Threats from outdated armed forces to drive Finnish homeland security expenditure

Thursday 20 February 2014, Amsterdam

Modernizing the Finnish armed forces will be driving the country’s homeland security expenditure over the forecast period, according to the new report – Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019.

The Finnish annual defence budget stands at US$3.7 billion in 2014 and is expected to grow at an estimated CAGR of 5.79% over the forecast period, to reach US$4.3 billion in 2019. The country‘s capital expenditure is expected to increase from US$1.1 billion in 2015 to US$1.4 billion in 2019, growing at a CAGR of 6.49% during the forecast period.


Key insights include:

The Finnish armed forces have failed to embark on a defence modernization plan in the past decade, resulting in obsolete military hardware. Furthermore, the nation’s participation in international peacekeeping missions has created demand for advanced defence systems such as fighter aircrafts and air surveillance systems.

Finland’s total defense expenditure stands at US$3.7 billion in 2014 and is expected to grow at a CAGR of 5.79% over the forecast period, to reach US$4.34 billion in 2019. Finnish defense expenditure is primarily driven by participating in peacekeeping initiatives and the upgrade of military equipment such asF-18 Hornet jet fighters.

Finland is a part of NORDEFCO (Nordic Defence Cooperation) which is a collaboration among the Nordic countries, established in 2009, the partners have witnessed converging military needs including explosive devices, long-range precision weapons, air surveillance and ground air defences.