Latvia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030

Latvia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030

Summary

Latvia Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Latvia’s defense budget is forecast to grow significantly, to $2.9 billion by 2030 from $1.7 billion in 2025. This follows a general trend of increased expenditure over the historic period, with more substantial growth beginning in 2023 and accelerating again in 2026. Following Russia’s invasion of Ukraine in 2022, Latvia began making historic investments in its military spending, rising from $0.9 billion in 2022 to $1.5 billion in 2024. Projected spending in the forecast period (2026-30) is set to continue this trend, producing a CAGR of 4.6%. Latvia’s defense expenditure is driven by its unique geopolitical circumstances as a former Soviet state bordering the Russian Federation. Along with the other Baltic states-Lithuania and Estonia-Latvia has aligned with the Western sphere of influence through EU and NATO membership, creating tensions with Russia. The invasion of Georgia in 2008, the annexation of Crimea in 2014, and the full-scale invasion of Ukraine in 2022 have worsened this situation, driving an increase in Latvia’s defense spending. A large presence of NATO personnel in the country also increases expenditure on requisite facilities and has incentivized Latvia to invest further in infrastructure to better host NATO allies in the future. The overall size of the Latvian military, however, remains small, and procurement projects are thus limited in scope. Nevertheless, Latvia is currently procuring armored vehicles, tactical trucks, missile-defense systems, helicopters, and other platforms as part of its plan for increased defense expenditure over the coming decade.

Key Highlights

• Modernization of equipment, growing military personnel numbers, and contribution to NATO and regional allies are key factors driving defense expenditure
• Major ongoing procurement programs include IRIS-T SLM air defense missile systems, ASCOD infantry fighting vehicles, and the Common Armoured Vehicle System (CAVS), jointly developed with Patria

Scope

This report offers a detailed analysis of Latvia's defense market, with market size forecasts covering the next five years. It also offers insights into the strategy, security environment and defense market dynamics of the country. Various sections covered in the report are as follows -

• Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
• Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
• Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market entry routes, key defense procurement bodies and major deals.
• Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
• Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2024. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
• Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
• Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
• Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.

Reasons to Buy

• Determine prospective investment areas based on a detailed trend analysis of the Latvia defense market over the next five years
• Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Latvia market and identify the opportunities offered.
• Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
• Identify the major threats that are driving the Latvia defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
• Channel resources by focusing on the ongoing programs that are being undertaken by the Latvian government
• Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

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