Build resilience for a changing World

Invest in defence in Sweden

Why Sweden for defence

Sweden offers a growing defence market, world-class innovation capabilities, and specialised ecosystems for security and dual-use technologies.

  • Growing defence investment and long-term demand visibility
    Defence spending and total-defence investments provide a predictable environment for companies seeking long-term growth and capacity expansion.
  • NATO integration and European market access
    Sweden's NATO membership strengthens access to allied collaboration, capability development programmes, and expanding defence demand across Europe.
  • Advanced R&D and engineering capabilities
    High research intensity and a large technical workforce support innovation, product development, testing, and commercialisation of advanced technologies.
  • Established defence and dual-use ecosystem
    Research institutes, procurement agencies, manufacturers, testing facilities, and innovation programmes create pathways from development to deployment.
  • Export-oriented industrial base
    Sweden's defence sector serves international markets, reducing dependence on domestic demand and supporting global growth strategies.
  • Specialised regional clusters
    Aerospace, naval, cyber, testing, and manufacturing capabilities are concentrated in hubs that help investors find partners, suppliers, and talent.
  • Resilient industrial environment
    A stable power system supports energy-intensive manufacturing and strengthens operational resilience.

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#1 Most innovative country in the EU (European Innovation Scoreboard 2025)
175bn SEK defence budget
15k Foreign companies
32nd NATO member
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A new era for Swedish defence

Sweden's NATO membership, rising defence investment, and growing demand for dual-use technologies are creating new opportunities for companies investing in Sweden. Learn how defence markets are evolving and how Sweden is positioning in an increasingly international and collaborative industry.

Explore industry overview
A complete and future‑ready defence chain

Sweden offers capabilities across the full defence value chain, from research and digital innovation to manufacturing, testing, integration, and lifecycle support.

Research and Defence Innovation

Sweden combines defence research, academic expertise, and civil-military collaboration. Research institutes, universities, innovation programmes, and dual-use initiatives support development in areas such as cybersecurity, autonomy, advanced materials, sensors, and resilient systems.

Procurement and Capability Development

The Swedish Defence Materiel Administration (FMV) provides a structured demand environment through procurement, capability planning, development projects, and supplier engagement. This helps investors understand requirements, build partnerships, and identify routes to market.

Digital Systems and Advanced Technologies

Sweden has strong capabilities in cybersecurity, secure communications, AI, software-intensive systems, electronic warfare, sensors, and digital infrastructure. These capabilities support both defence and civilian applications, creating opportunities for dual-use investors.

Manufacturing and Systems Integration

Industrial strengths include advanced manufacturing, precision engineering, aerospace systems, naval systems, electronics, materials, and components. Investors can integrate into established supply chains or develop production capacity near key industrial hubs.

Testing and Validation

Sweden offers access to specialised test environments for aerospace, missiles, electronic warfare, autonomous systems, ordnance, environmental testing, and space applications. These capabilities support development, certification, and performance validation.

Sustainment and Lifecycle Support

Long-term defence capability requires maintenance, upgrades, simulation, training, logistics, and support services. This creates opportunities beyond initial production and supports recurring revenue throughout the equipment lifecycle.

Sweden brings capable armed forces and a first-class defence industry to the Alliance. NATO, on Sweden's accession to NATO
Sweden’s advanced defence and security hubs

Sweden's defence ecosystem is nationally connected but regionally specialised. Each hub combines industry, research, testing, procurement access, and talent, giving investors multiple entry points depending on technology focus and business model.

Stockholm region – Cybersecurity, research and national institutions
Home to national agencies, defence research organisations, cybersecurity initiatives, and advanced digital capabilities. Suitable for investors focused on cyber, AI-enabled defence software, secure communications, and policy-facing partnerships.

Linköping region – Aerospace and dual-use innovation
A leading centre for aerospace systems, autonomous technologies, simulation, AI, sensors, and advanced engineering. Investors benefit from strong industry-academia collaboration and an established innovation ecosystem.

