Estonia’s CV90 IFV pivot reflective of changing battlefield threats

Estonia has dropped its intended acquisition of new infantry fighting vehicles (IFV), intended to replace a fleet of current CV90 platforms, and redirect funding to the procurement of alternative capabilities, thought potentially to be counter-UAS and FPV strike drones.

According to GlobalData’s inventory data lists, Estonia operates a fleet of 44 CV9035NL IFVs, acquired during 2016-2019, produced by BAE Systems AB.

In 2025 Estonia signed a deal with Finland, Norway, Sweden, Lithuania, and the Netherlands to explore the CV90 Mk IV as a possible replacement to the in-service 9035NL variants, with other IFV available internationally also to be considered.

However, the reversal will now see the 44 CV9035NL receive a €100m ($117.8m) upgrade package, an Estonian Center for Defence Investments spokesperson told Army Technology.

“At present, it is more rational to modernise the existing infantry fighting vehicles rather than replace them. Modernisation will ensure the sustained preservation of capability and the efficient use of resources,” the spokesperson said.

Continuing, the spokesperson said that the remaining allocated funds, which is thought to total in excess of $400m, was still unallocated, pending analysis.

However, it is thought likely that the pivot will be towards counter-UAS and FPV strike drone systems, which have provided to have both a tactical and strategic influence in Ukraine.

Industry insiders separately told Army Technology that Estonia is reallocating funds to focus on UAS instead of armoured vehicles.

Meanwhile Estonia confirmed that it had completed delivery of both Otokar ARMA 6×6 APCs and Nurol Machina NMS 4×4 APCs, all of which arrived in 2025.

“More specifically, the [Estonian] Defence Forces currently have 133 Otokar vehicles and 96 Nurol vehicles in active use, while four Nurol vehicles were delivered to the Estonian Rescue Board,’’ the spokesperson said.

Estonia defence spending doubles

In Nato’s recent publication of member defence spending, Estonia’s estimated defence spend for 2025 was in excess of $1.6bn, nearly double the $820m figure for 2022. As a percentage of GDP, this reflected 3.42% of the country’s total expenditure, an increase from 2.14% in 2022.

A Strategic Intelligence report from GlobalData in 2025 revealed that investment in defensive c-UAS capabilities would accelerate, with the capability increasingly being seen as essential given the proliferation of drones in the battlespace.

Additional reporting by John Hill.