Belgium’s defense market is set to grow to $6.5 billion in 2027, driven by the conflict in Ukraine and the need to modernize its armed forces, forecasts GlobalData, a leading data and analytics company.

According to GlobalData’s report, ‘Belgium Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027’, Belgium’s military spending currently totals $4.4 billion and is estimated to grow at a compound annual growth rate (CAGR) of 7.7% over the next five years.

William Davies, Associate Analyst at GlobalData, comments: “The conflict in Ukraine has compounded the existing requirements for military modernization in Belgium. In 2015, the country had committed to modernization plans, which include the purchase of F-35A fighter aircraft, transport helicopters and mine countermeasure ships. The Ukraine conflict has led Belgium to increase its defense spending to achieve the 2% NATO target.”

Being committed to NATO and the EU as a security actor, Belgium will likely increase its cooperative capabilities in the forecast period. Moreover, the country is estimated to increase its acquisition spending significantly to $1.2 billion by 2027, from $0.8 billion in 2022. This increased acquisition spending will give Belgium significantly more purchasing power and enable it to modernize its defense forces.

Davies concludes: “Belgium’s military modernization will accelerate over the forecast period and provide increased capacities for the country’s armed forces. However, the spending will still fall short of NATO targets – reaching a high of 1.67% by 2027, meaning the country will likely have to increase spending further in order to pursue its modernization and interoperability with NATO allies.”