Lithuania’s defence sector is rapidly evolving, with a strong focus on enhancing national security through digital defence and strengthened cooperation with the North Atlantic Treaty Organization (NATO). The country focuses on modernizing its forces, investing in cybersecurity, and strengthening regional security collaborations. Lithuania’s strategic investments and partnerships position it as a critical player in the Baltic region’s defence landscape.
Defence market in Lithuania
Key opportunities for Canadian defence companies in Lithuania
- Cybersecurity solutions: Lithuania’s emphasis on strengthening its cybersecurity infrastructure provides opportunities for Canadian firms specializing in digital defence technologies and cyber threat mitigation.
- Military equipment procurement: As Lithuania continues to modernize its military, there is a growing demand for advanced military hardware, surveillance technologies, and communication systems that Canadian companies can supply.
- Training and advisory services: Opportunities exist for Canadian firms to provide military training, consulting services, and capacity-building initiatives that align with NATO standards and support Lithuania’s defence objectives.
Notable challenges for Canadian defence companies in Lithuania
- Regulatory compliance: Understanding and navigating Lithuania’s defence procurement regulations and compliance with NATO standards may present challenges for companies unfamiliar with the European and NATO defence landscape.
- Competitive environment: Established European and American defence companies dominate the market, potentially creating competition for Canadian firms seeking contracts in the defence sector.
Industry highlights
3.2% of the GDP. Lithuania’s 2024 defence budget is EUR 2.75 billion
3.5% expected % of GDP spending for 2025
€200 million earmarked as state support for defence innovation over the next six years
>€18 million value of Lithuanian exports of arms and ammunition, parts and accessories in 2023
14% average annual growth of the number of specialists employed in Lithuania’s defence industry between 2018 and 2023
46% growth of the turnover of Lithuanian defence companies between 2018 and 2022
- Limited market size: Lithuania’s 2024 defence budget is EUR 2.1 billion, a relatively modest amount. However, joint procurement initiatives with neighboring Baltic states and pan-European partnerships may offer additional opportunities.
Lithuania business landscape
Lithuania’s defence sector is characterized by a proactive approach to national security. The country prioritizes military modernization, cyber defence capabilities, and the development of new military technologies to address regional security challenges. Key initiatives include investments in air defence systems, enhanced NATO collaboration, and improvements in military infrastructure. The Lithuanian government actively promotes foreign investment in defence technologies and services, especially those that align with its strategic goals and NATO objectives.
With strong government support, Lithuania’s defence industry is experiencing significant growth. A rapidly expanding local defence ecosystem builds on Lithuania’s strengths in telecommunications, laser technology, sensors, and other high-tech fields to develop advanced military technologies and equipment.
Summary
Lithuania represents an attractive market for defence companies, particularly those focused on cybersecurity, military technology, and training services. With its commitment to military modernization, strong NATO partnerships, and a strategic focus on national security, Lithuania’s defence sector offers valuable opportunities for Canadian businesses seeking to expand their footprint in the European defence landscape. Additionally, joint procurement initiatives with neighboring Baltic countries could further broaden export opportunities for Canadian firms.
For more information on defence opportunities in the Lithuanian market, please contact Egle Jurkeviciene, Trade Commissioner (Egle.Jurkeviciene@international.gc.ca).