Market-intelligence report · MergeWave Capital

EUROSATORY 2026

What the world's largest land-defence show says about the rearmament cycle.

Venue
Paris-Nord Villepinte
Dates
15–19 June 2026
Editions compared
2018 · 2022 · 2024 · 2026
Organiser
COGES / GICAT
Scroll
Introduction

In 2018, armed drones were close to taboo on the European stands. By 2024, the consensus on the floor was that almost every drone on display could carry a weapon.

The show did not change its rules. The war next door changed what the industry was willing to sell in public.

Eurosatory is the biggest land and air-land defence exhibition in the world. It runs every two years at Paris-Nord Villepinte, organised by COGES for the French defence industry association. The 2026 edition opens 15 June and runs to 19 June. The comparison set is 2018, 2022, 2024 and 2026, since the 2020 edition was cancelled during COVID.

This report reads the show as an indicator. Not the products, but what the event itself reveals: where the money flows, what gets signed, who shows up, and which technologies are winning the floor.

The pattern is consistent across all four editions. Eurosatory has become the trade-show face of Europe's rearmament.

Executive Summary

The headline reading

$0B
Defence revenue of the 50 largest exhibitors (FY2025)
▲ from ~$390B a year earlier
0+
Exhibitors — a record edition, sold out across four halls
66 countries · +20,000 sqm
$0B
European defence-tech venture funding in 2025
▲ 55% on the year · AI = 44%

Five things to know

01 — Scale

The face of Europe's rearmament

Exhibitor count climbed from 1,743 in 2022 to about 2,030 in 2024 to more than 2,300 for 2026, and the show added a fourth hall. The growth tracks the war.

02 — Signal

A launch-and-MoU venue, not a signing floor

The headline activity is letters of intent and memoranda. Read the June announcements as a roughly six-month leading indicator of where real contracts land.

03 — Technology

The centre of gravity moved to unmanned systems

Drones, counter-drone and autonomy now dominate the floor. The main battle tank is still there, but it is no longer the story.

04 — Money

Public money and private capital point the same way

The EU mobilised up to €800B (including the €150B SAFE instrument), NATO set a 5%-of-GDP target, and AI took 44% of European defence-tech venture funding.

05 — Politics

The politics are live

France barred Israeli firms in 2024 and a court reversed it mid-show; more than 30 are reported back for 2026. Russia and Belarus remain absent under sanctions. The show is now a venue where geopolitics is contested directly.

The numbers that matter

The show is growing, and the growth tracks the war

Exhibitors went from 1,802 in 2018 to 1,743 in 2022 to about 2,030 in 2024 — and 2026 is sold out across all four halls at more than 2,300 exhibitors from 66 countries. Organisers do not add 20,000 square metres of space on a guess.

Exhibitors per edition
2026 is a registration figure; the event is still ahead. The only dip was 2022, the first edition after a four-year COVID gap.
1,802
2018
1,743
2022
2,030
2024
2,300+
2026
Official delegations
227
2018
250
2022
355
2024
330+
2026·proj
Floor area · sqm
~3 halls
2018–22
166,617
2024
185,000+
2026 · 4th hall

Headline metrics, four editions

Metric2018202220242026
Exhibitors1,8021,7432,0302,300+
Exhibiting countries63626166
Professional visitors57,05662,00042,000 unique (76,000 adm.)future
Official delegations227250355330+ proj.
Delegation countriesn/a9692100 proj.
Floor area3rd halln/a166,617 sqm185,000+ · 4th hall
Conferences71110120100+

One number is worth a footnote, because it gets misquoted everywhere. The 2024 balance reports 42,000 unique professional visitors and 76,000 total admissions across five days. Both are right — a person attending three days counts once in the first number and three times in the second. The widely cited "75,000+" is a rounding of admissions, not people.

Take

The fourth hall is the most honest signal in the whole dataset. Visitor counts can be massaged and delegation numbers are soft, but physical space is booked and paid for months ahead. The show committed to 185,000 square metres because the demand was already in hand.

What actually gets signed here

Where intent is signed, not where contracts close

The most reliably documented items each year are MoUs and letters of intent. Firm priced contracts on the floor are the exception — the disclosed-value data is thin by design. The Franco-German next-gen tank (MGCS) was a letter of intent in both 2022 and 2024, and only became a real company in January 2025.

Eurosatory 2024 — signed on or around the floor

PartiesValueScopeType
KNDS, Rheinmetall, ThalesNot disclosedMGCS next-gen tank companyLoI → company Jan 2025
Hanwha & Romania$920MK9 Thunder howitzersContract
Hanwha & KongsbergNot disclosedFire-control, combat systemsMoU
Armenia & France (KNDS)Undisclosed36 CAESAR howitzersContract at show
Turkey MKE & Century Arms$30M+License-build 7.62mm rifles for USContract at show
Ukraine (Ukroboronprom)Not disclosedSeven agreementsMoUs

Ukraine signed seven agreements at its first official presence — three with Thales (a repair/modernisation JV, an EW & radar service centre, joint drone development), plus deals with Hexadrone, Exail, Arquus, and a GICAT–Technological Forces of Ukraine memorandum. None carried a public value.

