According to Ukrainian sources, the industry’s production potential reached USD 3 billion in 2023 and surged to USD 20 billion in early 2024. However, much of this capacity remains unused due to financial limitations.
The ministry states that current funding allows the government to utilise only one-third to half of the industry’s potential. In 2023, total defence orders were valued at USD 10.5 billion, with USD 9 billion coming from Ukraine’s own budget and an additional $1.5 billion from foreign aid under the Danish model of funding.
With increasing production capacity, Ukrainian officials are prioritising domestic defence manufacturing. To support this, the Zbroya initiative has been launched, bringing together defence companies, manufacturers, and research institutions under one framework.
Key advancements in Ukraine’s defence industry during the ongoing war include the development of air, land, and sea drones, as well as communication systems, electronic warfare technology, and missile systems. These innovations reflect Ukraine’s growing capability to sustain its defence efforts while strengthening its industrial base.
