Defense

Due to the sensitive nature of the defense industry sector, there are no official statistics available on local production, imports, and exports. The only data available through public sources is the annual amount of defense expenditure, which is illustrated in the table below.  

Overview  

For many years, Poland kept its defense spending around the level of 2 percent of GDP. Since the outbreak of the war in Ukraine in February 2022, Polish defense spending has considerably increased. 

Table: Defense spending in Poland

Source: SIPRI and Polish Ministry of Defense

Poland leads the former Eastern-bloc countries in parting with Soviet-era equipment and has long term plans to replace any remaining Soviet era equipment with modern NATO-compatible platforms. The Government’s plans to strengthen and reorganize the armed forces and domestic defense industry compete with other reforms that are financed through the state budget, but since the invasion of Ukraine, defense is one of the Government’s top priorities and receives bipartisan support from the leading liberal and conservative parties alike.  

The Homeland Defense Act of 2022 consolidated defense regulations and increased the number of active personnel, increased defense spending to 3 percent of GDP by 2023, and established the Armed Forces Support Fund as an extrabudgetary means to significantly increase financing of defense expenditures and modernization. Based on an agreement signed in May 2022 by the Minister of National Defense and the President of Poland’s national development bank Bank Gospodarstwa Krajowego (BGK), the Armed Forces Support is managed by the BGK bank.

2025 is another record year regarding defense spending. According to the adopted defense budget, military expenditures will reach 4.7 percent of GDP. PLN 123.5 billion from the national budget and additional PLN 65.4 billion from the Armed Forces Support Fund, amount to almost PLN 187 billion (USD 47.4 billion). The money will be spent on increasing Poland’s security and transformation of the Polish Armed Forces. The Government plans to increase these expenditures further in the coming years.

Poland has a very ambitious “Technical Modernization Plan” for its Armed Forces. The Plan currently estimates spending USD 131 billion on new equipment between 2021-2035. The plan is based on three principles: 1) assessment of Polish military needs; 2) delivery timeframe; and 3) Polish industrial participation. The program places an emphasis on using Polish defense industry capabilities, especially Polish Armament Group (PGZ) companies.

To increase Polish defense industry competitiveness, in 2013, PGZ was created, which consolidated approximately 50 Polish state-owned companies; 30 of which are defense companies and 20 operate in other areas, such as shipbuilding and new technologies. In 2024, Defense News ranked PGZ 62nd out of the 100 biggest defense companies in the world. Cooperation with PGZ has been a key to success for many foreign defense firms entering the Polish market.

The potential of the Polish private defense sector is growing, with private companies offering more innovative solutions.  Major U.S. defense companies (e.g., RTX Corporation, Lockheed Martin, Northrop Grumman Defense Systems, Boeing Defense, Land Systems, Oshkosh Defense, General Atomics, and BAE Systems North America) are active in the Polish market.

In 2022, the U.S. Congress approved USD 288 million in Foreign Military Financing (FMF) for Poland. This FMF grant helped backfill capabilities Poland provided from its own frontline stocks to add to Ukraine’s defense. In September 2023, Poland received USD 2 billion in FMF direct loans to accelerate Poland’s defense modernization by supporting urgent procurements of defense articles and services from the United States. The U.S. government also provided up to USD 60 million in FMF grants for the cost of the loan.

This was followed by additional USD 2 billion FMF loan guarantee in July 2024, USD 3.08 billion in October 2024, USD 4 billion in December 2024 and most recently, in July 2025, USD 4 billion in FMF loan guarantees. As a result of the July agreement, Poland’s participation in the FMF loan program has reached a total of USD 15 billion. These loans will further advance Poland’s military modernization effort across a wide range of capabilities, substantially contributing to strengthening the defense and deterrence of NATO’s Eastern Flank.

From FY 2019 through FY 2021, the United States authorized the permanent export of over USD 1.2 billion in defense articles to Poland through Direct Commercial Sales (DCS). Today, Poland is also one of the U.S. Government’s top FMS customers globally. Recent significant sales include: AH-64 Apache, Abrams M1A2 SEPV3 main battle tanks, Javelin anti-tank missiles, 32 F-35A Lightning II Joint Strike Fighters plus training, services, and support, High Mobility Artillery Rocket System (HIMARS), F-16 Mid-Life Upgrade to Viper configuration and follow-on support, AIM-120C-7 Advanced Medium Range Air-to-Air Missiles (AMRAAM), and the Integrated Air and Missile (IAMD) Battle Command System (IBCS)-enabled Patriot Configuration-3+ with modernized sensors and components.

