Eastern Europe Defense Market Size (2024 - 2029)

Eastern Europe Defense Market Analysis

The Eastern Europe Defense Market size is estimated at USD 3.93 billion in 2024, and is expected to reach USD 4.76 billion by 2029, growing at a CAGR of greater than 3.91% during the forecast period (2024-2029).

The military expenditure of the region continued to increase, driven by the regional conflicts and the push for modernization. According to SIPRI, the defense spending of the countries in the region totaled USD 181 billion in 2023, an increase of 31% compared to that of 2022 and 118% higher than that of 2014.

Furthermore, the Russian invasion of Ukraine, the most significant armed conflict in the region since the Second World War, is expected to propel the defense spending of the region in the years to come. Countries in the region are going through many military modernization plans, and they are planning to upgrade their armed, naval, and air forces. Such factors may drive the market in the coming years. The growing perceptions of the threat from Russia and calls from the United States to the NATO countries to increase their defense spending will be the growth drivers for the market.

The industry faces challenges due to the high costs of advanced technologies. Developing and deploying cutting-edge systems, including sophisticated sensors, EO/IR systems, and unmanned platforms, involves substantial investments. The high cost poses a barrier for some entities, hindering the adoption and creating a challenge for the industry.

Eastern Europe Defense Industry Segmentation

Bulgaria, Hungary, the Czech Republic, Ukraine, Moldova, Belarus, Russia, Slovakia, Romania, and Poland are the countries considered in Eastern Europe per the UN Statistics Division. The report includes revenues from procurement and aftermarket services. The weapons and ammunition segment includes artillery and mortar systems, infantry weapons, missiles, missile defense systems, and small, medium, and large-caliber ammunition.

The report is segmented by type into personnel training and protection, communication systems, weapons and ammunition, and vehicles. By country, the market is segmented into Poland, Russia, Hungary, Romania, and Rest of Eastern Europe. The report also offers the market size and forecasts for four countries across the region. For each segment, the market sizing and forecasts were made based on value (USD).