France Defence Sector NATO Rearmament Boosts France’s Defence Industry

Related Vendors

GGB Heilbronn GmbH

Fastems Systems GmbH

item Industrietechnik GmbH

According to the Financial Times, France’s defence sector is experiencing a boom – fueled by rising NATO commitments and growing European defence budgets. Alongside major players such as Dassault, Thales, and Safran, smaller companies like Exosens and Exail Technologies are increasingly profiting as well.

According to the Financial Times, France’s defense industry is currently one of the few bright spots in the country’s struggling economy. The main reason is the sharp increase in defence spending following NATO requirements. Not only large corporations like Dassault or Safran are benefiting, but also specialized mid-sized companies.

France to double the annual military budget to €100

As the Financial Times article states, the Banque de France cites the defence industry as an important driver of investment. President Emmanuel Macron plans to double the annual military budget to €100 billion in the long term — despite strained public finances.

Exosens is an example — a manufacturer of image intensifier tubes for night vision devices. The company, which went public in June 2024, is now valued at around €2.2 billion — its share price has almost doubled since then. In the first half of 2025, both revenue and operating profit increased by about 20 percent.

Exail Technologies’ Autonomous Drone Achieves World-First Voyage

Other companies are also experiencing strong growth: Exail Technologies, a provider of drone and navigation systems, has gained more than 400 percent on the stock market.

 The company has reached a new milestone in autonomous surface drones. Recently, its 16-meter DriX O-16 completed a world-first journey from La Ciotat, France, to Portugal’s Troia Peninsula, home to NATO’s REPMUS exercises. Covering nearly 1,100 nautical miles and navigating the busy Strait of Gibraltar, the drone operated autonomously for six days under supervision from Exail’s remote control center, successfully avoiding maritime traffic and demonstrating robust decision-making capabilities.

 The DriX leverages key patents and Exail’s decades of marine robotics experience. Since its 2017 debut, the first 8-meter model has operated in 19 countries, logging over 100,000 hours and nearly 1 million nautical miles for civil and defense missions.

 In parallel with REPMUS, Exail is also participating in the European I-SEAMORE exercises, deploying its Inspector 90 drone with advanced sensors to enhance autonomous maritime surveillance.

New 5G image intensifier tube

According to Exosens CEO Jérome Cérisier, Europe is at a “geostrategic turning point.” Even an end to the war in Ukraine would do little to change that. Analysts see the company’s European — and non-American — supply chain as a strategic advantage, since no U.S. export licenses are required.

Early September Exosens launched its new 5G image intensifier tube, a game changer in terms of visual perception and performance in night vision. 5G tubes introduce major advances that could redefine the operational capabilities of armed forces. They offer a significant improvement in overall performance (known as FOM, Figure of Merit) of 30% and an increase of up to 35% in detection ranges, regardless of the night level (from 1 to 5) compared to current standard intensifier tubes.With this new technology, visual comfort is unparalleled: thanks to innovations in manufacturing processes and high-end components, 5G tubes offers even sharper images. There is a significant reduction in "noise" or "flicker," especially in low-light conditions, by improving the perception of textures, contrasts, and depth. This increase in comfort significantly reduces visual fatigue and mental strain, and enhances soldier mobility through improved perception of the environment and ground contours.

With the war in Ukraine demonstrating the need to modernize the equipment of European land forces, 5G technology is set to become the product of choice for special forces and the future standard for night vision within all armed forces. With orders already confirmed ahead of its official launch, 5G is already proving popular with its first users.The design of 5G is also a French industrial achievement: it is the product of cutting-edge innovations, mastered from end-to-end in France, which will contribute to the upgrading and strengthening of the European armed forces and their allies. This innovation reinforces the ability of armed forces to act with precision, efficiency, and security in increasingly complex environments.

At the end of September, the french company announced that the Spanish Ministry of Defense had signed a supply contract for 17,000 night vision monoculars with its recently acquired company NVLS. These monoculars are equipped with 16 mm 4G intensifier tubes from Exosens and are scheduled for delivery between 2025 and 2028.