Europe Remains Highly Vulnerable and Dependent on the U.S. Defence Industry

What this report covers

Technologies: Artificial Intelligence, Big Data & Analytics, Autonomous Systems, Robotics & Swarms, Hypersonics & Advanced Missile Systems. Countries: United States. A sourced, structured 11-page analysis for European defence and dual-use decision-makers, from the DFM research desk and built on official and primary sources.

About this report

Despite unprecedented increases in defence spending and the launch of the €800 billion “Defence Readiness 2030” plan, Europe remains highly vulnerable and structurally dependent on the United States for advanced military capabilities.

According to a joint report by Bruegel and the Kiel Institute, European armed forces continue to face critical shortfalls in next-generation systems such as air and missile defence, long-range precision weapons, autonomous platforms, and AI-enabled command systems. Imports of U.S. military equipment have more than doubled since 2022, and European industry is still unable to meet demand in terms of scale, speed, and technological depth.

Key questions this report answers

• Which next-generation capability shortfalls (air and missile defence, long-range precision weapons, autonomous platforms, AI-enabled command) does the Bruegel and Kiel Institute analysis identify as most acute?
• Why have European imports of U.S. military equipment more than doubled since 2022 despite the 800 billion euro Defence Readiness 2030 plan?
• Where does European industry fall short in scale, speed and technological depth relative to demand?
• What integration and planning steps does the report argue are needed to close Europe's capability gap by 2030?

Inside this report

• Executive Summary
• An Ambitious Rearmament Drive, Yet Lingering Vulnerabilities
• Surge in Arms Imports Underscores U.S. Reliance
• Industrial Capacity vs. High-Tech Shortfalls
• Hard Numbers: Key Equipment Gaps and Delays
• The €800 Billion Rearmament Plan – Ambition and Skepticism
• Toward a Coherent Strategy: Integration and Planning
• Key Capability Priorities and Cooperation
• Conclusion: Closing the Gap by 2030

Who it's for

Strategy, corporate-development and investment teams that need an ecosystem-level view — budgets, industrial capacity and technology landscapes — before committing capital or capacity.

Related reports

• Defense Tech Unicorns in Allied Democracies #1 — United States
• From the Cold War to U.S.–China Rivalry: Continuities and Transformations in the Technological Race — United States
• Skydio: Implications for European Security — United States
• Shield AI’s European Entry — United States
• Main Battle Tanks and AFVs in the Future of European Land Forces
• Venture Capital Surge Reshapes Europe’s Defense Technology Ecosystem

Methodology, format & delivery

DFM reports are built from primary and official sources — TED procurement notices, CORDIS and the EU Funding & Tenders Portal, EIB operations, the NATO Innovation Fund portfolio, SIPRI data, official budget documents and company disclosures — read together with the underlying legal texts. Sources are cited in the document; it reflects them as of its publication date (25 June 2025). You receive a 11-page PDF, watermarked to you on every page, delivered on the confirmation page and by e-mail immediately after checkout (personal link valid 72 hours, up to 5 downloads). Guest checkout, single-user licence — Terms of Sale.

Related on DFM

More Strategic reports · Artificial Intelligence, Big Data & Analytics · Autonomous Systems, Robotics & Swarms · Hypersonics & Advanced Missile Systems · Free summary of this report · All reports

Follow Artificial Intelligence, Big Data & Analytics

Get notified by email when DFM publishes new reports on this topic. Free, unsubscribe anytime.

Prefer unlimited access?

Prefer unlimited access? Every report like this is included in the DFM Analysis subscription. See plans →

Get the full report — €299 →