Market Insights and Growth Trends
The Finnish defence industry is evolving rapidly, driven by both traditional players and an influx of new startups. A recent market survey by Tesi highlights the industry’s current state, with a particular focus on companies involved in augmented reality (AR), virtual reality (VR), and dual-use products.
Growth in the Finnish Defence Sector
Global geopolitical tensions have sparked a growing interest in the defence industry worldwide, including Finland. Despite this attention and increased investments, the European defence sector still faces funding challenges. Finland, however, has identified 368 companies operating in the defence industry, with approximately 144 of them showing significant growth.
These companies are categorized into sectors such as basic production, expert services, and dual-use technology, which provides solutions that can be applied to both civilian and military use. Notably, Finland’s commitment to its NATO membership and rising defence budgets opens more opportunities for growth, especially in exports.
Key Findings
- Emerging Technologies: The fastest-growing segments include AR/VR and robotics, with new startups leveraging dual-use technologies.
- Geographic Distribution: While about half of the companies are located in Uusimaa, defence industry players are spread across the country, including smaller municipalities.
- Revenue Trends: The defence technology and dual-use technology companies have demonstrated strong revenue growth, with a total turnover of €251.6 million in 2022.
- Investment Opportunities: Finland’s defence companies are attracting significant capital investments, particularly in dual-use technologies. Tesi itself has been a prominent investor in companies like ICEYE, Varjo, and Sisu Auto.
Future Outlook
With increasing global interest and capital investment, the Finnish defence industry is poised for significant growth. As Finland continues to develop its strategic capabilities, particularly as a NATO border state, we can expect further innovations in defense technologies and expanded international cooperation.
For further details and the full market survey, visit Tesi’s defense industry market survey.