Germany’s defense industry is a major industrial base and employer, spanning regions from North Rhine-Westphalia and Bavaria to naval clusters around Kiel. In 2023 it contributed about 1.5% of GDP and supported over 100,000 direct jobs. The page explores how market performance, industrial capacity from ground to maritime and sensors, and defense R&D investment influence workforce growth and international demand.
Key Takeaways
- Germany's defense industry generated €60 billion in turnover in 2022, marking a 10% increase from the previous year
- Rheinmetall AG reported defense sector sales of €7.2 billion in 2023, up 25% year-over-year due to increased demand for ammunition
- The German defense industry's contribution to GDP was approximately 1.5% in 2023, supporting over 100,000 direct jobs
- The German defense industry employs 130,000 people directly in 2023, up 15% from 2020
- Rheinmetall has 25,000 employees in defense division as of 2023
- ThyssenKrupp Marine Systems employs 5,500 workers across shipyards and design centers
- Germany's defense exports totaled €8.97 billion in 2023, a record high surpassing previous years
- Rheinmetall exported €3.5 billion worth of defense goods in 2023, primarily ammunition to Ukraine and NATO allies
- From 2019-2023, Germany was the world's 6th largest arms exporter with 5.6% of global major arms trade
- Germany's tank production exported 18 Leopard 2A8 units to Czech Republic in 2024 order
- Rheinmetall plans to produce 1 million 155mm artillery shells annually by 2025 at new Unterlüß factory
- ThyssenKrupp Marine Systems has capacity to build 2 Type 212 submarines per year at Kiel shipyard
- Germany invested €8.5 billion in defense R&D in 2023, 1.4% of GDP allocated to military tech
- Rheinmetall's R&D spend on defense reached €450 million in 2023, focusing on hydrogen propulsion
- Fraunhofer Institute conducts 30% of Germany's defense-related research projects
Germany’s defense industry is booming, with record exports, 2023 GDP impact, and rapid capacity expansions for weapons and sensors.
Related reading
01 · Category
Economic Impact20 stats
01
Germany's defense industry generated €60 billion in turnover in 2022, marking a 10% increase from the previous year
02
Rheinmetall AG reported defense sector sales of €7.2 billion in 2023, up 25% year-over-year due to increased demand for ammunition
03
The German defense industry's contribution to GDP was approximately 1.5% in 2023, supporting over 100,000 direct jobs
04
ThyssenKrupp Marine Systems achieved €2.1 billion in defense revenue in fiscal year 2022/2023
05
Diehl Defence posted €1.8 billion in sales for 2023, with 95% from defense products
06
Overall German arms industry orders reached €35 billion in 2023, a 40% surge driven by Ukraine aid
07
Hensoldt AG's order backlog stood at €4.2 billion at the end of 2023
08
The defense sector accounted for 12% of Germany's mechanical engineering industry's output in 2022
09
Renk Group reported €1.1 billion in defense-related revenue in 2023
10
MTU Aero Engines' military engine sales hit €1.5 billion in 2023
11
In 2022, the Bundeswehr procurement budget was €47 billion, with 70% allocated to industry contracts
12
Krauss-Maffei Wegmann (KMW) defense revenue €2.8 billion in 2023
13
ESG Elektroniksystem- und Logistik-GmbH turnover €900 million from defense in 2023
14
Overall industry profit margin averaged 8.5% in 2023 amid rising orders
15
Defense investments attracted €5 billion in private equity in 2023
16
North Data reports 1,200 SMEs supplying German defense primes in 2023
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Germany's defense trade surplus was €6.5 billion in 2023
18
Airbus Defence and Space Germany revenue €11 billion in 2023
19
OHB SE space defense turnover €1.2 billion in 2023
20
Industry R&D tax credits totaled €1.8 billion for defense firms in 2023
Interpretation
Economic Impact Interpretation
Germany’s defense industry is delivering a growing economic footprint, with turnover rising to €60 billion in 2022 and total arms industry orders jumping to €35 billion in 2023, while sector contribution to GDP sits at about 1.5% and supports over 100,000 direct jobs.