Eurosatory 2022 — the same shape

PartiesValueScopeType
KNDS, Rheinmetall, ThalesNot disclosedMGCS project companyLoI (re-signed 2024)
Lithuania & Nexter€250M18 CAESAR Mk II howitzersLoI → contract Dec 2022
PT Len & NexterNot disclosedIn-service support, Indonesian CAESARContract
Belgium & Nexter/ArquusNot disclosed9 CAESAR Mk IIGovernment order
Hanwha & KongsbergNot disclosedIFVs, precision firesMoU
Arquus & PT PindadNot disclosedFuture land-systems programmesMoU
Nexter & MBDANot disclosedCounter-drone, ground-air defencePartnership

Lithuania signed a CAESAR letter of intent on the floor in June 2022 and converted it to a firm contract that December. The 2018 cycle showed the longer arc: the Franco-Belgian CaMo partnership (382 Griffon + 60 Jaguar, ~€1.5B) was approved that autumn, not on the June floor.

Take

Treat Eurosatory announcements as a leading indicator with roughly a six-month lag. The intent signed in June tends to become a contract by winter. Anyone tracking the European land-systems pipeline should read the show floor as a forward signal, not a transaction record.

MergeWave Capital

Where intent is signed, not where contracts close

The defence market is changing fast.

Understanding where capital, technology, and procurement are moving can create a significant advantage.

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Who is actually on the floor

A concentrated map of the Western and allied arms industry

After host France, the 2026 floor is led by Germany, the United States, Italy and the United Kingdom. France does not publish its own count, but as host it fields the largest single contingent.

Exhibitors by country · 2026 (excl. host France)
Germany
199
United States
144
Italy
67
United Kingdom
65

The top 50 exhibitors by defence revenue

FY2025 company-reported defence revenue (defence segment where disclosed, group total for pure-play firms). Eight firms not yet reporting FY2025 are marked FY24. Bars are scaled to the largest defence-revenue figure.

#CompanyCountryDefence rev.Group totalEurosatory focus
1Lockheed MartinUSA$75.0B$75.0BMissiles, C2, air defence
2RTX (Raytheon)USA$45B est.$88.6BMissiles, air defence, C-UAS
3Northrop GrummanUSA$42.0B$42.0BAmmunition, sensors, C2
4General DynamicsUSA$40B est.$52.6BArmoured vehicles, artillery
5BAE SystemsUK$39.0B$39.0BTanks (Abrams), wheeled AFVs
6L3HarrisUSA$21.9B$21.9BNight vision, optronics, EW
7LeonardoItaly$16B est.$21.1BTurrets, vehicles, optronics
8Airbus D&SEU$14.5B€73.8B grpMostly air, minor land C2
9ThalesFrance$13.2B$23.9BOptronics, radars, C-UAS
10RheinmetallGermany$9.7B$10.7B grpAmmunition, IFVs, tanks (anchor)
11SaabSweden$8.3B$8.3BCV90, Carl-Gustaf, NLAW
12Elbit SystemsIsrael$7.9B$7.9BEngines for land platforms
13Hanwha AerospaceS. Korea$7.7B core$19.3B grpArtillery, drones, optronics
14Czechoslovak GroupCzech$7.3B$7.3BLarge-calibre ammunition, AFVs
15RafaelIsrael$6.8B$6.8BMissiles, air defence
16IAIIsrael$6.4B$7.4BLoitering munitions, radars
17MBDAEurope$6.3B$6.3BSpike, Trophy, Iron Dome
18Rolls-RoyceUK$6.1B$25.5B grpAmmunition, loitering munitions
19PGZ FY24Poland$5.0B est.$5.0BPrimarily air, minimal land
20EDGE Group FY24UAE$4.9B$4.9BLeopard 2, Leclerc, CAESAR
21KNDSDE/FR$4.75B$4.75BLarge-calibre ammunition, AFVs
22AselsanTurkey$4.7B$4.7BOptronics, EW, C2, radars
23Dassault Aviation FY24France$4.3B€6.2B grpTactical vehicles, ATGM
24ST EngineeringSingapore$4.06B$9.4B grpKrab, Borsuk, ammunition
25TextronUSA$3.3B est.$14.8BAFVs, artillery, ammunition
26LIG Nex1S. Korea$3.1B$3.1BMissiles, guided weapons
27FincantieriItaly$3.0B est.$9.9B grpRadars, optronics, EW
28Turkish Aerospace FY24Turkey$3.0B$4.3BUAS, helicopters
29Korea AerospaceS. Korea$2.7B$2.7BTactical trucks, logistics
30HensoldtGermany$2.65B$2.65BIRIS-T air defence, ammunition
31Hyundai RotemS. Korea$2.5B est.$4.2B grpMostly air, modest land
32BaykarTurkey$2.5B$2.5BRobotics, EW, training
33QinetiQUK$2.45B$2.45BDrones, loitering munitions
34KongsbergNorway$2.38B KDA$5.6B grpUAS, weapon stations, NASAMS
35Oshkosh DefenseUSA$2.2B est.$10.4B grpWeapon stations, NASAMS
36RoketsanTurkey$2.0B+$2.0B+K2 tank, wheeled AFVs
37MoogUSA$2.0B est.$3.9B grpMissiles, rockets
38Diehl FY24Germany$2.0B€4.7BAFVs, tactical vehicles
39General Atomics FY24USA$1.9Bn/dAmmunition, artillery, small arms
40CAECanada$1.8B$3.4B grpMostly naval, minimal land
41Navantia FY24Spain$1.65B$1.65BTraining and simulation
42Indra SistemasSpain$1.52B$5.9B grpActuation, turret drives
43NammoNor/Fin$1.37B$1.37BTurrets, Arquus vehicles
44MKE FY24Turkey$1.2B$1.2BSmall arms, weapon stations
45PatriaFinland$1.17B$1.17B6x6 vehicles, mortar systems
46ChemringUK$0.63B$0.63BRadars, C2, EW, simulation
47FN Herstal FY24Belgium€556M€934MNaval, minimal land
48John Cockerill FY24Belgium~$0.5B€1.4BAmmunition, rocket motors
49OtokarTurkey~$0.4B est.$1.37BC2 software, simulation
50HavelsanTurkey~$0.38B est.$0.38BCountermeasures, energetics
$450B

