Germany Aerospace and Defense Market Report and Forecast 2024-2032

Germany Aerospace and Defense Market Size

The Germany aerospace and defense market reached approximately USD 25.63 billion in 2023. The market is estimated to grow at a CAGR of 4.3% in the forecast period of 2024-2032, reaching a value of around USD 37.53 billion by 2032.

Key Trends in the Market

Aerospace and defense refer to a sector that encompasses the manufacturing, designing, and maintenance and repair of aircraft, missiles, spacecraft, and military equipment and weapons. This sector plays an important role in ensuring optimal national security through the deployment of defense aircraft and equipment.

• Increasing spending by the German government for the modernisation of armed forces is a crucial market trend. The country is also focused on expanding its military presence and boosting defense cooperation with other countries amid growing geopolitical concerns, further driving the market.

• Rise in the manufacturing of high-performance aircraft and the growing deployment of advanced drones are also expected to propel the Germany aerospace and defense market growth in the forecast period.

• A surge in the number of space exploration projects is expected to favour the market as several research institutes and companies are increasingly developing and deploying satellites and other space-related components.

• One of the key Germany aerospace and defense market trends is the increasing trend of sustainability. This is prompting the development of eco-friendly military vehicles and driving the use of sustainable aviation fuels in aircraft.

Market Analysis

Based on type, the market is divided into aerospace and defense.  Aerospace is further segmented into aviation and space whereas defense is further divided into army, navy, and airforce.

On the basis of offerings, the Germany aerospace and defense market segmentation includes personnel training, simulation, and protection equipment, communication systems, weapons and ammunition, and vehicles. Based on service, the market is classified into manufacturing, design, and engineering and maintenance, repair, and overhaul.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Germany aerospace and defense market covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Raytheon Technologies Corporation  

• Thyssenkrupp AG  

• Liebherr Group  

• Leonardo S.p.A.  

• Airbus SAS  

• Rheinmetall AG  

• Lockheed Martin Corporation  

• Krauss-Maffei Wegmann GmbH & Co. KG  

• MBDA  

• Others

Market Share by Type

The aerospace sector holds a sizeable portion of the Germany aerospace and defense market share owing to the presence of several aerospace manufacturers such as Diehl Aviation in the country. Furthermore, increasing research and development expenditures in the aerospace sector for improving national security and preventing cyberattacks also contribute to the market growth. Moreover, an increasing number of start-ups aimed at revolutionising the aerospace sector are aiding the market.

Market Share by Service

As per the Germany aerospace and defense market analysis, manufacturing accounts for a substantial market share due to the increasing demand for new aircraft, missiles, and other equipment in the country. The rise in the production of civil and military aircraft, avionics systems, engines, navigation systems, and other components of aircraft and helicopters also bolsters the segment’s growth.

Moreover, the growing manufacturing of high-tech missiles, ammunition, firearms, and armed vehicles to strengthen the defense of the country drives the market. The increasing utilisation of advanced materials and techniques like composites and 3D printing in the manufacturing sector is expected to further propel the Germany aerospace and defense market growth in the forecast period.

Competitive Landscape

Raytheon Technologies Corporation, established in 1922, is an American defense corporation with its headquarters in Massachusetts, the United States. The company manufactures and designs combat aircraft, military weapons, equipment, and missiles, among others.

Thyssenkrupp AG, a German steel manufacturer, was founded in 1999 and has its headquarters in Essen, Germany. It boasts expertise in different fields, including mobility, climate protection, and digital transformation.

Liebherr Group, founded in 1949 and based in Bulle, Switzerland, is a German-Swiss equipment manufacturer. Some of the products offered by the company are aerospace systems, machinery, cranes, and automation systems, among others.

Other Germany aerospace and defense market players include Leonardo S.p.A., Airbus SAS, Rheinmetall AG, Lockheed Martin Corporation, Krauss-Maffei Wegmann GmbH & Co. KG, and MBDA, among others.

Key Highlights of the Report