The German-made IRIS-T SLM has become part of the backbone of European medium-range air defense, with at least eight nations ordering systems through the European Sky Shield Initiative framework since 2023. Diehl Defence has scaled production capacity by a factor of ten and invested approximately €1 billion to meet surging demand, with confirmed European contract values exceeding €3.6 billion. However, production still cannot match combined European and Ukrainian demand, creating multi-year delivery backlogs extending to 2030.
ESSI transforms European air defense procurement
The European Sky Shield Initiative, launched in October 2022 with Germany as the lead nation, now includes 24 member countries and has designated IRIS-T SLM as its core medium-range system. This framework has fundamentally reshaped how European nations procure air defense, enabling joint purchasing through Germany’s BAAINBw acquisition agency and creating standardized training at the European Air Defence Academy in Todendorf.
Eight nations have signed IRIS-T SLM contracts through this framework: Germany, Estonia, Latvia, Slovenia, Bulgaria, Switzerland, Sweden, and Denmark. Several additional ESSI members—including Belgium, Czech Republic, Finland, Hungary, Lithuania, Romania, and Slovakia—are expected to follow with orders in coming years. Germany declared initial operational capability with its first IRIS-T SLM battery in September 2024, marking the system’s first deployment with a European NATO force beyond Ukraine.
The political significance extends beyond military capability. France has criticized ESSI for excluding the Franco-Italian SAMP/T system, with President Macron arguing the initiative promotes “specific industries at the expense of European autonomy.” This has created a parallel track where France and Italy promote SAMP/T independently, most notably securing Denmark as the first EU export customer in September 2025.
Country-by-country European procurement status
Germany anchors the program with a €950 million contract for six IRIS-T SLM fire units plus 216 missiles, signed June 2023. The first unit was delivered in August 2024, with full capability expected by mid-2027. Germany has announced plans to expand significantly—potentially to 50 IRIS-T SLM systems plus up to 100 mobile IRIS-T SLS short-range units—making it by far the largest customer.
Sweden represents the largest Nordic commitment, signing contracts totaling over €1.1 billion. The June 2025 agreement covers seven IRIS-T SLM fire units (49 vehicles) at SEK 9 billion (~€810 million), with deliveries scheduled from mid-2028 to 2030. Sweden also ordered equipment for four IRIS-T SLS short-range platoons in November 2025 at approximately SEK 3.5 billion. As a founding consortium partner holding an 18% development share since the 1990s, Sweden already operates IRIS-T missiles on Gripen fighters.
Switzerland signed a 500 million Swiss franc contract in July 2025 for five IRIS-T SLM systems, becoming the 15th ESSI member when it formally joined in October 2024. This purchase represents Switzerland’s return to integrated air defense after decades without such capability, notably achieved while maintaining Swiss neutrality outside NATO. Country Contract Value Fire Units Delivery Timeline Germany €950 million 6 SLM 2024-2027 Sweden ~€1.1 billion 7 SLM + 4 SLS platoons 2028-2030 Switzerland ~€525 million 5 SLM TBD Estonia/Latvia (joint) ~€1 billion combined 3 SLM 2024-2025 Slovenia ~€200 million+ 3 SLM 2025-2027 Bulgaria €182 million 1 SLM (+options for 6 more) 2025+ Denmark Undisclosed 1+ units 2026
Bulgaria signed an initial €182 million contract in October 2024 for one fire unit, with options to purchase up to five additional IRIS-T SLM units and one IRIS-T SLX long-range unit by 2032—potentially totaling $1.4 billion. Bulgaria explicitly chose IRIS-T over Patriot because the cost differential meant it could achieve national coverage with seven batteries for approximately $1.4 billion versus $7 billion for Patriot.
Denmark became the eighth ESSI customer with contracts signed in July and December 2025. The July order for one fire unit represents an “interim solution” with delivery expected no later than 2026, while the December contract covers additional permanent units. Denmark is simultaneously procuring NASAMS, VL MICA, and SAMP/T, building comprehensive multi-layered coverage rather than selecting a single system.
Nordic developments diverge sharply
The four Nordic countries have taken markedly different approaches despite all being ESSI members. Sweden and Denmark have become significant IRIS-T customers, while Norway maintains its NASAMS focus and Finland rejected IRIS-T SLM entirely.
Norway has not procured IRIS-T SL/SLM for its own forces, instead doubling down on NASAMS, which it co-developed with Kongsberg. Norway ordered four new NASAMS batteries in 2024 at NOK 4.8 billion (~$450 million) to replace systems donated to Ukraine. However, Norway contributed $92 million (approximately NOK 1 billion) to fund an IRIS-T SLM battery for Ukraine delivery through Germany’s IAAD initiative. Additionally, Norway’s new NOMADS short-range system is initially armed with surplus IRIS-T missiles from retired F-16s before transitioning to AIM-9X Sidewinders.
