German Defense Industry Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)
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 Size and Forecast for all the Above Segments in Value (USD).
German Defense Industry Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)
Germany Aerospace and Defense Market Size
| Study Period | 2019 – 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2025 – 2030 |
| Market Size (2025) | USD 19.99 Billion |
| Market Size (2030) | USD 28.45 Billion |
| CAGR (2025 – 2030) | 7.31 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany Aerospace and Defense Market Analysis
The Germany Aerospace And Defense Market size is estimated at USD 19.99 billion in 2025, and is expected to reach USD 28.45 billion by 2030, at a CAGR of 7.31% during the forecast period (2025-2030).
The German defense industry is poised for robust growth in the coming years. Bolstered by a surge in defense spending and heightened acquisitions of armaments, the German government is actively fortifying its defense capabilities, setting the stage for market expansion.
After the Russian invasion of Ukraine, Germany intensified its focus on military development. Domestic defense firms have significantly ramped up investments, channeling resources into cutting-edge armaments to bolster the nation’s defense, which is expected to fuel the market’s growth.
However, the German military faces mounting restrictions, as there are concerns about long-term market growth. The defense sector is poised for a significant opportunity with an influx of weapon orders and a parallel surge in hiring trained personnel to manage and maintain sophisticated equipment.
Germany Aerospace and Defense Market Trends
The Maintenance, Repair, and Overhaul Segment is Expected to Showcase Remarkable Growth During the Forecast Period
The German defense industry is poised for significant growth, particularly in its maintenance, repair, and overhaul (MRO) segment. This growth is primarily attributed to the German government’s heightened focus on bolstering its air force capabilities, aligning them with global standards. This emphasis is underscored by a notable uptick in fighter aircraft acquisitions.
In December 2023, Germany had an active fleet of 621 aircraft and helicopters. This fleet included 209 combat aircraft, 46 transport aircraft, 287 combat helicopters, 39 training aircraft and helicopters, 37 special mission aircraft, and three tanker aircraft. Maintaining this diverse fleet is crucial for operational readiness and necessitates substantial MRO services. Furthermore, a key driver for the military aviation MRO market’s growth in Germany is the nation’s escalating military expenditure. In 2023, German defense spending reached USD 55.4 billion and marked a 0.6% increase from 2022, showcasing a consistent trend of budgetary increments.
Increasing border disputes in recent years have further underscored the need for Germany to fortify its fighter aircraft capabilities. This has translated into increased aircraft acquisitions, subsequently driving the demand for periodic maintenance services. For instance, in December 2023, Airbus Helicopters secured a USD 2.3 billion contract from Germany, entailing the delivery of 82 H145M twin-engine helicopters. This deal, with 62 firm orders and 20 options, also includes a seven-year support service commitment, with deliveries slated to commence in 2024.
In December 2022, the German Ministry of Defense signed a USD 8.8 billion agreement with Lockheed Martin for 35 F-35 Lightning II aircraft to replace the aging Tornado fighter-bomber aircraft in the German Air Force’s fleet, with deliveries scheduled to start in 2026. These strategic procurements, alongside Germany’s deepening collaborations with other nations in developing advanced military aircraft, are set to create a surge in opportunities for the nation’s defense aircraft MRO capabilities, fueling the market’s growth in the coming years.
The Army Segment is Expected to Dominate the Market During the Forecast Period
The army segment maintained its market dominance during the forecast period, buoyed by a surge in the country’s military expenditure. The German government’s heightened focus on defense armament procurement to bolster military capabilities is set to fuel the market’s growth.
In response to the Russia-Ukraine conflict, Germany earmarked a special fund of USD 107 billion for its military, pushing defense spending beyond 2% of GDP. This surge in defense spending has translated into tangible procurement actions. For instance, in July 2023, Rheinmetall AG secured a USD 309 million contract to supply 367 military trucks to the German armed forces alongside 1,830 interchangeable swap-body platforms for vehicle customization. Deliveries were slated for the third quarter of 2023.
