Ukrainian Arms Manufacturers Could Generate €4B in 2025 — Study
Revenue from Tech Force in UA participants, an association of more than 80 Ukrainian arms manufacturers, is projected to hit €4 billion in 2025, representing growth of more than 218% year-over-year. The forecast comes from a new analytical report by the Technological Forces of Ukraine and the Office of Effective Regulation (BRDO).
The forecast comes from a new analytical report by the Technological Forces of Ukraine and the Office of Effective Regulation (BRDO).
The study highlights key trends, challenges, and expectations of Ukraine’s defense tech sector as it seeks deeper cooperation with international partners. Findings are based on surveys and in-depth interviews with TSU member companies.
Key Findings
- Exports on the horizon: 97% of private defense manufacturers expect to open arms exports.
- Top markets: NATO member states are seen as the priority, with MENA countries (Middle East and North Africa) also identified as potential buyers.
- Production load: Median capacity utilization stands at 55%.
- Contracts as bottleneck: 79% of surveyed firms say short-term government contracts are stunting growth, limiting long-term development.
- Market drivers: Demand from military units, volunteers, and local authorities has made the market more competitive, driving better quality, faster innovation, and lower prices.
- Buyer diversification: 88% of companies now sell directly to military units, compared to 64% that supply via government procurement.
- Geography: Production hubs are concentrated in Kyiv and Western Ukraine, with most firms operating multiple sites. The median time to launch a new facility is just three months.
- Components shift: Reliance on commercially available Chinese parts is shrinking, replaced by European, American, and Ukrainian-made components. Already, 28% of surveyed firms source at least half of their parts domestically.
- Investment needs: The biggest demand is for funding in R&D, scaling, new market entry, and product launches.
The report notes that diversification of buyers and rising domestic demand have fueled competition, helping Ukrainian defense tech evolve rapidly despite wartime pressures.
On June 20, President Volodymyr Zelensky unveiled Build with Ukraine, a program designed to promote Ukrainian defense exports.
Ukrainian Arms Manufacturers Could Generate €4B in 2025 — Study
Revenue from Tech Force in UA participants, an association of more than 80 Ukrainian arms manufacturers, is projected to hit €4 billion in 2025, representing growth of more than 218% year-over-year. The forecast comes from a new analytical report by the Technological Forces of Ukraine and the Office of Effective Regulation (BRDO).
The forecast comes from a new analytical report by the Technological Forces of Ukraine and the Office of Effective Regulation (BRDO).
The study highlights key trends, challenges, and expectations of Ukraine’s defense tech sector as it seeks deeper cooperation with international partners. Findings are based on surveys and in-depth interviews with TSU member companies.
Key Findings
- Exports on the horizon: 97% of private defense manufacturers expect to open arms exports.
- Top markets: NATO member states are seen as the priority, with MENA countries (Middle East and North Africa) also identified as potential buyers.
- Production load: Median capacity utilization stands at 55%.
- Contracts as bottleneck: 79% of surveyed firms say short-term government contracts are stunting growth, limiting long-term development.
- Market drivers: Demand from military units, volunteers, and local authorities has made the market more competitive, driving better quality, faster innovation, and lower prices.
- Buyer diversification: 88% of companies now sell directly to military units, compared to 64% that supply via government procurement.
- Geography: Production hubs are concentrated in Kyiv and Western Ukraine, with most firms operating multiple sites. The median time to launch a new facility is just three months.
- Components shift: Reliance on commercially available Chinese parts is shrinking, replaced by European, American, and Ukrainian-made components. Already, 28% of surveyed firms source at least half of their parts domestically.
- Investment needs: The biggest demand is for funding in R&D, scaling, new market entry, and product launches.
The report notes that diversification of buyers and rising domestic demand have fueled competition, helping Ukrainian defense tech evolve rapidly despite wartime pressures.
On June 20, President Volodymyr Zelensky unveiled Build with Ukraine, a program designed to promote Ukrainian defense exports.
