France becomes the world’s second-largest arms exporter

There has been a significant increase in sales and future orders of French arms to countries in Asia, Oceania, and the Middle East. The war in Ukraine has also paved the way for French suppliers to outperform their Russian rivals. Several factors have contributed to the substantial growth of France’s arms industry. Here, Esra Serim explains why France has recently climbed the ranks among the world’s leading arms exporters.

Domestic incentives

French President Emmanuel Macron has consistently supported the notion of strategic autonomy for both France and the European Union (EU). Accordingly, he has pledged to increase defence spending at both the EU and national levels. In his 2017 speech, he stated that: “In the area of defense, our aim needs to be ensuring Europe’s autonomous operating capabilities, in complement to NATO.”¹ This commitment to strategic autonomy has significantly influenced France’s arms production and exports to Ukraine, as well as to countries in Asia, Oceania, and the Middle East. Consequently, under Macron’s leadership, France has increased its investments in the defence industry. He has also emphasised ensuring France’s autonomous operating capabilities and expanding the country’s defence sector capacity. France’s arms industry is regarded as a crucial pillar supporting strategic autonomy and enhancing the nation’s global standing.² Ultimately, strategic autonomy enables France to maintain and advance its own technological and industrial development in national defence.

The international context

Russia’s invasion of Ukraine quickly shifted perceptions of arms export policies in France. Countries such as France and Germany began implementing a more proactive arms export policy in support of Ukraine. The delivery of French military equipment has played a crucial role in bolstering the security of both Ukraine and Europe. As a result, Ukraine has effectively become a “strategic partnership country” in French arms export policy, emerging as a leading buyer of French military hardware to equip itself against the Russian threat. Meanwhile, Russia—previously the world’s second-largest arms exporter—was forced to scale back its military exports to meet the domestic demand brought on by the war. Thus, Russian arms exports plummeted over the 2020–2024 period. At the same time, India, Saudi Arabia, and Qatar have increasingly turned to France to meet their defence needs. “France is using the opportunity of strong global demand to boost its arms industry through exports,” explains Katarina Djokic, a researcher at SIPRI. “France has been particularly successful in selling its combat aircraft outside Europe.”³

Technological breakthroughs

A final factor highlighted in recent research is the growing militarisation of space and of emerging technologies such as cyber security and artificial intelligence (AI). The Macron government has accelerated investment in space-related defence projects. Paris has recently financed the next generation of CELESTE intelligence satellites and the YODA patrol programme, which aims to deploy manoeuvrable spacecraft capable of monitoring and protecting French satellites.⁴ Meanwhile, as a nuclear-armed state, France is also working to integrate AI-equipped drones into its nuclear arsenal. These drones are designed to improve the precision and effectiveness of nuclear delivery and targeting systems.

In conclusion, the transformation of France’s military, along with increased government spending on the defence industry, has enabled the country to become one of the world’s largest arms producers and exporters, second only to the United States.

1. “President Macron Gives Speech on New Initiative for Europe,” Élysée, 26 September 2017, accessed https://www.elysee.fr/en/emmanuel-macron/2017/09/26/president-macron-gives-speech-on-new-initiative-for-europe.
2. Edward A. Kolodziej, Making and Marketing Arms: The French Experience and Its Implications for the International System (Princeton University Press, 1987).
3. Cited in “Europe’s Arms Imports Nearly Double, France Overtakes Russia as World’s Second-Largest Exporter,” Euronews, 16 March 2024, accessed https://www.euronews.com/business/2024/03/11/europes-arms-imports-nearly-double-france-overtakes-russia-as-worlds-second-largest-export.
4. "France to boost military budget to €413 billion over next seven years", RFI, 4 avril 2023, disponible sur : https://www.modernghana.com/news/1222773/france-to-boost-military-budget-to-413-billion.html.

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Article published in the third issue of the FMSH Journal.