Entering European Defence Markets: Why Country-Specific Strategies and Local Partnerships Matter

In short: The European Union has 27 member states, but defence procurement remains substantially organised around national priorities, institutions and industry relationships. Companies can develop an overall European expansion strategy, but they need a market entry approach tailored to each target country. EU-funded programmes can introduce additional eligibility conditions. For businesses considering Poland, understanding its defence priorities and developing credible local industry partnerships are important starting points.

Europe is not one defence market

One of the most useful insights I took from a session at Land Forces 2026 in Perth was that Europe should not be treated as a single defence market.

The European Union has 27 member states. Although the EU is increasing cooperation on defence procurement and industrial development, national differences remain substantial.

Each member state has its own defence priorities, procurement institutions, industry participants and requirements.

For an international company considering European expansion, this has an important implication.

You can have an overall strategy for Europe, but you also need an entry strategy for each country you intend to pursue.

The companies you need to work with, the opportunities available and the requirements you must satisfy can differ significantly between countries.

For example, a strategy developed for Poland cannot simply be assumed to work in Germany or France.

It is worth understanding these differences before committing substantial resources to market entry.

Source: Council of the European Union - Common defence procurement

Where to start when considering European expansion

For a business based outside Europe, the first question should be which national markets are most relevant to its capabilities.

A company may have a strong product, but that does not mean every European country represents an equally attractive opportunity.

I would recommend assessing potential markets against several factors:

1. Defence priorities. Which countries have requirements that align with your capabilities?

2. Procurement opportunities. Are relevant programmes planned or underway, and how are they being procured?

3. Industry relationships. Which local companies or prime contractors could become suitable partners?

4. Local capability expectations. What support, industrial participation or local presence might customers require?

5. Market access conditions. What security, export control, procurement or programme-specific restrictions could affect your ability to supply?

This provides a basis for selecting target countries rather than trying to approach Europe as one large market.

Once those countries have been identified, the company can develop practical market entry plans for each.

EU programmes introduce another set of requirements

National procurement arrangements are only part of the picture.

The European Union has introduced initiatives to encourage greater defence cooperation, joint procurement and investment in European industrial capability.

One example is Security Action for Europe (SAFE), a funding instrument intended to support defence investment and joint procurement.

Programmes of this kind have specific rules governing eligible participants, suppliers, products and component origins.

For businesses based outside the EU, these rules can affect access to particular funded opportunities.

However, it is important to distinguish between eligibility for an EU-supported programme and the ability to supply a defence customer in an individual European country.

A company may be able to pursue a national procurement opportunity even when it does not qualify for a particular EU funding arrangement.

Participation should therefore be assessed against the requirements of the specific country, programme and procurement.

Partnering with a European company may be useful, but a partnership does not automatically remove all eligibility or security restrictions.

Source: Council of the European Union - Security Action for Europe (SAFE)

Poland: the importance of international defence cooperation

Poland was a particular focus of my visit to Land Forces.

I attended the Poland-Australia Defence Industry Dialogue, where participants included Karolina Cemka, Poland's Chargé d'Affaires to Australia, the Hon Chris Picton MP, South Australia's Minister for Defence and Space Industries, Lawrence Meredith, the European Union's Ambassador to Australia, and Colonel Robert Tkaczyk, Poland's Defence Attaché to Australia.

There was also a strong turnout from the Polish business community.

The dialogue reinforced the importance of strong cooperation between countries and established relationships between their defence industries.

For businesses exploring Poland, these relationships can be an important part of understanding the market and developing opportunities.

The discussion also reinforced the value of having credible local partners who understand the industry, its requirements and how business is conducted.

This was a separate but complementary lesson to the broader point about Europe's distinct national markets, which came from another Land Forces session.

The two observations fit together: companies need a country-specific strategy, and relationships within the chosen market are an important part of delivering it.

What should companies consider before entering Poland?

For an overseas defence company considering Poland, I would start with three practical questions.

1. Where does our capability fit with Polish defence priorities?

Before approaching customers or potential partners, determine which capabilities and programmes are relevant to the company.

This requires more than researching broad defence spending or industry growth.

The objective is to identify credible opportunities where the company's experience, technology or services could meet a genuine requirement.

2. Which local companies could become credible partners?

Suitable local partners can help an overseas business understand the industry, customer expectations and practical requirements for establishing a presence.

Depending on the opportunity, a partnership might involve distribution, technical support, maintenance, manufacturing, integration or participation in a wider supply chain.

The nature of the relationship should reflect the actual requirements of the market.

A partnership also needs to make commercial sense for both parties.

3. How can we contribute to local defence capability?

Prospective customers and industry partners may want to understand how an overseas company intends to support its products and contribute to local capability.

That could involve technical support, training, maintenance, knowledge transfer or working with Polish suppliers.

The appropriate approach depends on the customer, the product and the commercial opportunity.

Companies should be realistic about what they can provide and what level of local commitment they can sustain.

Why local relationships matter

Establishing a presence in an unfamiliar defence market takes time.

Procurement requirements may be complex, relevant information may be difficult to interpret from overseas, and identifying the right people or organisations to approach can be challenging.

Having trusted local relationships can help companies understand how the market works, identify potential partners and make better decisions about where to focus.

Those relationships are also valuable when evaluating whether an opportunity is commercially realistic.

For example, a prospective local partner may be able to explain delivery requirements, support expectations or industry arrangements that are not obvious from a published tender.

That knowledge can help a business determine whether to pursue an opportunity, adapt its approach or focus elsewhere.

Local connections are particularly valuable when they provide informed access to the market, rather than simply introductions without a clear commercial purpose.

Developing a country-specific market entry strategy

An effective approach to entering Poland, or another European defence market, should address five things:

• Market opportunity: What specific customer needs or procurement opportunities justify entering the country?

• Market access: What procurement, security, export control and programme conditions must the business satisfy?

• Industry partners: Which local companies could help deliver the required capability?

• Local presence: What representation, support or industrial participation will be necessary?

• Commercial approach: How will the business build relationships, pursue opportunities and sustain its activities?

The same framework can be used for other European countries, but the answers will differ.

That is why the country-specific work matters.

Related reading: Land Forces 2026: Defence Industry Opportunities and Market Entry Insights

How Defence Ready supports market entry into Poland

Defence Ready helps companies explore opportunities in the Polish defence market through local knowledge, industry relationships, introductions and market entry support.

Our approach starts with understanding the company's capabilities and identifying where they may fit within the market.

From there, the focus is on developing appropriate industry connections, exploring potential partnerships and establishing a practical route forward.

For businesses considering wider European expansion, Poland may be one market within a broader strategy. Other countries need to be assessed individually, with their own procurement and industry requirements taken into account.

If your company is considering entering Poland or exploring European defence opportunities, Defence Ready can help you assess the Polish market and identify a practical next step.

Contact Defence Ready to discuss your plans.

Contact

Talk to Rob about entering the New Zealand, Australian or Polish defence markets, local representation, partnerships, readiness or export opportunities.

defence@touchstone.nz

+64 9 243 0609

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