Overview
The strong bilateral defense relationship between Sweden and the United States has been further solidified by the signing of the Defense Cooperation Agreement (DCA) in December 2023 and Sweden’s full accession to NATO in 2024. The DCA establishes a legal framework for enhanced U.S. military presence, prepositioning of defense equipment, and joint exercises in Sweden.
Sweden currently allocates approximately 2.2% of GDP to defense (2024) and aims to reach 3.5% by 2032, in line with NATO’s 5% total defense and security investment framework by 2035. The Swedish Parliament has approved an ambitious modernization program exceeding SEK 170 billion ($15 billion) by 2030, focusing on air defense and missile systems, naval modernization, and expanded domestic production capacity for munitions, sensors, and critical components.
Sweden is expanding joint R&D in advanced materials, autonomous systems, and AI-enabled defense technologies, while strengthening cross-sector innovation through defense and civil partnerships and dual-use applications. Additional priorities include enhancing supply chain security and industrial resilience across key defense domains and promoting transatlantic and Nordic collaboration for co-development. As Sweden upgrades its defense infrastructure, demand will grow for a wide range of products and services, from advanced weapons systems and command technologies to secure communications, logistics support, and cyber-resilience solutions, creating significant new opportunities for U.S. companies.
Sweden is also home to Saab AB, the country’s largest defense company and one of the world’s top 40 arms producers. Saab manufactures the JAS 39 Gripen multirole fighter, Giraffe radar systems, and Carl-Gustaf anti-armor weapons. While Saab’s dominance underscores Sweden’s strong domestic capabilities, it also provides a foundation for partnerships, co-production, and technology collaboration, which are often key to successful market entry.
Leading Sub-sectors
- Cybersecurity and Cyber Defense
- Autonomous Systems
- Artificial Intelligence (AI)
- Drone Technology Development
- Space Technology and Satellite Systems
- Advanced Weapon Systems
- Defensive Armor and Protective Gear
- Energy and Power Solutions
Collaboration with Swedish defense forces and industries in these sectors can drive technology transfer and knowledge-sharing, benefiting both countries and fostering advancements in defense capabilities.
Resources
- FMV (Swedish Defence Materiel Administration)
Responsible for procurement and development of defense materiel, working with the Swedish Armed Forces, MSB, and other stakeholders to ensure operational readiness. - National Agency for Public Procurement
Oversees procurement processes for defense-related goods and services. - Swedish Security & Defence Industry Association (SOFF)
Represents Swedish defense companies and fosters industry collaboration. - Försvarsmakten (Swedish Armed Forces)
- MSB (Swedish Civil Contingencies Agency)
Manages Sweden’s civil defense and crisis preparedness in coordination with the Swedish Armed Forces. - Swedish Psychological Defence Agency (MPF)
Focuses on psychological defense and integrates AI to counter information threats, collaborating with Swedish Defence University and MSB for strategic resilience. - Försvarshögskolan (Swedish Defence University)
Provides education and research on defense and security, collaborating with the Swedish Armed Forces, MSB, and other national defense entities.
Trade Events
NavyTech in Gothenburg, Sweden, 2026
Date: February 3-5, 2026, Gothenburg
Overview: According to the organizers, Navy Tech 2026 is where naval stakeholders come to connect, collaborate, and contribute to future mission success.
Defence Expo Sweden 2026
Date: April 14–15, 2026, Stockholm (Magasin 9, Frihamnsgatan)
Overview: Defense exhibition, bringing together companies, decision-makers, and government agencies to showcase new products and solutions.
SKYDD & Totalförsvarsmässan 2026
Date: October 20–22, 2026, Stockholmsmässan, Stockholm
Overview: The Total Defense Fair is a dedicated fair focusing on total defense, civil-military cooperation, preparedness, and resilience.
Homeland Security Expo Sweden 2026
Date: December 3–4, 2026, Kistamässan Exhibition & Congress Centre, Stockholm
Overview: An international exhibition on homeland and internal security technologies, covering policing, drone and anti-drone systems, forensics, and cybersecurity.
Local Commercial Specialist: Johan Bjorkman, Johan.Bjorkman@trade.gov.