The European defense sector grew by 13.8% in 2024 compared to the previous year, generating a turnover of €183.4 billion ($213 billion), according to a report published on Tuesday by the Aerospace, Security and Defense Industries Association of Europe. This was reported by Bloomberg, writes UNN.
This growth – the fourth in a row – is the result of years of underfunding, followed by increased defense budgets after Russia's full-scale invasion of Ukraine, the report says. Employment in the sector also increased by 8.6% to 633,000 jobs.
However, the trade association highlights a number of difficulties that are likely to persist, including: supply chain bottlenecks, shortages of critical raw materials and electronic components, high energy costs, a tight labor market, and trade restrictions due to sanctions against Russia.
We must ensure that defense industries can continue to support the build-up of European sovereign capabilities, creating deterrence and defense. And this cannot stop just because some ceasefire emerges or negotiations are ongoing.
ASD also noted that a significant portion of European defense procurement is directed to foreign suppliers, particularly the US, which "underscores potential supply chain vulnerabilities during high demand or crisis."
After years of decline in the defense industry, Europe has recently been forced to act due to rising geopolitical tensions from Russia, the US, and China. NATO allies have pledged to spend 5% of their GDP on defense by 2035, and the EU is allocating €150 billion in defense grants for joint procurement, with strict requirements that favor European manufacturers and reduce dependence on third countries.
"When comparing Europe with its competitors, it should be remembered that 98% of technologies are available in Europe," ASD Secretary General Camille Grand told reporters. "The European defense sector is fully capable of meeting its own needs in the medium and long term."