Germany Defense Market – Attractiveness, Competitive Landscape and Forecast to 2024

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

"German Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024", published by GlobalData, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news.

Germany has reassured the North Atlantic Treaty Organization (NATO) it will adhere to its plans to continue increasing military spending to reach 1.5% of gross domestic product by 2024 despite declining tax revenues in an attempt to strengthen the combat readiness of its armed forces. Shortfalls in the German army's personnel and equipment are hindering its readiness for combat. However, German defense expenditure is projected to increase at a CAGR of 6.48% over 2020-2024, compared to a CAGR of 8.48% over 2015-2019. A large portion of this budget will be directed towards the procurement of overhauled modern weapon systems and other advanced equipment.

This report offers detailed analysis of the German defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

Scope

The report provides an in-depth analysis of the following –

– The German defense industry market size and drivers: detailed analysis of the German defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.

– Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.

– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years.

– Market opportunities:list of the top ten defense investment opportunities over the next 5 years.

– Competitive landscape and strategic insights: analysis of the competitive landscape of the German defense industry.

Reasons to Buy

– This report will give the user confidence to make the correct business decisions based on a detailed analysis of the German defense industry market trends for the coming five years.

– The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.

– Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.

– A deep qualitative analysis of the German defense industry covering sections including demand drivers, key trends and latest industry contracts.

Saab
Airbus Helicopters
Sikorsky
Northrop Grumman Corp
Lockheed Martin Corp.
Leonardo
Daewoo Shipbuilding & Marine Engineering

Table of Contents

Table of Contents

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About GlobalData

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Scenario

3.1.1. Primary Threat Perception

3.1.2. Military Doctrine and Strategy

3.1.3. Military Fleet Size

3.1.4. Procurement Programs

3.1.5. Social, Political and Economic Environment and Support for Defense Projects

3.1.6. Political and Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. Germany’s defense expenditure is expected to increase at a CAGR of

6.48% over 2020-2024

3.2.2. Maintenance of the country’s armed forces and peacekeeping operations to drive defense expenditure over the forecast period

3.2.3. German defense expenditure as a percentage of GDP expected to decrease

3.3. Analysis of Defense Budget Allocation

3.3.1. Germany to allocate a higher share towards revenue expenditure than capital expenditure over the forecast period

3.3.2. Capital expenditure is expected to increase at a CAGR of

6.46% over the forecast period

3.3.3. Per capita defense expenditure is expected to increase significantly between 2019-2024

3.4. Homeland Security Market Size and Forecast

3.4.1. German homeland security expenditure is expected to increase at a CAGR of

11.09% during the forecast period

3.4.2. Counter terrorism and cyber security to drive homeland security expenditure

3.5. Benchmarking with Key Global Markets

3.5.1. The German defense budget is expected to increase over the forecast period

3.5.2. Germany’s defense expenditure is expected to be one of the top among European countries

3.5.3. Germany allocates a lower share of GDP to defense compared to other European countries

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) – Projections over 2019-2024

3.6.2. Multi-role Aircraft MRO

3.6.3. IFV

3.6.4. Transport Aircraft Engines

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports are expected to increase slightly during the forecast period after the recent dip

4.1.2. Germany sourced most of its arms imports from the US

4.1.3. Missiles and sensors dominate military hardware imports

4.2. Export Market Dynamics

4.2.1. Arms exports recovered in 2016 after a decrease in 2014 and 2015 but are again slowly declining due to Germany’s arms embargoes

4.2.2. South Korea, Greece and Israel are Germany’s biggest arms importers

4.2.3. Naval vessels and armored vehicles are the main exported defense products

5. Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining Power of Supplier: Low

5.1.2. Bargaining Power of Buyer: High

5.1.3. Barrier to Entry: Low

5.1.4. Intensity of Rivalry: Low

5.1.5. Threat of Substitution: Low

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. Threshold for foreign direct investment screening lowered to 10% for the defense sector