Similarly, in March 2023, Germany signed a deal with Australia for new combat reconnaissance vehicles based on the Boxer family, featuring a 30-millimeter gun. Deliveries are scheduled to commence in 2025. The German government is also intensifying its focus on modernizing existing armored vehicles. In April 2023, Rheinmetall AG and Krauss-Maffei Wegmann (KMW) were tasked with upgrading 143 Puma infantry fighting vehicles, with a commitment to enhance firepower and command and control capabilities by 2029.
With a target to reach USD 65 billion in military expenditure by 2024, the defense ministry has been actively engaging in various procurement activities. In June 2022, Teledyne FLIR Defense, a division of Teledyne Technologies, announced the completion of deliveries for 127 PackBot 525 UGVs to the German Army. These UGVs, known for their combat prowess from the caves of Afghanistan to the roads of Iraq, are a significant addition to the German Armed Forces’ arsenal.
In December 2022, the German Ministry of Defense, in collaboration with Milrem Robotics and Krauss-Maffei Wegmann (KMW), signed a deal to supply 14 THeMIS UGVs to Ukraine. The growing emphasis on advanced UGV procurement and defense enhancement initiatives by the German Army is poised to propel the market’s growth in the coming years.
Germany Aerospace and Defense Industry Overview
The German defense industry is fragmented, with various players dominating the market. Some of the major players are Rheinmetall AG, Lockheed Martin Corporation, Airbus SE, Leonardo SpA, and RTX Corporation.
Various market players are establishing joint ventures with the German government to develop advanced defense armaments to increase the country’s long-term defense capability. Such ventures are helping regional players to increase their presence in the market. Moreover, increasing investments by several international defense companies in the German market are expected to increase the number of opportunities within the industry.
Germany Aerospace and Defense Market Leaders
- Rheinmetall AG
- Lockheed Martin Corporation
- RTX Corporation
- Airbus SE
- Leonardo S.p.A
- *Disclaimer: Major Players sorted in no particular order
Germany Aerospace and Defense Market News
April 2024: Rheinmetall Defence Australia secured a USD 2.7 billion contract from Germany to supply 123 Boxer Heavy Weapon Carrier vehicles. The German Army is expected to receive the deliveries from 2025.
January 2023: The German government earmarked a substantial USD 43 billion for its upcoming next-generation fighter jet initiative. This joint venture with France is focused on crafting a cutting-edge sixth-generation fighter aircraft platform.
Germany Aerospace and Defense Industry Segmentation
The German defense industry covers all aspects of military vehicles, armament, and other equipment procurements, as well as upgrade and modernization plans. The report also provides insights into the country’s budget allocation and spending in the past, present, and forecast periods.
The German defense industry is segmented by industry (manufacturing, design, and engineering and maintenance, repair, and overhaul) and type (commercial aviation, military aviation, and space). The market size is provided for each segment in terms of value (USD).
| By Industry | Manufacturing, Design, and Engineering |
| Maintenance, Repair, and Overhaul | |
| By Type | Army |
| Navy | |
| Airforce | |
| Space |
Germany Aerospace & Defence Market Research FAQs
The Germany Aerospace And Defense Market size is expected to reach USD 19.99 billion in 2025 and grow at a CAGR of 7.31% to reach USD 28.45 billion by 2030.
In 2025, the Germany Aerospace And Defense Market size is expected to reach USD 19.99 billion.
Rheinmetall AG, Lockheed Martin Corporation, RTX Corporation, Airbus SE and Leonardo S.p.A are the major companies operating in the Germany Aerospace And Defense Market.
In 2024, the Germany Aerospace And Defense Market size was estimated at USD 18.53 billion. The report covers the Germany Aerospace And Defense Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Germany Aerospace And Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Germany Aerospace and Defence Industry Report
The German Aerospace and Defense Market Report provides an in-depth industry analysis, offering comprehensive industry information and industry outlook. The report covers various sectors, including manufacturing, design, engineering, and maintenance, repair, and overhaul. It also segments the market into commercial aviation, military aviation, and space.
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Additionally, the report examines industry sales and industry size, presenting industry statistics that are crucial for market analysis. The market outlook and market review sections provide an overview of market leaders and their impact on the industry.
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