Currently, one-sixth of industrial firms are already integrated into the value chain of the defense industry, according to this report. This includes not only traditional armaments businesses but also manufacturers of dual-use goods and suppliers from other industries. The automotive industry leads the way, with 36 percent of businesses involved. Manufacturers of military vehicles are usually counted within this sector.

Another 12 percent of industrial firms are not yet engaged in the armament sector but see the defense industry as an interesting future market for their companies.

© DIHK / Paul Aidan Perry

Rainer Kambeck, DIHK Head of Economic Policy: "The situation remains tense for most German industrial companies. The war in the Middle East creates new uncertainties, particularly due to the rapidly rising energy prices and renewed disruptions in supply chains. Despite these challenging circumstances, the prospects in the defense industry are bright — reflecting the geopolitical conflicts. Companies in Germany can benefit from the high federal investments into security and defense capabilities. The security sector and defense industry are also increasingly attracting interest from small and mid-sized enterprises. This highlights how critical it is to improve market access for SMEs so that intense competition ensures efficient use of public funds."

The full report is available here in PDF format: (only available in German)

DIHK-Economic Insight Defense Industry Start of 2026 (PDF, 138 KB)