Germany Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.
The German defense budget released by the government increased by 3.6% in 2025 to $58.5 billion, up from $56.5 billion in 2024. The projected growth in this figure is expected to persist throughout the forecast period (2026-30), ultimately reaching $72.9 billion by 2030. This represents a Compound Annual Growth Rate (CAGR) of 4.5%. Although, by NATO’s calculation, Germany meets the alliance’s 2% of GDP spending target, official defense spending has increased at a slugglish rate since Russia’s illegal invasion of Ukraine in 2022. NATO’s conclusion that Germany barely met the 2% standard, relies on the existence of the Bundeswehr special fund valued at 100 billion EUR ($109.9 billion USD), which is expected to be fully depleted, possibly as soon as 2026. The country’s ability to continue to meet the 2% of GDP target rests on the priorities of the government elected in February 2025, which must decide how much to commit to the higher budgets enabled by the special fund. It is uncertain how the German government will continue to fund the modernization and expansion of its armed forces after the fund depletes.Black Hawks.
The German defense budget released by the government increased by 3.6% in 2025 to $58.5 billion, up from $56.5 billion in 2024. The projected growth in this figure is expected to persist throughout the forecast period (2026-30), ultimately reaching $72.9 billion by 2030. This represents a Compound Annual Growth Rate (CAGR) of 4.5%. Although, by NATO’s calculation, Germany meets the alliance’s 2% of GDP spending target, official defense spending has increased at a slugglish rate since Russia’s illegal invasion of Ukraine in 2022. NATO’s conclusion that Germany barely met the 2% standard, relies on the existence of the Bundeswehr special fund valued at 100 billion EUR ($109.9 billion USD), which is expected to be fully depleted, possibly as soon as 2026. The country’s ability to continue to meet the 2% of GDP target rests on the priorities of the government elected in February 2025, which must decide how much to commit to the higher budgets enabled by the special fund. It is uncertain how the German government will continue to fund the modernization and expansion of its armed forces after the fund depletes.Black Hawks.
Key Highlights
- Modernization of equipment and Russia's illegal war in Ukraine are key factors driving defense expenditure
- Major ongoing procurement program include procurement of New Generation Fighter (NGF)-Future Combat Air System, Eurofighter Typhoon Tranche 4, and F-35A
Scope
This report offers a detailed analysis of Germany's defense market, with market size forecasts covering the next five years. It also offers insights into the strategy, security environment and defense market dynamics of the country. Various sections covered in the report are as follows:- Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
- Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
- Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market entry routes, key defense procurement bodies and major deals.
- Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
- Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2023. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
- Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
- Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
- Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the Portugal defense market over the next five years
- Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Germany 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 Germany defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
- Channel resources by focusing on the ongoing programs that are being undertaken by the Germany government
- Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available
Table of Contents
- Executive Summary
- Defense Budget Assessment
- Budgeting Process
- Defense Market Size Historic And Forecast
- Drivers Of Defense Expenditure
- Analysis of Defense Expenditure Allocation
- Analysis Of Defense Budget Allocation
- Key Market Trends and Insights
- Military Doctrine And Security Environment
- Military Doctrine And Strategy
- Strategic Alliances and Geopolitics
- Political, Social and Economic Scenario