02 · Category
Employment And Labor20 stats
01
The German defense industry employs 130,000 people directly in 2023, up 15% from 2020
02
Rheinmetall has 25,000 employees in defense division as of 2023
03
ThyssenKrupp Marine Systems employs 5,500 workers across shipyards and design centers
04
Hensoldt AG workforce totals 8,500 employees, 90% in defense-related roles in 2023
05
Diehl Defence employs 3,200 staff specialized in munitions and missiles
06
Defense industry supports 400,000 indirect jobs through supply chain in Germany
07
Bavaria hosts 40% of Germany's defense workforce, with 52,000 direct jobs
08
Women represent 18% of the defense industry's technical workforce in 2023
09
Apprenticeships in defense firms: 12,000 active in 2023
10
Average salary in German defense industry is €68,000 annually, 20% above national average
11
ESG employs 2,500 in simulation and training systems
12
Defense sector vacancy rate dropped to 4% in 2023 from 8% in 2021
13
Baden-Württemberg defense jobs: 28,000 direct employees
14
15% growth in STEM graduates entering defense industry 2023
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Rheinmetall hired 4,000 new staff in 2023 for expansion
16
Average age of defense workers: 44 years, with 20% under 30 in 2023
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Vocational training programs in 450 companies, 15,000 trainees
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Foreign workers: 12% of defense workforce, mainly engineers from EU
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Hensoldt's training academy graduates 500 specialists yearly
20
ThyssenKrupp shipyard peak employment 7,000 during frigate builds
Interpretation
Employment And Labor Interpretation
In Germany, the defense industry directly employs 130,000 people in 2023, a 15% rise from 2020, and with 400,000 additional indirect jobs supported through the supply chain, employment gains are clearly strengthening labor demand across both industry and its wider network.
03 · Category
Export Statistics20 stats
01
Germany's defense exports totaled €8.97 billion in 2023, a record high surpassing previous years
02
Rheinmetall exported €3.5 billion worth of defense goods in 2023, primarily ammunition to Ukraine and NATO allies
03
From 2019-2023, Germany was the world's 6th largest arms exporter with 5.6% of global major arms trade
04
Defense exports to Ukraine reached €1.2 billion in 2023, including Leopard tanks and IRIS-T missiles
05
ThyssenKrupp exported submarines worth €500 million to Norway in 2023
06
Hensoldt secured €1.8 billion in export orders for radar systems to Middle Eastern countries in 2023
07
Germany's share of EU defense exports was 28% in 2022
08
Diehl Defence exported €1.4 billion in missiles and munitions in 2023
09
In 2023, 64% of German defense exports went to EU and NATO members
10
Rheinmetall's exports to Australia included €4 billion in artillery systems announced in 2023
11
Germany's small arms exports reached €450 million in 2023, mainly to NATO partners
12
Export licenses for defense goods approved: 12,500 in 2023 worth €12 billion
13
35% of 2023 exports went to non-EU countries including Egypt and Qatar
14
ThyssenKrupp frigate exports to Algeria valued at €2 billion in 2023 deal
15
Hensoldt's export share 75% of revenue, €2.1 billion in 2023
16
Diehl exported 5,000 IRIS-T SLM systems equivalents in 2023
17
Germany's armored vehicle exports: 1,200 units 2019-2023
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Naval exports included 2 corvettes to Israel for €500 million in 2023
19
Aircraft parts exports €1.1 billion from MTU and others in 2023
20
Rheinmetall's South African subsidiary exported €800 million back to Europe in 2023
Interpretation
Export Statistics Interpretation
Germany’s export statistics show a sharp rise with defense exports hitting €8.97 billion in 2023, making it a record year, while major firms like Rheinmetall (€3.5 billion) and Hensoldt (€1.8 billion) underscore how exports are increasingly concentrated in ammunition and advanced radar systems.
