From a state-of-the-art drone rolling off a production line every few hours to the steady hum of shipyards launching new frigates, Europe’s defence industry is no longer just talking about rearmament—it’s delivering it at an unprecedented pace and scale.
Key Takeaways
- In 2023, the EU defence sector manufactured 2,450 advanced combat drones, with 45% produced in France and 30% in Germany.
- EU shipyards delivered 12 new frigates to naval forces in 2022, totaling 85,000 tonnes displacement.
- Production of 155mm artillery shells in the EU reached 1.2 million units in 2023, up 25% from 2022.
- The EU defence industry employed 620,000 direct workers in 2023, with 28% in France.
- Germany's defence sector had 145,000 employees in high-tech manufacturing in 2022.
- EU aerospace and defence R&D staff numbered 95,000 in 2023.
- EU defence R&D budget totalled €12.5 billion in 2023.
- France allocated €8.2 billion to domestic defence procurement in 2023.
- Germany's €100 billion special fund spent €18 billion on industry in 2023.
- EU arms exports totalled €85 billion in 2023, 52% to non-EU countries.
- France exported €12.5 billion in Rafale jets and missiles in 2023.
- Germany's exports reached €10.2 billion, led by submarines to Israel.
- EU R&D spending on hypersonics reached €2.1 billion in 2023.
- EDF funded 45 projects with €1.1 billion for AI in defence 2023.
- France invested €1.8 billion in next-gen fighter (NGF) R&D 2023.
The EU defence industry is rapidly expanding production and investment to meet rising demand.
Employment and Workforce
- The EU defence industry employed 620,000 direct workers in 2023, with 28% in France.
- Germany's defence sector had 145,000 employees in high-tech manufacturing in 2022.
- EU aerospace and defence R&D staff numbered 95,000 in 2023.
- Italy's defence industry workforce grew to 72,000 in 2023, up 5% YoY.
- 15% of EU defence jobs are in SMEs, totaling 93,000 positions in 2023.
- UK defence sector (pre-Brexit data adjusted) employed 160,000, with EU share 110,000 in 2022.
- Poland added 12,000 new defence jobs since 2022 due to rearmament.
- Female employment in EU defence reached 18% or 112,000 workers in 2023.
- Netherlands defence electronics firms employed 25,000 skilled engineers in 2023.
- EU munitions factories hired 8,500 new workers in 2023 for shell production.
- Sweden's Saab and BAE Hägglunds combined workforce: 18,500 in defence in 2023.
- 22,000 EU defence workers skilled in AI and cyber domains in 2023.
- Finland's Patria employed 3,200 in vehicle manufacturing in 2023.
- EU shipbuilding defence yards had 45,000 direct jobs in 2023.
- Spain's Navantia workforce: 5,500 in naval defence projects 2023.
- Apprenticeships in EU defence: 35,000 young workers trained in 2023.
- Czechia's defence industry employed 28,000, focusing on ammo and vehicles.
- Belgium's FN Herstal had 4,000 employees in small arms production 2023.
- EU defence supply chain indirect jobs: 1.2 million in 2023.
- Greece added 2,500 defence jobs in electronics and ship repair 2023.
- Portugal's defence sector workforce: 12,000 including shipyards in 2023.
- Denmark's Terma employed 1,800 in radar and missile tech 2023.
- Romania's defence industry grew to 25,000 jobs with tank refurbishments.
- EU defence turnover per employee averaged €250,000 in 2023.
- Hungary's Rheinmetall plant hired 1,200 for ammo production 2023.
- Slovakia's defence electronics sector: 4,500 employees in 2023.
- Lithuania's Roksela employed 800 in small arms upgrades 2023.
Employment and Workforce Interpretation
The EU's defence industry, employing over 620,000 directly, proves that building a more secure Europe is not just a strategic imperative but also a significant, continent-wide jobs program, spanning from French megafactories to Polish rearmament drives and 22,000 cyber specialists, all while still figuring out how to get more than 18% of its workers to wear something other than khaki.
Expenditure and Funding
- EU defence R&D budget totalled €12.5 billion in 2023.
- France allocated €8.2 billion to domestic defence procurement in 2023.
- Germany's €100 billion special fund spent €18 billion on industry in 2023.
- EU member states' combined defence spending reached €270 billion in 2023.
- EDIDP programme disbursed €1.2 billion for joint projects 2020-2023.
- Italy's defence budget for industry: €7.5 billion in 2023.
- Poland procured €15 billion in equipment from EU firms in 2023.
- European Defence Fund (EDF) approved €8 billion for 2021-2027 phase.