Top-50 defence revenue

Up from ~$390B on the FY2024 basis. On a group-revenue basis the same 50 firms clear $600B.

$241B

Top five alone

Lockheed, RTX, Northrop, General Dynamics and BAE. The US accounts for more than half of the group's arms revenue.

~$50B

The long tail

Roughly 1,950 SMEs and startups, size-banded to €35–70B (central ~€50B). An estimate, not a measurement.

The long tail, size-banded

BandFirmsAvg. revenueSubtotal
Mid-cap / Tier-2200€120M€24.0B
Established SMEs900€25M€22.5B
Small SMEs600€6M€3.6B
Micro-firms / startups250€1.5M€0.4B
Long-tail total1,950≈ €50B

The anchor is ASD-Europe's reported European defence turnover of €183.4B in 2024, minus the primes. Much of that revenue is embedded in prime supply chains, so read it as gross exhibitor revenue rather than additive industry value.

Revenue across editions — a like-for-like cohort

The combined SIPRI arms revenue of the 14 largest primes that stayed in the Top 100 continuously: a rise of about 48% across the span. The 2026 bar uses FY2025 company-reported defence revenue (~$286B) and sits on a higher basis — read the final step as partly real growth, partly the change of measure.

Core 14-prime arms revenue · $bn
SIPRI arms revenueFY2025 company-reported basis
$166B
2018
$205B
2022
$245B
2024
$286B
2026 · FY25

For scale: SIPRI's entire Top-100 arms revenue went from $420B (2018) to $597B (2022) to $679B (2024). The European share (excl. trans-European groups) climbed from $102B to $151B. Czechoslovak Group entered the Top 100 only in 2024, up 193% in a single year.

Take

The exhibitor base and its revenue rose together, and the steepest move came after 2022. Eurosatory's growth is not a venue story — it is the industry repricing itself for a war economy. The floor is where you can watch the rearmament cycle convert from policy into industrial activity.

Anchor exhibitors

The firms that hold the floor

A handful of primes set the tone of the show. They take the largest stands, bring the headline platforms, and host the delegations. These are the firms to know before walking the 2026 floor.

CompanyHQOwnershipFY revenueWhat they bring
KNDSFR / DEPrivate (FR/DE states + family)€4.4B grp (FY25)Leopard 2, Leclerc, CAESAR, Boxer, EMBT
RheinmetallGermanyListed€9.94B grp (€9B def.)Ammunition, Lynx KF41, Panther, air defence
ThalesFranceListed (~26% state)€22.1B grp (€12.2B def.)Optronics, radars, comms, counter-drone
LeonardoItalyListed (~30% state)€19.5B grpTurrets, vehicles, AW249, optronics
Hanwha AerospaceS. KoreaListedKRW 26.6tn ($7.7B core)K9 howitzer, Redback IFV, Chunmoo
Czechoslovak GroupCzech Rep.Private€6.74B grp (FY25)Large-calibre ammunition, AFVs
SaabSwedenListedSEK 79.1B ($8.3B)CV90, Carl-Gustaf, NLAW, air defence
KongsbergNorwayListed (~50% state)NOK 58.6B ($2.4B def.)Weapon stations, NASAMS, missiles
KNDS — the consolidation

What happens when two national champions merge. Formed from Germany's Krauss-Maffei Wegmann and France's Nexter, it now owns the Leopard 2, the Leclerc, the CAESAR and the Boxer. Its booth is where the Franco-German tank question lives, and the EMBT demonstrator shown since 2018 is the physical face of that merger. A stock-market listing has been discussed around the June 2026 show.

