With over €100 billion in annual revenue and employing more than 600,000 people, Europe's defence industry is a formidable economic and technological powerhouse that shapes global security.
Key Takeaways
- In 2022, the total revenue of the European defence industry reached €104 billion, marking a 5.6% increase from 2021
- The European Union accounted for 19% of global defence spending in 2023, totaling $326 billion
- Germany's defence industry generated €13.5 billion in sales in 2022, leading Europe
- The European defence industry employed 630,000 people directly in 2022
- In France, the defence sector supports 300,000 direct and indirect jobs as of 2023
- Germany's defence industry directly employs 95,000 people in 2022
- Europe's Airbus Defence and Space produced 12 A400M aircraft in 2023
- BAE Systems delivered 48 Typhoon fighter jets to European customers in 2022
- Leonardo S.p.A. manufactured 150 helicopters for defence in 2023
- Europe's EDA reported €2.7 billion invested in collaborative R&D in 2022
- France allocated €7.4 billion to defence R&D in 2023
- Germany's defence R&D budget was €3.2 billion in 2023
- Europe's arms exports totaled $66 billion in 2022, with EU firms leading
- France was the world's second largest arms exporter in 2018-2022, with 11% market share
- Germany's arms exports reached €9.5 billion in 2023
Europe's defence industry is a large, growing market that employs over six hundred thousand people.
Employment and Workforce
- The European defence industry employed 630,000 people directly in 2022
- In France, the defence sector supports 300,000 direct and indirect jobs as of 2023
- Germany's defence industry directly employs 95,000 people in 2022
- UK's defence sector employs 143,000 directly and 200,000 indirectly in 2023
- Italy's defence industry workforce totals 85,000 direct employees in 2022
- Spain employs 35,000 in its defence industry as of 2023
- The Netherlands defence sector has 25,000 jobs in 2023
- Sweden's defence industry employs 40,000 people directly in 2023
- Poland's defence workforce grew to 80,000 in 2023
- Belgium defence industry employs 12,000 directly in 2022
- Finland's defence sector supports 20,000 jobs in 2023
- Norway's defence industry has 18,000 employees in 2023
- Denmark employs 10,000 in defence manufacturing in 2022
- Austria's defence workforce is 8,000 strong in 2023
- Portugal's defence industry employs 15,000 people in 2022
- Greece defence sector jobs total 12,000 in 2023
- Czech Republic defence industry employs 25,000 in 2023
- Hungary's defence workforce is 20,000 in 2022
- Romania employs 30,000 in defence in 2023
- Bulgaria's defence industry has 15,000 jobs in 2023
- Slovakia defence sector employs 10,000 in 2022
- Lithuania's defence workforce totals 8,000 in 2023
- Latvia employs 5,000 in defence industry in 2023
- Estonia's defence sector jobs are 4,000 in 2023
- Cyprus defence industry employs 2,500 people in 2022
- Slovenia's defence workforce is 3,000 strong in 2023
- Croatia employs 4,000 in defence manufacturing in 2023
- Malta's defence sector has 1,000 jobs in 2022
- Luxembourg defence industry employs 500 highly skilled workers in 2023
Employment and Workforce Interpretation
While France proudly shoulders a hefty chunk of Europe’s defence with 300,000 jobs, the combined might of the continent’s arsenal, from Germany’s 95,000 engineers to Luxembourg’s 500 specialists, quietly adds up to a formidable economic and strategic bulwark stitching security and prosperity together from Lisbon to Tallinn.
