At least 195 Belgian tech companies, not currently active in the defence sector, are considering entering it, according to a survey published on Wednesday by the technology federation Agoria and the Belgian Security & Defence Industry (BSDI), although they also cited several significant challenges.
Agoria and BSDI surveyed tech companies in April and May. Of the 414 responses received, 47.1% expressed interest in expanding their activities into the defence industry. Among these 195 companies, 75.4% operate in Flanders, 28.2% in Wallonia, and 10.8% in Brussels.
The primary area of interest is research and development (R&D). Nearly three-quarters (72%) of the companies looking to expand into the defence sector plan to produce systems, components, and software, and 43% aim to focus on developing new technologies. Almost all (96%) are targeting dual-use products, suitable for both civilian and military applications. A third (32.8%) of the interested companies hope to generate more than 10% of their revenue from the defence sector within five years.
However, they face three main challenges. First, 62.6% of respondents find the defence sector complex and call for more consultation with authorities. Additionally, 25.1% cite difficulty in securing funding, and 19.5% seek assistance with exports.
Lastly, the lack of certifications that provide access to confidential information during bidding processes is also a barrier.
The authorities’ aim to increase the Defence budget to 2% and then to 5%, amid a very tense geopolitical climate, makes the sector quite attractive for companies.