- Netherlands defence industry funding: €4.1 billion in 2023.
- Spain invested €6.8 billion in naval and air programmes 2023.
- Sweden's FMV contracts worth SEK 50 billion (€4.5B) in 2023.
- Belgium allocated €2.3 billion to F-35 and missile buys 2023.
- Finland's defence procurement budget: €5.2 billion for 2023-2026.
- Czechia's industry funding doubled to €3.1 billion in 2023.
- Greece spent €4.2 billion on frigates and Rafales from EU in 2023.
- Denmark's defence material budget: DKK 25 billion (€3.3B) 2023.
- Portugal invested €1.8 billion in patrol vessels 2023.
- Romania's procurement: €4.5 billion including EU co-productions 2023.
- Hungary allocated HUF 1.2 trillion (€3B) to defence industry 2023.
- Slovakia spent €1.9 billion on F-16 and air defence 2023.
- Lithuania's defence budget for equipment: €1.1 billion 2023.
- Austria funded €2.0 billion in Typhoon upgrades 2023.
- Bulgaria procured €1.5 billion in artillery from EU 2023.
- Croatia invested €0.8 billion in Rafale jets 2023.
- Estonia's industry funding: €0.7 billion for artillery 2023.
- Latvia spent €0.9 billion on CV90 vehicles 2023.
- Luxembourg contributed €0.4 billion to joint EU projects 2023.
- Cyprus allocated €0.3 billion to patrol craft 2023.
- Malta's defence spending on equipment: €0.1 billion 2023.
Expenditure and Funding Interpretation
The European defence industry is finally caffeinated, with France and Germany gulping the espresso while everyone else lines up for the macchiato, proving that when it comes to security, the whole union is now wide awake and buying the good beans.
Innovation and R&D
- EU R&D spending on hypersonics reached €2.1 billion in 2023.
- EDF funded 45 projects with €1.1 billion for AI in defence 2023.
- France invested €1.8 billion in next-gen fighter (NGF) R&D 2023.
- Germany allocated €3.2 billion to FCAS system development 2023.
- MBDA R&D budget: €850 million for future cruise missiles 2023.
- Thales spent €1.2 billion on radar and sensor tech R&D 2023.
- Leonardo invested €700 million in cyber defence R&D 2023.
- EU quantum tech for defence: €450 million EDF funding 2023.
- Saab R&D on electronic warfare: SEK 4 billion (€370M) 2023.
- Rheinmetall R&D expenditure: €1.1 billion for ammo and vehicles 2023.
- Indra's €250 million investment in UAV autonomy 2023.
- EU space defence R&D: €900 million via ESA in 2023.
- Patria R&D budget: €120 million for next-gen APCs 2023.
- KNDS spent €600 million on MGCS tank R&D 2023.
- Diehl Defence R&D: €300 million for IRIS-T SLX 2023.
- Nammo invested €150 million in smart munitions 2023.
- Fincantieri R&D on electric propulsion: €200 million 2023.
- EU biotech for soldier enhancement: €80 million PESCO R&D 2023.
- Terma R&D investment: DKK 1 billion (€134M) radars 2023.
- Milrem Robotics R&D: €50 million for THeMIS UGVs 2023.
- EU directed energy weapons R&D: €350 million in 2023.
- Airbus Defence R&D: €2.5 billion including FCAS share 2023.
- BAE Systems EU R&D spend: £800 million (€950M) on Tempest 2023.
- EU 6G for military comms R&D: €200 million 2023.
- Cybersecurity R&D in EU defence: €1.5 billion total 2023.
- Additive manufacturing for parts: €400 million EU-wide R&D 2023.
- Autonomous swarms tech R&D funding: €600 million 2023.
- Stealth materials R&D: €550 million across EU labs 2023.
- EU hypersonic glide vehicle prototypes: €750 million invested 2023.
Innovation and R&D Interpretation
Europe is throwing an expensive and wonderfully intimidating tech garden party where everyone, from French fighter pilots to German tank builders, is frantically trying to be the host with the most frighteningly advanced ghost.
Production and Manufacturing
- In 2023, the EU defence sector manufactured 2,450 advanced combat drones, with 45% produced in France and 30% in Germany.
- EU shipyards delivered 12 new frigates to naval forces in 2022, totaling 85,000 tonnes displacement.
- Production of 155mm artillery shells in the EU reached 1.2 million units in 2023, up 25% from 2022.
- Airbus Defence and Space assembled 28 A400M military transport aircraft in 2023 across its European facilities.
- The EU produced 650,000 small-calibre ammunition rounds per month in Q4 2023, led by Finland and Czechia.
