On Tuesday 2 December, the AeroSpace and Defence Industries Association of Europe (ASD) announced that sales in the defence sector had risen by 13.8% in 2024, to €183.4 billion (€161.1 billion in 2023). Of this total of €183.4 billion, €43.2 billion comes from the naval component, €65.3 billion from the land component and €74.9 billion from the space component. The defence industry of ASD members represented 633,000 jobs.
Speaking to the media, Micael Johansson, Chair of the ASD and CEO of Saab, pointed out that although industry was investing massively – “five- and even tenfold” in Europe, in all areas – some felt that governments’ long-term commitments were still insufficient. “Despite our investment in volume production, the order books of many companies are often three or four years long, whereas we are investing in facilities with a lifespan of several decades”, he warned.
Mr Johansson also reiterated that investment in defence should not be halted in the event of peace in Ukraine. “We haven’t built the capabilities that we need to have Europe as a strong pillar in NATO, as a continent capable of handling its own defence and deterrence, we still have to work that diligently”, he warned. In his view, European industry has taken a big step forward, but it can still do better.
According to ASD Secretary Camille Grand, European industry is competitive with its rivals. “98% of technologies are available in Europe. There is no major technology gap in the defence sector, and European companies are capable of producing the full range of defence equipment”, he explained. He added: “for land and maritime sectors, Europeans tend to favour European suppliers. In the airline industry, competition is fiercer”. Mr Grand said he was “firmly convinced that European defence industries are perfectly capable, in the medium and long term, of providing most of the capabilities that Europeans need”.
Taking the view that the European market is much more open to American industries than the American market is to European industries, particularly in terms of the conditions under which they can set up shop, Mr Johansson called for ways to be found of establishing a fair and reciprocal system between the two markets. “We can start by encouraging the purchase of European equipment in order to rebalance things, which would also be beneficial for the United States”, he stressed, at a time when the Commission is trying to encourage Member States to buy European.
In 2024, ASD members accounted for 99% of the EU defence and aerospace industry’s turnover. (Original version in French by Camille-Cerise Gessant)