Наталя Хандусенко Weapon 1 April 2026, 18:53

In 2025, the volume of the defense technology market in Ukraine reached approximately $6.8 billion

KSE Institute, in collaboration with Brave1 and Defence Builder, presented a study on the defense technology market.

Despite the restrained growth rate of overall defense production due to lack of funding, the Ukrainian DefenseTech segment demonstrated a rapid jump in 2025, reaching $6.8 billion.

The most dynamic were the high-tech areas:

NRC production increased almost sixfold (+488%);
electronic warfare systems — three times (+215%);
UAVs more than doubled (+137%).

The study notes that official statistics do not reflect the real scale of the market, since a significant share of supplies comes through volunteer funds and direct purchases by units.

The study identifies three key segments with the greatest investment potential:

UAVs are the largest and most mature segment ($6.3 billion in 2025). Long-range drones and interceptors are growing the fastest, while FPV remains the most popular segment. Among the promising areas are interceptors, middle-strike drones, and domestic analogues of reconnaissance multicopters as an alternative to Chinese DJI.
Ground robotics is a nascent and rapidly growing segment, although it remains relatively small ($252 million in 2025, a six-fold increase year-on-year). Logistics and evacuation platforms are the main driver and are ready to scale. Strike and mine clearance systems are opening up new niches with significant long-term demand.
Electronic warfare systems provide efficiency to other technologies ($220 million, 3.1x growth). The market is moving from discrete solutions to mass production of proven platforms with a focus on software-defined systems capable of analyzing signals and selectively suppressing them.

In 2025, Ukrainian defense companies and startups attracted about $129 million in investments and grants — and this is a minimum estimate, as some deals remain closed for security reasons.

The largest investments are in the AI and software segment:

Brave1 grants (over $60 million in 2025, supporting over 600 companies);
venture investments, preferential loans under the "5-7-9%" program ($160 million for 108 enterprises);
financing partner countries in the format of direct procurement.

"The strategic partnership between Ukraine and the United States, anchored by a ten-year security agreement and multi-year funding mechanisms, opens up opportunities for deeper industrial cooperation. The potential for the restoration and development of Ukraine's defense sector in the 10-year perspective after the end of hostilities is estimated at $690 billion," the study says.

KSE Institute characterizes Ukrainian DefenseTech as one of the most progressive ecosystems in the world. Its main advantages are real-world testing of technologies in combat, ultra-fast development and development of financing. For investors, this is a chance to invest in ready-made, proven solutions with great export potential.

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