The Denmark defense budget stands at $4.3 billion in 2021. The market is expected to grow at a CAGR of more than 4% during the forecast period. The increase in Danish defense expenditure is primarily driven by a response to an evolving security environment and a focus on strengthening Denmark’s ability to participate in NATO’s cooperative defense and deterrence operations. The modernization of the Danish military’s equipment and the replacement of aging platforms across all branches of the military is a key factor in rising spending.
The Denmark defense market report provides an overview of the Danish defense market, outlining future programs and predicted expenditures. This report predicts future Danish defense expenditures and includes the likely effect on the market.
Denmark Defense Market Overview
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What are the market drivers in the Denmark defense industry?
The need to create a military that can rapidly respond to a wide spectrum of scenarios and threats is a significant driver of defense expenditure. Denmark is one of the world’s most digitized societies and is acutely vulnerable to cyber-attacks that can be initiated remotely across borders. Denmark also voices continued concern with political instability in the Middle East and North Africa acting as a breeding ground for militant Islamist groups and the subsequent effects of terrorism and large, irregular migration flows. The confrontation between NATO and Russia over issues such as Ukraine and NATO’s enlargement to Russian borders will influence Danish decisions on defense spending.
What are the military doctrines and defense strategies in Denmark?
Denmark’s membership and contribution to NATO remains a cornerstone of the Danish defense doctrine. International cooperation and operations have long been a focus of the Danish military doctrine, as the Danish government views a security situation that promotes stability, strong international law, and multilateral cooperation as an important element of Danish defense policy. The concept of ‘Total Defense’ – the use of all available resources in times of crisis and national emergency – also plays an important part in Denmark’s military doctrine. By 2024, the Army plans to have a deployable brigade to meet NATO’s force contribution goals for a medium-sized formation. Intended to be easily incorporated into wider deployments with allies and be a credible force in a peer-to-peer scenario, it shall receive an increased number of main battle tanks and a wide spectrum of capabilities including ground-based air defense, new sensor and electronic warfare equipment, and a drone capacity. Additionally, Denmark plans for a new light infantry battalion to participate in collective defense, international operations, or in national security deployments in concert with police forces.
What are the key sectors in the Denmark defense market?
The key sectors in the Denmark defense market are military fixed-wing, naval vessels and surface combatants, tactical communications, military infrastructure and logistics, military land vehicles, missiles and missile defense systems, and electronic warfare.
Military Fixed-Wing
Military fixed-wing is forecasted to be the largest sector in Denmark’s defense market. This sector is made up of multi-role aircraft segment. Within this segment, only the F-35A is currently being procured and thus accounts for the entirety of the forecasted spend on this sector over the coming years.
Military Infrastructure and Logistics
Military infrastructure and logistics is the second-largest sector within the Denmark defense market. Three separate segments make up this sector which are central logistics, facilities management, and infrastructure construction. Infrastructure construction accounts for the largest portion of the forecasted sector.
Naval vessels and surface combatants
The third-largest sector in Denmark’s defense market is naval vessels. Within this sector are two sub-segments namely corvettes and light combat vessels.
Denmark Defense Market Analysis by Sector
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Which are the key companies in the Denmark defense market?
Some of the key companies in the Denmark defense market are Odense Maritime Technology, Terma A/S, Systematic A/S, Wirtek AS, Rovsing AS, Air Alsie A/S, Bruel & Kjaer Sound & Vibration Measurement AS, Composhield A/S, Copenhagen Sensor Technology A/S, Damasec, DAO Aviation AS, Nordic Aviation Capital, and Satair A/S.
Market report scope
| Market size (2021) | $4.3 billion |
| CAGR | >4% |
| Forecast Period | 2022-2026 |
| Key sectors | Military Fixed Wing, Naval Vessels and Surface Combatants, Tactical Communications, Military Infrastructure and Logistics, Military Land Vehicles, Missiles and Missile Defense Systems, and Electronic Warfare |
| Key companies | Odense Maritime Technology, Terma A/S, Systematic A/S, Wirtek AS, Rovsing AS, Air Alsie A/S, Bruel & Kjaer Sound & Vibration Measurement AS, Composhield A/S, Copenhagen Sensor Technology A/S, Damasec, DAO Aviation AS, Nordic Aviation Capital, and Satair A/S |
This report provides:
- Political alliances and political threat perceptions as well as detailing market attractiveness and emerging opportunities.
- Budgetary trends over the next 5 years to 2026, outlining predicted expenditure as well as expected costs.
Reasons to Buy
- Determine potential investment opportunities based on analysis and market projections.
- Gain an understanding of the Danish defense market and potential limitations to involvement.
- Understanding of how spending will change in the next 5 years and the impact of COVID-19.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The Danish defense budget stands at $4.3 billion in 2021.
The defense market in Denmark is expected to grow at a CAGR of more than 4% during the forecast period.
The key sectors in the Denmark defense market are military fixed-wing, naval vessels and surface combatants, tactical communications, military infrastructure and logistics, military land vehicles, missiles and missile defense systems, and electronic warfare.
Some of the key companies in the Denmark defense market are Odense Maritime Technology, Terma A/S, Systematic A/S, Wirtek AS, Rovsing AS, Air Alsie A/S, Bruel & Kjaer Sound & Vibration Measurement AS, Composhield A/S, Copenhagen Sensor Technology A/S, Damasec, DAO Aviation AS, Nordic Aviation Capital, and Satair A/S.
