What exactly is ITAR, and why are European defense buyers actively avoiding it?

The International Traffic in Arms Regulations (ITAR) is a U.S. regulatory framework that governs the export and temporary import of defense-related articles and services. European governments are heavily favoring ITAR-free systems because these rules give Washington ultimate veto power over whether a foreign nation can resell or transfer military equipment containing U.S. parts—even if the foreign government fully paid for them.

How is Honeywell Aerospace structurally altering its engineering footprint to comply with these rules?

Rather than relying on its traditional design hubs in the United States, Honeywell has localized its defense development by shifting core intellectual property creation into the European Union. The company has concentrated a dedicated team of 1,000 aerospace engineers across the Czech Republic and Poland to build and patent components natively within Europe.

What specific product lines are being prioritized for Honeywell's ITAR-free expansion?

The company is primarily focusing its non-U.S. technology pipelines on advanced navigation systems, inertial measurement units (IMUs), and heavy-duty mechanical actuators used to stabilize and guide missiles or unmanned aerial vehicles (UAVs). This effort heavily utilizes the tech architecture acquired from Italian sensor manufacturer Civitanavi Systems.

Are other North American suppliers experiencing a similar shift toward non-restricted components?

Yes. Aerospace and defense suppliers across Canada and the United States report a massive structural pivot. For instance, Toronto-based component manufacturer Ben Machine Products indicated that over half of its current client order book now explicitly demands ITAR-free compliance, compared to zero non-ITAR requests as recently as 2018.

Where and when will Honeywell Aerospace showcase its next-generation international defense lineup?

Honeywell is scheduled to formally present its new, un-restricted guidance and navigation technologies to global procurement officers at the Farnborough International Airshow in Hampshire, Britain, which runs from July 20 to July 24, 2026.

Image for illustrative purposes only. Not a real photo.

Honeywell Aerospace expands ITAR-free pipeline to meet soaring European defense demand

Written by Jon CuthbertPublished Jul 9, 2026, 10:39 AM

Honeywell Aerospace has deployed 1,000 engineers in Europe to design military components free from restricted U.S. export regulations.
International sales have jumped to 30% of the company's defense portfolio, up from 18% in 2020.
The supplier plans to unveil a new ITAR-free navigation and actuator product line at the upcoming Farnborough Airshow.

Honeywell Aerospace (NASDAQ:HONA) is aggressively expanding its development of military systems designed entirely without restricted U.S. technologies, positioning itself to capture surging European defense spending while bypassing Washington’s strict export control roadblocks.

The aerospace supplier has tasked a combined workforce of 1,000 engineers across specialized facilities in Poland and the Czech Republic with a singular objective: developing hardware independent of the U.S. International Traffic in Arms Regulations (ITAR).

"Part of it is looking, acting, feeling and speaking like a European company," explained Honeywell Aerospace CEO Jim Currier. "Their main mantra, and drive and edict is to design non-ITAR technology for... local strategy."

The strategic engineering push comes as European defense ministries increasingly implement "ITAR-free" mandates as a strict prerequisite for major procurement contracts.

The shift is driven by deep concerns that Washington could delay or block European allies from re-exporting domestic weapons systems if they contain sensitive, embedded U.S. intellectual property.

The defense segment now generates roughly 40% of Honeywell Aerospace's total revenue.

International contracts have become a primary engine for this growth, accounting for 30% of its overall defense revenue, a major jump from the 18% baseline recorded in 2020.

To accelerate this transformation, Honeywell is leveraging its 2024 acquisition of Italy's Civitanavi Systems to scale non-ITAR inertial navigation units and flight actuators.

The company intends to officially introduce its newest ITAR-free product portfolio to international buyers at the Farnborough Airshow in Britain later this month.

Honeywell Aerospace expands ITAR-free pipeline to meet soaring European defense demand

Frequently asked questions

Assets related to this article