6.2. Market Entry Route

6.2.1. Budget Process

6.2.2. Procurement Policy and Process

6.2.3. Germany Toughened Rules for Non-EU Buyouts

6.2.4. The German Government Wants to Dissuade Unwanted Takeovers by Chinese Investors

6.3. Key Challenges

6.3.1. Project delays deter defense industry growth

6.3.2. German arms exports to large defense markets outside the EU are minimal

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Germany Market Share Analysis, 2019-2024

7.1.2. Foreign OEMs have strong collaborations with domestic defense firms

7.2. Key Companies

7.2.1. Diehl Stiftung: Overview

7.2.2. Diehl Stiftung: Products

7.2.3. Diehl Stiftung: Recent Announcements and Strategic Initiatives

7.2.4. Diehl Stiftung: Alliances

7.2.5. Diehl Stiftung: Recent Contract Wins

7.2.6. Airbus Group: Overview

7.2.7. Airbus Group: Products

7.2.8. Airbus Group: Recent Announcements and Strategic Initiatives

7.2.9. Airbus Group: Alliances

7.2.10. Airbus Group: Recent Contract Wins

7.2.11. Airbus Group: Financial Analysis

7.2.12. Heckler & Koch: Overview

7.2.13. Heckler & Koch: Products

7.2.14. Heckler and Koch: Recent Announcements and Strategic Initiatives

7.2.15. Heckler and Koch: Recent Contract Wins

7.2.16. MAN Truck & Bus AG: Overview

7.2.17. MAN Truck & Bus AG: Products and Services

7.2.18. MAN Truck & Bus AG: Recent Announcements and Strategic Initiatives

7.2.19. MAN Truck & Bus AG: Alliances

7.2.20. MAN Truck & Bus AG: Recent Contract Wins

7.2.21. Airbus Helicopters: Overview

7.2.22. Airbus Helicopters: Products and Services

7.2.23. Airbus Helicopters: Recent Announcements and Strategic Initiatives

7.2.24. Airbus Helicopters: Alliances

7.2.25. Airbus Helicopters: Recent Contract Wins

7.2.26. ESG Elektroniksystem-und Logistik: Overview

7.2.27. ESG Elektroniksystem-und Logistik: Products

7.2.28. ESG Elektroniksystem-und Logistik: Recent Announcements and Strategic Initiatives

7.2.29. ESG Elektroniksystem-und Logistik: Alliances

7.2.30. ESG Elektroniksystem-und Logistik: Recent Contract Wins

7.2.31. ThyssenKrupp Marine Systems (TKMS): Overview

7.2.32. ThyssenKrupp Marine Systems (TKMS): Products

7.2.33. ThyssenKrupp Marine Systems (TKMS): Recent Announcements and Strategic Initiatives

7.2.34. ThyssenKrupp Marine Systems: Alliances

7.2.35. ThyssenKrupp Marine Systems: Recent Contract Wins

7.2.36. Thales Deutschland: Overview

7.2.37. Thales Deutschland: Products

7.2.38. Thales Deutschland: Recent Announcements and Strategic Initiatives

7.2.39. Thales Deutschland: Alliances

7.2.40. Thales Deutschland: Recent Contract Wins

7.2.41. MBDA: Overview

7.2.42. MBDA: Products

7.2.43. MBDA: Recent Announcements and Strategic Initiatives

7.2.44. MBDA: Alliances

7.2.45. MBDA: Recent Contract Wins

7.2.46. Eurofighter Jagdflugzeug: Overview

7.2.47. Eurofighter Jagdflugzeug: Products

7.2.48. Eurofighter Jagdflugzeug: Recent Announcements and Strategic Initiatives

7.2.49. Eurofighter Jagdflugzeug: Recent Contract Wins

7.2.50. Rheinmetall: Overview

7.2.51. Rheinmetall: Products and Services

7.2.52. Rheinmetall: Recent Announcements and Strategic Initiatives

7.2.53. Rheinmetall: Alliances

7.2.54. Rheinmetall: Recent Contract Wins

7.2.55. Rheinmetall: Financial Analysis

8. Business Environment and Country Risk

8.1. Economic Performance

8.1.1. Gross Domestic per Capita

8.1.2. Gross Domestic Product, Current US$

8.1.3. Exports of Goods and Services

8.1.4. Imports of Goods and Services

8.1.5. Gross National Disposable Income

8.1.6. Local Currency Unit per US$

