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

In 2024, the Dutch defense budget was increased to $23.3 billion, reflecting a substantial 40% rise of $16.6 billion from the 2023 budget. Subsequent increases brought the total defense spending to approximately €24 billion aligning with NATO’s 2% spending target. Ahead of the 2025 NATO Summit in The Hague in June 2025, the Dutch parliament approved a new benchmark of 3.5% of the GDP for defense spending, in addition to another 1.5% in security-related spending, to meet The Hague Defense Commitment target for 5% of GDP on defense spending agreed at the Summit. Among the 32 NATO member states, the Netherlands currently ranks 11th in terms of relative GDP expenditure on its armed forces.

The Netherlands is a key partner for the U.S. defense industry, with over $18 billion in foreign military sales and at least $3 billion in direct commercial sales. Despite uncertainties surrounding trade policy on both sides of the Atlantic, the Dutch defense market remains highly receptive to U.S. equipment, with approximately one-fifth of Dutch defense contracts awarded to U.S. companies.

Program opportunities are outlined in the 2024 defense white papers laid out by the Ministry of Defense, which listed the top Dutch defense priorities: Modernizing military capabilities, increasing investments in equipment like F-35 jets and anti-submarine frigates, enhancing cyber defenses, and boosting personnel recruitment and retention. The paper also highlights the importance of innovation, sustainability, and collaboration with NATO partners to address evolving security threats.

Leading Sub-sectors

The Netherlands has numerous contracts with U.S. companies in defense technology. As a result of the increased defense budget, there are many opportunities for military exports to the Air Force, Navy, Army, Special Operational Units, the Military Police, and the military Cyber Unit.

Opportunities

Future military opportunities are normally outlined in the Dutch Ministry of Defense’s Program Overview (DPO). An English version of the DPO is available on request from the Commercial Service at the U.S. Embassy in the Netherlands. The 2024 Defense White Paper offers a more precise overview of all the opportunities between 2022 through 2027 and beyond. In light of the large number of programs on the horizon, companies are advised to review both the Dutch Defense White Paper 2024 and Annex 3 of Defense White Paper 2022. Key opportunities are listed in the following fields:

Royal Netherlands Navy (RNLN): The number of anti-submarine warfare (ASW) frigates in the fleet will be increased. As a result, RNLN will be better able to meet NATO’s requirements for long-term and sustainable implementation of NATO tasks and operational plans. The RNLN will also acquire additional NH90 helicopters for the maritime helicopter fleet. This will enhance support for maritime and amphibious missions and combat operations and allow the long-term deployment of ships with helicopters on board to be combined with short-term helicopter-supported operations by Marine Corps units from the ship.

In addition, the Dutch are investing in the protection and defense of critical underwater infrastructure, particularly in the North Sea. Two multifunctional support vessels will therefore be procured to independently deploy unmanned underwater vehicles and intercept and escort hostile vessels. These minimally manned vessels will also be able to contribute to integrated air and missile defense from the sea. Investment is also being made in an unmanned underwater infrastructure inspection and hydrographic survey capability that can be deployed from a variety of ships and submarines.

Royal Netherlands Army (RNLA): The RNLA is undergoing comprehensive modernization to significantly enhance its combat effectiveness and meet NATO commitments. The firepower of the Medium Infantry Brigade will be strengthened by equipping Boxer armored infantry vehicles with heavier weapon systems and anti-tank capabilities, enabling it to better fulfill NATO’s Priority Target for the unit. In parallel, the Netherlands is procuring main battle tanks to establish a fully-fledged tank battalion within the Heavy Infantry Brigade. This marks the return of operational combat tanks to the Dutch armed forces for the first time since 2011, addressing a critical capability gap within NATO.

Beyond individual equipment upgrades, the RNLA will modernize or replace nearly all vehicles that operate on wheels or tracks. This includes its four core weapon systems: the CV-90 infantry fighting vehicle, the Fennek reconnaissance vehicle, the PzH2000 self-propelled howitzer, and the Boxer armored vehicle. Ground-based air defense capabilities are also being consolidated to create a more integrated and effective system.

Royal Netherlands Air Force (RNLAF): The Royal Netherlands Air Force (RNLAF) is expanding its fleet with additional F-35 fighter jets and exploring future capabilities in unmanned combat aircraft. To support this shift, the Netherlands is developing a national ecosystem for unmanned systems, enabling large-scale training and allocating funding for rapid innovation to adapt to emerging technologies.

To strengthen defense against evolving threats, Integrated Air and Missile Defense (IAMD) capabilities are being enhanced, improving protection for critical infrastructure and addressing key NATO capability gaps. Investments in high-value ammunition will also enable the deployment of long-range weapons to counter hostile air defense systems.

The MQ-9 Reaper fleet will double to eight, enabling simultaneous deployment on two fronts. These drones will be armed and upgraded with improved surveillance, signals intelligence, and communications systems. The Cougar squadron will be reinforced for special operations, with Cougar helicopters to be replaced by medium utility helicopters better suited for land and maritime missions.

To maintain tactical airlift capacity, the C-130 fleet will be replaced and expanded by one additional aircraft. Meanwhile, the Defense Space Security Centre will continue to develop, including launching a satellite constellation and adapting radars for space monitoring, laying the groundwork for robust international cooperation in military space operations.

The 2024 White Paper also includes an overview of opportunities for the Military Police, Defense Cyber Command, Special Operations Forces, Joint Support Command, and the Defense Materiel Organization. The 2022 White Paper annex includes an extensive list of programs.

Resources

Market Analysis:

Dutch Defense White Paper 2024
Defense White Paper 2022
Global Aerospace Resource Guide 2020 

Trade Shows

NIDV Exhibition Defense and Security (NEDS) – November 19, 2026

Associations

The Netherlands Defense Manufacturers Association (NIDV)

Contact

Philip Hammerstein, Sr. Commercial Specialist                                    
U.S. Commercial Service – The Netherlands 
Philip.Hammerstein@trade.gov +31 70 310 2416

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