Finland Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-27

Finland defense budget stands at $6.1 billion in 2022. The market is expected to grow at a CAGR of more than 9% during 2023-27. Factors influencing budget growth over the forecast period include a program of modernization and platform acquisition underway in the Finnish military, a commitment to budget increases from the Finnish government, and the fallout from the Russian invasion of Ukraine in February 2022. The Finnish military’s emphasis on maintaining a small regular force but a large, rapidly deployable reserve creates a large acquisition budget that will grow to represent over half of Finland’s projected defense expenditure in the forecast period.  The Finland Defense Market research report provides an overview of the Finland defense market, outlining future programs and predicted expenditures.

Finland defense market overview

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What are the market drivers in the Finland defense industry?

With tensions high in Europe since the Russian invasion of Ukraine, the Finnish government has committed to substantial increases in defense expenditure. Furthermore, the country continues to contribute military personnel to global peacekeeping and stabilization efforts, driving further spending. Finland is procuring new fleets of vehicles across all domains to keep its forces competitive in a modern operating environment.

What are the military doctrines and defense strategies in Finland?

The Finnish Defense Forces (FDF) are comprised of the Finnish Army, Finnish Navy, and Finnish Air Force. These are united under the control of Defense Command, led by the Chief of Defense. Adjacent to Defense Command is the Logistics Command, responsible for procurement and life-cycle support for all branches of the military. The government’s defense reports are released annually and outline the primary threat perceptions and priorities for the Finnish Defense Forces, as well as how Finland’s relationships with its neighbors, allies, and international institutions aid its goals. The overarching objective for the Defense Forces is the military defense of Finland, the provision of support for other government authorities, participating in international assistance and other supporting activities, and military tasks in international crisis management.

As stipulated in the government’s defense paper, to remain both a credible deterrent to attack and effective fighting force, the Finnish military is planning extensive modernization of its forces to modern standards. Furthermore, Finland has been proactive in exploring the utility of unmanned systems for the future of their Armed Forces. Finland is updating the configuration of its armed forces in terms of formation structure and hierarchy. The success of the regular Defence Forces’ purpose of supporting the bulk of mobilized reservists through powerful and mobile combined arms formations necessitates an organization that is ready to rapidly deploy and respond to threats to Finnish security.

What are the key sectors in the Finland defense market?

Military fixed wing, military infrastructure and logistics, and naval vessels and surface combatants feature as the top three largest sectors in the market. Other prominent sectors include missiles and missile defense systems, military radar, EO/IR, tactical communications, military ammunitions, military land vehicles, ammunition, underwater warfare system, military simulation and training, INS GNSS, artillery, electronic warfare, and body armor and personal protection.

Supporting the infrastructure necessary to keep the Finnish military ready for mobilization and operations is made especially challenging by the harsh conditions of the Finnish environment. Hence, spending on military infrastructure and logistics will continue to be a major aspect of the Finnish defense market in support of rapid mobilization of reserves and keeping the country defensible under the ‘Total Defense’ strategy. The need to keep Finnish and Baltic waters secure from naval mines and defend against a broad spectrum of threat types has led to continued spending on Finnish surface combatants that are well-armed for their size class.

Finland Defense Market Analysis by Sector

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Which are the key companies in the Finland defense market?

Some of the key companies in the Finland defense market are Patria Oyj, Bittium Oyj, Aurora Propulsion Technologies, Conlog Group, Environics Oy, Meyer Turku Shipyard Oy, Robonic Ltd Oy, Sako Ltd, Sensofusion Oy, Terrasolid Oy, and Varjo Technologies Oy.

Market report scope

This report provides:

• Political alliances and political threat perceptions as well as detailing market attractiveness and emerging opportunities.
• Identification of budgetary trends over the next 5 years to 2027, outlining predicted expenditure as well as expected costs.
• Outlines of issues with engaging with the Finnish defense market and includes explanations of complex regulations.
• Major players in the existing market and gives an overview of the competitive landscape.

Reasons to Buy

• Determine potential investment opportunities based on analysis and market projections.
• Gain an understanding of the Finland defense market and potential limitations to involvement.
• Understanding of how spending will change in the next 5 years and the impact of geopolitical events.