Ukrainian gunsmiths increased their production by more than 200% in 2024, and will continue to grow this year.

In 2024, total arms production volume in Ukraine amounted to $10B, which is 200% more than in 2023 and 900% more than in 2022. However, Ukrainian manufacturers are only operating at 30-40% of their capacity. The potential for growth is laid down in the plans for 2025: The domestic defense industry plans to produce 30,000 long-range drones and 3,000 cruise and drone missiles. It is expected that this year’s total production volume will reach $30-35B.

With regard to armored vehicles, one Ukrainian company produces more than the entire European defense industry. One primary trend in the defense industry last year was the localization of production and import substitution. The production of Ukrainian components for unmanned systems and electronic warfare systems is actively increasing; localization in some products already reaches 60%.

Last year, the share of Ukrainian production in the armament of the Ukrainian military reached 30%, and drones produced in Ukraine accounted for 96.2% of all UAVs used by the Defense Forces.