Belgium's strategic framework for defence transformation in a new European era

Mobilising the Belgian defence industry

mobilising the belgian defence industry
  • Publication
  • 8 minute read
  • March 17, 2026

Europe has entered a new defence era. Capability, readiness, and industrial resilience are no longer long-term ambitions, but near-term delivery requirements. Belgium’s uniquely positioned at the centre of this shift. It hosts key NATO and EU defence institutions, it sits on critical military mobility corridors, and it has a broad base of defence-relevant firms and dual-use innovators.

 

In this report, PwC provides a practical framework for strengthening Belgium's defence industrial ecosystem in that new reality. It translates the current European and NATO momentum, rising budgets, new EU instruments, higher compliance thresholds, and urgent replenishment needs into a clear set of priorities for action across industry and government.

Key take-aways

Market access is tightening

Defence participation increasingly depends on cybersecurity compliance, ownership transparency, export controls, quality frameworks, and security readiness. These aren’t administrative add-ons, they’re access gates.

“Fit for purpose” is the entry ticket

Organisations that professionalise governance, compliance, and industrial security early reduce friction in bidding, partnering, and delivery.

The value shift is structural

The biggest economic and strategic upside sits in Tier-1/Tier-2 subsystems, not one-off component supply. Belgium's opportunity is to move up the value chain.

Scaling requires solving four constraints.

Talent, capital, supply chain security, and operational maturity determine whether growth’s feasible and sustainable.

Resilience is now a qualification

Customers and prime contractors will prioritise suppliers who can deliver under disruption. Cyber incidents, supply shocks, and operational stress are expected conditions.

Execution is the differentiator

Budgets and strategies only become credible when delivery’s measurable, governed, and repeatable across programmes. 

Belgium's advantage is ecosystem density

Institutional proximity and a broad industrial base means Belgium’s ecosystem can deliver impact beyond its scale, if coordination and readiness are structured. 

Building trust, compliant, mission-aligned organisations Fit for purpose

Elevating trust, compliance, and security maturity are seen as essential “entry tickets” for all defence supply chain participants. Belgian firms are urged to meet stringent cybersecurity, supply chain ownership transparency, and export control standards to access new opportunities.

To be part of today’s defence market and programmes, the following requirements must be met: 

  • Full NIS2 cybersecurity compliance 

  • Transparent ownership under strengthened Foreign Direct Investment (FDI) screening

  • Defence-grade quality systems 

  • Secure-by-design engineering practices 

  • Security clearance readiness

Scaling Belgium’s industrial base Build for growth

Expanding Belgium’s defence industrial base isn’t only an industrial challenge, but a complex transformation that must be actively managed. Rapid growth in production capacity, workforce expansion, and cross‑border collaboration places pressure on governance, supply chains, skills availability, and regulatory compliance. A well‑orchestrated transformation is essential to ensure resilience, cost control, quality assurance, and security of supply.

Beyond industrial performance, this transition has a broader societal impact—it creates high‑skilled employment, reinforces regional innovation ecosystems, and strengthens Europe’s strategic autonomy while maintaining public trust through transparency, ethical procurement, and sustainability considerations. Getting the transformation right is therefore critical, not only for defence readiness, but also for long‑term economic and social value creation in Belgium.

Delivering under disruption From readiness to resilience

Embedding structural resilience not as a concept but as a qualification. Belgian companies are recommended to secure multi-sourced supply chains, cross-border cyber-defence integration, surge manufacturing capacity, and robust crisis management protocols.

Belgian’s seven resilience capabilities: 

  • Multi-sourced, traceable supply chains

  • Cross-border cyber defence integration 

  • Surge manufacturing capacity 

  • Secure digital infrastructure

  • Workforce reserve models

  • Host-nation logistical readiness

  • Crisis governance protocols ready for activation 

In the defence ecosystem, resilience isn’t a narrative, it’s demonstrated through the ability to continue delivering when conditions deteriorate.

From strategy to delivery—institutionalising performance Execution pathway

Across Europe, the gap between announced budgets and delivered capability’s widening—driven by procurement bottlenecks, industrial immaturity, and governance fragmentation. Belgium’s advantage will depend less on ambition and more on its ability to organise delivery consistently across programmes.

Belgium's competitive advantage won’t be defined by how much it commits, but by how consistently it delivers. Execution must therefore become a capability.

Governance and compliance—from control function to strategic lever

Execution begins at board level. Defence transformation introduces new regulatory density: European Defence Industry Programme (EDIP) participation rules, NIS2 compliance, FDI screening, cybersecurity baselines, EU funding eligibility criteria, NATO assurance requirements. These aren’t administrative hurdles, they’re market access gates. Belgium's defence ecosystem must institutionalise them. 

Industrial scaling—operationalising growth

For Belgium’s defence ecosystem, the challenge is to grow in a coordinated and sustainable way. Industrial scaling must be supported by stronger programme management, clearer collaboration frameworks, and better integration across companies, research institutions, and public stakeholders.

This implies a gradual shift away from largely organic, company-by-company expansion toward a more structured industrial architecture. In practice, this means developing stable consortium models, strengthening subsystem integration capabilities, and aligning investment decisions with long-term capability programmes. It also requires closer coordination between prime contractors, mid-sized suppliers, and SMEs so that Belgian companies can position themselves more effectively within European and transatlantic defence supply chains.

Resilience mechanisms—making continuity operational

Resilience cannot be theoretical. It must be rehearsed. In our report, we explore the critical enablers and strategies required for Belgium to transition from a component supplier to an integrated subsystem provider within the defence sector. It highlights the importance of developing robust industrial capabilities, expanding capital and workforce infrastructure, and operationalising resilience to secure sustained programme relevance and strategic advantage.

National-level execution alignment

Transformation becomes durable when it’s institutionalised. Across Europe, every nation’s increasing budgets. Few are institutionalising execution. This is Belgium's differentiator. 

Want to know more about reinforcing the Belgian defence ecosystem?

Download our Thought Leadership, ‘Mobilising the Belgian defence industry’

Contact us

Steven De Bruyn
Steven De Bruyn

Partner, Aerospace and Defence, Global Relationship Partner within PwC for NATO, PwC Belgium

Stephan Lepouttre
Stephan Lepouttre

Director, Aerospace and Defence, PwC Belgium

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