The German defense sector has experienced unprecedented growth since Russia launched its invasion of Ukraine, with the number of companies in the industry more than doubling in recent years. This expansion reflects a fundamental shift in Germany's approach to defense and security, marking a significant departure from decades of limited military industrial development.
According to a spokesman for the Federal Association of the German Security and Defense Industry (BDSV), the organization has witnessed remarkable growth in its membership base. Between 2024 and 2025 alone, approximately 200 new companies joined the association.
The expansion continued at an accelerated pace, with an additional 100 companies joining since November 2025, bringing the total membership to 550 companies, the spokesman told newspapers of the Redaktionsnetzwerk Deutschland (RND) in Monday editions.
The growth trend has been particularly notable in eastern Germany, a region where the defense industry previously had minimal presence. Hans Christoph Atzpodien, CEO of the BDSV, explained to RND that "numerous activities, not least in the medium-sized business sector, have developed in recent years to strengthen the German security and defense industry" in the eastern federal states.
Several prominent defense manufacturers have established or expanded their presence in eastern Germany. "There are a number of settlements of large system houses," Atzpodien noted, specifically mentioning Hensoldt and Airbus Defence and Space as examples. Other major players including MBDA, Diehl Defence, and KNDS have also been expanding their operations in the eastern regions.
However, Atzpodien pointed out that this expansion is happening "with overall fewer employees than in the western federal states." He attributed this disparity to historical factors stemming from Germany's divided past.
The premiers of Saxony and Thuringia, Michael Kretschmer and Mario Voigt, both members of the CDU party, issued a call last autumn for eastern Germany to receive a larger share of major government contracts awarded to the defense industry. This demand reflects regional concerns about economic development and industrial investment distribution.
A spokeswoman for the Thuringian State Chancellery reinforced this position in comments to RND: "Thuringia is also lobbying the federal government intensively to be given greater consideration when it comes to investments in security and defense capabilities." She emphasized that Thuringia possesses "considerable potential in future fields such as robotics, optics, and materials science," positioning the state as well-suited for advanced defense manufacturing.
The transformation of Germany's defense industrial landscape represents one of the most significant economic and strategic shifts in the country since reunification, with implications for both national security policy and regional economic development across the nation.
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