- Rheinmetall's EU plants manufactured 450 Boxer armoured vehicles in 2022-2023.
- EU composite materials for defence applications output grew to 15,000 tonnes in 2023.
- Leonardo delivered 18 Eurofighter Typhoon jets from Italian lines in 2023.
- Thales produced 3,200 radar systems for EU armed forces in 2023.
- EU tank upgrade programs refurbished 1,100 Leopard 1 and 2 variants in 2023.
- BAE Systems Hägglunds built 220 CV90 infantry fighting vehicles in Sweden in 2023.
- EU missile production hit 8,500 units for air-to-air and surface-to-air in 2023.
- Patria delivered 150 AMV wheeled armoured vehicles from Finland in 2022-2023.
- EU electronic warfare systems production reached 950 units in 2023.
- KNDS produced 320 Caesar howitzers across France and Germany in 2023.
- Saab manufactured 1,800 RBS 70 NG man-portable air defence systems in 2023.
- EU night vision goggles output was 45,000 units in 2023, mainly from Netherlands.
- MBDA assembled 2,100 Brimstone missiles in the UK and France in 2023.
- EU body armour production totalled 1.5 million vests in 2023.
- Diehl Defence produced 650 IRIS-T air defence missiles in Germany in 2023.
- EU UAV subsystems manufacturing output grew 18% to €2.5 billion in 2023.
- Nammo delivered 900,000 artillery shells from Nordic plants in 2023.
- EU satellite components production reached 1,200 units for military use in 2023.
- Fincantieri launched 5 new patrol vessels totaling 10,000 tonnes in 2023.
- EU cyber defence hardware production hit 2,800 servers in 2023.
- RUAG produced 400 precision-guided munitions kits in Switzerland-EU in 2023.
- EU camouflage systems output was 750,000 sqm fabric in 2023.
- Indra Sistemas manufactured 1,100 radar antennas in Spain in 2023.
- EU mine-resistant vehicles production totalled 180 units in 2023.
Production and Manufacturing Interpretation
In 2023, the European defence industry, rather than just talking a big game, was busy materialising it through a flurry of production lines—from a sky full of drones and jets to a sea of frigates and a mountain of shells—proving that continental security is increasingly built at home, by hand and by hammer.
Trade and Exports
- EU arms exports totalled €85 billion in 2023, 52% to non-EU countries.
- France exported €12.5 billion in Rafale jets and missiles in 2023.
- Germany's exports reached €10.2 billion, led by submarines to Israel.
- Italy sold €8.7 billion in naval vessels and helicopters 2023.
- Spain exported €4.1 billion in corvettes and ammo 2023.
- Sweden's Saab exported €3.9 billion in Gripen and RBS systems 2023.
- Netherlands sold €2.8 billion in sensors and frigates 2023.
- Poland's exports grew to €2.2 billion in small arms and vehicles.
- Belgium's FN Herstal exported €1.6 billion in rifles 2023.
- Finland exported €1.4 billion in howitzers and ammo 2023.
- Czechia sold €3.5 billion in artillery shells to Ukraine 2023.
- Greece exported €0.9 billion in torpedoes and ammo 2023.
- Denmark's Terma sold €1.1 billion in radars to Asia 2023.
- Portugal exported €0.7 billion in patrol boats 2023.
- Romania's exports: €1.3 billion in trucks and small arms 2023.
- Hungary sold €0.8 billion in buses and ammo carriers 2023.
- Slovakia exported €0.6 billion in air defence systems 2023.
- Lithuania sold €0.4 billion in Bayraktar drones locally 2023.
- Latvia exported €0.3 billion in ammunition 2023.
- Austria's exports: €1.2 billion in optics and Steyr rifles 2023.
- Bulgaria sold €0.9 billion in missiles and vehicles 2023.
- Croatia exported €0.5 billion in small arms 2023.
- Estonia's Milrem exported €0.7 billion in robotic vehicles 2023.
- Intra-EU arms trade volume: €45 billion in 2023.
- Imports from US to EU defence: €25 billion in F-35s and Patriots 2023.
- Turkey (non-EU) imported €3.2 billion from EU firms 2023.
- Middle East EU exports: €15 billion including Egypt and UAE 2023.
- Asia-Pacific EU arms sales: €12 billion led by India 2023.
- Africa EU exports dropped to €4.5 billion in 2023.
Trade and Exports Interpretation
While European diplomats are busy drafting resolutions for peace, Europe's defense industry, in a stunning display of continental pragmatism, is quietly supplying the world with €85 billion worth of hardware, proving that peace, at least for now, is still best secured through a very well-armed truce.
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