Overview

• Analysis of over 1,000 ESA Sentinel-1 passes found construction or land-use changes at 150 defence-related sites linked to 37 companies, adding more than seven million square metres of new industrial area since 2020
• EU’s €500 million ASAP programme drove the fastest growth, with built-up areas at supported sites rising from 790,000 sqm in 2020–21 to 2.8 million sqm in 2024–25
• Rheinmetall and Hungary’s N7 Holding have brought the Várpalota plant online to produce 30 mm rounds and aim to manufacture 1.1 million 155 mm shells annually by 2027
• The European Commission has proposed a further €1.5 billion defence fund to extend production support to rockets, drones and air-defence systems
• Experts warn that shortages of long-range rocket engines and specialised explosives may limit the effectiveness of the expanded factory capacity