European Defense Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Europe Defense Market is Segmented by Equipment Type (Personnel Training and Protection, Communication, Armament, and Transport), Platform (Terrestrial, Aerial, and Naval), and Geography (United Kingdom, Germany, France, Russia, Italy, Spain, Greece, and the Rest of Europe). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

European Defense Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Europe Defense Market Size

Europe Defense Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 10.45 Billion
Market Size (2030) USD 10.48 Billion
CAGR (2025 - 2030) 0.04 %
Market Concentration Low

Major Players

Europe Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Defense Market Analysis

The Europe Defense Market size is estimated at USD 10.45 billion in 2025, and is expected to reach USD 10.48 billion by 2030, at a CAGR of 0.04% during the forecast period (2025-2030).

  • The increase in defense expenditures coupled with the growing need for procurement of advanced defense weapons and ammunition by countries within the European region to improve defense capabilities are some of the factors expected to lead to the market's growth during the forecast period.
  • The ongoing Russia-Ukraine conflict has created a tense scenario in the region, with the countries increasing their R&D investments to develop advanced capabilities that can counter the modern weapon technologies deployed by the Russian forces. Moreover, the European countries, significantly the increase in defense expenditure coupled with the growing need for procurement of advanced defense weapons and ammunition by countries within the European region to improve defense capabilities are some of the factors that are expected to lead to the growth of the market during the forecast period.
  • The ongoing Russia-Ukraine conflict has created a tense scenario in the region, with the countries increasing their R&D investments to develop advanced capabilities that can counter the modern weapon technologies deployed by the Russian forces. Moreover, the European countries, especially the North Atlantic Treaty Organization (NATO) members, are also diverting significant monetary resources in support of Ukraine, which is driving the defense market in the region.
  • On the other hand, the growth in regulations is hampering the procurement and production of advanced weapons for some European countries, and this will lead to market growth witnessing restraint during the forecast period. Moreover, technological advancements for defense weapons, such as the usage of artificial intelligence, are expected to increase market growth opportunities shortly. NATO members are also diverting significant monetary resources in support of Ukraine, which is driving the defense market in the region.
  • On the other hand, the growth in regulations is hampering the procurement and production of advanced weapons for some European countries, and this will lead to market growth witnessing restraint during the forecast period. Moreover, technological advancements for defense weapons, such as the usage of artificial intelligence, are expected to increase market growth opportunities shortly.

European Defense Industry Overview

The European defense industry is fragmented, with various players vying to increase their market share. Some prominent market players include Lockheed Martin Corporation, Northrop Grumman Corporation, General Dynamics Corporation, BAE Systems plc, and RTX Corporation.

The key players in the market are focusing on developing advanced defense systems for different countries in the European region. Growth in defense expenditures, as well as collaboration between defense companies and the governments of countries in the region, will help formulate new business opportunities, which will, in turn, lead to significant growth in the market during the forecast period.

Europe Defense Market Leaders

  1. Lockheed Martin Corporation

  2. Northrop Grumman Corporation

  3. General Dynamics Corporation

  4. BAE Systems plc

  5. RTX Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Europe Defense Market Concentration
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Europe Defense Market News

  • September 2023: A consortium of European defense manufacturers led by Indra Sistemas S.A. launched work on an electronic warfare capability for the European Union to protect friendly aircraft against missile attacks. According to a European Defence Fund fact sheet, the Responsive Electronic Attack for Cooperative Tasks (REACT) program is intended to develop a system capable of jamming any signals used for targeting European aircraft while being able to turn off adversary electronic warfare emitters.
  • June 2023: The UK Royal Air Force received two F-35B Lightning II stealth multirole combat aircraft from Lockheed Martin. The marked delivery is part of a contract order for 48 F-35Bs for the Royal Air Force and the Royal Navy. Along with this contract, in April 2023, a USD 225-million support agreement was awarded to Lockheed Martin to sustain the British F-35 fleet’s operability.

European Defense Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Porter's Five Forces Analysis
    • 4.4.1 Bargaining Power of Buyers/Consumers
    • 4.4.2 Bargaining Power of Suppliers
    • 4.4.3 Threat of New Entrants
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Equipment Type
    • 5.1.1 Personnel Training and Protection
    • 5.1.2 Communication
    • 5.1.3 Armament
    • 5.1.4 Transport
  • 5.2 Platform
    • 5.2.1 Terrestrial
    • 5.2.2 Aerial
    • 5.2.3 Naval
  • 5.3 Country
    • 5.3.1 United Kingdom
    • 5.3.2 Germany
    • 5.3.3 France
    • 5.3.4 Russia
    • 5.3.5 Italy
    • 5.3.6 Spain
    • 5.3.7 Greece
    • 5.3.8 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 Airbus SE
    • 6.2.2 BAE Systems plc
    • 6.2.3 General Dynamics Corporation
    • 6.2.4 Indra Sistemas, S.A.
    • 6.2.5 Leonardo S.p.A.
    • 6.2.6 Northrop Grumman Corporation
    • 6.2.7 Lockheed Martin Corporation
    • 6.2.8 United Aircraft Corporation (PJSC UAC)
    • 6.2.9 RTX Corporation
    • 6.2.10 Rheinmetall AG
    • 6.2.11 Rostec State Corporation
    • 6.2.12 UkrOboronProm
    • 6.2.13 Saab AB
    • 6.2.14 THALES
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Europe Defense Industry Segmentation

The European defense industry report includes an analysis of different defense equipment used to maintain the region's military strength.

The European defense industry is segmented based on equipment type, platform, and country. By equipment type, the market is segmented into personnel training and protection, communication, armament, and transport. By platform, the market is segmented into terrestrial, aerial, and naval. The report also offers the market size and forecasts for seven countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).

Equipment Type Personnel Training and Protection
Communication
Armament
Transport
Platform Terrestrial
Aerial
Naval
Country United Kingdom
Germany
France
Russia
Italy
Spain
Greece
Rest of Europe
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European Defense Market Research FAQs

How big is the Europe Defense Market?

The Europe Defense Market size is expected to reach USD 10.45 billion in 2025 and grow at a CAGR of 0.04% to reach USD 10.48 billion by 2030.

What is the current Europe Defense Market size?

In 2025, the Europe Defense Market size is expected to reach USD 10.45 billion.

Who are the key players in Europe Defense Market?

Lockheed Martin Corporation, Northrop Grumman Corporation, General Dynamics Corporation, BAE Systems plc and RTX Corporation are the major companies operating in the Europe Defense Market.

What years does this Europe Defense Market cover, and what was the market size in 2024?

In 2024, the Europe Defense Market size was estimated at USD 10.45 billion. The report covers the Europe Defense Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

European Defense Industry Report

Statistics for the 2025 Europe Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Defense analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.