The global defense landscape is undergoing a dramatic transformation, driven by geopolitical shifts, technological advancements, and emerging security threats. A recent survey by Trade Estonia and The Estonian Defense and Aerospace Industry association highlights the growing opportunities for U.S. Aerospace & Defense (A&D) companies to collaborate with Estonian partners.

The paper details Trade Estonia’s key findings from its survey of over 150 senior defense and aerospace executives on how U.S. companies are planning sourcing strategies and engaging with trade partners to drive innovation and capture market growth opportunities. It outlines Estonia’s key defense trends, its technological strengths, and the strategic opportunities for U.S. defense firms seeking reliable and innovative global partners.

2/3 of Estonia’s defense industry’s output is exported. Estonia is #1 in the Global Cybersecurity Index in the EU and is home to the Cyber Defence Centre of Excellence.

Estonia has positioned itself as a leader in this evolving environment, combining innovation, strategic partnerships, and resilient supply chains to strengthen international defense capabilities across private and public sectors.

Estonian companies operate in cyber defense, robotics, autonomous systems, sensors, communication technologies, surveillance, electronics, equipment, and vehicle maintenance. Photo: Trade Estonia  

Key factors driving defense import

Defense companies are increasingly sourcing technologies from international partners to enhance their capabilities, reduce costs, and maintain a competitive edge in a rapidly evolving global security environment.

The key motivations behind importing technologies include for example access to cutting-edge innovation. Many foreign markets, such as Estonia, specialize in highly advanced defense technologies, including cyber security, AI driven warfare, and autonomous systems.

According to Trade Estonia’s survey, 84% of U.S. A&D companies plan to increase their use of supplier products within the year, highlighting the demand for innovative foreign solutions. This unfettered demand is particularly impactful in light of the U.S. administration’s current tariff policies.

View and download the whitepaper to learn why Estonia is a strategic defense partner for the U.S.

Another key factor is supply chain diversification and security. The war in Ukraine and other geopolitical tensions have underscored the need for resilient, secure supply chains. According to survey respondents, 63% of U.S. A&D companies are concerned about avoiding Chinese or Russian technology, reinforcing the importance of sourcing from trusted allies like Estonia.

Many defense firms require quick access to specialized technology to respond to emerging threats. Estonia’s defense industry, with its focus on AI, autonomous systems, and electronic warfare, provides U.S. companies with ready-to-deploy, battle-tested solutions.

GOOD TO KNOW

Estonian defense companies:  

• CybExer –  provides advanced Cyber Ranges and digital twin environments.
• Nortal – a strategic digital transformation partner for leading companies and governments around the world.
• Toci – Estonian metal industry company, delivering defense and mobility solutions from engineering to manufacturing and final assembly.
• Spacedrip – delivers automated mobile water reuse systems.
• Milrem Robotics – the world leader in the autonomous unmanned ground vehicles domain.
• Roomet & Melrosten – produces easily assemblable 10-inch FPV drone frames.
• XW Production – offers the world’s first modular-interior workboat series designed to adapt to any mission quickly.
• Metec – Estonia’s leading industrial company that offers development and production services to customers from various industrial sectors around the world.
• Milectria Est – manufacturer of electrical systems for military and industry. Low voltage switchboard production. Factories in Estonia, Finland and United Arab Emirates.
• TrackDeep – offers lower airspace data as a service, collected via a proprietary drone sensor network, enabling cost-effective access to airspace insights.
• Spaceit – delivers software solutions for space cyber security and satellite operations, including a virtual environment for testing and training, a versatile mission operations platform, and a global network of ground station services.
• Lindante – offers electromagnetic signal (cell phone, radio, Bluetooth, WiFi, RFID, GPS, satellite) blocking bags and various covers.
• DefSecIntel Solutions – is developing and manufacturing mobile autonomous surveillance systems and C-UAS with Ai-assisted technology for defense and security end-users.

Want to know more about Estonian defense companies?

This content is funded by the European Union – NextGenerationEU.

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.