8.1.7. Market Capitalization of Listed Companies

8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP

8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP

8.1.10. Goods Exports as a Percentage of GDP

8.1.11. Goods Imports as a Percentage of GDP

8.1.12. Services Exports as a Percentage of GDP

8.1.13. Services Imports as a Percentage of GDP

8.1.14. Foreign Direct Investments, Net (BoP, Current US$ Billion)

8.1.15. Net Foreign Direct Investment as a Percentage of GDP

8.1.16. Mining, Manufacturing, Utilities, Output (LCU billion)

9. Appendix

9.1. About GlobalData

9.2. Disclaimer

Table

List of Tables

Table 1: German Army

Table 2: German Air Force

Table 3: German Navy Strength

Table 4: German – Ongoing Development and Procurement Programs

Table 5: German – Future Procurement Programs

Table 6: Top German Defense Procurement Programs by Value (US$ Million), 2019-2024

Table 7: Germany Defense Expenditure (EUR Billion and US$ Billion), 2015-2024

Table 8: GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2015-2024

Table 9: German Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024

Table 10: German Defense Capital Expenditure (EUR Million and US$ Million), 2015-2024

Table 11: Per Capita Defense Expenditure (US$), 2015-2024

Table 12: German Homeland Security Expenditure (EUR Billion and US$ Billion), 2015-2024

Table 13: Benchmarking with Key Markets – 2015-2019 vs. 2020-2024

Table 14: Top German Defense Market Sectors by Value (US$ Million), 2019-2024

Table 15: Key Foreign Players and Operations in the German Defense Industry

Table 16: Competitive Landscape of the German Defense Industry

Table 17: Top Defense Suppliers in the German Defense Industry – By Value (US$ Million) 2019-2024

Table 18: Diehl Stiftung – Products

Table 19: Diehl Stiftung – Alliances

Table 20: Diehl Stiftung – Recent Contract Wins

Table 21: Airbus Group – Products

Table 22: Airbus Group – Alliances

Table 23: Airbus Group – Recent Contract Wins

Table 24: Heckler & Koch GmbH (HK) – Products

Table 25: Heckler & Koch – Recent Contract Wins

Table 26: MAN Truck & Bus AG – Products and Services

Table 27: MAN Truck & Bus AG – Alliances

Table 28: MAN Truck & Bus AG – Recent Contract Wins

Table 29: Airbus Helicopters – Products and Services

Table 30: Airbus Helicopters – Alliances

Table 31: Airbus Helicopters – Contract Wins

Table 32: ESG Elektroniksystem-und Logistik (ESG) – Products

Table 33: ESG Elektroniksystem-und Logistik – Alliances

Table 34: ESG Elektroniksystem-und Logistik – Recent Contract Wins

Table 35: ThyssenKrupp Marine Systems (TKMS) – Products

Table 36: ThyssenKrupp Marine Systems – Alliances

Table 37: ThyssenKrupp Marine Systems – Recent Contract Wins

Table 38: Thales Deutschland – Products

Table 39: Thales Deutschland – Alliances

Table 40: Thales Deutschland – Contracts Wins

Table 41: MBDA – Products

Table 42: MBDA – Alliances

Table 43: MBDA – Recent Contract Wins

Table 44: Eurofighter Jagdflugzeug – Products

Table 45: Eurofighter Jagdflugzeug – Recent Contract Wins

Table 46: Rheinmetall – Products and Services

Table 47: Rheinmetall – Alliances

Table 48: Rheinmetall – Recent Contract Wins

Figures

List of Figures

Figure 1: German Defense Budget, 2020 and 2024

Figure 2: German Defense Imports/Exports, 2014 and 2018

Figure 3: Germany’s Top Three Prospective Procurements/Developments

Figure 4: German National Security Threats

Figure 5: Germany’s Partnering Countries for Defense Cooperation and Military Training

