This report consists of two parts, a global defence industrial outlook and a specific topic concerning the impact of the EDF on the Swedish defence sector. Within the global defence industry, the US holds a uniquely strong position in terms of arms sales, capability scope, and technological sophistication. However, this dominance is increasingly being challenged, not least by China. Meanwhile, the Russian defence industry has a broad scope and is fairly advanced, but faces challenges due to the war on Ukraine and subsequent Western sanctions. The European defence industry has a broad scope and is technologically advanced, but is characterised by fragmentation. In the past decades, the EU has introduced several defence industrial integration initiatives, most recently the EDF. According to various stakeholder representatives within the Swedish defence sector, the fund provides both opportunities and challenges for Sweden. The EDF presents opportunities in terms of funding, networking, knowledge exchange and cooperation on innovation. Meanwhile, challenges for Swedish EDF participation include potential differing goals and priorities of the EDF and the interests of Swedish defence actors as well as mismatches related to the Swedish budgeting and planning process. Successful future participation requires such challenges to be addressed.