Record European Defence Spending Spells Great News for Suppliers
In good news for those businesses working in the defence supply chain or looking to break into this lucrative market for the first time, the European Defence Agency (EDA) has revealed record European defence spending in 2020 in its latest report.
Who is the EDA?
EDA acts as a catalyst, promotes collaborations, launches new initiatives and introduces solutions to improve defence capabilities. It is the place where Member States willing to develop capabilities in cooperation do so. It is also a key facilitator in developing the capabilities necessary to underpin the Common Security and Defence Policy of the Union.
What is the EDA’s annual Defence Data report?
The EDA has just published its annual Defence Data report for 2019-2020, detailing defence spending by the 26 EDA Member States.
EDA has been collecting defence data on an annual basis since 2006, in line with the Agency’s Ministerial Steering Board Decision of November 2005. The Ministries of Defence of the Agency’s 26 Member States provide the data. EDA acts as the custodian of the data and publishes the aggregated figures in its booklets.
What does the EDA report say about defence spending?
In 2020, defence spending totaled €198 billion, representing a further 5% increase on 2019, and making it the highest level ever recorded by EDA since it began collecting data in 2006.
EDA’s report also finds that 19 Member States increased their overall defence spending in 2020, with six raising spending by over 10%.
The total defence expenditure marks the sixth year of consecutive growth. For the second year in a row EDA has recorded a 5% rise in defence spending, despite the economic impacts of COVID-19.
Where is the money being spent?
We know that science and technology are a focal point for the defence so it’s no surprise to research and technology feature on the list of areas of increased investment.
In 2020, defence Research and Technology spending totalled €2.5 billion, representing a massive 46% increase compared to the previous year and an EDA recorded high.
It isn’t just science and technology where the opportunities lie, more money is being invested in new equipment with a record €36 billion spent in 2020, compared to the recent low of €21 billion in 2014.
How can Supply2Defence help?
It’s all well and good finding out that member states across Europe are spending plenty on their defence supply chain – but, without a better understanding of the contracts on offer, what they entail, and the secret to success, you’re probably thinking what relevancy does this have to me? Well, with the right suite of knowledge, you could be the next business taking advantage of the growing defence expenditure.
Supply2Defence can give you sight of the opportunities arising from this increased investment. The platform is powered by the UK and ROI’s largest database of contracts and awards, covering the MOD, blue light and civil buyers across public sector procurement.
The platform provides free access to all UK MOD and blue light notices and awards as standard. Plus, when you register, you’ll gain exclusive access to complimentary resources filled with eGuides and market insight to help support your business’s tendering strategy, and get you ready to win the many contracts available on the service.
Start your search for defence contracts with Supply2Defence.
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