Karlskoga–Örebro–Värmland – Manufacturing, munitions and testing
A specialised corridor for artillery, munitions, advanced manufacturing, testing, logistics, and defence production. Attractive for companies seeking industrial scale-up and production partnerships.

Karlskrona – Naval and maritime security technologies
Focuses on naval systems, submarines, marine technology, secure communications, and maritime innovation. Suitable for investors active in naval platforms and underwater technologies.

Northern Sweden – Space, testing and Arctic environments
Combines space infrastructure, large-scale testing environments, missile testing, autonomous systems, and harsh-environment validation. Particularly relevant for space and advanced aerospace investments.

Opportunities for investment and expansion 

Sweden's expanding defence market, innovation ecosystem, and specialised industrial capabilities create multiple opportunities for investors seeking growth, collaboration, and long-term market access.

Manufacturing Scale-up and Supply-Chain Localisation

Establish production facilities for components, electronics, advanced materials, precision engineering, munitions, and defence-related manufacturing. Sweden's industrial expertise and long-term defence investments support capacity expansion and supply-chain resilience.

Dual-Use Innovation and R&D Partnerships

Develop technologies that serve both civilian and defence applications. Sweden's research institutions, innovation programmes, and collaboration platforms support commercialisation and capability development across multiple technology domains.

Cybersecurity and Secure Communications

Establish development centres focused on cybersecurity, secure networks, encryption, digital infrastructure, and resilient communications. Sweden's advanced digital capabilities provide access to expertise, customers, and collaboration opportunities.

Testing, Validation and Demonstration Services

Build or expand testing activities for aerospace, autonomous systems, sensors, electronic warfare, missiles, and space technologies. Sweden's specialised facilities help reduce development risk and accelerate validation processes.

Space and Advanced Aerospace Technologies

Develop satellite services, autonomous systems, aerospace components, space data solutions, and related technologies. Northern Sweden's testing and space infrastructure support innovation and commercial growth.

Lifecycle Support, Training and Upgrades

Expand operations focused on maintenance, simulation, training, logistics, spare parts, and long-term support services. These activities benefit from growing defence investments and extended platform lifecycles.

How we help you establish and scale in Sweden 

We support international companies throughout the establishment and expansion process in Sweden. As a long‑term partner, we help you navigate local conditions, reduce risk, and move efficiently from planning to operation.

  • Investment Assessment
    Evaluate market opportunities, capabilities, and investment conditions relevant to defence and security activities.
  • Site Selection Support
    Identify locations that match production, R&D, testing, talent, and supply-chain requirements.
  • Ecosystem and Partner Access
    Connect with industry stakeholders, research organisations, regional clusters, and public-sector partners.
  • Market Intelligence
    Provide insight into market developments, industry trends, and business conditions affecting investment decisions.
  • Stakeholder Engagement
    Support dialogue with relevant local, regional, and national stakeholders throughout the investment process.
  • Expansion and Scale-up Support
    Assist investors in developing long-term growth strategies, capability expansion, and ecosystem integration.
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Looking to export defence globally?

From market entry to international growth, Sweden's defence sector has strong export potential. Discover key opportunities, common challenges, and how to build a successful global expansion strategy.

FAQ

Is Sweden suitable for large international defence companies?

Yes. Sweden offers advanced industrial capabilities, established defence ecosystems, and growing market demand.

What are Sweden's strongest defence capability areas?

Aerospace, naval systems, cybersecurity, secure communications, advanced manufacturing, autonomy, sensors, and space technologies.

How important is NATO membership for investors?

NATO membership strengthens collaboration opportunities and market access but does not guarantee procurement advantages.

Are there opportunities for dual-use technology companies?

Yes. Sweden actively supports civil-military collaboration and development of dual-use technologies.

Can foreign companies establish operations near specialised defence clusters?

Yes. Multiple regions offer specialised ecosystems focused on aerospace, naval systems, cybersecurity, manufacturing, testing, and space.

Contact me about defence and security
Global Head of Defence Niklas Grybe Phone 0730926837
Business Sweden can support you

Across strategy, execution and risk as you invest in Sweden. If you are preparing for your next step, we are ready to discuss how we can support your plans.