The Estonian defense industry more than doubled its exports and the turnover increased by over 30% in a year, reaching half a billion euros last year, the Estonian Defense and Space Industry Association (EKTL) announced
The unpredictable security situation in the world has significantly increased interest in the capabilities being developed by Estonian defense industry companies, as shown by the growth in the sector's sales revenue and export volume.
Of the half-billion-euro turnover, exports accounted for approximately 350 million. For comparison, the sector's turnover in 2023 was 290 million, of which exports accounted for 162 million euros.
“The increase in defense spending in the world also creates opportunities for the marketing of innovative products of Estonian companies. Foreign companies have increased their interest in the technologies developed by our companies, and many international companies have found new solutions in Estonia,” said Kalev Koidumäe, CEO of EKTL.
The number of companies belonging to the union is also growing year by year. While there were 131 in 2023, by the end of 2024 there were 151, and this year the number of members has already increased to 186.
Last year was also significant for the defense industry because for the first time, this industry reached a coalition agreement as a sector that needs to be developed together with the state to ensure Estonia's defense capability.
“Without a local defense industry, Estonia does not have a defense capability. The weapons and ammunition we have developed ourselves are a defense resource that is available and usable without restrictions. The world is changing rapidly and the supply chains of the defense industry are colossally affected by changing geopolitics. It is unrealistic to produce many complex weapons systems in Estonia, but the more we have a local defense industry, the more secure we will feel,” said Taavi Veskimägi, Chairman of the EKTL Council.
In his opinion, the defense and aerospace industry can significantly boost the Estonian economy. This has been the case, for example, in South Korea and Israel, which are in a geopolitically similar situation to ours, where the defense industry is an important part of independent deterrence, but is also a large export sector. “The defense industry policy and its implementation plan must ensure development similar to Estonia,” added Veskimägi.
According to Kalev Koidumäe, CEO of EKTL, the goal of the alliance this year is to continue cooperation with Ukrainian companies and the defense forces to win the war. It is also hoped to further increase cooperation with the Estonian Defense Forces in order to strengthen the country's security with domestic products and services. In the autumn, Estonia will organize the first ever Estonian Defence Week, a themed week aimed at the defense industry, which will introduce the solutions being created here.
Of the half-billion-euro turnover, exports accounted for approximately 350 million. For comparison, the sector's turnover in 2023 was 290 million, of which exports accounted for 162 million euros.
“The increase in defense spending in the world also creates opportunities for the marketing of innovative products of Estonian companies. Foreign companies have increased their interest in the technologies developed by our companies, and many international companies have found new solutions in Estonia,” said Kalev Koidumäe, CEO of EKTL.
The number of companies belonging to the union is also growing year by year. While there were 131 in 2023, by the end of 2024 there were 151, and this year the number of members has already increased to 186.
Last year was also significant for the defense industry because for the first time, this industry reached a coalition agreement as a sector that needs to be developed together with the state to ensure Estonia's defense capability.
“Without a local defense industry, Estonia does not have a defense capability. The weapons and ammunition we have developed ourselves are a defense resource that is available and usable without restrictions. The world is changing rapidly and the supply chains of the defense industry are colossally affected by changing geopolitics. It is unrealistic to produce many complex weapons systems in Estonia, but the more we have a local defense industry, the more secure we will feel,” said Taavi Veskimägi, Chairman of the EKTL Council.
In his opinion, the defense and aerospace industry can significantly boost the Estonian economy. This has been the case, for example, in South Korea and Israel, which are in a geopolitically similar situation to ours, where the defense industry is an important part of independent deterrence, but is also a large export sector. “The defense industry policy and its implementation plan must ensure development similar to Estonia,” added Veskimägi.
According to Kalev Koidumäe, CEO of EKTL, the goal of the alliance this year is to continue cooperation with Ukrainian companies and the defense forces to win the war. It is also hoped to further increase cooperation with the Estonian Defense Forces in order to strengthen the country's security with domestic products and services. In the autumn, Estonia will organize the first ever Estonian Defence Week, a themed week aimed at the defense industry, which will introduce the solutions being created here.
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