Exports and Trade
- Europe's arms exports totaled $66 billion in 2022, with EU firms leading
- France was the world's second largest arms exporter in 2018-2022, with 11% market share
- Germany's arms exports reached €9.5 billion in 2023
- UK's defence exports hit £11.3 billion in 2022/23
- Italy exported €4.4 billion in defence goods in 2022
- Spain's defence exports grew to €4.1 billion in 2023
- Sweden exported SEK 20 billion in defence products in 2023
- Netherlands defence exports totaled €1.5 billion in 2023
- Poland's defence exports reached €2 billion in 2023
- Belgium exported €1.2 billion in arms in 2022
- Finland's defence exports were €500 million in 2023
- Norway exported NOK 4 billion in defence in 2023
- Denmark's arms exports hit DKK 3 billion in 2022
- Airbus Defence and Space exported to 20 countries in 2023
- BAE Systems secured £8 billion export orders in 2023
- Leonardo exported to Middle East worth €2 billion in 2023
- Rheinmetall exported €5 billion including to non-Europe
- Thales Group defence exports €6 billion in 2022
- Saab AB exported Gripen to 5 European partners in 2023
- MBDA missile exports to Europe totaled €3 billion in 2023
- KNDS exported 200 vehicles to European NATO allies in 2023
- Czech CZ exports reached €400 million to EU in 2023
- Romania exported Bayraktar drones via local production in 2023
- Bulgaria's arms exports to EU partners €300 million in 2023
- Slovakia exported ammunition worth €200 million in 2023
- Lithuania exported repair services €100 million to NATO in 2023
- Latvia's defence trade with EU €150 million in 2023
- Estonia exported robotics to Ukraine via EU €50 million in 2023
- EDA facilitated 25 collaborative procurement projects worth €8 billion in 2023
- PESCO framework enabled 60 projects with cross-border trade in 2023
Exports and Trade Interpretation
It appears that Europe, while often preaching peace, has quietly mastered the art of arming it.
Market Size and Revenue
- In 2022, the total revenue of the European defence industry reached €104 billion, marking a 5.6% increase from 2021
- The European Union accounted for 19% of global defence spending in 2023, totaling $326 billion
- Germany's defence industry generated €13.5 billion in sales in 2022, leading Europe
- France's defence sector revenue stood at €22 billion in 2023, with 40% from exports
- The UK defence industry's turnover was £32 billion in 2022, employing over 100,000 people directly
- Italy's defence exports contributed €4.5 billion to its economy in 2022
- The Netherlands defence industry sales reached €2.8 billion in 2023, up 8% year-on-year
- Sweden's Saab AB reported defence revenues of SEK 42 billion in 2023
- Europe's top 100 arms-producing companies had combined arms sales of $101 billion in 2022
- The EU's defence market fragmentation leads to 80% of equipment procured nationally
- Spain's defence industry revenue hit €6.2 billion in 2022
- Poland's defence sector grew by 15% to PLN 20 billion in 2023
- Belgium's defence industry turnover was €1.9 billion in 2022
- Europe's defence R&D spending was €12 billion in 2022, 11.5% of total revenue
- The European defence equipment market (EDEM) value was estimated at €70 billion in 2023
- Finland's defence industry sales reached €1.2 billion in 2023
- Norway's Kongsberg Gruppen defence revenue was NOK 25 billion in 2023
- Denmark's defence sector contributed DKK 15 billion to GDP in 2022
- Austria's defence industry turnover was €800 million in 2023
- Portugal's defence exports totaled €300 million in 2022
- Greece's defence industry revenue grew to €1.5 billion in 2023
- Czech Republic's defence sales reached CZK 50 billion in 2023
- Hungary's defence sector value was HUF 400 billion in 2022
- Romania's defence industry generated RON 10 billion in revenue in 2023
- Bulgaria's defence exports hit €500 million in 2023
- Slovakia's defence industry turnover was €600 million in 2022
- Lithuania's defence sector grew by 20% to €400 million in 2023
- Latvia's defence industry revenue was €250 million in 2023
- Estonia's Milrem Robotics contributed €100 million to defence sales in 2023
- Cyprus defence industry value estimated at €150 million in 2022
Market Size and Revenue Interpretation
With €104 billion in sales, Europe's defense industry proves peace is expensive, but it's sold piecemeal—where 80% of its equipment is bought nationally, turning a collective strength into a fragmented marketplace.
