Growing demand pushes one of Europe’s biggest arms makers to nearly double production

Europe’s defence industry is under growing pressure from the wars in Ukraine and the Middle East, prompting MBDA to significantly increase its output. The company has effectively doubled its production in recent years and is planning further expansion in 2026.

Missiles are being used faster than they can be produced

MBDA expects overall production to rise by around 40% in 2026, with even stronger growth in certain weapons systems. The shift reflects how quickly stockpiles are being depleted in current conflicts, particularly due to the widespread use of drones and missile strikes.

Modern warfare operates on a different scale than in the past. The extensive use of drones and precision-guided missiles has made air defence one of the most critical areas. However, these systems are expensive, complex, and cannot be produced rapidly in large quantities.

“Because of growing demand, we need to produce in advance in order to replenish stocks and keep pace,” said Eric Béranger.

He added that the situation in Iran has placed additional pressure on manufacturers and further increased the need to accelerate production.

Rapid expansion backed by new investments

In a recent company statement, MBDA shared several key figures illustrating the scale of its expansion:

• missile production doubled between 2023 and the end of 2025
• a further 40% increase is planned for 2026
• investment for the 2026–2030 period has been doubled to €5 billion in Europe
• around 2,800 new employees are expected to be hired in 2026

According to the company, the goal is not only to meet rising demand but also to strengthen Europe’s defence capabilities. This will be achieved through expanded production capacity and new strategic partnerships.

The growing demand is also reflected in new orders from European countries. The German armed forces, for example, have ordered additional Meteor beyond-visual-range missiles through a joint European programme. Developed in cooperation between six partner nations, the system is considered one of the most advanced of its kind.

At the same time, MBDA is expanding into new domains. As part of a French military initiative, the company has been working on simulations of operations in low Earth orbit, signalling that defence activities are increasingly extending into space.

Air defence systems under pressure

The strongest demand is currently seen in air defence. MBDA’s Aster 30 missile system, used both in Ukraine and in the Gulf region, could see its production doubled this year.

However, according to French military sources cited by Reuters, Western stockpiles (particularly of Aster 30 and Patriot missiles) are falling short of required levels.

“There is a risk of a crowding-out effect, as the volume of munitions used in the Iran conflict is putting significant pressure on these missile stocks,” said French General Ivan Martin.

The expansion of Europe’s defence industry is also visible in Hungary: a new Lynx simulation centre is being built to train soldiers on next-generation combat vehicles – read more in our previous article.

Europe’s arms industry is expanding rapidly

Similar developments can be observed across the European defence sector. The Czech Czechoslovak Group increased its revenue by more than 70% in a single year, with a significant share of its sales linked directly to the war in Ukraine. Ammunition production has been a key driver of this growth, while its order backlog has reached around EUR 15 billion.

The German Rheinmetall—which also has operations in Hungary—has likewise been expanding its capacity, announcing several new ammunition plants and production units in response to rising demand, particularly for artillery shells.

According to the company, its current order book is sufficient to keep production fully booked for years, while new state orders continue to arrive.

Taken together, these developments suggest that demand has become strong and predictable enough for manufacturers to produce in advance and at scale, even before contracts are formally secured.

Featured image: depositphotos.com