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

The defense and aerospace sector is considered of great importance to Norway and benefits the country’s economy, employment, and competitiveness.  The sector consists of three main sub-sectors: defense, space, and aviation. Through multiplier effects, the sector is estimated to create more than 120,000 jobs nationwide.

NATO estimated Norway’s defense spending in 2024 to be around 2.2% of GDP.  The Norwegian Government is now targeting around 5% of GDP to defense and security in the coming years. Of the 5% around 3,5% is earmarked for traditional defense and 1.5% increase for related security and investment activities. Norway’s total defense budget is estimated at 9.5-10 billion USD in 2024. Norway spends about 30% of its defense budget on investments, which is above the NATO guideline of 20%.  With an estimated 70% of defense equipment imported, U.S. suppliers are well positioned to capture a significant share of Norwegian imports in this sector.

The Norwegian space industry is rather modest on an international scale, is considered a growth sector in Norway and has a turnover of USD 1.1-1,2 billion annually. The Norwegian market includes around 40 public and private companies located across the country. These develop everything from satellite communication terminals to flowerpots for space plant research.  The market leaders are Andøya Space, Telenor, Nammo, and the Kongsberg Group. Norway has a competitive advantage when it comes to location and makes ground infrastructure optimal for satellites. The Svalbard archipelago in the Arctic Ocean is uniquely positioned geographically for reading data from polar orbiting satellites. 

Avinor is a state-owned limited company that manages the Norwegian national airport network and maintains the air navigation system.  The total airport network consists of 61 airports, and Avinor operates 44 of these. There are three airlines operating in the domestic market: SAS (Scandinavian Airlines), Norwegian (Norwegian Air Shuttle), and Wideroe. For international flights the market is competitive and fragmented. A study by Menon Economics found that air travel accounts for a total of 70% of all foreign commercial guest nights in Norway. In 2021, Norse Atlantic Airways was established, and the company has focused on affordable long-haul routes between Europe and the United States. 

Norway is a member of the International Civil Aviation Organization (ICAO); hence the country adopts and adjusts to regulations and technical standards provided by the ICAO.  Norway is not an EU member, but the country commits to most EU regulations through the European Economic Area (EEA), which also connects and commits Norway to European Aviation Safety Agency (EASA) standards.   
 

Opportunities

The defense industry in Norway is known for its niche product spectrum.  In its National Defense Industry Strategy, the Norwegian Government has selected eight focus areas for cooperation between the defense industry and the Norwegian Armed Forces: 

1. Command, control, Information Systems

2. System Integration

3. Autonomous Systems

4. Missile Technology

5. Underwater Sensors

6. Ammunition, Target Technology, Remote Controlled Weapon System and Military Explosives

7. Material Technology

8. Life Support for Military Land, Air and Naval Operations Systems

Larger systems, vessels and vehicles are usually purchased from foreign companies through industrial cooperation agreements.  Most Norwegian defense companies are relatively small compared to international defense companies.  According to the EU definition of sizable companies, only two Norwegian defense companies can be considered large: Kongsberg Defence and Aerospace (part of the Kongsberg Group) and Nammo.

Investments in the Norwegian Armed Forces are made across land, sea, air and cyber domains, including enhancements to infrastructure. To support these investments and capabilities strategic bases such as Haakonsvern and Ørland are being updated. The Norwegian Armed Forces will continue modernizing the Total Defense Concept, seeking to enhance civil-military cooperation.

Norway recently selected the British Type 26 frigates as its next generation surface combatant. In addition, Norway is working together with Germany building six new Type 212CD submarines with deliveries scheduled 2029/2030.  In addition, three new Coast Guard vessels will be introduced in the period 2021-2025.  

Norway recently purchased six MH-60R Seahawk to replace the NH90 fleet, and deliveries will be 2026-2027.  The Norwegian Government has announced that Bell 412 transport helicopters will be upgraded, and it is also expected that there will be investments in new helicopters.  Norway is also investing heavily in air defense, and expanding NASAMS II systems and has acquired AIM-120C-8 missiles from the U.S. The NASAMS II air defense system will be upgraded with modern sensors, as well as the introduction of complementary capacity with shorter range.  

The Norwegian Army is undergoing an expansion, and will increase from one to three brigades, including establishment of a new Brigade South. The maneuver battalions will be equipped with new main battle tanks, mobile air defense systems, and long-range precision fire. In addition, modernization of the Home Guard will continue.

The Joint Strike Missile is now operational on Norway’s F-35 fighter jets. For autonomous systems a new drone and sensor strategy is implemented using the Skydio X10D drones.  New P-8 Poseidon maritime patrol aircraft have replaced the fleet of P-3 Orion and DA-20 Jet Falcons.  
The Norwegian Special Forces will continue to contribute to both national and international operations and plan to increase personnel and one additional operations task group.  

The Norwegian Space Agency (NSA) is considering an expansion of the space industry in the Arctic due to its geographical advantages.  Satellite data received and read in these areas enable development within weather forecasting, climate, environmental monitoring, and research. The projects initiated by Norwegian space companies are largely developed through national membership in the European Space Agency (ESA). Norway participates in the EU programs Galileo, Copernicus, and Horizon 2020, and works closely with the U.S. space industry, including NASA. The space industry is a growth sector in Norway.  Headquartered on the island of Andøya in northern Norway, Andøya Space is an aerospace company that provides services to science and engineering communities and serves as a rocket testing and launch site. In 2021, Andøya Space received USD 36 million from the Norwegian Government to establish a launch base for small satellites at Andøya.  Andøya Spaceport opened in 2023.

On the civil aviation side, the Norwegian Center for Transport Research (TØI) has estimated that by 2040 air travel will grow by more than 60%.  The increase is expected to be primarily due to an increased number of people visiting Norway from abroad.  

There has been high demand for commercial offshore helicopter service in Norway due to offshore activities. The oil and gas industry accounts for just under 10% of all domestic flights in Norway.  

The Norwegian regulations for the unmanned aerial systems are mainly based on the regulatory framework done by the European Aviation Safety Agency (EASA) for unmanned vehicles and remotely piloted aircrafts (RPAS). There has been a significant growth in the numbers of UAV operators in Norway the recent years, and the organization UAS Norway is now counting more than 2000 members. 
 

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