Rheinmetall — the grower

The clearest winner of the cycle. Group revenue reached €9.94B in 2025, up 29% on the year, with roughly €9B in defence, and it guided to as much as 45% growth in 2026. It anchors the show with ammunition, the Lynx KF41, the Panther tank line and air defence, and has used recent editions for the boldest reveals on the floor.

Czechoslovak Group — the ammunition winner

The private Czech group that turned the ammunition shortage into scale. Group revenue jumped to €6.74B in 2025, from around €4B a year earlier, with large-calibre ammunition at the core. The standout example of a mid-tier firm becoming a prime on the back of the war economy.

Hanwha — the exporter

The South Korean land-systems champion, with record 2025 sales and an export push that landed the K9 howitzer and Redback IFV across Europe, including the $920M Romania deal around the 2024 show. Korea's ability to deliver fast and at scale made Hanwha one of the most-watched stands for European buyers facing long queues at home.

Thales — the electronics backbone

The sensor and electronics backbone of the European floor — €20.6B in 2024, ~a quarter state-held, spanning optronics, radars, comms, soldier systems, vetronics and counter-drone. The busiest Ukraine-cooperation prime in 2024, signing three of Ukraine's seven agreements.

Leonardo — the Italian champion

Italy's state-anchored champion, ~30% government-owned, €17.8B of 2024 revenue across helicopters, turrets, vehicles and optronics. Its 2024 headline was the international debut of the AW249 attack helicopter — one of the few primes that can equip a force from the turret to the rotor.

Saab — validated by the war

Best known for the Gripen, but its land business is central to Eurosatory. SEK 63.8B (~$6B) in 2024, making the CV90 IFV and the Carl-Gustaf and NLAW shoulder-fired weapons Ukraine used in volume. Few firms have had their products validated in the war as visibly as Saab's anti-armour line.

Kongsberg — the quiet ubiquity

The quiet constant on the floor. The Norwegian group, ~half state-owned, reported NOK 41.5B in 2024. Its PROTECTOR remote weapon stations sit on vehicles from dozens of armies, and with Raytheon it builds the NASAMS air-defence system now defending Ukrainian cities.

The politics in the room

From ceremonial to consequential

Start with a correction that gets repeated wrong everywhere. Macron personally inaugurated the 2022 show — the first time a sitting French president opened it. The 2024 edition was opened by Defence Minister Sébastien Lecornu, not Macron. Many secondary write-ups conflate the two.

The political principals
Emmanuel MacronPresident of France · 2022
Sébastien LecornuMin. of the Armed Forces · 2024 · signed the drones pact
Emmanuel ChivaHead of DGA · 2024 · co-signed drones pact
Suren PapikyanDefence Min., Armenia · 2024 · first Armenian presence, signed with KNDS
Beyond the politicians
Gen. Christopher CavoliSACEUR · 2024 · fireside chat on collective defence
Stacy CummingsGM, NATO Support & Procurement Agency · keynote
Gen. Robert BriegerChair, EU Military Committee · toured pavilions
Oleksandr KamyshinMin. of Strategic Industries, Ukraine · oversaw 7 agreements
Marc Darmon / C. BeaudouinGICAT chair / Exhibition Director · hosts 2024–26

Ukraine appeared officially for the first time in 2024, showing battle-tested systems like the Magura V5 and Raybird, at the level of Ukroboronprom and the Ministry of Strategic Industries. Official delegations climbed from 250 in 2022 (96 countries) to 355 in 2024 (92 countries), with 330+ projected for 2026; Gulf and Indo-Pacific delegations grew. The 2026 conference programme runs about 450 speakers across 100+ talks, around four strategic themes: multi-domain superiority; remote engagement and land manoeuvre; comprehensive security and crisis management; and industrial resilience and the war economy.

