The region, historically absent from the armaments map, is now emerging as a strategic link in the French Defense Industrial and Technological Base. Driven by innovative SMEs in drones and electronic warfare, and backed by a public fund of 250 million euros, it must now overcome the hurdle of private financing to solidify its position.
On June 24, 2025, the Chantilly Castle hosted an unprecedented event in the economic history of the region: the first Regional Defense Symposium. In front of over 250 business leaders, President Xavier Bertrand outlined the clear ambition. Hauts-de-France will no longer settle for being just the “Valley of Electricity” or a place for data centers. The territory now aims to make its mark in the BITD – the Defense Industrial and Technological Base, which forms the industrial base of French military sovereignty. This political signal did not go unnoticed, as it crystallized a dynamic that had been brewing in the regional economic fabric for several years.
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A denser industrial fabric than it seems
The region is not starting from scratch. It already has 150 SMEs and ETIs active in the defense sector, a surprising number considering the historical discretion of the territory in this market. The value chain is extensive, ranging from the establishment of Dassault Aviation in Seclin – a flagship of the French military aeronautics – to local industrial subcontractors investing to meet the increasing demand. An example is Deprecq, an industrial sheet metalworking company near Valenciennes, which reported a turnover of 6.37 million euros in 2024 and is positioning itself in the war economy markets.
This diversity is indeed one of the region’s strengths. Defense is not solely played at the level of major contractors; it relies on dozens of intermediary links capable of producing quickly, adapting their lines, and absorbing sharply rising volumes. This is where Hauts-de-France has a real comparative advantage.
Electronic warfare and drones
It is in the technological field that regional companies stand out most notably, especially in two domains vital in contemporary conflicts: electronic warfare and military drone systems.
MC2 Technologies, an SME based in Villeneuve-d’Ascq, is a striking example. The company earns nearly half of its turnover by supplying drone jammers to the French army – a segment that has become a priority since the conflicts in Ukraine and the Middle East revealed the vulnerability of forces against drone swarms. Expanding rapidly, MC2 Technologies is currently doubling its production capacity and targeting a turnover of 13.5 million euros in 2025.
In the drone segment itself, the ETI Turgis & Gaillard represents the region. From its northern site in Téteghem, it manufactures the Aarok, a large military drone for the armed forces. The company expects a turnover of 80 million euros in 2025, making it a significant player in a sector where France seeks to reduce its dependence on foreign suppliers.
To structure this sector upstream, the Region launched the “Pass Drones” initiative in 2025, endowed with 400,000 euros. Its scope covers all dimensions that project leaders face: regulatory framework, technical development, legal security, and access to investment. The signal sent is that of a community not just supporting existing companies but building a sustainable industry.
A public fund of 250 million euros
To finance this ambition, the public authorities have allocated substantial resources. In partnership with the state, the Region announced the setting up of a 100 million euro fund from 2025, progressively increasing to 250 million euros by 2028. A single orientation desk has been established to simplify the procedures for companies wishing to position themselves in defense markets.
These initiatives address a real need for seed financing. However, they alone will not suffice to fund the ongoing industrial transformation.
The challenge of private financing: the acid test of truth
This is where the long-term credibility of the regional ecosystem is at stake. According to the Directorate General of Armaments, French SMEs and ETIs in the sector will need to mobilize between 5 and 7 billion euros in new financing over the next five years. Of this total, between 1 and 3 billion euros must come from equity to enable them to handle the surge in their order books – estimated at 17.5 billion euros nationwide.
These figures reflect a concrete reality for growing regional companies: an ETI like Turgis & Gaillard, gaining traction in a lucrative market, will require capital that neither the Region nor the state can entirely cover. However, some private investors remain cautious due to long cycles, regulatory constraints, and the specificities of military markets.
The ability of Hauts-de-France to attract private funds – venture capital, industrial investors, European sovereign funds – to its defense champions will be the true barometer of maturity for this ecosystem. The actors are in place, political will is evident, and the public financing framework is in place. What happens next will be measured in billions and decided in the next two to three years.
