The changing European security landscape is having far-reaching economic implications for the defense industry. Entry barriers to this highly regulated market are currently lower than ever. Many innovative German companies are seizing these opportunities by founding new ventures, developing additional business areas, entering into strategic partnerships, and expanding internationally. This momentum is driven both by the operational needs of the Ukrainian armed forces and by the intensified defense efforts of all NATO and EU member states.

To secure a lasting position in the market, it is essential to build stable business relationships with established government procurement authorities. Meeting the sector’s high organizational and regulatory requirements requires sufficient scale and operational maturity. Innovative and adaptable companies should actively leverage the current window of opportunity for market entry and organic growth. On this basis, a sustainable market position can be established through targeted acquisitions or partnerships with experienced industry players.