The executives behind the reveals and signings — 2024

NameRoleCompanyWhat they did
Armin PappergerCEORheinmetallUnveiled GMARS and the KF51-U
Nicolas ChamussyCEOKNDS FranceSigned the KNDS–Ukraine production JV
Emmanuel LevacherCEOArquusUnveiled the MAV Rx and Drailer UGV
Ahmet AkyolPresidentAselsanUnveiled Skydome and wheeled Korkut
Pascale SourisseSenior EVPThalesSigned Thales–Ukraine agreements
Jaeil SonPresident & CEOHanwha AerospaceSigned the Hanwha–Kongsberg MoU
Kuldar VäärsiCEOMilrem RoboticsLargest-ever stand; THeMIS sold to Sweden

The innovation zone had its own names. The 2024 Eurosatory Lab Start-ups Challenge was won by Picogrid (US command-and-control, led by Zane Mountcastle), alongside Sweden's Mirola Rescue and France's Actronika — a useful early read on which young firms the show's jury thinks matter.

The Israel question — the 2024 sequence

31 May 2024

The ban

The French defence ministry ordered COGES to bar Israeli defence firms after the Rafah strike, with about 74 Israeli companies registered.

Mid-June 2024

Widened

A district court widened the ban to any Israeli citizen or business intermediary.

~18 June 2024

Struck down

The Paris Commercial Court struck the exhibitor ban down as unlawful discrimination — but the reversal came mid-show and was largely moot, since most Israeli firms, including Rafael, did not exhibit.

Oct 2024 → Mar 2026

The pattern continued

France restricted Israeli firms at Euronaval (Oct 2024) and walled off Israeli booths behind black panels at the 2025 Paris Air Show. In March 2026 Israel halted all defence procurement from France. For 2026, more than 30 Israeli firms are reported registered — Rafael, Elbit, IAI — plus a national pavilion.

Take

The Israel episode is not a side story. It is the test case for whether a European arms show can stay neutral ground when the host government has a foreign-policy position. So far the courts have protected participation and the executive has kept pushing back. Watch whether 2026 holds the line or breaks it.

What is winning the floor

A clear shift in what dominates attention

The evidence does not support a single static winner. It shows the centre of gravity moving from platforms to unmanned systems, counter-drone and autonomy — a timeline of the war read off the show floor.

2018

Armoured vehicles and platforms led; armed drones were close to taboo.

2022

Drones and loitering munitions surged in the first months of the war, led by surveillance and reconnaissance.

2024

A decisive pivot to weaponised unmanned systems and counter-drone, with the floor consensus that nearly every drone could carry a weapon.

2026

The organiser rebuilt the live-demonstration zone around robotics, trench warfare and three-dimensional drone manoeuvres.

Sector dominance across editions

No source publishes a per-category breakdown. This is an analyst estimate from the cluster structure and activity-tag patterns. Exhibitors carry several tags at once, so shares overlap and sum to more than 100% — these convey relative scale, not measured share.

Estimated share of exhibitors by category
Bars show the mid-point of each estimated range.
Optronics, sensors, EW
12–16%
Armament, ammunition, artillery
12–16%
Vehicles, mobility, AFVs & tanks
11–15%
Drones (incl. loitering, FPV)
11–15%
Counter-drone
8–12%
C5ISR, comms, command
8–12%
Protection & soldier systems
8–12%
Training, simulation, services
5–8%
Logistics, energy, medical
5–8%
Ground robotics & UGVs
4–7%
Cyber & information security
3–5%
CBRNe
3–5%
Space
1–3%

AI and autonomy do not get a clean row — they show up inside other categories rather than as a separate aisle. The four largest sectors are roughly comparable at the top, counter-drone is the clearest riser, and the platform categories are holding rather than growing. The 2026 clusters were reorganised around Drones & Robotics, Cybersecurity, CBRNe, and a new Financing & Export cluster — positioning the show inside the rearmament trend rather than just hosting it.

Edition by edition — the headline platforms

2018
Consolidation
KNDS EMBT — first joint product, world premiere
Rheinmetall Lynx KF41 — new tracked IFV
Patria 6x6 APC
STM Kargu — loitering drone, a curiosity
2022
War arrives
Rheinmetall Panther KF51 — 130mm gun
Milrem + UVision Type-X — armed UGV
Mission Master XT + HERO launcher
KNDS EMBT — updated demonstrator
2024
Unmanned turret
KNDS Leopard 2 A-RC 3.0 — unmanned turret
EMBT ADT 140 (Ascalon)
Rheinmetall KF51-U — crewless turret
GMARS w/ Lockheed — Europe's HIMARS
Leonardo AW249 — intl. debut
2026
Maturation
RENK ESM 280 — AFV powertrain, launched early
KNDS Leopard 2 A-RC 3.0 — operational demonstrator
Arquus — UGV + new 4x4, teased
Rheinmetall — exhibiting, premieres TBA
Take

The through-line across four editions is the same one the rest of this report keeps finding. The crew left the turret, and Europe decided it wanted to build its own HIMARS. The platforms got more unmanned, more precise, and more European — in step with the war and the funding.

