About Defense Contractors sector in Europe
The Defense Contractors sector in Europe comprises 552 companies, including 97 funded companies having collectively raised $3.09B in venture capital money and private equity. Out of these, 90 are Series A+ funded.
Defense Contractors sector in Europe has seen 49 acquisitions and 34 IPOs. This represents almost 15.0% of all such companies - which is higher than the 5.3% exit rate of tech companies in general.
This sector includes companies that provide defense products to the military or government organisations.
Defense Contractors sector is also known as Military Contractor.
Companies that provide defense products (aircraft, ships, components) to the military or government organisations are included in this sector. Companies that provide innovative/tech heavy solutions and services to military or government organisations are excluded.
Top Defense Contractors Companies in Europe
There are 552 Defense Contractors startups in Europe which include Airbus, QinetiQ, BAE Systems, Kongsberg, Rolls-Royce. Out of these, 97 startups are funded, with 90 having secured Series A+ funding.
Over the past 10 years, an average of 12 new companies have been launched annually. Notably, several of these startups have been founded by alumni of London Business School (LBS), Monash University and Technical University of Munich.
Here is the list of top Defense Contractors startups in Europe

1. Airbus
Manufacturer of commercial aircraft, helicopters, satellites, and launch vehicles. It offers airbus corporate jets, cyber security management, intelligence, secure land communication, and innovative technology solutions for aerospace industry. It also provides efficient civil and military rotorcraft solutions and services worldwide. In 2022, the company recorded annual revenues of $60.87B and a net profit of $3.63B.
Key facts about Airbus
- Founded Year: 1969
- Location: Toulouse (France)
- Stage: Public
- Investors: GPI Capital, CPP Investments and 7 Others
- Latest Funding Round: Grant (prize money), Oct 01, 2023, $*****
- Tracxn Score: 70/100 What is this?
- Competitors Rank: 2 of 939 Competitors
2. QinetiQ
Provider of a suite of systems for security solutions. It provides users with technical services and products in the defence, security and aerospace fields and a majority of its revenues are generated by the services, and its primary customers are governments and defence departments. It also develops security robots for remote surveillance and cargo handling robot for the military.
Key facts about QinetiQ
- Founded Year: 2001
- Location: Farnborough (United Kingdom)
- Stage: Public
- Investors: Partners For Growth, The Carlyle Group and 4 Others
- Latest Funding Round: Grant (prize money), Feb 24, 2021, $*****
- Tracxn Score: 68/100 What is this?
- Competitors Rank: 4 of 869 Competitors
3. BAE Systems
Manufacturer of aerospace and submarine security systems. It provides provide some of the technology-led defence, aerospace, and security solutions and employ a skilled workforce. In 2022, the company recorded annual revenues of $26.18B and a net profit of $1.96B.
Key facts about BAE Systems
- Founded Year: 1999
- Location: London (United Kingdom)
- Stage: Public
- Investors: DARPA, Lockheed Martin and 7 Others
- Latest Funding Round: Post IPO, Sep 04, 2025, $*****
- Tracxn Score: 64/100 What is this?
- Competitors Rank: 10 of 869 Competitors
4. Kongsberg
Provider of multi-utility robots for industrial applications. It offers deck systems, positioning systems, navigation systems, autonomous underwater vehicles, unmanned surface vehicles, marine automation, surveillance systems, and motion sensors. It develops defense and space-related systems and products, with a focus on anti-ship missiles, military communications, and command and weapons control systems. It also provides digital solutions such as maritime simulation, and automation to companies within the petroleum industry, renewable energy, and the utility industry.
Key facts about Kongsberg
- Founded Year: 1814
- Location: Kongsberg (Norway)
- Stage: Public
- Investors: Artemis and European Union
- Latest Funding Round: Grant (prize money), Oct 01, 2021, $*****
- Tracxn Score: 62/100 What is this?
- Competitors Rank: 12 of 869 Competitors
5. Rolls-Royce
Developer of power and propulsion solutions for safety-critical applications. The company provides products and service packages that enable connections between people, societies, cultures, and economies. It offers solutions for civil aerospace, defense, and power systems. The company also focuses on alternative fuels, advanced nuclear technologies, and digital platforms.
Key facts about Rolls-Royce
- Founded Year: 1906
- Location: London (United Kingdom)
- Stage: Acquired
- Investors: ValueAct Capital, BlackRock and 10 Others
- Latest Funding Round: Grant (prize money), Jul 22, 2024, $*****
- Tracxn Score: 62/100 What is this?
- Competitors Rank: 13 of 869 Competitors
Companies founded year-on-year in the Defense Contractors sector in Europe
28 Defense Contractors startups in Europe were founded in 2020 - this is the most number of startups founded in any year in the last 10 years.
- Total Number of Companies
Year | No. of companies |
|---|---|
2025 | - |
2024 | 10 |
2023 | 10 |
2022 | 12 |
2021 | 15 |
2020 | 28 |
2019 | 16 |
2018 | 14 |
2017 | 11 |
2016 | 13 |
Stage-wise distribution of Defense Contractors sector companies in Europe
Out of the total 552 Defense Contractors companies in Europe, 97 have secured funding. Among them, 90 have reached Series A or higher, and 85 to Series B or beyond.
