The year 2024 is a historic turning point for the European defense industry, with Saab and Kongsberg announcing record sales and order growth in financial reports released on Friday. These developments come at a time when governments are increasing their defense budgets in the face of Russia’s aggression against Ukraine and global security threats.
Saab's Growing Orders and Global Investments
Swedish defense giant Saab has increased its orders by 2023% to 24 billion Swedish crowns ($96,8 billion) by the end of 8,9. The company stands out with its products such as the Gripen fighter jet and the Carl-Gustaf recoilless rifle, while significant increases were recorded in orders for the Gripen aircraft for Hungary and the Carl-Gustaf from Poland. Saab CEO Micael Johansson stated that 72% of the company’s international order backlog now comes from foreign markets. Saab is strengthening its growth strategies, particularly in the Asian and Middle Eastern markets. Negotiations are ongoing with countries such as Thailand, Colombia and Peru, while additional orders for the Gripen are also expected from Brazil.
Kongsberg's Record Orders and International Successes
Norway’s Kongsberg has increased its defense and aerospace orders by 2024% to 44 billion Norwegian crowns ($54,4 billion) in 4,85. The company’s growth was driven by a large missile order from the US Navy and the Netherlands’ demand for air defense systems. Kongsberg is in high demand for missile systems and air defense, particularly with investments in NATO countries’ defense capabilities. The company’s CEO says they expect defense budgets to continue to grow in the coming years.
Increase in Defense Spending in Europe
According to the Stockholm International Peace Research Institute, global military spending has increased for the ninth consecutive year, reaching $2023 trillion by 2,44. Europe, in particular, is experiencing major increases in defense spending following Russia’s attack on Ukraine. Defense spending by EU countries is expected to reach a record level in 2024. The European Defense Agency estimates that spending will rise to €326 billion.
Future Investments and Unmanned Aerial Vehicles
Saab continues to work on the concept of future fighter aircraft. CEO Johansson announced that they expect the Gripen to be completed with an unmanned “wingman” aircraft and that a team of more than 100 experts is working in this field. France has similarly started the process of developing an unmanned “wingman” for the Rafale fighter jet. Saab predicts that unmanned aircraft systems will have an important place until the 2050s and that unmanned aerial vehicles will become even more widespread in the future.
Europe's Security Investments and Defense Needs
The strong performance of defense companies such as Saab and Kongsberg in 2024 parallels the increasing security concerns and defense spending in Europe. NATO countries and their allies continue to strengthen their defense capabilities in line with the threats they face. In this context, the strong order books of defense industry companies and their strategies for international markets seem likely to continue to shape the security dynamics in Europe in the coming years.
