Ukraine's defence technology market reached about US$6.8 billion in 2025
Ukraine's defence technology market reached about US$6.8 billion in 2025.
Source: KSE Institute, a Ukrainian analytical centre at the Kyiv School of Economics, citing the study entitled Ukraine's defence technology market: opportunities for investors
Details: The study was prepared by KSE Institute in cooperation with Brave1, a Ukrainian defence-tech cluster, and Defence Builder, a Ukrainian defence-tech accelerator.
According to the study, high-technology segments have developed much faster, despite slower growth in overall defence production due to limited domestic procurement financing.
UAV production rose by 137%, ground robotic systems by 488% and electronic warfare systems by 215%.
The study says the real size of the market may be larger, as some procurement takes place through decentralised channels, including charitable foundations, direct contracts with military units and brigades' own production.
Drones remain the largest segment, with its volume estimated at US$6.3 billion. The fastest growth is in long-range drones and interceptor drones, while first-person view (FPV) drones remain the most widespread.
Quote: "The next growth pockets include interceptors (early scaling), domestically produced Intelligence, Surveillance, and Reconnaissance ISR multicopters to replace Chinese DJI/Autel dependence, and 'middle strike' systems bridging tactical FPVs and deep-strike capabilities."
More details: The ground robotic systems segment, which remains relatively small for now, grew sixfold to US$252 million in 2025. The main driver was logistics and evacuation platforms.
The electronic warfare systems market grew by 3.1 times year on year and is estimated at US$220 million. It is moving from individual solutions to mass production of proven platforms, with a focus on software-defined systems capable of analysing signals and selectively jamming them.
The study also said technology development is concentrated in four areas. These are resilient, multi-layered communications resistant to electronic warfare, GPS alternatives based on artificial intelligence and inertial systems, greater autonomy with automated target detection and drone coordination, and integration, meaning a shift from standalone solutions to interconnected systems that can quickly adapt to new tasks.
Quote: "In 2025, Ukrainian defence tech companies attracted approximately US$129 million, with the true figure likely higher given the share of undisclosed security-sensitive deals."
More details: A broader strategic partnership between Ukraine and the United States has opened the door to deeper industrial cooperation, while the 10-year recovery potential of the defence sector is estimated at US$690 billion.
The researchers said Ukraine's defence technology market has become one of the most dynamic in the world and offers investors opportunities to scale solutions on international markets.
Background: According to a report by the Stockholm International Peace Research Institute (SIPRI), Ukraine was the world's biggest importer of major arms in 2021-2025. Ukraine's share of global imports was 9.7% in 2021-2025 compared with 0.1% in 2016-2020.
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