Figure 6: German Defense Expenditure (EUR Billion), 2015-2024

Figure 7: German Defense Expenditure (US$ Billion), 2015-2023

Figure 8: GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2015-2024

Figure 9: German Defense Expenditure Split Between Capital and Revenue Expenditure (%), 2015-2024

Figure 10: German Defense Capital Expenditure (EUR Billion), 2015-2024

Figure 11: German Defense Capital Expenditure (US$ Billion), 2015-2024

Figure 12: German Per Capita Defense Expenditure (US$), 2015-2024

Figure 13: German Homeland Security Expenditure (EUR Billion), 2015-2024

Figure 14: Germany Homeland Security Expenditure (US$ Billion), 2015-2024

Figure 15: Benchmarking with Key Markets – 2015-2019 vs. 2019-2024

Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2019 and 2024

Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019

Figure 18: Multi-role Aircraft MRO Market Size (US$ Million), 2019-2024

Figure 19: IFV Market Size (US$ Million), 2019-2024

Figure 20: Transport Aircraft Engine Market Size (US$ Million), 2019-2024

Figure 21: Top German Defense Procurements in Terms of Their Supplier Relationships

Figure 22: German Defense Imports Trend, 2014-2018 (TIV Values)

Figure 23: German Defense Imports by Country (%), 2014-2018

Figure 24: German Defense Imports by Category (%), 2014-2018

Figure 25: German Defense Exports Trend, 2014-2018 (TIV values)

Figure 26: German Defense Exports by Country (%), 2014-2018

Figure 27: German Defense Exports by Category (%), 2013-2017

Figure 28: Industry Dynamics Porter’s Five Forces Analysis

Figure 29: Germany’s Budgeting Process

Figure 30: Key Challenges in German Defense Market

Figure 31: Germany Market Share Analysis, 2019-2024

Figure 32: Airbus Group – Revenue Trend Analysis (EUR Billion), 2013-2017

Figure 33: Airbus Group – Operating Profit Trend Analysis (EUR Billion), 2013-2017

Figure 34: Airbus Group – Net Profit Trend Analysis (EUR Billion), 2013-2017

Figure 35: Rheinmetall – Revenue Trend Analysis (EUR Billion), 2013-2017

Figure 36: Rheinmetall – Operating Profit Trend Analysis (EUR Million), 2013-2017

Figure 37: Rheinmetall – Net Profit Trend Analysis (EUR Million), 2013-2017

Figure 38: Germany GDP per Capita, 2015-2025

Figure 39: Germany Gross Domestic Product (current US$ Billion), 2015-2025

Figure 40: Germany Exports of Goods and Services (LCU Billion), 2005-2014

Figure 41: Germany Imports of Goods and Services (LCU Billion), 2005-2014

Figure 42: Germany Gross National Disposable Income (US$ Billion), 2005-2012

Figure 43: Germany LCU per US$, 2015-2024

Figure 44: Germany Market Capitalization of Listed Companies (US$ Billion), 2005-2012

Figure 45: Germany Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012

Figure 46: Germany Government Cash Surplus/Deficit as a Percentage of GDP, 2005-2012

Figure 47: Germany Goods Exports as a Percentage of GDP, 2005-2014

Figure 48: Germany Goods Imports as a Percentage of GDP, 2005-2014

Figure 49: Germany Services Exports as a Percentage of GDP, 2005-2014

Figure 50: Germany Services Imports as a Percentage of GDP, 2005-2014

Figure 51: Foreign Direct Investments, Net (BoP, Current US$ Billion) 2005-2013

Figure 52: Germany Net Foreign Direct Investment as a % of GDP, 2005-2013

Figure 53: Mining, Manufacturing, Utilities Output (LCU billion), 2005-2014

Frequently asked questions

Germany Defense Market – Attractiveness, Competitive Landscape and Forecast to 2024 thematic reports
Currency USD
$1,250

Can be used by individual purchaser only

$3,750

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Germany Defense Market – Attractiveness, Competitive Landscape and Forecast to 2024 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Germany Defense Market – Attractiveness, Competitive Landscape and Forecast to 2024 in real time.

  • Access a live Germany Defense Market – Attractiveness, Competitive Landscape and Forecast to 2024 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.