The Scandinavian arms industry is experiencing unprecedented growth, driven by surging European defense spending and NATO integration. Continue reading to learn more about the rapid growth of the Nordic arms industry.
Output and headcounts at major regional players have surged as companies ramp up production of battle-tested equipment, advanced munitions, and electronic surveillance systems to meet global demand.
Key Industry Drivers
The key drivers of these developments are geopolitical shifts, including Russia’s ongoing threat and a shifting global security landscape, which have prompted sustained rearmament across Europe and within the Nordics. Sweden’s full membership and Finland’s deeper alignment with Western structures have accelerated joint procurement cycles and enhanced regional interoperability. Last but not least, equipment such as the Swedish CV90 and the Archer artillery have performed exceptionally well in Ukraine.
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Related: In Case of Crisis or War in the Nordics
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Major Scandinavian Defense Firms
Sweden’s defense turnover reached historic highs. SAAB continues to anchor the sector with the Gripen fighter program and the GlobalEye surveillance aircraft, while BAE Systems Hägglunds in Örnsköldsvik has seen its order book balloon to $8 billion, tripling its workforce to meet demand for the Combat Vehicle 90.
Kongsberg Defence & Aerospace in Norway is rapidly scaling operations, developing NASAMS air defense systems and forming joint European ventures, including a recent communications pact with Thales. Nammo, headquartered in Raufoss, is significantly expanding ammunition and rocket production.
State-backed Patria in Finland is a powerhouse in armored wheeled vehicles, leading a broader manufacturing ecosystem in which small- and mid-sized contractors across the Nordics are increasing integration and scaling operations.
Economic and Supply Chain Impact
The boom is reshaping local economies and supply chains. For example, the town of Karlskoga—Sweden’s traditional military hub—is seeing operations and factories double in size to keep pace with Nammo’s ammunition output. Similarly, specialized Danish companies such as Terma and Weibel Scientific are seeing strong demand for their radar and aerospace technology as they integrate further into NATO supply chains.
The Nordic Fast-Growing Arms Industry, Tor Kjolberg reporting.
Feature image (top) © NAMMO.