Lithuania is embarking on an expansion of its military capabilities. Its defence budget is poised to reach $2.8bn by 2029, marking a notable increase from $2.1bn in 2024.
This surge, highlighted in GlobalData's "Lithuania Defense Market 2024-2029" report, reflects a commitment to reinforcing readiness amidst climbing regional tensions exemplified by ongoing conflicts and geopolitical uncertainties.
Key statistics from GlobalData's "Lithuania Defense Market 2024-2029" report reveal a projected annual increase of 5.9% in defence expenditure between 2025 and 2029, revealing Lithuania's proactive approach to military modernisation.
Military modernisation efforts are at the forefront of Lithuania's defence strategy, focusing on key sectors such as land vehicles, missile defence systems, and tactical communication technologies. Investments in these sectors show Lithuania's commitment to enhancing its ground capabilities, safeguarding its airspace, and ensuring communication networks among its armed forces.
Lithuania recently strengthened its defence capabilities through two initiatives. Firstly, the Lithuanian Defence Material Agency signed an agreement with Dutch counterparts to acquire Thales GM200 MM/C radars. Secondly, the State Defence Council approved the acquisition of German Leopard 2 tanks.
Partnerships play a role in Lithuania's defence agenda, with the nation forging alliances with NATO, the United States, Germany, and other EU partners to strengthen collective security measures. Notably, Lithuania consistently exceeds NATO's 2% GDP spending threshold, with defence expenditure as a percentage of GDP projected to rise from 3.7% in 2024 to 4.4% by 2029.
Moreover, Lithuania's defence procurement objectives are underscored by contracts with global suppliers, including acquisitions of VILKAS IFVs from ARTEC GmbH and UH-60M Black Hawk helicopters from Sikorsky Aircraft. These partnerships enable Lithuania to leverage technologies and enhance its defence capabilities despite challenges such as limited defence industry size and budget constraints.
As Lithuania navigates an increasingly complex security landscape characterised by evolving threats and geopolitical dynamics, its intensified defence build-up reaffirms its determination to safeguard its sovereignty and territorial integrity.