The macro backdrop

The war is now visible in budgets and in venture capital at once

SIPRI puts 2025 world military expenditure at $2,887B, up 2.9% in real terms — the 11th straight year of growth. Europe reached $864B, up 14%, the highest total SIPRI has recorded.

$2,887B
World military spending, 2025 ▲ 2.9%
$864B
Europe — the main driver ▲ 14%
$954B
United States, still the largest ▼ 7.5%
$190B
Russia, est. — 7.5% of GDP
$84B
Ukraine, est. — 40% of GDP, the highest burden

Germany hit $114B, up 24%, above 2% of GDP for the first time since 1990. The US fall reflects the Ukraine and Israel supplemental appropriations running out. Ukraine's figure excludes donor military aid.

How the rearmament is financed

The European build-up is a set of named instruments — and the distinction matters. Some are EU grants, some are EU loans, and the largest single line is national fiscal space the EU is enabling rather than money the EU itself spends.

EU / NATO financing instruments · by headline size
Hard EU money (loans/grants)Mobilised / fiscal space
ReArm Europe envelope
€800B
National escape clause
€650B
SAFE (EU loans)
€150B
EDF (EU grants)
€8B
EIB defence lending '25
€4B
EDIP (incl. Ukraine)
€1.5B
ASAP (ammunition)
€500M
EDIRPA (joint proc.)
€310M
€150B

SAFE — already operative

Entered force 29 May 2025. By September, 19 member states had expressed intent and demand exceeded the budget. Council green-lit 18 states by April 2026; first pre-financing (up to 15%) targeted for early 2026.

€650B

The escape clause

Up to 1.5% of GDP a year of extra defence spending above a 2021 baseline for four years, without triggering the EU deficit procedure. It is space, not a guarantee — 17 states had activated it by early 2026.

5%

NATO's Hague target

Agreed June 2025, by 2035: at least 3.5% core defence + up to 1.5% resilience, reviewed in 2029. Every member committed except Spain (~2.1% understanding).

Take

The gap between the headline €800B and the hard committed money is the part most coverage misses. SAFE is real loans and EDF is real grants, but the bulk of the €800B is permission to spend, not cash on the table. The number to watch is SAFE disbursement through 2026, not the press-release total.

The capital behind the floor

Private capital moved the same way — and faster

European defence, security and resilience startups raised $5.2B in 2024 and a record $8.7B in 2025, up 55% on the year while broad European venture grew 16%. The same firms fill the show's innovation zone.

European defence-tech VC · $bn
$5.2B
2024
$8.7B
2025
44%AI-underpinned

AI underpins the surge

UK led with $2.9B in 2025, Germany followed at $2.1B, and Munich was the top city at $1.7B.

One number, three definitions

Global figures depend heavily on definition. The 9x gap between Crunchbase and PitchBook for the same year is entirely a definitional artifact — pure-play military versus broad dual-use.

SourceDefinition20242025
CrunchbaseNarrow (pure military / security)$3.0Bn/a
CB InsightsDual-use, equity only$7.3B$17.9B
PitchBookBroad dual-use$27.2B$49.1B

Anyone quoting a single global number without the definition is quoting noise.

The firms raising the money

CompanyHQBuildsLatest round / valuationCombat use
HelsingGermanyAI strike software, HX-2 drones$1.2B at $18B (reported)Bundeswehr, Ukraine
AndurilUSALattice autonomy, counter-UAS$30.5B closed; $61B reportedUS DoD, IVAS
Quantum SystemsGermanyISR drones (Vector)€180M at $3.5BUkraine, Bundeswehr
TekeverPortugalISR drones (AR3, AR5)€70M, >€1B unicornUkraine, UK MoD
ARX RoboticsGermanyUnmanned ground vehicles€42M total raisedBundeswehr, Ukraine
StarkGermanyVirtus loitering munition$62M at $500M (closed)German MoD, Ukraine
AuterionUS / SwissDrone-swarm software$130M at >$600MUkraine, Pentagon

Two headline rounds are reported but not formally closed as of late May 2026: Helsing's $1.2B at $18B was described as close to raising, not done, and Stark was in discussions for ~€300M at ~€2.5B on top of its closed $62M round. Anduril's official last valuation is $30.5B; secondary-market pricing implied ~$61B that is not official.

Helsing started as battlefield AI software, then in late 2024 began building its own HX-2 strike drones — by early 2026 delivering several hundred a month to Ukrainian units. A software company became a drone manufacturer because the war rewarded mass and autonomy at once.

Take

AI and autonomous systems are simultaneously the top venture magnet and the top floor narrative. When private capital and a state-procurement show point at the same thing at the same time, it usually means the shift is real, not hype. The risk sits in the valuations, not the direction — a reported $18B for Helsing and an implied $60B+ for Anduril price in a decade of growth the contracts have not yet delivered.

