Finland Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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Finland Defense Market Report Overview

The Finland defense budget is worth $6.3 billion in 2023. It has seen a brief period of fluctuation in its historic period owing to the initiation of major payments for its ongoing acquisition of F-35 fighter aircraft beginning in 2021. But expenditure increased sharply again in 2023. This notable growth is driven primarily by the fallout from Russia’s invasion of Ukraine in February 2022, which has dramatically shifted the landscape of European defense and security. This event led to Finland ending the policy of neutrality it has held since 1945, applying to NATO in May 2022 and formally joining in April 2023. The country’s defense budget is expected to grow at a CAGR of more than 6% during 2024-2028.

Finland Defense Market Outlook, 2023-2028

Finland Defense Market Outlook, 2023-2028

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The Finland defense budget market research report provides the market size forecast and the projected growth rate for the next five years. It also covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Market Size (2023) $6.3 billion
CAGR (2024-2028) >6%
Forecast Period 2024-2028
Historical Period 2019-2023
Key Sectors ·       Military Fixed-Wing

·       Naval Vessels and Surface Combatants

·       Tactical Communications Systems

·       Missiles and Missile Defense Systems

·       EO/IR Systems

·       Military Radar

·       Artillery Systems

·       Electronic Warfare Systems

·       Underwater Warfare Systems

·       Military Land Vehicles

Leading Companies ·       Patria Oyj

·       Bittium Oyj

·       Aurora Propulsion Technologies

·       Conlog Group

·       Environics Oy

·       Meyer Turku Shipyard Oy

·       Robonic Ltd Oy

·       Sako Ltd

·       Sensofusion Oy

·       Terrasolid Oy

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Finland Defense Market Drivers

Finland is modernizing its forces to be capable of fighting high-intensity conventional warfare and prioritizing capabilities such as new 5th-generation stealth aircraft and warships suitable for the Baltic Sea environment. It will also gradually replace its dwindling stocks of Soviet-era equipment, and make smaller upgrades across the force such as new infantry rifles.

The war in Ukraine has led to the most substantial change in Finnish defense policy since WW2, with the country joining NATO in April 2023.

Finland Military Doctrines and Defense Strategies

The Finnish Defence Forces (FDF) are comprised of the Finnish Army, Finnish Navy, and Finnish Air Force united under the control of Defence Command, led by the Chief of Defence. Adjacent to Defence Command is the Logistics Command who is 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 FDF, as well as how Finland’s relationships with its neighbors, allies, and international institutions aid its goals.

The Finnish government highlights that it sees continued international defense cooperation as a core underpinning of its national security and will continue to work with its global partners on operations and coordinate with security organizations such as the OSCE, the Common European Defense Policy, and NATO. As an EU member, Finland regularly participates in EU military R&D projects and contributes to European Union battlegroups.

Finland Defense Market Segmentation by Sectors

The key sectors in the Finland defense market are military fixed-wing, naval vessels and surface combatants, tactical communications systems, missiles and missile defense systems, EO/IR Systems, military radar, artillery systems, electronic warfare systems, underwater warfare systems, and military land vehicles, among others. The top sector in the Finland defense market is military fixed-wing, followed by naval vessels and surface combatants and tactical communications systems.

Finland Defense Market Analysis by Sectors, 2023 (%)

Finland Defense Market Analysis by Sectors, 2023 (%)

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Finland Defense Market - Competitive Landscape

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

Segments Covered in the Report

Finland Defense Sectors Outlook (Value, $ Billion, 2019-2028)

  • Military Fixed-Wing
  • Naval Vessels and Surface Combatants
  • Tactical Communications Systems
  • Missiles and Missile Defense Systems
  • EO/IR Systems
  • Military Radar
  • Artillery Systems
  • Electronic Warfare Systems
  • Underwater Warfare Systems
  • Military Land Vehicles


The report provides:

  • Detailed analysis of Finland defense market with market size forecasts covering the next five years. The report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
  • Detailed analysis of the Finland 2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Explanation of the procurement policy coupled with an analysis of the Finland military doctrine and strategy to provide a comprehensive overview of Finland’s military procurement regulation.
  • Examination of political alliances and perceived security threats to Finland and how they help to explain trends in spending and modernization.
  • Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Analysis of the competitive landscape of Finland’s defense industry.

Key Highlights

• Drivers of Defense expenditure include recent membership of NATO, Baltic security issues and the Russo-Ukrainian war.

