Denmark’s defence landscape is undergoing a profound shift, propelled by a projected CAGR of 4.7% that catapults the defence budget to $6.3bn (DKr42.9bn) by 2028, according to GlobalData’s “Denmark Defense Market 2023-2028” report.
Responding to geopolitical tensions and meeting NATO targets, the Danish Army, Air Force, and Navy set the stage for modernisation initiatives. Historically allocating 1% of GDP to defence in 2022, the Scandinavian country now aims to achieve NATO’s 2% target by 2030.
A key driver behind the budget surge is the modernisation of the Danish military, witnessing an ascent in acquisition budgets from $1.9bn in 2023 to $2.4bn in 2028, according to information provided by GlobalData’s intelligence on the Danish defence market.
Denmark’s defence trajectory responds strategically to evolving security challenges, focusing on air policing, NATO forces in the Baltic region, and addressing High North tensions. Force restructuring becomes imperative, allowing Denmark to navigate the complexities of state-based challenges and technological proliferation.
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Cybersecurity emerges as a focal point, given Denmark’s highly digitised society. The nation endeavours to fortify its cyber defences against potential remote attacks across borders, reinforcing its commitment to security.
Recent developments underscore Denmark’s commitment to NATO standards, which is evident in collaborations with US Naval Forces Europe and contributions to regional security. A notable aid package of nearly $1bn to Ukraine, participation in the European Leopard main battle tank coalition, and the reception of F-35s showcase Denmark’s global engagement.
The rise of the country’s defence capabilities is epitomised by military fixed-wing, missiles, and missile defence system surges and a strategic shift in tactical communication system, reinforcing the market insights provided by GlobalData’s analysis of Denmark’s defence. Investments in naval engines, vessels, and surface combatants show Denmark’s desire for maritime security.
Contracts and collaborations highlight Denmark’s role in Lockheed Martin‘s F-35 programme, procuring a Ground Based Air Defense (GBAD) system from Rheinmetall, and an effort to procure six new patrol vessels, integrating green technologies.