Europe’s defence industry is undergoing a rapid transformation as governments, start-ups and major manufacturers race to strengthen security capabilities amid rising geopolitical tensions. From drone defence technology designed to protect critical infrastructure to a booming submarine construction program on Germany’s Baltic coast, new investments are reshaping both industry and local economies.

At the Euro Defence Expo in Essen, companies showcased innovations aimed at meeting growing demand for defence technology, while industry leaders highlighted the challenges of bringing new solutions to market. Meanwhile, in Wismar, a major submarine-building project is creating jobs, attracting investment and reigniting debate over the role of military production in Germany.

As Europe expands defence spending and security priorities evolve, the question is no longer whether the sector is changing, but how far-reaching the impact will be.