• Major ongoing procurement programs include procurement of F-35, K9 155mm howitzers, and new corvettes and patrol vessels

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the Finnish defense market over the next five years
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the Finnish market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving the Finland defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Finland government.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.

Lockheed Martin
Patria Oy
Hanwha Defense
Aurora Propulsion Technologies
Rauma Marine Constructions
Meyer Turku Oy

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historical and Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Key Market Trends and Insights

  • 3. Military Doctrine and Security Environment

    • 3.1. Military Doctrine and Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social, and Economic Scenario

  • 4. Market Entry Strategy and Regulations

    • 4.1. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. Types of Procurement Procedure
    • 4.6. Procurement Policy and Market Regulations
    • 4.7. Market Entry Routes
    • 4.8. Key Challenges
    • 4.9. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness, 2023–28
    • 5.2. Top Defense Segments by Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions by Value
    • 6.2. F-35A
    • 6.3. Pohjanmaa-class Corvette
    • 6.4. Multipurpose Patrol Vessel
    • 6.5. K9 Thunder 155mm

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating in Finland
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us


List of Tables

Table 1: Finnish Ongoing Procurement Programs

Table 2: Finnish Future Procurement Programs

Table 3: Top Finnish Defense Procurement Programs by Value (US$ Million), 2020-2025

Table 4: Finnish Defense Expenditure (EUR Billion and US$ Billion), 2016-2025

Table 5: Finnish GDP Growth vs Defense Expenditure as Percentage of GDP Growth, 2016-2025

Table 6: Finnish Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025

Table 7: Finnish Defense Capital Expenditure (EUR Billion and US$ Billion), 2016-2025

Table 8: Finnish Per Capita Defense Expenditure (US$), 2016-2025

Table 9: Finnish Homeland Security Expenditure (EUR Billion and US$Billion), 2016-2025

Table 10:Benchmarking with Key Markets:2016-2020 vs 2021-2025

Table 11: Top 10 Finnish Defense Market Sectors by Value (US$ Million) -2021-2025

Table 12: Offset Regulations in Finland

Table 13: Offset Multiplier Categories

Table 14: Top Defense Suppliers in the Finnish Defense Industry – By Value (US$ Million) 2021-2025

Table 15: Competitive Landscape in the Finnish Defense Market


List of Figures

Figure 1: Finnish Defense Budget: 2021 and 2025

Figure 2: Finnish Defense Imports/Exports: 2015 and 2019

Figure 3: Finland’s Top Three Prospective Procurements/Developments

Figure 4: Finnish Defense Expenditure (EUR Billion),2016-2025

Figure 5: FinnishDefense Expenditure (US$ Billion),2016-2025

Figure 6: Finnish GDP Growth vs DefenseExpenditure as a Percentage of GDP, 2016-2025

Figure 7: Finnish Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025

Figure 8: Finnish Capital Budget Allocation (EUR Billion),2016-2025

Figure 9: Finnish Capital Budget Allocation (US$ Billion), 2016-2025

Figure 10: Finnish Per Capita Defense Expenditure (US$), 2016-2025

Figure 11: Finnish Homeland Security Budget (EUR Billion), 2016-2025

Figure 12: Finnish Homeland Security Budget (US$Billion), 2016-2025

Figure 13: Benchmarking with Key Markets, 2016-2020 vs 2021-2025

Figure 14: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2020 and 2025

Figure 15: Benchmarking with Large Defense Spenders as a Percentage of GDP, 2020

Figure 16: Finnish Defense Imports (US$ Million), 2015-2019

Figure 17: Finnish Defense Imports by Country (%), 2015-2019

Figure 18: Finnish Defense Imports by Category, 2015-2019

Figure 19: Finnish Defense Export Trend (US$ Million), 2015-2019

Figure 20: Finnish Defense Exports by Country (%), 2015-2019

Figure 21: Finnish Defense Exports by Category, 2015-2019

Figure 22: Finland Budgeting Process

Figure 23: Real GDP Growth, 2016-2025

Figure 24:Nominal GDP Per Capita (US$), 2016-2025

Figure 25: Consumer Price Inflation (%), 2016-2025

Figure 26: Unemployment Rate, 2016-2025

Figure 27: Finland’s Public Sector Finances: Budget Surplus/Deficit (% of GDP), 2016-2025

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