Leading Sub-sectors  

Opportunities for American defense firms exist mainly in investment, technology transfer, and co-production work. Polish defense companies routinely seek cooperative agreements or joint venture opportunities with foreign defense companies.

In 2025, the Minister of National Defense listed drones and Artificial Intelligence among the Ministry’s priorities. On January 1, 2025, the Inspectorate for Unmanned Aerial Systems Forces was established under the General Command of the Polish Armed Forces. The creation of a separate force means that Unmanned Aerial Systems (UAS) are growing in importance and will be fully integrated into the Polish Armed Forces, with a uniform training, planning and acquisition and implementation process.

Receptivity to American products is high due to an excellent reputation for high quality products, reliability, and technical assistance. However, technological advantage is not the only factor determining success in the Polish defense market. American companies should focus on educating end-users in the defense sector. A successful U.S. exporter is expected to support its agent/representative at trade shows, seminars, and conferences.

Polish officials maintain that the most important factor in awarding a contract is price (which is particularly critical for big-ticket purchases), after which other variables, such as quality, availability of services and training, technical assistance, and start-up operation of the equipment, become important. Therefore, superior performance offered from U.S. companies will not always win the deal.

The Polish government is required by law to hold public tenders for major procurements, though there is a national security exception. Financial value, project complexity, international cooperation, speed of delivery, and political sensitivity determine the project category.    

American companies that are well informed about upcoming projects are free to submit tenders to the contracting authority directly. However, direct purchases from foreign suppliers are very rare and we encourage U.S. firms to identify local agents/representatives who can provide necessary assistance. Selecting an appropriate representative is very important.  

The agent should have close contacts in the military/defense market. A reputable agent with good contacts can provide important and timely information, which is often not readily available through public sources. American companies exporting to Poland should be familiar with the country’s Public Procurement Law, Polonization, and Offset Act. Polonization is part of Poland’s long-term plan to become more self-sufficient, and to increase and promote local industrial production. The bottom line is that it is nearly impossible to effectively sell defense products without a competent agent.

The U.S. Commercial Service identifies defense industry as one of its sectors with sizeable American sales potential in Poland. It offers several commercial export promotion programs and advice on regulation compliance, market potential for a product or service, agent/representative vetting, as well as advocacy support.

Foreign investors and joint venture partners with local firms can take advantage of government incentives. Joint ventures are an excellent way to facilitate export sales to the Polish market. U.S. companies competing for Polish defense contracts are encouraged to look for joint ventures, co-production, and other cooperative opportunities with Polish companies to make their bid offers more attractive. The relatively low cost of production in Poland has led many foreign defense companies to seek cooperative agreements or joint venture opportunities with Polish defense firms. Examples of such projects include co-production of tanks, armored vehicles, artillery, ships, aircraft, and helicopters.  

U.S. companies are also encouraged to partner with Polish defense companies seeking cooperative agreements or joint venture opportunities in the context of available EU funding for the defense sector. In May 2025, the EU Council adopted a EUR 150-billion defense investment program. The regulation set up the Security Action for Europe (SAFE) instrument. SAFE is a new EU financial instrument that will support those member states that wish to invest in defense industrial production through common procurement, focusing on priority capabilities. SAFE will finance urgent and large-scale investments in the European defense technological and industrial base (EDTIB). The aim is to boost production capacity, making sure defense equipment is available when needed, and to address existing capability gaps - ultimately strengthening the EU’s overall defense readiness.

On July 29, 2025, Deputy PM/Minister of Defense Wladyslaw Kosiniak-Kamysz announced that Poland has submitted a preliminary declaration to the European Commission requesting EUR 45 billion in loans under the EU’s new program.  Also in May 2025, the European Commission approved a revision of the Polish National Recovery Plan, which calls for the creation of a Security and Defense Fund. PLN 25 billion will be dedicated to reinforcing Poland’s security and readiness in crisis situations. Support will be dedicated to defense companies, as well as for development of dual-use infrastructure, cybersecurity, and civilian protection.

