This blog is based on Frost & Sullivan’s recent analyses Growth Opportunities in the European Defense Training and Simulation Market and Growth Opportunities in European Missile Defense, 2024–2029, authored by Wayne Shaw, from the Aerospace & Defense practice area.
European defense landscape is undergoing its most significant shift in decades. Geopolitical tensions, rapid technological advances, and the drive for strategic autonomy are transforming how North Atlantic Treaty Organizations (NATO) and European Union (EU) nations prepare, protect, and project power.
This transformation is creating major growth opportunities in Training and Simulation (T&S) and Missile Defense, supporting resilience, sovereignty, and sustainability. From cloud-based Training-as-a-Service (TaaS) to eco-friendly missile propulsion, Europe’s defense evolution is driving smarter, faster, and more sustainable solutions.
How is your defense agency aligning with Europe’s defense transformation to capture growth and long-term resilience?
Download Frost & Sullivan’s analysis to discover growth opportunities in European defense industry.
Training and Simulation at a Turning Point
For years, Europe’s T&S segment struggled with fragmentation, uneven investments, and long procurement cycles. That reality is changing rapidly.
- Gaming engines from Epic Games and Unity now power hyper-realistic environments for flight simulation and wargaming.
- Commercial off-the-shelf (COTS) solutions like virtual reality (VR) headsets are cutting procurement times from years to months.
- Training-as-a-Service (TaaS) is lowering costs and boosting mobility through subscription-based cloud delivery.
- Joint synthetic environments are merging land, air, sea, space, and cyber domains—training forces to fight jointly, as they will in real missions.
What role will your defense organization play in Europe’s training ecosystem as new growth opportunities and strategies emerge?
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Strategic Imperatives Reshaping Europe’s Defense Industry
- Geopolitical Chaos: Russia’s invasion is driving EU defense spending toward 2% of GDP, with border nations like Poland, Finland, and the Baltics prioritizing joint missile defense.
- Disruptive Technologies: AI is transforming training and missile guidance, while green defense is pushing eco-friendly fuels and production.
- Industry Convergence: Programs such as the European Simulation Initiative (EUROSIM) and European Sky Shield Initiative (ESSI) are advancing joint procurement, while IT and cybersecurity are accelerating interoperability and data-sharing.
How is your defense organization responding to these imperatives to remain competitive and relevant?
Companies to Action
A handful of leaders are redefining Europe’s defense transformation:
- Saab (Sweden): Leading the TaaS revolution with cloud-based, portable solutions adopted by US and European militaries.
- MBDA (France/UK/Italy/Germany): Anchoring Europe’s missile defense with integrated propulsion, warheads, and guidance, while co-producing systems through partnerships with Raytheon.
- Varjo (Finland): Bringing cutting-edge VR from the commercial world into defense, powering immersive simulation across NATO exercises.
How is your organization benchmarking its strategy to align with Europe’s next defense chapter?
Download the full analysis to access more information about top industry innovators and emerging players.
Growth Opportunities Driving Transformation in Europe’s Defense Industry
Growth Opportunity 1: Sustainable Missile Propulsion: With EU green mandates reshaping procurement priorities, eco-friendly fuels are becoming a baseline requirement for future defense contracts. Early adopters that integrate green solutions into their systems will gain a long-term competitive edge as “green defense” moves from an emerging trend to a mainstream standard across Europe’s defense ecosystem.
Access more growth opportunities by downloading our analysis
Why This Analysis Matters
Frost & Sullivan’s analysis provides:
- In-depth details into geopolitical and regulatory drivers
- A roadmap of disruptive technologies
- Profiles of leading innovators and growth opportunities
- Strategic guidance for long-term competitiveness
The organizations that align early with NATO and EU priorities, embrace convergence with commercial technologies, and commit to sustainability will define Europe’s defense future.
Are you ready to lead the next chapter of European defense transformation?
Access the full analysis or schedule a Growth Pipeline Dialog with our experts to take the first step toward unlocking sustainable growth opportunities.
