Business · Companies · 12 hrs ago
Only one in three new entrants may meet defence growth targets
More than 40% of surveyed companies want to enter or expand in defence and space as European military spending rises.
The interest spans industries including metals, automotive, machinery, energy and banking.
A Horváth study predicts only about one in three newcomers will meet their growth targets by 2030, despite many companies’ ambitious sales expectations.
The sector has grown rapidly since Russia’s invasion of Ukraine, but European defence growth is expected to slow to 6% to 7% a year, from an average of 11.4% since the war began.
New suppliers face strict rules, long procurement timelines and established networks that can make it hard to win contracts.
Major defence contractors are receiving more supplier enquiries than they can handle, leaving few openings for newcomers.
Companies may need more than the general market boom to succeed, and the study says many underestimate the barriers.
A Horváth study predicts that only about 33 percent of companies entering the defence sector will meet their growth targets by 2030.
More than 40 percent of surveyed companies plan to enter or expand in defence and space.
The European defence industry is expected to keep growing, but at a slower pace than since Russia’s invasion of Ukraine.
The study identifies regulation and compliance as the leading barriers to entering the market.
Long procurement timelines and established supplier networks also make it harder for new companies to break in.
- Who
- Companies entering or expanding in the defence and space sector, surveyed by Horváth.
- What
- The study forecasts that around one in three new entrants will meet their growth targets by 2030.
- When
- The forecast covers growth targets through 2030.
- Where
- The European defence sector.
- Why
- Competition is increasing, while regulation, long procurement processes and established supplier networks limit opportunities.
This story does not have two clearly opposing sides.
The European defence industry recorded average annual growth of 11.4 percent.
Horváth expects around 33 percent of new entrants to meet their growth targets.
The European defence industry is expected to grow by 6 to 7 percent a year in real terms.
- Forecast success rate
- Around 33 percent of new entrants expected to meet growth targets by 2030
- Survey interest
- More than 40 percent of companies plan to enter or expand in defence and space
- Survey size
- Around 1,000 executives at European companies
- Expected European defence growth
- 6 to 7 percent annually in real terms
- Top market-entry barrier
- Regulation and compliance
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What people are saying
Je mehr Firmen in den Markt drängen, desto enger wird der Spielraum für alle
Man kann definitiv davon ausgehen, dass manche etwas zu optimistisch in die Zukunft blicken, was das künftige Wachstumspotenzial im Thema Defense angeht