Danske Bank has released a new report, Nordic Defence Tech 2025, which clearly shows how investments in Nordic defence technology and dual-use solutions have surged in recent years. The combined enterprise value of defence and dual-use companies in the Nordic region has reached 5.4 billion USD. That represents roughly a 500 percent increase since 2019 and highlights how rapidly the region is strengthening its innovation capacity in critical security domains.
Strong growth in dual-use technology
The report notes that dual-use solutions, where civilian and military applications overlap, have become central to both national security and economic resilience. Companies working in advanced sensor systems, AI, cybersecurity, space technology, and autonomous platforms are now leading this development.
Finland leads the Nordics, Sweden trails
Although the Nordic region as a whole stands out as Europe’s strongest area for defence-technology investment per capita, the report highlights clear differences between countries. Finland stands in a class of its own with 203 USD per capita since 2019. Denmark and Norway follow with high levels of investment.
Sweden, however, ranks last in the Nordic region, with only 8 USD per capita since 2019 and 3 USD per capita since 2024. This is far below the other Nordic countries and indicates that Sweden’s investment pace has fallen significantly behind.
Stefan Granlund, Head of Growth and Impact at Danske Bank, comments on the development and calls it worrying given Sweden’s long history in defence technology. He warns that continued low investment levels could jeopardize Sweden’s future competitiveness.
Government efforts increase to meet NATO targets
The report also shows that Nordic governments are increasing spending to meet NATO defence goals and to strengthen long-term security in the region. Several technology fields are identified as having substantial innovation potential.
Key areas highlighted in the report
• Stockpiling and supply-chain resilience
• Integrated defence systems and shared platforms
• Dual-use logistics and preparedness technology
• Advanced capabilities such as quantum computing, space infrastructure, and autonomous systems
150 Nordic startups creating new opportunities
More than 150 startups in the Nordic region now operate in defence technology and dual-use fields, creating significant opportunities for investors and public authorities to drive innovation alongside industry. The report emphasizes the importance of collaboration between governments, companies, and capital providers to fully capitalize on emerging technological developments.