Finland explicitly rejected IRIS-T SLM in its high-altitude ground-based air defense tender, eliminating it in March 2022 in favor of Israeli systems. The Finnish Ministry of Defence stated Israeli options were “superior with regard to their capability.” Finland ultimately selected David’s Sling at €316 million in November 2023, becoming that system’s first export customer. The key factor: Finland required interception capability at minimum 15,000 meters altitude with extended range—IRIS-T SLM’s 40km range and 20km ceiling proved insufficient compared to David’s Sling’s 40-300km range.
Diehl Defence production scaling encounters constraints
Diehl Defence has invested approximately €1 billion to expand manufacturing capacity, achieving what CEO Helmut Rauch described as a “factor of 10” increase in IRIS-T SLM missile production since 2022. The workforce has grown from approximately 2,800 employees in 2021 to over 5,000 in 2025, with 500+ new hires annually.
System production targets show the scaling trajectory:
- 2024: 3-4 complete fire units
- 2025: At least 8 fire units (in progress)
- 2026+: 10 fire units annually (planned sustainable rate)
Missile production has increased from roughly 150-200 missiles in 2023 to an anticipated 800-1,000 missiles annually by 2025. A new missile production facility broke ground at Nonnweiler-Bierfeld in November 2024, expected operational by late 2025, with additional buildings planned at Maasberg and Mariahütte locations. The Diehl Energy Products facility has undergone fourfold expansion to support battery and propulsion component production.
Despite this expansion, significant bottlenecks remain. Approximately 75% of current missile production is allocated to Ukraine, delaying Germany’s own air defense buildup. The multi-year order backlog—with contracts like Sweden’s extending delivery timelines to 2030—reflects the gap between demand and production capacity. Key supplier Hensoldt is scaling TRML-4D radar production toward 30 units annually, with a target of 1,000 units by 2027.
Cost comparisons favor IRIS-T for medium-range requirements
IRIS-T SLM offers compelling economics compared to competing systems. A standard IRIS-T SLM battery costs approximately €150-200 million depending on configuration, with individual missiles priced at €400,000 to €1 million. Sweden’s order at approximately €115 million per battery reflects a reduced configuration with two launchers instead of the standard three. System Battery Cost Missile Cost Key Advantage IRIS-T SLM €150-200 million €400K-€1 million Best value for cruise missile/aircraft defense NASAMS $150-285 million $1-2.4 million (AMRAAM) Missile flexibility, mature system SAMP/T ~$500-550 million ~$2 million (Aster 30) Ballistic missile defense capability Patriot $360M-$1.1 billion $3.7-4 million (PAC-3) Long-range BMD benchmark
IRIS-T missiles cost roughly one-third to one-half of SAMP/T’s Aster 30 interceptors and approximately one-quarter of Patriot PAC-3 missiles. This differential drove Bulgaria’s decision: achieving national coverage with seven batteries would cost roughly $1.4 billion with IRIS-T versus $7 billion with Patriot.
However, IRIS-T SLM lacks ballistic missile defense capability—a critical limitation that led Finland to select David’s Sling and explains why SAMP/T won Denmark’s long-range requirement despite its higher cost. The developing IRIS-T SLX variant with 80km range aims to address this gap but remains in development.
Competitive dynamics reshape European market
The European medium-range air defense market has fractured along political and capability lines. ESSI has captured significant market share for IRIS-T in central and eastern Europe, while France promotes SAMP/T independently with notable success in Denmark and interest from Croatia.
NASAMS maintains strength in existing user bases and U.S.-aligned markets. Belgium ordered ten batteries for €2.5 billion in June 2025, Norway continues expanding its fleet, and Spain announced approximately €410 million in additional procurement in 2024. NASAMS offers greater missile flexibility—able to fire AMRAAM, AMRAAM-ER, AIM-9X, and ESSM—but faces AMRAAM supply constraints due to high global demand.
SAMP/T won a significant victory with Denmark’s selection in September 2025, marking its first EU export outside France and Italy. The system’s unique combination of European production and ballistic missile defense capability appeals to sovereignty-conscious buyers seeking BMD without American systems.
Conclusion
IRIS-T SLM has established itself as Europe’s dominant medium-range air defense system through a combination of combat-proven performance in Ukraine, competitive pricing, and the ESSI procurement framework’s efficiency gains. Eight European nations have signed contracts totaling over €3.6 billion, with delivery backlogs extending to 2030 as Diehl Defence races to scale production toward ten fire units annually.
The Nordic picture illustrates the system’s positioning: Sweden embraced IRIS-T SLM as its primary medium-range solution given its consortium partnership and cost-effectiveness, while Finland’s rejection highlights its altitude and range limitations for missions requiring long-range interception. Denmark’s multi-system approach—simultaneously procuring IRIS-T SLM, NASAMS, VL MICA, and SAMP/T—suggests European air defense strategies increasingly favor layered architectures over single-system solutions.
The broader European market remains contested between the German-led ESSI framework promoting IRIS-T/Patriot/Arrow 3 and French advocacy for SAMP/T. This competition, while creating political tensions, is driving unprecedented investment in European air defense industrial capacity after decades of underinvestment.
Image: DIEHL DEFENCE
AI-assisted article.
