Germany Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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Germany Defense Market Overview

The Germany defense budget is worth $51.2 billion in 2023. Germany has been working to increase its defense spending over the coming years to bolster the country’s military capabilities, modernize its armed forces, and fulfill its commitments to collective defense within NATO. As a result of the above-mentioned factors, the country’s defense budget is anticipated to grow at a CAGR of more than 4% during 2024-2028.

Germany Defense Market Outlook, 2023-2028 ($ Billion)

Germany Defense Market Outlook, 2023-2028 ($ Billion)

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The Germany defense market report provides a comprehensive understanding of the revenue growth through its market size forecasting up to 2028 and a historical overview of the country’s defense sector. The report has also analyzed budget allocations, key sectors, drivers, defense strategies, and market regulations. Furthermore, it gives an insight into the competitive landscape of the German defense market through an overview of key acquisitions, fleet size, and market player details.

Market Size (2023) $51.2 billion
CAGR (2024-2028) >4%
Forecast Period 2024-2028
Historical Period 2019-2023
Key Drivers ·        Modernization Requirements and Military Depletion

·        NATO Commitments

·        Changing Security Dynamics with Russia

·        Cyber Security

·        Terrorism and Extremism

Key Sectors ·        Military Fixed Wing Aircraft

·        Missiles and Missile Defense Systems

·        Tactical Communication Systems

·        Naval Vessels and Surface Combatants

·        Military Rotorcraft

Leading Companies ·        Deutsche Telekom AG

·        Siemens AG

·        ThyssenKrupp AG

·        ZF Friedrichshafen AG

·        SAP SE

·        Dassault Aviation SA

·        Lockheed Martin Corp

·        Eurofighter Jagdflugzeug Gmbh

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Germany Defense Market Drivers

Modernization requirements and military depletion, NATO commitments, changing security dynamics with Russia, cyber security, and terrorism and extremism are the key factors driving Germany’s defense market.

German military’s capabilities have declined significantly due to budgetary cutbacks and poor management of funding allocations over the years. The promised substantial increase in funding has the potential to reform the state of the forces. A new generation of light transportation vehicles, including the Fennek and Mowag Eagle, as well as at least 503 Boxer MRAVs and 579 Puma infantry fighting vehicles are planned for the ground forces. Additionally, a novel land soldier system will be introduced. In addition, four to six new F126 class frigates, new spy ships, support ships, and larger Type 212 submarines are planned by the German Navy. This modernization of the armed forces will eventually spur defense spending.

The threat of Russia is also one of the primary drivers of German defense expenditure. The war in Ukraine led Germany to announce the biggest increase in its defense budget since the end of the Cold War. Additionally, the German government’s focus on terrorism is reflected in the country’s defense strategy. The strategy states that Germany’s military must be able to defend the country against both conventional and unconventional threats, including terrorism.

Germany Military Doctrines and Defense Strategies

Germany’s security rests upon stable and long-lasting relationships built with global and regional allies. The involvement of Germany with NATO and the EU helps in directing the German military doctrine. Germany prides itself on its commitment to upholding peace, stability, and security by providing a well-networked, credible, and forward-thinking force. Germany leads a multinational battalion battle group in Lithuania, as part of NATO’s Enhanced Forward Presence (EFP). In June this year, Germany hosted and led the biggest deployment exercise in NATO history. The two-week “Air Defender” exercise involved 250 aircraft and 10,000 personnel from 25 different countries. The purpose of the exercises is to improve coordination and readiness to protect vital infrastructure by airplanes, drones, and missiles.
German defense strategy is focused on increasing the presence of the German Armed Forces abroad. To address current and emerging threats, as perceived by the Bundeswehr, action will be augmented between the national and international levels and will often consist of unilateral, bilateral, and multilateral action. This amalgamated approach to security has been put forward by the Bundeswehr as the only effective strategy to combat internal terror attacks against its citizens.

