Dual-Use Tech: Opportunity for Germany's Industry Shift

New Study by Consultancy Cognos Dual Use: A clear Opportunity for Germany's Industrial Transformation

2026-07-02 From Detlev Karg 1 min Reading Time

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Germany's struggling industrial sector could benefit from the growing market for dual-use technologies, which have both civilian and military applications, according to a new study by swiss consultancy Prognos.

Semiconductor products are classic dual-use goods.(Picture: By Mister rf - Own work, CC BY-SA 4.0 / CC BY-SA 4.0) — Semiconductor products are classic dual-use goods.
(Picture: By Mister rf - Own work, CC BY-SA 4.0 / CC BY-SA 4.0)

Industries ranging from automotive manufacturing to electrical engineering could produce such goods, meaning that "almost one in every two industrial jobs in Germany" has dual-use potential. In 2025, around 3.5 million people were employed in sectors capable of manufacturing dual-use products. The Basel-based consultancy estimates that this represents 45% of the 7.7 million people working in Germany's manufacturing, information and communications sectors. For its Dual-Use Atlas, prepared for Cognos, analysts examined the EU's list of dual-use items alongside employment data and regional industrial strengths.

Regional variations in Dual-Use potential

The study identifies strong potential across the country. Southern Germany stands out even beyond its major cities, while western Germany benefits from a broad industrial base. Eastern Germany is home to specialised clusters such as Dresden, Jena and Chemnitz, combining traditional manufacturing with expertise in optics and microelectronics. Northern Germany has fewer centres overall but "strong flagship locations", particularly in the aerospace and maritime sectors.

Defence as both a value and market advantage

For technology companies and start-ups, dual-use products are opening up a market that many had previously avoided. Established defence companies, meanwhile, are likely to gain new partners while also facing new competitors. "The boundaries between military, security-related and civilian markets are becoming increasingly blurred," said study leader Markus Mahle. "Dual use is a cross-sector industry." According to Prognos, Germany is approaching an industrial policy turning point. "Rising defence budgets and new security requirements are key drivers of security-related and defence-oriented product and process innovation," said co-author Christian Schoon. "This creates significant opportunities for industrial transformation."

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