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Luxembourg boasts a vibrant defence industry with a strong focus on innovation. The market is valued at around $470 million and is expected to grow at a CAGR of over 11% from 2023 to 2027, driven by increasing investment in cyber, space, and information superiority capabilities.
The Luxembourg government prioritizes efficient and collaborative procurement practices to maximize its defence capabilities. The procurement process is managed by the Directorate of Defence within the Ministry of Foreign and European Affairs, with support from Luxinnovation, a national agency dedicated to fostering innovation and collaboration in the defence sector.
Luxembourg's defence procurement strategy emphasizes niche capabilities and technological advancements, focusing on areas such as:
Cybersecurity solutions
Satellite communication systems
Unmanned aerial vehicles (UAVs)
Counter-terrorism and CBRN (chemical, biological, radiological, nuclear) threat mitigation technologies
The key authorities responsible for Luxembourg defence procurement are:
Ministry of Foreign and European Affairs (MFEA)
Directorate of Defence (DD)
Luxinnovation
Defence Industry and Research Task Force
Luxembourg's defence procurement landscape features a mix of domestic and international players, including:
SES S.A.
Exotrail
Certitude
Airbus Defence and Space
Thales Group
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