Military Force Structure  

Poland’s military is traditionally land force heavy, with an overall total of over 210,000 military personnel. As of June 2025, the Polish Armed Forces consisted of 153,800 professional soldiers and approximately 19,600 voluntary enlisted recruits, and 37,000 Territorial Defense Forces personnel.

Poland’s military structure is also unique in NATO with three principal commands fulfilling functional roles under the General Staff. The General Command (GENCOM) is Poland’s force provider responsible for manning and equipping subordinate air, land, naval and Special Operations Force (SOF) inspectorates. The Operational Command (OPSCOM) is the force employer which receives forces and equipment from GENCOM to employ during crisis and war and manages Poland’s foreign deployment operations. Finally, Poland’s Support Inspectorate is the logistics arm ensuring both GENCOM and OPSCOM have cross-country force mobility and sustainment.  The Territorial Defense Forces (TDF) report directly to the Ministry of Defense. The Polish Parliament is considering draft legislation to change its current command structure to respond to possible crises or hybrid attacks more quickly.

The main agency responsible for procurement for the Armed Forces is the MoD’s Armaments Agency. The Agency also coordinates offsets and manages military equipment acquisitions through Foreign Military Sales.

Aerospace/Space

The Polish aviation sector consists of over 200 companies. These are mainly small and medium enterprises in southeastern Poland (“Aviation Valley”) and form part of a supply chain for global original equipment manufacturers (OEMs) located in Poland. Several major aircraft engine producers have located their engine and component production facilities in Poland. Two aircraft OEMs produce their helicopters in Poland: Lockheed Martin in Mielec, and Leonardo in Świdnik. Many companies also located their research and development centers in Poland, important investments in the aviation sector also included MRO centers.

The Polish space sector has been developing rapidly since Poland’s accession to the European Space Agency (ESA) in 2012. It now consists of almost 400 entities (companies and institutes), out of which 300 cooperate with ESA and 150 participate directly in ESA projects.

In January 2017, the Polish Government adopted a Polish Space Strategy and is currently working on a National Space Program, the aim of which is to increase the competitiveness of the Polish space sector, increase the use of satellite data, and use satellite technology for the purposes of national security and defense. Adoption of the National Space Program would increase public funding for the space sector projects.

In October 2021, the Polish Space Agency (POLSA) signed the Artemis Accords with NASA, which enables Poland to participate in NASA’s multilateral programs on exploration of the Moon, Mars, and other celestial bodies.

In July 2023, Poland increased its contribution to the European Space Agency by EUR 295 million between 2023 and 2025. These funds return to Polish industry via contracts and projects. In June 2025, Sławosz Uznański-Wiśniewski became the second Pole in space by participating in the Axiom Mission 4 to the International Space Station.

Polish companies are especially active in areas such as robotics, automation, and mechatronics. The market for applications based on satellite imaging, navigation and communication is developing rapidly. Polish space companies are dynamic, flexible, competitive, and innovative, but they lack flight heritage, and technological competences are dispersed. The size of qualified workforce is limited.  The quality of education is good, but the sector is young and has not had the time to build up a large pool of specialists able to run big projects in the upstream segment of the market, and there is still a low level of state investment in this sector.  

Trade events  

Participation in trade fairs, conferences, and seminars is an effective avenue for promotion in the defense/military sector in Poland.  

Poland’s annual MSPO International Defense Industry Exhibition in Kielce is Central Europe’s largest defense exhibition, and the third largest in Europe following Paris and Farnborough Air Shows and has been a major draw for defense companies for over three decades.

Other important exhibitions in the defense sector are:  

BALTEXPO – International Maritime and Military Fair in Gdańsk, held biennially, focused on the maritime sector. The 23rd edition of this trade show takes place October 7-9, 2025.

Defense 24 DAYS – Defense and security conference held annually in Warsaw. Polish military officials often present modernization plans, and exhibitors are welcome. The next edition is scheduled for May 6-7, 2026.

Additional Resources & Contacts:  

• Ministry of National Defense (MOD)  
• Armaments Agency (MOD Procurement Office)
• Polish Armaments Group (PGZ)
• Defense Sector Entrepreneur Portal    
• Polish Chamber of Defense Industry  
• Institute of Aviation  

For more information about the aerospace & defense sector, please contact:  
U.S. Commercial Service Poland
Commercial Specialist Katarzyna Słowińska
E-mail: katarzyna.slowinska@trade.gov