Sweden's Defence Sector Booms with Job Growth and Infrastructure Challenges in 2026

Sweden's defense sector is experiencing unprecedented growth, with projections indicating tens of thousands of new jobs and substantial economic boosts in the coming years. According to a recent EY report, major investments in the defense industry will inject multi-billion kronor into the economy. Daniel Ljunggren, CEO of defense IT supplier Mildef, noted, "We have never had such a high rate of expansion as now, and it continues," underscoring rapid industry growth.

Meanwhile, Evolved Aerospace is capitalizing on a global surge in demand for advanced defense technology. CEO Mikael Taveniku highlighted a strategic shift from individual products to integrated military systems enhanced by AI and distributed technologies. The company expects to grow its revenue from approximately five million euros in 2025 to 65 million euros in 2026 and plans to hire around 100 new employees worldwide.

However, significant challenges remain, particularly in testing infrastructure. Anders Hultman, CEO of Bofors Test Center, stressed that testing capacity is a critical bottleneck affecting production and verification of defense systems amid soaring material demand in Europe. The century-old Bofors Test Center, key to ensuring reliability and safety of military equipment, is seeking skilled recruits and calls for clear conditions on testing permissions to prevent deployment delays.

Together, these developments illustrate a defense sector rapidly expanding its workforce and capabilities while confronting infrastructure constraints vital for sustaining this momentum.