Production Output
- Europe's Airbus Defence and Space produced 12 A400M aircraft in 2023
- BAE Systems delivered 48 Typhoon fighter jets to European customers in 2022
- Leonardo S.p.A. manufactured 150 helicopters for defence in 2023
- Rheinmetall produced 300 Leopard 2 tank variants in 2023
- Thales Group delivered 500 naval radar systems across Europe in 2022
- Saab delivered 20 Gripen E fighters to Sweden in 2023
- Dassault Aviation produced 15 Rafale jets for French Air Force in 2023
- Navantia shipyard launched 2 F-100 frigates for Spain in 2023
- Fincantieri built 4 FREMM-class frigates for Italian Navy in 2022
- KNDS (Krauss-Maffei Wegmann) produced 100 Boxer vehicles in 2023
- MBDA manufactured 1,000 Aster missiles in 2023
- Diehl Defence delivered 500 IRIS-T missiles to European allies in 2023
- Hensoldt supplied 200 radar systems for Eurofighter in 2022
- Indra produced 50 surveillance drones for Spanish Army in 2023
- Patria delivered 90 AMV XP vehicles to Finland in 2023
- Kongsberg produced 300 NSM missiles in 2023
- Terma delivered 100 C-Flex masts for naval ships in 2022
- RUAG Space manufactured 20 satellite components for ESA in 2023
- MTU Aero Engines produced engines for 50 Eurofighter jets in 2023
- Safran supplied propulsion systems for 30 Rafale aircraft in 2022
- Poland's PGZ Group produced 200 Rosomak vehicles in 2023
- Romania's Romaero overhauled 15 C-130 aircraft in 2023
- Czech Colt CZ delivered 100,000 small arms in 2023
- Bulgarian Arsenal produced 50,000 artillery shells in 2023
- Slovakia's ZVS Holding manufactured 200 mortar systems in 2022
- Lithuania's NT Service produced 100 repair kits for Leopard tanks in 2023
- Latvia's Brasa produced 50 trailers for military transport in 2023
- Estonia's Milrem produced 10 THeMIS UGVs in 2023
Production Output Interpretation
Europe's defense industry is quietly proving that while unity might be debated in Brussels, it is forged on factory floors from Belfast to Bucharest, turning out everything from colossal airlifters to countless bullets with a sobering, collective purpose.
Research and Development
- Europe's EDA reported €2.7 billion invested in collaborative R&D in 2022
- France allocated €7.4 billion to defence R&D in 2023
- Germany's defence R&D budget was €3.2 billion in 2023
- UK invested £6.6 billion in defence science and technology in 2022/23
- Italy's defence R&D spending reached €1.8 billion in 2023
- Spain committed €1.1 billion to defence innovation in 2023
- The Netherlands invested €500 million in defence R&T in 2023
- Sweden's FOI research institute received SEK 1.2 billion for defence R&D in 2023
- EDA's PESCO projects involved 60 R&D initiatives in 2023
- Europe's top 100 arms firms spent $15 billion on R&D in 2022
- Poland increased defence R&D to PLN 2.5 billion in 2023
- Belgium's defence R&D budget was €250 million in 2023
- Finland invested €300 million in dual-use R&D in 2023
- Norway allocated NOK 1.5 billion to FFI defence research in 2023
- Denmark's DTU Defence R&D funding was DKK 800 million in 2022
- Airbus Defence and Space R&D spend was €1.2 billion in 2023
- Thales Group invested €1.4 billion in defence R&D in 2022
- Leonardo R&D expenditure for defence was €900 million in 2023
- Rheinmetall's R&D budget hit €600 million in 2023
- BAE Systems spent £1.8 billion on R&D including defence in 2022
- MBDA invested €400 million in missile technology R&D in 2023
- Saab AB's defence R&D was SEK 5 billion in 2023
- Dassault Aviation R&D for FCAS project €2 billion in 2023
Research and Development Interpretation
While Europe’s fragmented defence investments might look like a continent trying to build a spaceship by having each neighbour design a different bolt, the combined billions reveal a serious, if sprawling, effort to ensure they can handle tomorrow’s threats instead of just patching up yesterday’s tanks.
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