What does the Estonian defence and aerospace industry do?
ESTONIAN DEFENCE AND AEROSPACE INDUSTRY ASSOCIATION
The global security situation has become unpredictable, and the turnover and exports of the defence and space industry companies are growing.
The Estonian Defence and Aerospace Industry Association has more than 130 member companies based on private capital, where the main business model is business to government, which means that the end user of the companies is the state.
In comparison to other sectors, the defence industry market is characterised by a high entry barrier, stricter monitoring requirements, sales cycles of at least 4-5 years, a small number of customers and the fact that customers are mainly in the government sector.
Free competition is also influenced by a complex market dependent on security policy decisions and rules as well as export restrictions.
The Estonian Defence and Aerospace Industry Association unites companies that offer services and products to our internal market, including the Defence Forces, and companies whose products are mostly oriented towards the export market. The principle “everything that can be done in Estonia must be done in Estonia” is valued.
All the companies belonging to the Association are not engaged in the production and development of purely defence-related goods. A significant number of companies sell and broker finished products, provide components for the production of complete products, logistics services and much more to other companies.
According to the data of the commercial register, the total sales revenue of the members of EDAIA in 2022 was EUR 1,275,159,515; in comparison to 2021, the growth was 5.2%.
According to the commercial register, the export turnover in 2022 was 7,8% higher than in 2021.