- Market Entry Strategy And Regulations
- Defense Procurement Bodies
- Funding Opportunities
- Trade Associations and Defense Clusters
- Types of Contracts and Opportunities
- Types of European Procurement Procedure
- Procurement Policy and Market Regulations
- Market Entry Routes
- Key Challenges
- Major Deals and M&A
- Market Attractiveness And Emerging Opportunities
- Market Attractiveness By Defense Sector
- Top Sectors in the United States Defense Market
- Top Defense Segments By Value
- Defense Platforms Import and Export Dynamics
- Defense Platforms Import Dynamics
- Defense Platforms Export Dynamics
- Defense Platform Acquisitions
- Defense Platform Acquisitions By Value
- New Generation Fighter (NGF)-Future Combat Air System
- Eurofighter Typhoon Tranche 4
- Twister Project
- Eurofighter Typhoon Tranche 5
- F-35A
- MKS 180 Multirole Combat Ship (F126 Frigate)
- CH-47F Chinook
- P-8A
- Fleet Size
- Army
- Air Force
- Navy
- Competitive Landscape
- Defense Companies Operating In Germany
- Appendix
- About This Report
- About Us
- Contact the Publisher
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Rheinmetall AG
- Lufthansa Technik AG
- MTU Aero Engines AG
- Eurofighter Jagdflugzeug Gmbh
- Airbus Defence and Space GmbH
- Rohde & Schwarz GmbH & Co KG
- Hensoldt AG
- Hensoldt Holding Germany GmbH
- OHB SE
- Diehl Defence GmbH & Co KG
- H&K AG
- Anschutz GmbH
- Dynamit Nobel Defence GmbH
- COTESA GmbH
- TAURUS Systems GmbH
- Mynaric AG
- Stemme AG
- Lilium NV
- Actano GmbH
- Aerodata AG
- AeroMates GmbH
- Aerospace Industry Consulting GmbH
- Aerotech Peissenberg GmbH & Co. KG
- AIC GmbH
- Airbus APWorks GmbH
- Airbus Deutschland GmbH
- airsigna GmbH + Co. KG
- AlsterAero GmbH
- AQUILA Aviation GmbH
- ARTEC GmbH
- ARX Landsysteme GmbH
- Atlas Elektronik GmbH
- ATM Computersysteme GmbH
- AUTOFLUG GmbH
- Bayern-Chemie GmbH
- Becker Avionics GmbH
- Berner & Mattner Systemtechnik GmbH
- Blohm + Voss GmbH
- Broetje-Automation GmbH
- Brotje Automation GmbH
- COMSOFT Gmbh
- DASELL Cabin Interior GmbH
- Dedrone GmbH
- Deharde GmbH
- Deployables Cubed GmbH
- Deutsches Zentrum fur Luft- und Raumfahrt eV
- Diehl Aerospace GmbH
- Diehl Defence Land Systems Gmbh
- Diehl Retrofit Missile Systeme GmbH
- DREHTAINER GmbH
- ELAC SONAR GmbH
- Elan GmbH
- Elbe Flugzeugwerke GmbH
- EOS GmbH Electro Optical Systems
- Equator Aircraft Company
- ESG Elektroniksystem- und Logistik-GmbH
- ESW GMBH
- EUMET GmbH
- Eurocopter Deutschland Gesellschaft Mit Beschränkter Haftung
- EuroTrophy GmbH
- ELAC SONAR GmbH
- Elan GmbH
- Elbe Flugzeugwerke GmbH
- EOS GmbH Electro Optical Systems
- Equator Aircraft Company
- ESG Elektroniksystem- und Logistik-GmbH
- ESW GMBH
- EUMET GmbH
- Eurocopter Deutschland Gesellschaft Mit Beschränkter Haftung
- EuroTrophy GmbH
- EUSI GmbH
- EXOLAUNCH GmbH
- FAUDI Aviation GmbH
- Frequentis Orthogon GmbH
- Gabler Maschinenbau Gmbh
- General Atomics Europe GmbH
- GEROH GmbH & Co KG
- Grob Aircraft SE
- Hart Armor GmbH
- Hemscheidt Fahrwerktechnik GmbH & CO KG
- HENSOLDT Avionics GmbH
- Hensoldt Sensors GmbH
- I. German-Dutch Corps
- INTRO Aviation GmbH
- Isar Aerospace Technologies GmbH
- Jeppesen GmbH
- Junghans Microtec GmbH
- Kappa optronics GmbH
- KNDS Deutschland GmbH & Co KG
- Liebherr-Aerospace Lindenberg GmbH
- Nex Aero GmbH
- ODU GmbH & Co KG
- OHB System AG
- OroraTech GmbH
- PACE Aerospace Engineering and Information Technology GmbH
- Piper Deutschland AG
- Quantum-Systems GmbH
- Recaro Aircraft Seating GmbH & Co KG
- Reflex Aerospace GmbH
- Rheinmetall Aviation Services GmbH
- Rheinmetall Defence Electronics GmbH
- Rheinmetall Electronics GmbH
- Rheinmetall Landsysteme GmbH
- Rheinmetall Protection Systems GmbH
- Rheinmetall Waffe Munition GmbH
- Rockwell Collins Deutschland GmbH
- Roeder HTS Hoecker GmbH
- Rolls-Royce Deutschland Ltd & Co KG
- SCHROTH Safety Products GmbH
- SeRo Systems GmbH
- SGS-TUV Saar GmbH
- SOGETI High Tech GmbH
- Special Parachute Equipment and Logistics Consortium GbR.
- SPINNER GmbH
- Spleenlab GmbH
- TDW Gesellschaft fur verteidigungstechnische Wirksysteme mbH
- Telair International GmbH
- Thales Deutschland GmbH
- ThyssenKrupp Marine Systems GmbH
- TriaGnoSys GmbH
- Triumph Controls-Germany, GmbH
- unival group GmbH
- Valispace GmbH
- Volocopter GmbH
- Wingcopter GmbH
- Zeppelin Mobile Systeme Gmbh
