Europe's Defence Renaissance: Rise in Military Spending and Innovations

Europe's defence sector has experienced significant growth following Russia's invasion of Ukraine. With increased military spending, EU member states aim to enhance their defence capabilities. Companies like Airbus and BAE Systems benefit, while newcomers such as Hensoldt and Saab gain prominence. Defence investment is expected to reach 130 billion euros by 2025.

In the aftermath of Russia's full-scale invasion of Ukraine in February 2022, Europe's defence sector has undergone significant transformation, driven by increased military spending across the continent.

Governments are responding to rising geopolitical tensions, enhancing their military capabilities with a projected investment soaring to nearly 130 billion euros by 2025. This surge has sparked investor interest, sending shares of prominent defence firms to record highs.

Leading companies in the field, including Airbus and BAE Systems, have benefitted from the defence boom, while smaller firms like Hensoldt and Saab have emerged as rising stars, driven by a gap in air defence technology and strategic innovations in military hardware.

(With inputs from agencies.)