Founded - 552
Funded - 97
Series A+ - 90
Series B+ - 85
Series C+ - 85
Company Stage | No. of companies |
|---|---|
Founded | 552 |
Funded | 97 |
Series A+ | 90 |
Series B+ | 85 |
Series C+ | 85 |
Funding Trends in the Defense Contractors sector in Europe
Total funding year-on-year in the Defense Contractors sector in Europe
The Defense Contractors sector in Europe saw a total funding of more than $2.21B in the last 10 years. The most amount of funding was in 2018 at more than $592M.
- Total Funding
Year | Total Funding |
|---|---|
2025 | $104M |
2024 | $210M |
2023 | $191M |
2022 | $122M |
2021 | $450M |
2020 | $294M |
2019 | $36.9M |
2018 | $592M |
2017 | $71.7M |
Recent Funding Rounds in Defense Contractors in Europe
In the year 2025, till July 2025, Defense Contractors companies in Europe have raised $17.7M in equity funding across 2 rounds.
In the same period last year (i.e. till June 2024), Defense Contractors companies in Europe had raised $118M across 3 rounds.
So, 2025 has seen a 85.02% drop in funding in Defense Contractors companies in Europe as compared to 2024.
Here are some recent, important funding rounds in Defense Contractors companies in Europe:
Company | Round Raised | Amount Raised | Funding Date | Investors |
|---|---|---|---|---|
Series A | 2732 | Jul 29, 2025 | ||
Series A | 9828 | Jul 11, 2025 | ||
Seed | 8324 | Sep 04, 2024 | ||
Series D | 6114 | Jun 19, 2024 | ||
Series A | 4101 | May 24, 2024 |
Top Investors in Defense Contractors in Europe
European Union is the top investor in Defense Contractors companies in Europe based on number of companies invested.
Here are some top investors in Defense Contractors companies in Europe:
Investor | Location | Top Portfolio Companies |
|---|---|---|
Brussels (Belgium) | ||
London (United Kingdom) | ||
Munich (Germany) | Airbus and Rolls-Royce | |
Paris (France) | ||
New York City (United States) |
M&A activity in Defense Contractors sector in Europe
In the year 2025, till September 2025, 8 acquisitions happened in Defense Contractors sector in Europe. Last year, in 2024, a total of 9 acquisitions happened in Defense Contractors sector in Europe.
Here are some recent, important acquisitions in Defense Contractors sector in Europe:
Company | Acquisition Type | Acquisition Date | Acquirers |
|---|---|---|---|
Business Acquisition | Sep 04, 2025 | ||
Business Acquisition | Aug 29, 2025 | ||
Business Acquisition | Aug 19, 2025 | ||
Business Acquisition | Aug 18, 2025 | ||
Business Acquisition | Aug 18, 2025 |
Acquisition trends in Defense Contractors sector in Europe
Here are the acquisition trends in Defense Contractors sector in Europe:
- Total Number of Acquisitions
Year | No. of companies |
|---|---|
2025 | 8 |
2024 | 9 |
2023 | 4 |
2022 | 3 |
2021 | 2 |
2020 | 7 |
2019 | 5 |
2018 | 5 |
2017 | 3 |
2016 | 2 |
IPOs in Defense Contractors in Europe
In the year 2024, till December 2024, 5 IPOs happened in Defense Contractors sector in Europe.
Here are some recent, important IPOs in Defense Contractors sector in Europe:
Company | IPO Date | Exchange Symbol |
|---|---|---|
Dec 12, 2024 | Boerse Stuttgart (STU) | |
Aug 29, 2024 | Nordic Growth Market (NGM) | |
May 03, 2024 | Madrid Stock Exchange (BME) | |
Feb 09, 2024 | Frankfurt Stock Exchange (FRA) | |
Feb 07, 2024 | Frankfurt Stock Exchange (FRA) |
Colleges which produce the most Defense Contractors companies in Europe
Companies founded by alumni from top colleges in the Defense Contractors in Europe
Most number of Defense Contractors startups in Europe have been founded by alumni from London Business School (LBS), Monash University and Technical University of Munich.
College | No. of companies |
|---|---|
London Business School (LBS) | 1 |
Monash University | 1 |
Technical University of Munich | 1 |
Top News in Defense Contractors in Europe
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Daimler Truck & Arquus Unveil Next-Gen Tactical Vehicle for European Defense ForcesEuropaWire•Oct 08, 2025•ARQUUS, Daimler Truck
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Airbus, Thales, and Leonardo Advance Towards Satellite Joint VentureLexology•Oct 02, 2025•Leonardo Ai, Airbus, Thales
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Rolls-Royce introduces fast-start mtu gas gensets for powering data centers
Rolls-Royce•Oct 02, 2025•Rolls-Royce
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Swiss-US Drone Software Firm Auterion Raises $130 Million with Support from Rheinmetall Partnermanager magazin•Sep 23, 2025•The Mosaic Company, Auterion, Lakestar, Bessemer Venture Partners and 7 others
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Leonardo launches UK-wide programme to help engineers return to work after a breakInsider Media•Aug 21, 2025•Leonardo, STEM Returners
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Brabus Unveils $1M+ Widebody Rolls-Royce Cullinan Series II with Carbon MakeoverAutoevolution•Aug 15, 2025•Rolls-Royce, Brabus
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