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. 

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.

  • ~2,500

    Estimated number of SMEs 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.

We have a very real threat to defend against. Europe is facing a critical moment that will shape our future for decades. We need to ramp up our defence industry and spending. With the right resolve and united effort, I believe we can succeed.

Estonian Prime Minister, Kaja Kallas

Facts & figures by sector

Download the full report

The full Facts & Figures 2023 report gives you key insights into the industries that make up ASD.