More related reading
04 · Category
Production And Capacity20 stats
01
Germany's tank production exported 18 Leopard 2A8 units to Czech Republic in 2024 order
02
Rheinmetall plans to produce 1 million 155mm artillery shells annually by 2025 at new Unterlüß factory
03
ThyssenKrupp Marine Systems has capacity to build 2 Type 212 submarines per year at Kiel shipyard
04
Hensoldt produces 500 TRML-4D radars per year with current production lines expanded in 2023
05
Diehl Defence's Backnang facility manufactures 20,000 IRIS-T missiles annually post-expansion
06
Germany's ammunition production capacity is set to reach 800,000 155mm shells per year by end-2025
07
Rheinmetall's Kassel plant produces 400 Puma IFVs with upgrades for Bundeswehr delivery by 2029
08
MTU Friedrichshafen assembles 200 Leopard 2 engines yearly for export and domestic use
09
Renk Group's gearboxes for Leopard tanks have production capacity of 300 units per year
10
Germany's frigate production at MEKO facilities yields 1 vessel every 3 years
11
Leopard 2 tank exports totaled 300 units from Germany 2019-2023
12
Ammunition factories ramped up to 350,000 shells/month by mid-2024
13
KMW+Leonardo consortium produces 50 MGCS prototypes annually post-2025
14
Diehl's missile production lines output 1,200 RAM missiles/year
15
Hensoldt's Ulm facility assembles 200 optronic systems monthly
16
Germany's drone production capacity: 500 units/year for Bundeswehr
17
Shipbuilding yards deliver 4 patrol vessels annually across firms
18
Rheinmetall's Boxer APC production: 300 units/year at current lines
19
MTU produces 150 marine diesel engines for warships yearly
20
Renk transmission plants output 400 units for tracked vehicles annually
Interpretation
Production And Capacity Interpretation
Germany’s production and capacity ramp is clear in 2024 to 2025 targets, with plans to scale to 1 million 155mm shells per year by 2025 and reach 800,000 155mm shells annually by end 2025 while expanding output across major platforms like 20,000 IRIS-T missiles per year after Diehl Defence’s expansion.
05 · Category
Research & Development20 stats
01
Germany invested €8.5 billion in defense R&D in 2023, 1.4% of GDP allocated to military tech
02
Rheinmetall's R&D spend on defense reached €450 million in 2023, focusing on hydrogen propulsion
03
Fraunhofer Institute conducts 30% of Germany's defense-related research projects
04
Hensoldt invested €220 million in sensor fusion tech R&D in 2023
05
Diehl Defence's €150 million R&D budget in 2023 targeted hypersonic missile interceptors
06
German government funded €2.1 billion for future combat air system (FCAS) R&D in 2023
07
Over 500 patents filed by German defense firms in AI and autonomy in 2023
08
MTU Aero Engines R&D on next-gen fighter engines: €300 million in 2023
09
Renk Group's €80 million R&D for electric drives in military vehicles in 2023
10
Germany's defense industry R&D personnel totals 25,000 engineers and scientists in 2023
11
DLR defense R&D centers employ 4,000 researchers
12
FCAS program involves 150+ German firms, €4 billion R&D to 2025
13
Quantum tech for defense: €200 million funded projects in 2023
14
Rheinmetall's Mission Master UGV R&D led to 10 prototypes tested 2023
15
Hensoldt's AI radar R&D produced 20 patents in 2023
16
Cyber defense R&D budget €1.2 billion, 500 projects active
17
Diehl's laser weapon prototype achieved 50kW output in 2023 tests
18
University collaborations: 200 PhDs funded in defense tech 2023
19
Green propulsion R&D: €100 million for hybrid tanks by 2030
20
KMW's digital twin tech R&D saves 20% production time
Interpretation
Research & Development Interpretation
In 2023 Germany poured €8.5 billion into defense research and development, with major companies and institutes pushing specialized R&D such as Rheinmetall’s €450 million hydrogen propulsion and a €2.1 billion FCAS effort, showing a clear trend toward scaling advanced technology development rather than just incremental upgrades.
Reference
Cite This Report
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APA
Samuel Norberg. (2026, February 13). Germany Defense Industry Statistics. Gitnux. https://gitnux.org/germany-defense-industry-statistics
MLA
Samuel Norberg. "Germany Defense Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/germany-defense-industry-statistics.
Chicago
Samuel Norberg. 2026. "Germany Defense Industry Statistics." Gitnux. https://gitnux.org/germany-defense-industry-statistics.
Sources & references
47 datasets cited across this report · attribution is report-level