Booming growth: Defence industry doubles purchases from Norwegian suppliers

Norway’s defence industry continues to grow. In 2025, total defence-related revenue rose by 33 per cent to NOK 61.5 billion, according to a new report from the Norwegian Defence Research Establishment (FFI), which also shows a sharp increase in purchases from suppliers.

The FFI report is primarily based on information from 92 companies. Although the response rate was just 30 per cent, the largest companies were among those that responded.

FFI estimates that defence-related purchases from Norwegian suppliers reached NOK 19.5 billion in 2025, more than double the figure for the previous year.

The institute calculated the amount based on the companies’ total purchases and the proportion of their revenue generated by defence activities.

Purchases include metals, components, machining and services that defence companies buy from suppliers and use in defence production.

Purchases from foreign suppliers increased even more, rising by 148 per cent to NOK 32.7 billion. In total, FFI estimates defence-related purchases at NOK 52.1 billion.

This means that around 37 per cent of estimated purchases came from Norwegian suppliers, while around 63 per cent came from foreign suppliers.

The institute notes that some of the increase may be linked to companies building up their inventories.

Seven large companies account for three-quarters of revenue

The defence industry is dominated by a small number of large companies. In this year’s survey, seven large companies accounted for 75 per cent of total defence-related revenue.

In last year’s report, smaller companies accounted for 30 per cent.

However, the figures are not directly comparable: three companies have grown into the large company category, which in this survey means they have at least 250 defence-related full-time equivalents.

FFI classifies companies according to the number of full-time equivalents tied to their defence activities. A company with substantial civilian operations may therefore be placed in a smaller size category than its total number of employees would suggest.

More sales to the Norwegian Armed Forces and other domestic customers

Revenue from sales to the Norwegian Armed Forces rose by 30 per cent to NOK 11.9 billion in 2025. Sales to other Norwegian customers, including other defence companies, increased by 69 per cent to NOK 3.86 billion.

Total defence-related revenue from Norwegian customers was NOK 15.7 billion. This is a different measure from purchases from Norwegian suppliers:

• NOK 15.7 billion is the defence-related revenue that the 92 companies in the survey reported from Norwegian customers. Of this, NOK 11.9 billion came directly from the Norwegian Armed Forces.
• NOK 19.5 billion is FFI’s estimate of the same companies’ defence-related purchases from Norwegian suppliers. These suppliers may include companies that are not among the 92 surveyed.

Exports from Norway rose by 31 per cent to NOK 24.9 billion. This excludes revenue generated by the companies’ foreign subsidiaries.

Among the small and medium-sized companies surveyed, 68 per cent reported defence-related exports in 2025, up from 53 per cent the previous year.

More jobs and a larger order backlog

The companies reported 17,481 defence-related full-time equivalents in 2025, an increase of 33 per cent from the previous year.

Of these, 10,092 were in Norway and 7,389 were in foreign subsidiaries.

The total defence-related order backlog increased from NOK 141 billion to NOK 172 billion, a rise of 22 per cent.

Spending on research and development also increased. Total defence-related R&D reached NOK 3.21 billion, 19 per cent more than the previous year.