European industry is entering a new era.
Investments in defence, clean technologies, and life sciences are reshaping manufacturing and logistics across the continent. Thanks to its strategic location and industrial heritage, the Czech Republic is well positioned to play an important role, with growing demand for modern facilities, innovation, and strategic investment.
The European industrial market is at a turning point. In recent years, Europe has faced profound geopolitical, economic, and technological shifts that are redefining production and supply chains. Since 2022, defence spending has surged. In 2025, all NATO member states will meet the 2% GDP defence target for the first time, and by 2035, spending is expected to rise to 3.5%. These funds are not only modernising armed forces but also driving the expansion of manufacturing plants and logistics hubs.
At the same time, the European Union is backing domestic production of renewable energy technologies, boosting recycling capacity, and prioritising self-sufficiency in strategic materials. New factories for solar panels, wind turbines, batteries, and recycling facilities are emerging across the continent. The life sciences sector is also booming, with significant investment in research, innovation, and state-of-the-art production and logistics centres.
The Czech Republic: A Key Player – Still on a Smaller Scale
These trends are increasingly visible in the Czech Republic. Its location, infrastructure, and industrial tradition make it a natural hub for Central and Eastern Europe. Defence industry investment is growing, with companies such as STV Group, Colt CZ Group, Czechoslovak Group, Explosia, Sellier & Bellot, and Tatra Trucks expanding production, modernising technology, and exporting military equipment worldwide. The country also serves as a critical logistics link between Western and Eastern Europe.
Beyond defence, the Czech Republic is home to innovative projects in clean technologies. Fill Factory in Rožnov pod Radhoštěm produces photovoltaic panels, while SolarTech and ČEZ Energetické služby are investing in battery storage development. Research initiatives led by the Centre for Energy and Environmental Technologies at VŠB-TU Ostrava focus on decarbonization, hydrogen technologies, and recycling. In life sciences, leading players such as Zentiva, Contipro, and Lonza Biotec in Kouřim are investing in advanced production and research facilities.
According to Cushman & Wakefield´s analysis, the Czech Republic currently operates on a smaller scale in defence, life sciences, and sustainable resources compared to Western Europe. However, its strategic location, industrial base, and growing investment in innovation signal strong potential for future growth.
Kamila Breen, Head of Research & Insight, Czech Republic “The Czech industrial market has strong growth potential ahead. We expect increasing demand for modern manufacturing and logistics spaces in the coming years, driven by the development of defence, clean technologies, and life sciences. The ability to adapt to new trends and invest in innovation will be crucial for maintaining the competitiveness of the Czech economy in the European context.”
New Opportunities for Investors
Rising demand for modern manufacturing and logistics spaces creates significant opportunities for developers and investors. Tenants in defence, energy, and pharmaceuticals are looking for high-quality, secure, and flexible facilities that can adapt quickly to changing needs.
Locations with strong infrastructure and access to skilled labor are particularly attractive, and regions with an industrial tradition are well placed to capture new investment. Projects focused on advanced technologies, recycling, and decarbonization also stand to benefit from public support and international partnerships.
Analysis by Cushman & Wakefield further highlights that tenants should carefully plan their expansion and work closely with developers to tailor space to their requirements. Investors, meanwhile, should offer flexible solutions and monitor opportunities to convert existing sites. According to current data, more than half of new manufacturing facilities are being built as extensions of existing complexes, underscoring the urgency and speed of today’s investment decisions. Another quarter of projects are being developed entirely from the ground up, while 16% are based on building conversions—creating opportunities for brownfield redevelopment, which often enables quicker commissioning and is typically located in well-connected areas with strong infrastructure.
Collaboration with research institutions and support for innovation bring competitive advantages and open the door to further investment.
The commercial real estate market is thus entering an expansion phase—an ideal moment for new projects in defence, energy and pharmaceuticals. Investors, developers and tenants have a unique opportunity to respond to rising demand from strategic sectors. Thanks to its location, infrastructure and industrial heritage, the Czech Republic is well positioned to play a key role in this transformation—and now is the time to act.
