German Defense Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The German Aerospace and Defense Market Report is Segmented by Industry (manufacturing, Design, and Engineering and Maintenance, Repair, and Overhaul) and Type (commercial Aviation, Military Aviation, and Space). The Report Offers Market Sizes and Forecasts for all the Abovementioned Segments in Value (USD).

Germany Aerospace and Defense Market Size

Germany Aerospace And Defense Market Summary
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Study Period 2019-2029
Base Year For Estimation 2023
Market Size (2024) USD 31.54 Billion
Market Size (2029) USD 38.19 Billion
CAGR (2024 - 2029) 2.94 %
Market Concentration Low

Major Players

Germany Aerospace And Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Germany Aerospace and Defense Market Analysis

The Germany Aerospace And Defense Market size is estimated at USD 31.54 billion in 2024, and is expected to reach USD 38.19 billion by 2029, growing at a CAGR of 2.94% during the forecast period (2024-2029).

The German defense industry is projected to witness significant growth during the forecast period. An increase in the country's defense spending in recent years and the growing acquisition of defense armaments by the German government to strengthen its defense capabilities are some of the factors that are anticipated to lead to market growth in the coming years.

The recent Russian attack on Ukraine has led to the German government focusing more on developing its military capabilities. Various defense companies within the country, in recent years, have focused on increasing their investments to develop advanced armaments and support the German military, and this is expected to drive market growth in the coming years.

On the other hand, the growing number of restrictions imposed on the German military would hamper the growth of the market in the long run. Furthermore, growth in the number of weapon orders and the increasing acquisition of trained staff to manage and provide maintenance to new and more modern equipment will lead to growing opportunities in the country's defense industry in the near future.

Germany Aerospace and Defense Market Trends

The Maintenance, Repair, and Overhaul Segment Will Showcase Remarkable Growth During the Forecast Period

The maintenance, repair, and overhaul segment is anticipated to show significant growth in the German defense industry. A significant growth in the number of fighter aircraft acquisitions by the German government to improve the capabilities of its air force to be at par with global leaders will be the major factor that is anticipated to lead to market growth during the coming years.

In 2023, the number of military aircraft in the country amounted to 601 units, out of which 451 aircraft are already in operation. Moreover, the growth in the number of border disputes faced by the country in recent years has pushed the German government to modernize its fighter aircraft capabilities for future warfare requirements through aircraft acquisitions or collaborations with other countries to develop next-generation fighter platforms. For instance, in December 2022, the German Ministry of Defense approved the procurement of 35 F-35 Lightning II aircraft from the aerospace and defense company Lockheed Martin Corporation.

Thus, the growth in the number of fighter aircraft acquisitions, coupled with growing collaborations of Germany with other countries to develop advanced military aircraft, would lead to an increase in the number of opportunities for the country to develop its defense aircraft maintenance, repair, and overhaul capabilities thereby generating significant market growth during the forecast period.

German Defense Industry: Number of Military Aircraft in Germany, by Type, 2023

The Army Segment is Expected to Dominate the Market During the Forecast Period

The army segment held the largest share of the market and continued its domination during the forecast period. Significant growth in the military expenditure of the country, coupled with increasing procurement in the number of defense armaments for the military segment to increase its capabilities by the German government, is anticipated to lead to market growth during the forecast period.

According to the data presented by the Stockholm International Peace Research Institute (SIPRI), Germany's defense budget accounted for USD 55.8 billion in 2022, which was less than the USD 56 billion the country spent in 2021. Furthermore, the entry of Russian troops into Ukraine has led the German government to focus on developing its army to become the largest in terms of military in the European region in the future.

On the other hand, notable growth has also been witnessed in terms of the development of the German army. For instance, in April 2023, Germany and the United Kingdom announced that they would work together on the next phase of development for advanced armor-piercing tank ammunition. This development will increase the capabilities of the German army to defeat evolving enemy threats. Thus, the growing military budget within the country, coupled with growing collaborations with other countries to develop advanced armaments, will lead to generating significant growth in the market during the forecast period.