Ukraine

From exhibitor to production node

In 2018 and 2022, Ukraine was a buyer and a backdrop. By 2024 it had its first official presence, a national pavilion, and battle-tested systems on display like the Magura V5 naval drone and the Raybird reconnaissance UAV. In one cycle it went from customer to co-production partner.

2022

Around five cooperation documents

The presence was a backdrop; the documents were early frameworks.

2024

Seven agreements — joint ventures and service centres

Most were JVs and service centres to repair, modernise and build inside Ukraine rather than import. The Thales agreements alone covered a repair-and-modernisation JV, an in-country service centre, and joint drone development. The direction is local production, not procurement.

Feb 2026

~$950M of co-production, outside the show

Four Ukrainian companies signed co-production agreements with Nordic and Baltic partners — outside Eurosatory but in the same logic. Helsing delivers several hundred HX-2 strike drones a month to Ukrainian units; Quantum Systems produces its Vector reconnaissance drone locally.

$84B
Ukraine defence spending, 2025 — excludes donor aid
40%
of GDP — the highest military burden of any country
7 → ~$950M
agreements at the 2024 show → co-production by Feb 2026

Ukraine also became the validation lab. "Battle-tested" is now a selling point on the floor — from Kvertus EW jammers to the FPV and naval-drone makers — and Ukrainian firms carry credibility no Western test range can match.

Take

Ukraine is no longer a buyer at the show — it is becoming a production node and a proving ground. The flow of build-in-Ukraine and build-with-Ukraine agreements is the structural change, and it is the part of the 2026 floor most likely to keep growing regardless of how the war ends.

The bear case

The hardest realistic case against the thesis

This report has argued the rearmament is real and converting. Intellectual honesty requires the strongest case against it. None of these reverses the direction — but each is a genuine brake.

Risk 01

Valuations price perfection

The defence-tech rounds assume a decade of contract growth that has not yet arrived. A reported $18B for Helsing and an implied $60B+ for Anduril only make sense if procurement converts to revenue fast. If it converts slowly, the first place the gap shows is private valuations.

Risk 02

Most of the €800B is permission, not cash

SAFE is loans that must be repaid, the ~€650B escape-clause figure is fiscal space that fiscally-stretched states may not use, and political cycles can reverse it. The US already cut spending 7.5% in 2025. A recession or budget-fatigue cycle would stall the order flow.

Risk 03

The floor may be over-rotating to cheap drones

The pivot to attritable unmanned systems is a direct reading of Ukraine — but Ukraine's conditions (a near-static front, GPS-denied airspace, mass FPV) may not generalise. An army that under-invests in armour, air defence, logistics and trained mass could mis-learn this war.

Risk 04

The European market is not politically unified

The Israel-ban precedent, the Spanish opt-out from the NATO target, and recurring export-control friction show a single market that fractures under political pressure — raising cost and slowing the joint procurement SAFE and EDIRPA were built to enable.

Risk 05

Industry may not keep up with the money

The 2-million-shells-a-year figure is a capacity target, not confirmed output, and propellants, machine tools and skilled labour all lag the funding. Money committed faster than industry can convert it produces delays, not capability.

The honest read

The most likely disappointment is timing, not direction. The money is being committed faster than the industrial base can absorb it, and the defence-tech valuations are the first place that gap would become visible. The thesis survives, but the path is rougher than the headline numbers suggest.

What to watch at Eurosatory 2026

Seven questions the floor will answer

If the show is an indicator, here is what to read it for during the week of 15 June. Each item is a question the 2026 floor will answer.

Whether the Israeli pavilion actually stands

More than 30 firms including Rafael, Elbit and IAI are reported registered — but France blocked them in 2024 and walled them off at the 2025 air show. The most-watchable political question of the week.

The MGCS signal

France has floated an intermediate-generation tank as a fallback for the delayed Franco-German programme. The show is the natural stage for that decision to surface.

A possible KNDS stock-market listing

Timed near the June show, it would turn Europe's largest land-systems group into a traded company.

SAFE disbursement

First pre-financing was targeted for early 2026. Whether real euro is flowing by June tells you if the €150B instrument is converting from allocation to spend.

The rebuilt live-demonstration zone

Organised around trench warfare and three-dimensional drone manoeuvres — the clearest physical reading of Ukraine's lessons.

Whether any firm priced contract is signed on the floor

Rather than the usual letters of intent and memoranda.

The through-question under all of these

Does 2026 confirm the build-up is converting from money and intent into hardware and contracts — or does it show the first signs of the timing gap the bear case warns about?

So what

The cleanest way to read Eurosatory 2026 is not as an event but as a confirmation. The growth of the show, the war-economy theme, the new financing cluster and the robotics-heavy demonstrations are all the trade-show expression of a European defence build-up you can now see in three places at once: budgets, venture capital, and floor space.

