Norelco sees the growth of the defence sector as a significant market for critical electrical infrastructure.

Europe’s defence market is currently growing at an exceptionally rapid pace. According to the European Defence Agency (EDA), defence spending by EU countries is set to exceed €450 billion in 2026 and, at the current rate, reach approximately €550 billion by 2029.

Meanwhile, the European Union’s "Readiness 2030" program aims to facilitate up to €800 billion in additional defense investments by 2030. The program seeks to expand European production capacity, strengthen supply chains, and accelerate joint procurement.

NATO countries have agreed to allocate five percent of their annual GDP to defence and security by 2035. Of this, 3.5 percent is earmarked for actual defence spending, while up to 1.5 percent is allocated to areas such as critical infrastructure, security of supply, security, and societal resilience.

According to Ari Hämäläinen, CEO of Norelco, it is precisely this broad market for security and resilience that offers new opportunities for the company. "Growth in defence investments involves more than just weapons and military vehicles. It also creates a significant need for electrical systems, energy, production facilities, data centers, logistics, and maintenance. Norelco’s role is to ensure that systems vital to society and national defence receive power and remain operational under all conditions," says Hämäläinen.

Growth opens markets for industrial SMEs

Growth in the defence sector increases the need for major system suppliers to find new European partners for their supply chains. The strengths of small and medium-sized enterprises (SMEs) lie in their agility, specialized expertise, rapid product development, and ability to manufacture customized solutions.

Finland’s defence, aerospace, space, and security industry aims to achieve a total turnover of €12 billion and a workforce of 40 000 by 2030. This growth drives demand for expertise in systems, technical design, project management, production, quality management, and lifecycle services.

"Norelco has extensive experience in the design, manufacture, and supply of demanding electrical systems. This industrial expertise is also applicable to the needs of the defence, security, and security of supply sectors. We are entering the market not as a manufacturer of weapon systems, but as an expert in critical electrical infrastructure," Hämäläinen emphasizes.

Dual-use capability expands market reach

Many of Norelco’s current solutions are suitable for use in both civilian and security-critical environments. Such dual-use solutions are required in sectors including energy production, power grids, data centers, industry, ports, airports, warehouses, and maintenance facilities.

For the defence and security sectors, Norelco offers products and services such as power distribution units and complete electrical systems; automation, control, and monitoring solutions; the design and implementation of power distribution for critical sites; maintenance, modernization, and lifecycle services; and a wide range of rapidly deployable, customer-specific solutions.

“Our strength lies in our ability to design, manufacture, and deliver demanding electrical systems tailored to customer needs. In the defence sector, it is not just about an individual product, but about a reliable, complete system, including its maintenance and long lifecycle,” notes Hämäläinen.

Norelco’s role in the value chain

Entering the defence market requires companies to demonstrate long-term commitment and strong partnerships, as well as to meet stringent quality, safety, and information security standards. Procurement processes are lengthy, and initial deliveries often take place through major system integrators or other partners. Norelco is currently evaluating which defence, security, and security-of-supply sectors are suitable for its existing products and services, as well as the additional requirements for market entry. The goal is to build partnerships with defence industry system suppliers, infrastructure constructors, energy companies, and other technology partners in Finland and the other Nordic countries.

“You don’t enter the defence market with just one product or a single trade fair visit. First, you have to identify the problem we can solve, determine our place in the supply chain, and decide with whom to implement the solution. Norelco has a strong industrial foundation and the capacity to grow alongside its customers,” says Hämäläinen.

The Nordic countries form a shared security zone

Finland’s and Sweden’s NATO membership, combined with the Nordic countries' increasing defence investments, are enhancing the region's significance as a unified defence and security-of-supply area. Alongside military mobility and joint defence planning, there is a need for interoperable energy, telecommunications, and logistics infrastructure.

Norelco sees particular opportunities in Finland, Norway, and Sweden. The company is well-positioned to serve both defence organizations and their industrial partners in Nordic infrastructure and investment projects.

"The Nordic countries need greater domestic production capacity, stronger supply chains, and solutions that can be serviced close to the customer. Finnish expertise in electrical engineering meets this need well. Norelco wants to help strengthen the operational reliability of critical infrastructure in the Nordic region," says Hämäläinen.