German Defense Industry: Military Spending in Germany, in USD Billion, 2018 - 2022

Germany Aerospace and Defense Industry Overview

The German defense industry is fragmented in nature, with various players dominating the market. Some of the major players in the German defense industry are Rheinmetall AG, Lockheed Martin Corporation, Airbus SE, Leonardo SpA, and RTX Corporation.

Various players in the market are engaged in establishing joint ventures with the German government to develop advanced defense armaments to increase the defense capability of the country in the long run. Such ventures will help regional players increase their presence in the market. Moreover, growing investments by several international defense companies in the German market will also lead to an increase in the number of defense opportunities within the industry in the near future.

Germany Aerospace and Defense Market Leaders

  1. Rheinmetall AG

  2. Lockheed Martin Corporation

  3. Leonardo S.p.A.

  4. RTX Corporation

  5. Airbus SE

*Disclaimer: Major Players sorted in no particular order

Germany Aerospace and Defense Market Concentration
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Germany Aerospace and Defense Market News

  • In April 2023, the German Ministry of Defense announced its plans to upgrade its army with 143 Puma infantry fighting vehicles. This upgrade process is in response to the Russia-Ukraine war. Furthermore, the retrofitting of the fighting vehicles is expected to be completed by 2029.
  • In January 2023, the German government announced a reserve monetary allocation of USD 43 billion for its next-generation fighter jet project, which will be a German-French collaboration project aimed at developing a sixth-generation fighter aircraft platform.

Germany Aerospace & Defence Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Industry

      1. 5.1.1 Manufacturing, Design, and Engineering

      2. 5.1.2 Maintenance, Repair, and Overhaul

    2. 5.2 By Type

      1. 5.2.1 Army

      2. 5.2.2 Navy

      3. 5.2.3 Airforce

      4. 5.2.4 Space

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Rheinmetall AG

      2. 6.2.2 Diehl Stiftung & Co. KG

      3. 6.2.3 Lockheed Martin Corporation

      4. 6.2.4 Airbus

      5. 6.2.5 Krauss-Maffei Wegmann GmbH & Co. KG

      6. 6.2.6 MBDA Deutschland GmbH

      7. 6.2.7 Leonardo SpA

      8. 6.2.8 Liebherr Group

      9. 6.2.9 RTX Corporation

      10. 6.2.10 BAE Systems PLC

      11. 6.2.11 thyssenkrupp AG

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Germany Aerospace and Defense Industry Segmentation

The German defense industry covers all the aspects of military vehicles, armament, and other equipment procurements, as well as upgrade and modernization plans. The report also provides insights into the budget allocation and spending of the country in the past, present, and forecast periods.

The German defense industry is segmented into industry and type. By industry, the market is segmented into manufacturing, design, and engineering, as well as maintenance, repair, and overhaul. By type, the market is segmented into army, navy, air force, and space. For each segment, the market sizing and forecasts have been done based on value (USD).

By Industry
Manufacturing, Design, and Engineering
Maintenance, Repair, and Overhaul
By Type
Army
Navy
Airforce
Space
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Germany Aerospace & Defence Market Research FAQs

The Germany Aerospace And Defense Market size is expected to reach USD 31.54 billion in 2024 and grow at a CAGR of 2.94% to reach USD 38.19 billion by 2029.

In 2024, the Germany Aerospace And Defense Market size is expected to reach USD 31.54 billion.

Rheinmetall AG, Lockheed Martin Corporation, Leonardo S.p.A., RTX Corporation and Airbus SE are the major companies operating in the Germany Aerospace And Defense Market.

Germany Aerospace and Defence Industry Report

Statistics for the 2024 Germany Aerospace And Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany Aerospace And Defense analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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German Defense Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)