Market Intelligence
Defense Equipment Greece

Greece Aerospace and Defense UAV and C-UAS Modernization Plan

Driven by an evolving security landscape and a need for enhanced deterrence capabilities, the Greek government plans to radically modernize its Armed Forces through €12.8 billion in investments by 2035.  Greece currently spends approximately 3% of its GDP on defense spending, in line with its Wales Summit Declaration obligations. In 2025, the government increased its defense budget to €6.1 billion from €3.6 billion, with notable increases for product categories including unmanned aerial vehicles (UAVs), unmanned autonomous vessels, drones, and counter-unmanned aerial systems (C-UAS). 

The escalating threats posed by missile proliferation and the tactical integration of Unmanned Aerial Systems (UAS) in modern warfare are driving a significant surge in demand for Short Range Air Defense (SHORAD) systems. This includes specialized capabilities such as counter-UAS (c-UAS), counter-low, slow, small (c-LSS), and counter-rocket, artillery, and mortar (c-RAM) systems. The UAS market itself is experiencing substantial growth, with projections indicating an increase from $3.5 billion to $8.61 billion globally by 2032, particularly for high-end platforms like Medium-Altitude Long Endurance (MALE) and High-Altitude Long Endurance (HALE) UAS. This expansion is fueled by emerging partners’ growing absorption capacity and the continued proliferation of smaller UAS in global military operations. 

Furthermore, the integration of Artificial Intelligence (AI) and Machine Learning (ML) is transforming SHORAD by enhancing mission autonomy and accelerating decision-making in contested environments. The development of tactical UAS and Unmanned Underwater Vehicles (UUVs), and the shift towards unmanned technologies, are also creating new market opportunities and promoting open architecture designs, with UUVs and distributed systems becoming viable alternatives for anti-submarine warfare and logistics.

In the context of Greece, on April 2, 2025, Greek Prime Minister Kyriakos Mitsotakis announced a comprehensive €25 billion, 12-year defense spending plan. This presents significant opportunities for companies involved in the development, production, and integration of UAS, UUVs, and especially C-UAS technologies. U.S. industry should note the strong emphasis on domestic industry participation also suggests opportunities for partnerships, technology transfer, and investment within Greece (i.e. industrial offsets, co-production, co-manufacturing) as a means to be more competitive in offers and tenders. 

The Greek 12-year defense strategy presents significant opportunities for companies involved in the development, production, and integration of UAS, UUVs, and especially C-UAS technologies. The strong emphasis on domestic industry participation also suggests opportunities for partnerships, technology transfer, and investment within Greece. 

  • UAS: Increased demand for surveillance, reconnaissance, and strike capabilities, including MALE and HALE drones.
  • UUV: Growing interest in underwater surveillance, mine countermeasures, and anti-submarine warfare to protect major energy sector and maritime endeavours.
  • C-UAS: Urgent need for systems to counter the proliferation of drones, especially in asymmetric warfare, natural disaster, and dual civil-use scenarios.
  • C-UUV: Development of counter-underwater systems to address the emerging threat of unmanned underwater vehicles to protect national & regional investments.

The following programs represent potential opportunities for U.S. firms in these sectors.
Project LOTUS (Low Observable Tactical Unmanned System): The LOTUS initiative marks a significant step toward enhancing Greece’s domestic UAV manufacturing capabilities. Led by Greek firm Intracom Defense Electronics (IDE), this project focuses on developing stealth swarm drones. The consortium includes Greek and European entities, aiming to enhance intelligence, surveillance, and reconnaissance (ISR) capabilities. The contract was signed in November 2020 and is ongoing. This is budgeted at  €9.7 million financed by the European Commission. 

Archytas UAV Development: The Hellenic Aerospace Industry (HAI) unveiled the Archytas UAV, a fixed-wing drone with vertical take-off and landing capabilities, designed for surveillance missions.  The Archytas program was signed by the Greek Minsitry of Finance with a consortium of universities. Commercial opportunities for U.S. firms include cameras, sensors and engines for the drones. 

Grypas UCAV Project: Greece is developing its first indigenous unmanned combat aerial vehicle (UCAV), named Grypas, with large-scale production expected to commence in 2025.  The Ministry of Defense signed a Memorandum of Cooperation between the HAI and various universities of Greece in 2023 for the design and industrial production a complex unmanned aerial vehicle. This program has utilized the know-how acquired from the previous Archytas program. 

Counter-Drone Systems: Greece is currently negotiating with Israel to develop a €2 billion anti-aircraft and missile defense system, similar to Israel’s Iron Dome, aimed at intercepting various missile types and enhancing military capabilities. Israeli and U.S. firms are working together on this project to provide high-end technology.

Opportunities for U.S. Firms
Greece’s defense and security modernization, focusing on UAVs and C-UAS, offers U.S. companies three main opportunities: technology collaboration on advanced systems, equipment supply of specialized components, and training and support for system integration. This creates a strong strategic partnership through technology transfer and long-term support.
General Info
 

For more information on tenders please visit the links below:
Greek Ministry of Defense
Greek Ministry of Citizen Protection 

U.S. firms interested in showcasing their capabilities and solutions should consider attending or exhibiting at the biannual DEFEA show held in Athens in May 6-8, 2025. For more info, please visit https://www.usadefea.com

For more information on identifying potential partners and opportunities, please contact U.S. Commercial Service Defense and Safety & Security Specialist Athina Kladis at Athina.Klads@trade.gov.