Defence as a New Business Field: A Major Opportunity – But Not an Easy Entry
The numbers speak for themselves: Germany’s defence spending will rise to over €108 billion in 2026 – double compared to 2024. By 2029, approximately €152 billion is expected, with close to €48 billion earmarked for military procurement (source: German Federal Ministry of Defence).
A similar picture is emerging at NATO level – with a projected total budget of over €1,000 billion by 2035 (excluding the US; source: SIPRI).
For technology-driven industrial companies, this represents an attractive growth market. However, rising budgets do not automatically mean easy market access. The defence sector is a regulated, politically shaped, and structurally closed ecosystem – with significantly different rules compared to traditional industries.
Technology Transfer: Only Successful With a Clear Profile
Companies from the automotive, mechanical engineering, electronics, or IT sectors bring relevant capabilities – such as in sensor technology, automation, or cybersecurity.
What matters, however, is the translation into concrete applications.
Defence primes are not looking for generic capacities, but for differentiated capabilities with a clear military or dual-use relevance. Companies succeed when they translate their strengths into concrete use cases and develop a robust product or system logic from them.
The key question is:
What specific value do we bring to the existing competitive landscape?
Market Access: Structurally Limited
At the same time, the value chain is clearly hierarchically organised – from system houses (primes) through Tier-1 suppliers to specialised component providers.
Existing supply chains are long-established. Market entry therefore rarely happens through public tenders, but through integration into existing structures.
Think Internationally – Enter Nationally
The defence industry is internationally connected, yet access remains nationally regulated.
Multinational programmes coexist with nationally driven procurement logics. For companies, this creates a fundamental tension:
- The market is international
- Access is local and politically driven
Successful strategies combine both – through clear positioning in international programmes and targeted partnerships in relevant national markets.
Three Patterns for Successful Market Entry
In practice, three recurring approaches emerge:
- Partnerships: Access through primes, Tier-1 suppliers, and increasingly new entrants
- Niche focus: Specialisation in high-growth domains such as space, cyber, or autonomous systems
- M&A: Acquisition of existing capabilities, certifications, and customer access
In parallel, regulatory prerequisites must be established early – from NATO standards to export controls.
The Difference Lies in Execution
Many companies recognise the strategic opportunity – the challenge lies in execution.
Successful market entry requires:
- Understanding of procurement logics
- Access to relevant networks
- Translation of industrial competencies into military applications
ACTRANS combines deep sector expertise with a clearly structured approach. We support companies from strategic positioning and make-or-buy decisions through to the development of concrete partnership and go-to-market models – including regulatory implementation and international scaling.
Because in the defence market, it is not ambition that decides – but the ability to connect with existing structures.
Sources:
