European SecureTech Q2 2026: Defense Technology and Cyber Security Software Sector Insights (Drake Star)

Summary

• The defense technology deep dive categorizes 265 companies across 28 European countries in four sub-verticals.p.3
• The cyber security software deep dive categorizes 668 companies across 30 European countries in six sub-verticals.p.3
• Defense deal activity covers 70 transactions across 19 European countries, versus 394 transactions across 26 countries in cyber security software.p.3
• Defense spending by European NATO countries is projected to increase from $516bn in 2025A to $796bn in 2030F, implying a 9% CAGR.p.7
• The share of EU defense spending on non-EU equipment is expected to decline from 78% in 2023A to 50% in 2030E and 40% in 2035F.p.7

Key insights

1. European defense technology and cyber security software have structurally converged into one integrated security technology ecosystem.p.4
2. Share prices are tracked for 32 listed defense technology companies and 18 listed cyber security software companies.p.3
3. Venture capital and M&A activity increasingly span dual-use AI, autonomy and cyber platforms.p.4
4. Europe remains dependent on U.S. systems in air defense, ISR, space and autonomous systems.p.7
5. Fragmented procurement, talent shortages and export restrictions persist as structural challenges.p.7