The Czech defense industry is experiencing an unprecedented renaissance, with growth exceeding 350% over the past three years. While traditional arms manufacturers continue to thrive, a new wave of companies specializing in drones and anti-drone systems is reshaping the sector.
According to Lubomír Kovařík, chairman of the Defense Industry Section at the Chamber of Commerce, companies producing drones, anti-drone solutions, and electronic warfare protection are gaining an increasingly significant market share. “This segment continues to grow and will keep expanding,” he notes.
Leading this technological shift are Czech companies like Primoco and Liaz, which have been manufacturing their own drones for several years. A notable development is the establishment of a UAC factory in Kolín, producing Ukrainian unmanned aerial vehicles. Meanwhile, Pardubice-based companies Retia and Jisr Institute are at the forefront of developing anti-drone systems capable of detecting and neutralizing unmanned aircraft.
The industry’s success is reflected in impressive numbers: Ernst & Young’s analysis shows that Czech arms manufacturers produced goods and services worth 75 billion crowns in 2023, with two-thirds destined for export. Ukraine alone received military equipment worth 20 billion crowns.
However, challenges remain. Despite record defense ministry investments, with over 90% of contracts going to Czech manufacturers, they only receive 25% of the total investment value. Most funds are allocated to major international purchases like American F-35 fighters and Swedish CV90 armored vehicles.