In recent years Croatia has been focusing attention and dedicating resources to improving its air force and associated assets. The time has now come to switch attention to the terrestrial and maritime domains, according to a newly-published report from intelligence firm GlobalData.
In the Croatia Defence Market Data (2026-2035) report, the company suggests the national defence budget will climbing to a high of $3.3bn by 2031, driven by the requirements of future acquisitions in addition to ongoing spending commitments. This will result in see a compound annual growth rate (CAGR) over the forecast period of 11.9% – in comparison to 11.8% historical growth.
Though small by comparison with other NATO member states, Croatia’s budget is on track to surpass the 2% of GDP spending target, according to the alliance. Zagreb is committed to weaning its 13,000 strong armed forces off legacy Soviet-era equipment, replacing it with modern, capable systems offering interoperability with allies.
However, recent moves to recapitalise defence equipment have seen a number of planned acquisitions, with a recent $476m deal to acquire 18 K239 Chunmoo Multiple Lauch Rocket Systems (MLRS) from South Korean provider Hanwha Aerospace. Recapitalisation of the air domain has more or less been completed with the acquisition of 12 Rafale B/C aircraft last year. The focus is now shifting to land and naval platforms and systems according to GlobalData.
Enhancing long-range artillery capability has been high on Zagreb’s wish list, as it seeks to replace Soviet multiple launch rocket systems (MLRS) and self-propelled tube artillery. An approach to the US resulted in the State Department approving a possible sale of eight HIMARS systems in 2024 at an estimated cost of $390 million. Instead, Croatia elected earlier this month to procure 10 K239 Chunmoo MLRS from Korea’s Hanwha Aerospace for €412 million, according to government sources. (See the Defence Alternatives 11 September report on this contract here). Aside from price, a key discriminator in the decision appears to have been delivery time, with Hanwha stating it intends to deliver 85% of the systems in 2028. Chunmoo will complement some of the more modern tube artillery in Croatian service.
Croatia is also devoting significant funds to ammunition procurement, in common with most other European nations. GlobalData suggests expenditure on munitions will increase from $162 million in 2026 to $267 million by 2035, while expenditure on ground vehicles will rise to 260 million over the next five years.
Naval spending is forecast to rise from current level of $162 million to some $267 million by 2035, driven largely by the anticipated acquisition of two large patrol vessels – an aspiration which might be transformed to seeking light frigates – which would produce a radical capability enhancement for Croatian naval forces.
For more information on the report, contact GlobalData direct. www.globaldata.com
Headline image: Croatia has now taken delivery of its 12 ex-French Air Force Rafales (photo credit NATO)
