Defence Finance Monitor #129 (Hidden Champions)
Defence Finance Monitor is building a comprehensive database that maps companies relevant to European strategic autonomy across the defence and dual-use sectors. With more than 1,300 European firms now systematically classified, the database is beginning to generate analytically meaningful results. Built on a proprietary methodology combining a closed taxonomy, structured scoring, and evidence-bound analysis, the dataset traces how institutional priorities translate into concrete industrial and technological dependencies.
At this level of coverage, it enables the systematic identification of the most critical bottlenecks affecting Europe’s defence and dual-use industrial base, together with the tier-2 and tier-3 hidden champions best positioned to address them. The emerging evidence indicates that Europe’s strategic autonomy is constrained less by prime contractors than by the intermediate layers of the supply chain, where specialised capabilities, production capacity, and control over key technologies are decisive.
European Drone Industrial Autonomy: Strategic De-risking and Component Sovereignty
This analysis examines the European industrial ecosystem that is progressively replacing Asian-sourced components in the NATO Class 1 drone segment, with a specific focus on the most sensitive and value-critical layers of the system. It maps the transition toward sovereign flight-control architectures, domestically produced propulsion systems, and trusted software stacks operating under full European design authority. The text shows how these firms are addressing both security risks and supply-chain vulnerabilities by localising hardware, firmware, and manufacturing capacity. Particular attention is given to components that determine resilience in high-attrition and electronically contested environments. The resulting picture is that of a maturing industrial base capable of sustaining autonomous production under wartime conditions.
European Strategic Autonomy in Munitions: Securing the Tier-2 and Tier-3 Supply Chain
This technical analysis examines the ongoing industrialization of the European defence sector through the lens of the ASAP and SAFE programmes, with specific attention to how these instruments are reshaping production capacity rather than procurement headlines. It identifies the Tier-2 and Tier-3 suppliers that constitute the real bottlenecks in ammunition and missile manufacturing, including energetics, fuzes, propulsion and guidance sub-systems. The analysis explains why control over these layers determines whether industrial scale-up is feasible under high-intensity conditions. It shows how regulatory constraints and funding mechanisms are being used to secure design authority and ITAR-free supply chains. The resulting picture is of a European defence industry shifting from fragmented assembly to structurally sovereign production.
European C-UAS Industrial Autonomy: Strategic De-risking and Component Sovereignty
This technical industrial assessment examines the European counter-drone sector in 2026 as it transitions from fragmented national solutions to a structured, regulation-driven industrial base. It evaluates how SAFE and EDIP are reshaping the Tier-2 and Tier-3 ecosystem that underpins sovereign C-UAS capabilities, from RF sensing and electronic warfare to kinetic interceptors and AI-driven command logic. The analysis focuses on “ITAR-free” soft-kill and hard-kill solutions that can be produced at scale under high-attrition conditions. Particular attention is given to the logical infrastructure that orchestrates detection and engagement across heterogeneous systems. The central finding is that European autonomy in counter-drone warfare now depends less on flagship platforms than on control over these enabling industrial layers.
Without a structured map that connects doctrine, budgets and industrial capacity, strategy remains abstract, capital is misallocated, and industrial readiness drifts into reactivity rather than deliberate design.