The single sharpest signal on the floor is the relative decline of the main battle tank as the centre of attention, against the rise of cheap, attritable unmanned systems. That is not a fashion. It mirrors exactly what the war has taught, and the capital is following it.

So the question is not whether defence is growing — it clearly is. The question is whether the unmanned-and-autonomy shift that the floor and the funding both point at turns out to be the durable structure of the next decade, or the first overcorrection after a war that rewarded it. Eurosatory 2026 will not answer that. But it is the best single room in the world to watch it play out.

Method, glossary & sources

Notes on sources and method

How the figures were built +

Figures draw on primary and official sources first: official Eurosatory materials and the post-show balance, company filings, the SIPRI Top 100 arms producers and world military expenditure datasets, NATO and EU institutional releases (European Commission, Council of the EU, European Parliament), and credible defence trade press (Defense News, Janes, Shephard Media, Breaking Defense, EDR Magazine, Army Recognition, Reuters). Organiser figures are treated as promotional where they cannot be cross-checked.

On company revenue, the table uses FY2025 results — the most recent full year, reported by most calendar-year firms between January and April 2026. Because SIPRI's 2025 arms-producers list does not appear until late 2026, the ranking uses company-reported defence revenue rather than SIPRI's arms-only measure. The two are not identical, and company-reported figures run higher, so the FY2025 totals are not perfectly comparable to the FY2024 SIPRI figures in earlier drafts.

A few figures are estimates rather than measurements, and are marked as such: the long-tail revenue of exhibitors beyond the top 50, and the per-category sector sizing. Two venture rounds (Helsing, Stark) were reported but not formally closed at the time of writing. The 2026 exhibitor, delegation and conference numbers are registrations or projections, since the event is still ahead. Where a number could not be verified, the report says so rather than picking a convenient figure.

Glossary — terms & acronyms +
AFV / APC / IFVArmoured fighting vehicle / armoured personnel carrier / infantry fighting vehicle
MBTMain battle tank
UAS / UGVUnmanned aircraft system / unmanned ground vehicle
FPVFirst-person-view drone, typically a low-cost attack drone
Loitering munitionA drone that loiters over an area then strikes — a one-way attack munition
C-UASCounter-unmanned aircraft systems, counter-drone
EWElectronic warfare
GBADGround-based air defence
C5ISRCommand, control, communications, computers, cyber, intelligence, surveillance, reconnaissance
ISRIntelligence, surveillance, reconnaissance
RWSRemote weapon station
MoU / LoIMemorandum of understanding / letter of intent — non-binding pre-contract agreements
EMBTEnhanced (European) Main Battle Tank, the KNDS demonstrator
MGCSMain Ground Combat System, the Franco-German next-generation tank programme
COGES / GICATThe company that runs Eurosatory, for the French land-defence industry association
SIPRIStockholm International Peace Research Institute — the standard source for military-spending data
ReArm EuropeEU plan to mobilise up to €800B for defence (Readiness 2030)
SAFESecurity Action for Europe — a €150B EU defence-loan instrument
EDF / EDIP / EDIRPA / ASAPEU defence funding instruments: R&D fund, industry programme, joint-procurement incentive, ammunition ramp-up
Source list +

Editions & exhibitor data: Eurosatory official (2024 record edition & post-show balance; 2026 exhibitors/conferences; 2022 summary), Wikipedia edition statistics, Army Recognition 2022/2024 coverage, EDR Magazine, Media India.

Company revenue & industry scale: SIPRI Top 100 Arms-Producing Companies 2024; Defense News Top 100; company FY2025 results releases (Jan–May 2026); ASD-Europe key data (€183.4B European defence turnover, 2024).

Deals & contracts: Defense News & Rheinmetall (MGCS Jan 2025); Army Technology (Hanwha–Romania K9); Cabinet of Ministers of Ukraine & Militarnyi (seven agreements); The Defense Post & Asbarez (Armenia CAESAR); Defense News (Lithuania CAESAR/Patria).

Politics & the Israel question: French Ministry of the Armed Forces; France 24 & Usine Nouvelle; GICAT drones pact; Times of Israel & Jerusalem Post; Breaking Defense & Defense News (Euronaval 2024, Paris Air Show 2025).

Spending & financing: SIPRI military expenditure 2024/2025; European Commission (Readiness 2030, SAFE, EDF, EDIRPA, ASAP, EDIP); Council of the EU; European Parliament EPRS; European Investment Bank / Euronews; NATO Hague Summit Declaration.

Defence-tech venture: Dealroom & NATO Innovation Fund; Defense News (PitchBook, CB Insights); Crunchbase; TechCrunch (Anduril, Helsing); Tech.eu & EU-Startups (Quantum Systems, Tekever, ARX); Sacra & TNW (Stark); Bloomberg (Auterion).

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