{"id":6276,"date":"2026-04-29T18:35:23","date_gmt":"2026-04-29T16:35:23","guid":{"rendered":"https:\/\/actrans.de\/?p=6276"},"modified":"2026-04-29T18:35:53","modified_gmt":"2026-04-29T16:35:53","slug":"defence-new-business-field","status":"publish","type":"post","link":"https:\/\/actrans.de\/en\/defence-new-business-field\/","title":{"rendered":"Defence as a New Business Field: A Major Opportunity \u2013 But Not an Easy Entry"},"content":{"rendered":"\n
The numbers speak for themselves: Germany’s defence spending will rise to over \u20ac108 billion in 2026 \u2013 double compared to 2024. By 2029, approximately \u20ac152 billion is expected, with close to \u20ac48 billion earmarked for military procurement (source: German Federal Ministry of Defence).<\/p>\n\n\n\n
A similar picture is emerging at NATO level \u2013 with a projected total budget of over \u20ac1,000 billion by 2035 (excluding the US; source: SIPRI).<\/p>\n\n\n\n
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 \u2013 with significantly different rules compared to traditional industries.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Technology Transfer: Only Successful With a Clear Profile<\/h3>\n\n\n\n
Companies from the automotive, mechanical engineering, electronics, or IT sectors bring relevant capabilities \u2013 such as in sensor technology, automation, or cybersecurity.<\/p>\n\n\n\n
What matters, however, is the translation into concrete applications.<\/strong><\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The key question is:<\/p>\n\n\n\n
What specific value do we bring to the existing competitive landscape?<\/strong><\/p>\n\n\n\n
<\/div>\n\n\n\n
Market Access: Structurally Limited<\/h3>\n\n\n\n
At the same time, the value chain is clearly hierarchically organised \u2013 from system houses (primes) through Tier-1 suppliers to specialised component providers.<\/p>\n\n\n\n
Existing supply chains are long-established. Market entry therefore rarely happens through public tenders, but through integration into existing structures.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Think Internationally \u2013 Enter Nationally<\/h4>\n\n\n\n
The defence industry is internationally connected, yet access remains nationally regulated.<\/p>\n\n\n\n
Multinational programmes coexist with nationally driven procurement logics. For companies, this creates a fundamental tension:<\/p>\n\n\n\n
\n
The market is international<\/li>\n\n\n\n
Access is local and politically driven<\/li>\n<\/ul>\n\n\n\n
Successful strategies combine both \u2013 through clear positioning in international programmes and targeted partnerships in relevant national markets.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Three Patterns for Successful Market Entry<\/h4>\n\n\n\n
In practice, three recurring approaches emerge:<\/p>\n\n\n\n
\n
Partnerships: <\/strong>Access through primes, Tier-1 suppliers, and increasingly new entrants<\/li>\n\n\n\n
Niche focus: <\/strong>Specialisation in high-growth domains such as space, cyber, or autonomous systems<\/li>\n\n\n\n
M&A: <\/strong>Acquisition of existing capabilities, certifications, and customer access<\/li>\n<\/ul>\n\n\n\n
In parallel, regulatory prerequisites must be established early \u2013 from NATO standards to export controls.<\/p>\n\n\n\n
<\/div>\n\n\n\n
The Difference Lies in Execution<\/h3>\n\n\n\n
Many companies recognise the strategic opportunity \u2013 the challenge lies in execution.<\/p>\n\n\n\n
Successful market entry requires:<\/p>\n\n\n\n
\n
Understanding of procurement logics<\/li>\n\n\n\n
Access to relevant networks<\/li>\n\n\n\n
Translation of industrial competencies into military applications<\/li>\n<\/ul>\n\n\n\n
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 \u2013 including regulatory implementation and international scaling.<\/p>\n\n\n\n
Because in the defence market, it is not ambition that decides \u2013 but the ability to connect with existing structures.<\/strong><\/p>\n\n\n\n