At the beginning of the full-scale invasion, Ukraine’s defense industry was only meeting about 10% of the needs of the Armed Forces, which prompted the sector to undergo a massive transformation. The demand for military products increased a hundredfold, and the army faced the need for modern solutions – from various types of drones to secure communications, battle management systems, and electronic warfare means.
This is reported by Business • Media
Synergy of State and Private Enterprises
A mixed model of defense production has emerged in Ukraine, where state and private companies combine competitive collaboration. State enterprises, despite losing some resources, remain the foundation for the production of heavy weapons and strategic areas with long manufacturing cycles. At the same time, the private sector is demonstrating an unprecedented technological breakthrough, becoming a driver of operational innovations.
Due to critical dependence on international supplies, Ukraine has rapidly harmonized standards with partner countries, implemented transparent supply coordination mechanisms, and integrated manufacturers into global planning and logistics systems. Additionally, the state has provided regulatory and tax incentives for rapid production growth.
Ukraine’s Defense Industry: Growth Prospects
As a result, Ukraine has formed one of the most dynamic defense technology ecosystems in Europe, uniting around 900 enterprises. According to forecasts, the capabilities of the defense industry could reach $60 billion by 2026.
At the same time, according to President Volodymyr Zelensky, Ukraine currently lacks the ability to produce missiles for Western air defense systems (NASAMS, IRIS-T, Patriot) due to the absence of the necessary licenses.