How Sweden's defence industry is ramping up production
What has happened to Sweden's defence budget?
Sweden's defence budget stands at 142 billion kronor for the year 2025, almost double that of the 2022 budget.
Just under 60 billion kronor of that is tabled for "procurement of equipment and facilities". The defence budget is scheduled to rise to 186 billion kronor by 2030, but is likely to increase significantly more rapidly than that.
"We're going to have to go up in a big way," Ulf Kristersson, Sweden's prime minister, told TT last week, talking about what percentage of GDP Sweden should spend on defence.
Sweden's defence minister Pål Jonson, meanwhile, has spoken of the need to for the defence industry to increase its tempo.
"I think increased production is an extremely important aspect in the possibilities we have to build up a stronger defence rapidly," he said.
"We are working intensively in the government offices to develop a new defence industrial strategy built around increased production, increased innovation and also increased cooperation between defence companies, government agencies and universities."
Who are the main players in the Swedish arms sector?
Saab. Saab is the biggest defence company that is considered entirely Swedish.
It makes the Gripen fighter jet, the Global Eye surveillance aircraft, and the NLAW, a shoulder-fired anti-tank weapon which has been effective in the Ukraine war. It also owns Saab Kockums, which makes submarines and naval vessels such as the CB 90, a rapid combat boat.
Hägglunds. Hägglunds, which has been owned by the British defence company BAE Systems since 2004, makes the CV90 combat vehicle and the Stridsvagn 123B, a tank based on the German Leopard design, which Sweden's government ordered 44 more of in January.
Bofors. Bofors, which has been owned by BAE Systems since 2005, makes the Archer self-propelled howitzer system, several of which Sweden has sent to Ukraine, BONUS, an intelligent munitions system, Excalibur and 3P. It also makes the naval guns 57Mk3 and 40Mk4.
Volvo Defense and Scania Defence both make military trucks and personnel carriers, primarily for road-based military logistics.
Defence tech
Sweden's dynamic tech scene has long turned its focus on defence, and there are both established companies and a lot of new startups.
MilDef makes rugged IT hardware for military use, including laptops, servers, switches, routers, and intelligent displays. It also produces military software and integration services.
Karl Rosander, who founded the podcast platform Acast, has launched Nordic Air Defence, which aims to build a low-cost drone interceptor.
Saab
So far in 2025, Saab has received a 700 million kronor order from BAE Systems Hägglunds to provide its Tank and Anti-Aircraft System (UTAAS) sighting and fire control system for CV90 combat vehicles it is producing.
It has received a 1.7 billion kronor order to upgrade and modernise the German air force's Taurus KEPD 350 cruise missile systems.
In October 2024, Saab received an order worth 1.3 billion kronor from the Lithuanian Ministry of Defence (MoD) for its , to be delivered between 2025 and 2027.
It has also received a 400 million kronor order from Sweden for ten new CB90 combat boats, and an 800m kronor order to modernise Sweden's coastal anti-ship missile capability.
In 2023, Sweden gave Saab a 390 million kronor order for new targeting systems for its existing fleet of Gripen planes.
Hägglunds
In January 2025, Sweden ordered 44 new Stridsvagnen 123A tanks from Hägglunds, for delivery between 2028 and 2031, and an upgrade to its 66 existing Stridsvagnen122 tanks to the same standard as the new tanks, work which will be completed between 2027 and 2030. In December 2024, it signed a contract with the company for 50 new CV90 assault vehicles, building on an earlier contract signed in May 2024.
Bofors
In September 2023, Sweden gave BAE Systems an order worth about 5 billion kronor to deliver 48 more of its Archer artillery systems for delivery in 2025. The UK has also ordered Archer systems.
MilDef
MilDef in November 2024 won a 63 million kronor order from the Swedish government to supply Command and Control Systems, and in October 2024 it won a 200 million kronor order from BAE Systems to supply rugged IT equipment for the new generation of CV90 assault vehicles.
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