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Germany Defense Market Segmentation by Sectors

The key sectors in the German defense market are military fixed wing aircraft, missiles and missile defense systems, tactical communication systems, naval vessels, and surface combatants, military rotorcraft, among others. In 2023, the most attractive sector in Germany’s defense market is the military fixed wing aircraft, followed by missiles and missile defense systems and tactical communication systems.

The military fixed wing aircraft sector comprises five key segments including multirole aircraft, maritime patrol aircraft, transport aircraft, electronic warfare aircraft, and tanker aircraft. Germany is procuring multiple platforms within the sector, providing varied capabilities. The most valuable forecast procurement within this sector is the New Generation Fighter (NGF)-Future Combat Air System program valued at $17.5 billion. Furthermore, Germany is keen on enhancing its military fixed-wing detection capabilities to respond to a shifting security landscape.

Germany Defense Market Analysis by Sectors, 2023 (%)

Germany Defense Market Analysis by Sectors, 2023 (%)

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Germany Defense Market - Competitive Landscape

The leading defense companies operating in Germany are Deutsche Telekom AG, Siemens AG, ThyssenKrupp AG, ZF Friedrichshafen AG, SAP SE, Dassault Aviation SA, Lockheed Martin Corp, and Eurofighter Jagdflugzeug Gmbh among others.

Dassault Aviation SA: Dassault Aviation SA (Dassault Aviation), a subsidiary of Groupe Industriel Marcel Dassault SA, is a designer and manufacturer of combat aircraft and business jets. The company provides business jets under Falcon, military aircraft under Rafale and Mirage, and unmanned combat air vehicles (UCAV) under the nEUROn brands. Dassault Aviation serves defense, civil, and space satellite agencies.

Germany Defense Market Analysis by Companies

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Segments Covered in the Report

Germany Defense Market Sectors Outlook (Value, $ Billion, 2019-2028)

  • Military Fixed Wing Aircraft
  • Missiles and Missile Defense Systems
  • Tactical Communication Systems
  • Naval Vessels and Surface Combatants
  • Military Rotorcraft


The report provides:

  • Detailed analysis of the Germany 2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Explanation of the procurement policy and process. This is coupled with an analysis of Germany’s military doctrine and strategy to provide a comprehensive overview of Germany’s military regulation.
  • Examination of political alliances and perceived security threats to Germany and explains trends in spending and modernization.
  • Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Analysis of the competitive landscape of Germany’s defense industry.

Key Highlights

• Much of Germany’s fleet requires substantial modernization and updating. As readiness levels are now so low and with platforms reaching the end of their life span, Germany is modernizing platforms across all domains.

• Major ongoing procurement programs include procurement of New Generation Fighter (NGF)-Future Combat Air System, Eurofighter Typhoon Tranche 4, F-35A

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the German defense market over the next five years.
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the German market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving the German defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the German government.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.

Dassault Aviation SA
Eurofighter Jagdflugzeug Gmbh
Lockheed Martin Corp

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historic And Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis of Defense Budget Allocation

  • 3. Military Doctrine and Security Environment

    • 3.1. Military Doctrine And Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social and Economic Scenario

  • 4. Market Entry Strategy and Regulations

    • 4.1. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. Types of European Procurement Procedure
    • 4.6. Procurement Policy and Market Regulations
    • 4.7. Market Entry Routes
    • 4.8. Key Challenges
    • 4.9. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness By Defense Sector
    • 5.2. Top Sectors in the German Defense Market
    • 5.3. Top Defense Segments By Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions By Value
    • 6.2. New Generation Fighter (NGF)-Future Combat Air System
    • 6.3. Eurofighter Typhoon Tranche 4
    • 6.4. Taktisches Luftverteidigungssystem (TLVS)
    • 6.5. F-35A
    • 6.6. MKS 180 Multirole Combat Ship (F126 Frigate)
    • 6.7. A400M Atlas
    • 6.8. Arrow 3
    • 6.9. CH-47F Chinook

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us

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