From civil to defence

A shared path to European readiness 

 Two soldiers in camouflage uniforms and helmets stand outside next to a railing, with one holding a laptop and the other holding a smartphone while they both look at the laptop screen.
  • Insight
  • 3 minute read
  • December 09, 2025

Europe is facing a range of geopolitical threats. And after decades of underinvestment in its defence infrastructure, returning to readiness demands more than incremental change. It calls for bold investment in industrial capacity, supply chains, technology and talent.  

Europe’s defence transformation is already underway

Companies in civilian sectors can become strategic players in building a resilient, technologically sovereign continent. Industries like energy, telecoms, automotive, transportation and logistics are at a turning point. By pivoting toward defence applications, they can unlock new relevance, scale innovation, and help shape Europe’s future defence architecture.

What’s changing? 

  • Defence is being redefined. Civil technologies - AI, cybersecurity, space systems - are now decisive enablers of operational superiority. 

  • Investment is surging. European security spending is projected to reach around €1.3 trillion in 2035, with new funding tools potentially mobilising billions for dual-use innovation. 

  • Private capital is moving. Venture investors and industrial players are accelerating M&A and backing defence-grade technologies. 

Why act now? 

Civilian companies that move early will be better positioned to: 

  • Secure long-term relevance in a changing security landscape 
  • Access new funding streams and strategic partnerships 
  • Reinvent business models for defence-grade delivery 
  • Contribute to Europe’s strategic autonomy 

How PwC can help 

We have a multi-disciplinary team to support companies in other sectors interested in entering the defence markets. From strategy and compliance to transformation and execution, we can help you:

  • Understand the defence ecosystem 
  • Define your market entry strategy 
  • Reshape your business model 
  • Adapt governance and operations 
  • Scale innovation and dual-use capabilities 

So, you can approach the market with confidence and build a position that lasts. 

About the author(s)

Cesare  Battaglia
Cesare Battaglia

EMEA Aerospace and Defence Leader, Partner , PwC Italy

Alex  Menghi
Alex Menghi

Aerospace and Defence, Director , Strategy& Italy

Todd Bradshaw
Todd Bradshaw

CEE Aerospace and Defence Leader, Partner, PwC Slovakia

Jean Von Polier
Jean Von Polier

Aerospace and Defence Leader, Partner, PwC France

Hans-Jörg  Kutschera
Hans-Jörg Kutschera

PwC Aerospace and Defence Leader, Partner, Strategy& Germany

Gabriele  Capomasi
Gabriele Capomasi

Aerospace and Defence, Partner, Strategy& Italy

Co-authors

Bernat Figueras Comas, PwC Aerospace and Defence Leader, Partner , PwC Spain

Interested in exploring your role in Europe’s defence future? 

Download the full report, "From civil to defence: A shared path to European readiness", to dive deeper into the practical steps to get started.

(PDF of 2.55MB)
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