Companies in civilian sectors are turning to defense amid rising security budgets in the EU and NATO, with significant investments in military technology.

The European defense industry is rapidly transforming, with companies in telecoms, autonomous transport and shipbuilding turning to military contracts, spurred by rising defense budgets in the EU and NATO. The European Commission is proposing a €2 trillion budget for defense, and companies such as Orange, Einride and Fincantieri are investing in security technology solutions. Big investors, including Deutsche Bank, are increasing their exposure to the sector, anticipating massive capital flows.