The Czech defense industry is experiencing rapid expansion, with its market growing by over 350% in the past three years. Alongside traditional arms producers, emerging firms specializing in drones, anti-drone solutions, and electronic warfare technologies are playing an increasingly significant role.

Lubomír Kovařík, chairman of the Defense Industry Section at the Chamber of Commerce, highlights the growing dominance of companies in these high-tech areas. He emphasizes that this segment is not only expanding now but is expected to continue its upward trajectory.

Among the key players in this transformation are Czech firms such as Primoco and Liaz, which have been developing their own drones for years. A major milestone was the establishment of a UAC factory in Kolín, dedicated to producing Ukrainian unmanned aerial vehicles. In parallel, companies like Retia and Jisr Institute, based in Pardubice, are leading the development of advanced anti-drone systems capable of detecting and neutralizing airborne threats.

The industry's success is evident in financial figures. According to Ernst & Young, Czech arms manufacturers produced goods and services worth 75 billion crowns in 2023, with two-thirds of this output exported. Ukraine alone accounted for 20 billion crowns in military equipment purchases.

Despite this strong performance, challenges persist. Although the Czech Ministry of Defense is investing record amounts in the sector—allocating over 90% of contracts to domestic manufacturers—only 25% of the total funding stays within the country. The majority is directed toward large-scale international acquisitions, such as American F-35 fighter jets and Swedish CV90 armored vehicles.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo