Denmark Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in denmark, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Aerospace and Defense
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Overview 

The Danish aerospace and defense sector is undergoing a historic and rapid transformation. Driven by the evolving geopolitical landscape and a strong commitment to NATO, Denmark is making unprecedented investments to modernize its military capabilities and strengthen its defense industry. This presents a wealth of opportunities for U.S. companies.

Denmark has made a landmark decision to accelerate its defense spending, with a goal of allocating over 3 percent of its GDP to defense in 2025 and 2026. While currently spending 3.4 percent of GDP on defense, the Danish government has been a vocal proponent domestically and within the alliance of NATO’s 5 percent commitment, committing to meet it by 2030, five years ahead of NATO’s timeline.  Since 2023, the government has utilized cross-party agreements to secure more funds for defense, including $44 billion through 2033.  Denmark, in coordination with Greenland and the Faroe Islands, allocated nearly $14 billion since January 2025 to new defense procurements and initiatives in the Arctic and North Atlantic. This significant increase is funded by a new DKK 50 billion (approximately $7 billion) Acceleration Fund, created to expedite investments in war-fighting capabilities. This funding is in addition to the existing long-term defense agreement for 2024-2033. The urgency of the situation has led the government to streamline procurement processes, including a greater use of direct awards, to ensure faster delivery of critical equipment.

The Danish defense industry is not a large-scale manufacturer of military platforms. Instead, it is a highly specialized and innovative sector focused on dual-use technologies, advanced electronics, software, and niche components. This makes it an ideal partner for U.S. companies looking for collaborative projects or to supply high-tech systems and subsystems.

Best Prospects

Denmark is undertaking a broad modernization of its defense capabilities, with a focus on strengthening national resilience and meeting evolving security requirements. This includes the development of a more comprehensive air defense capacity to protect both population centers and critical infrastructure, creating demand for integrated solutions across sensing, coordination, and operational support. 

At the same time, the country is expanding its land forces, including the establishment of a more robust brigade structure and the procurement of modern armored platforms. These efforts are part of a wider initiative to enhance readiness and interoperability with allies.

Maritime capabilities are also being reinforced through a long-term fleet development plan aimed at improving surveillance and operational capacity in Danish waters. This includes both larger naval assets and smaller vessels designed for patrol and support functions. In addition, Denmark is exploring options to strengthen its long-range capabilities as part of a broader approach to deterrence and defense. This work remains ongoing and reflects a focus on adapting to changing strategic conditions.

A significant area of investment is in unmanned systems, informed by recent operational experiences in Europe. Denmark is placing increased emphasis on both the development and integration of unmanned technologies across domains, including aerial and maritime applications. This includes efforts to enhance capabilities for monitoring, detection, and response, as well as the establishment of facilities dedicated to testing, training, and innovation in this field.
New Space Technologies: Denmark’s role in the “New Space” sector is growing, with a focus on defense and surveillance applications. The country’s expertise in miniaturized satellites (CubeSats) and sensor technology is being applied to enhance maritime and Arctic domain awareness. Opportunities exist for U.S. companies in:

  • Satellite-based surveillance: This includes satellite imagery, communication links, and data analytics to monitor the Arctic region and critical infrastructure.
  • Launch services and components: As Danish space technology matures, there will be increasing demand for collaboration on launch services and the supply of satellite components.
  • Dual-use technologies: The focus on dual-use solutions means that innovations in space technology can serve both civilian and military applications.
    Opportunities
     

A U.S. company seeking to participate in Denmark’s military build-up should engage with key government and industry bodies to position itself effectively. The process is not based solely on direct sales but on a combination of strategic networking, understanding procurement rules, and demonstrating a commitment to the Danish defense industrial base.

One of the most important first steps involve contacting the Danish Ministry of Defense Acquisition and Logistics Organization (DALO). DALO is the central purchasing authority for the armed forces and has a dedicated “Industry Point of Contact” specifically for uninvited contact from businesses. This is the primary channel for introducing a company’s capabilities and is where inquiries are directed to relevant projects or departments.

For larger contracts, a foreign supplier will likely be required to enter into an Industrial Cooperation Contract (ICC). This is a crucial element of Danish defense procurement. The ICC is designed to ensure a portion of the contract’s value is reinvested in the Danish defense sector, strengthening the national defense industrial base. This obligation can be met through various means, such as direct procurement from Danish companies or through joint development projects.

Engaging with local industry associations is also a recommended approach. The Danish Defense and Security Industries Association (DI Forsvar og Sikkerhed) is a valuable resource. It can help foreign suppliers identify potential local partners, facilitate business-to-business meetings, and help navigate the specific requirements of the market. Participating in industry events like the DALO Industry Days is another effective way to network with Danish officials and potential partners. 

Resources


For more information, please contact Patrycja Dahl, Commercial Specialist

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