Since Russia’s invasion of Ukraine, the number of German companies operating in the defense industry has more than doubled, a trend attributed to the continuous rise in defense spending. According to a speaker from the Federal Association of German Security and Defense Industry (BDSV), the number of member companies grew by approximately 200 between 2024 and 2025. This figure subsequently rose by another 100 as of November 2025, bringing the total membership to 550.
This period of growth is particularly evident in East Germany, a region where the defense industry was previously less prominent. The Managing Director of the BDSV, Hans Christoph Atzpodien, noted that several years of activity, particularly among small and medium-sized enterprises, have strengthened the German security and defense sector in the eastern states. He pointed to the establishment of major system houses, such as Hensoldt and Airbus Defence and Space, alongside the expansion of activities by firms like MBDA, Diehl Defence, and KNDS. However, Atzpodien added that employment in the East remains lower compared to the western states, attributing this disparity to historical reasons.
Politically, this growing importance has become a major focus. Last autumn, the Prime Ministers of Saxony and Thuringia (both CDU) demanded that the Eastern states receive greater attention and participate more significantly in the enormous state contracts now flowing into the defense industry.
This demand has been echoed by Thuringia. A spokesperson for the state chancellery confirmed they are actively lobbying the federal government to ensure that Thuringia is given higher priority regarding investments in defense capability. This includes areas such as procurement, supply chains, infrastructure, and physical locations. Thuringia highlighted its significant potential in future-oriented sectors, including robotics, optics, and material sciences.
