Estonian defense companies' collective goal is to raise the sector's turnover to €1 billion by 2030, having already developed into a significant economic area since the restoration of independence over 30 years ago.

Kalev Koidumäe, CEO of the Defense Industry Association (Kaitsetööstuse liit) told "Aktuaalne kaamera" (AK): "Last year, Defense Industry Association companies' turnover stood €330 million," qualifying this by saying: "However, not all companies operating in this field are members of our association, so it's difficult to comment on their revenues."

"Our forecast – or ambition in fact – in any case is to reach a turnover of €1 billion by 2030," he went on.

Kuldar Väärsi, CEO of one major Estonian defense firm, Milrem Robotics CEO, said the move to establish a new plant was driven by the growing global demand for unmanned ground vehicles and combat machines.

"We are moving towards assembly line production here, with an annual capacity of 500 small vehicles, representing a fivefold increase. These lines are adaptable, so our current two products – THeMIS and Type-X – can be produced here, and we have two entirely new products coming soon," he told AK, adding that 65 percent of components Milrem uses are Estonian-made.

Milrem in fact sold a majority stake to UAE defense industry company EDGE last year.

The company reported 2023 revenues of €20 million and has forecast revenues of €500 million by 2030, Värsi added.

Milrem has sold products to 18 countries so far.

Another Estonian firm, Threod Systems, manufactures drones, many of which are being sent to Ukraine.

Threod Systems board member Mikk Murumäe told AK: "Sales volumes have increased significantly. Last year, our revenues were nearly €20 million, but given the current security situation, we will continue to see growth."

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