Belgium’s defence industry poised to double in size by 2033
Belgium’s defence industry could double in size over the next eight years, driven by increased investment and growing geopolitical pressures, according to calculations by technology federation Agoria. If current trends continue, the sector could generate an additional 8,000 jobs while strengthening Belgium’s position within the European defence landscape.
Currently, Belgium’s core defence industry consists of more than 80 companies, generating an annual turnover of 2 billion euros and employing 5,000 people. When broader defence-related businesses are included, the sector expands to nearly 900 companies, 5 billion euros in revenue and 16,300 jobs.
If the sector succeeds in doubling its size, this could create over 4,000 new direct jobs and an equal number of indirect roles, Agoria estimates.
”The sector still struggles with its image, and banks remain reluctant to finance defence companies despite shifting geopolitical realities"
However, several challenges must be addressed to realise this growth, says Pascal Acket, defence specialist at Agoria.
“The sector still struggles with its image, and banks remain reluctant to finance defence companies despite shifting geopolitical realities," he said. "Additionally, Belgium needs a more flexible and predictable export framework, as its regulations are currently stricter than in many other European countries.”
Ramping up production
Belgium is set to boost its defence budget significantly in the coming years. The government aims to raise spending to 2 per cent of GDP by 2029 and 2.5 per cent by 2034, in line with NATO targets. This increase will be supported by a new Defence Fund alongside structural budget allocations.
Defence minister Theo Francken has also emphasised the need for a strong industrial base, urging for a federal-regional cooperation agreement before the summer. “We must ramp up our military production as soon as possible”, he said.
Belgium’s defence expansion aligns with broader European efforts to bolster military capabilities. European Commission president Ursula von der Leyen has proposed an 800 billion euro Rearm Europe plan to strengthen EU defence and support Ukraine.
The plan includes measures such as redirecting 150 billion euros in loans towards joint procurement of military equipment, ensuring interoperability among EU forces, and increasing private investment in defence technologies.
A Belgian soldier during a training exercise © BELGA PHOTO KRISTOF VAN ACCOM
Related news
