invasion of Ukraine reinforced these supply-chain challenges.

Amid full-scale war in Europe, the European defence industry’s vital role has become increasingly apparent, underscoring its pivotal contribution to security and resilience, while also supporting socio-economic progress.

Facts & figures by sector

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