Defence Industry Expansion in Baden-Württemberg: Trends & Opportunities

Defence Industry Expansion in Southwest Germany More Companies Enter Defence Sector as Bundeswehr Procurement Rises

2025-09-01 Source: dpa 1 min Reading Time

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With Germany increasing defence budgets and procurement programmes, companies in Baden-Württemberg are stepping into the security and defence sector. From established industrial players to SMEs, firms see new opportunities as supply chains diversify and demand for mission-critical technologies rises.

Defence industry expansion in Baden-Württemberg: from lasers and avionics to logistics and infrastructure, companies are diversifying into defence supply chains.(Source: Marijan Murat/dpa) — Defence industry expansion in Baden-Württemberg: from lasers and avionics to logistics and infrastructure, companies are diversifying into defence supply chains.
(Source: Marijan Murat/dpa)

Over three years after Russia’s full-scale invasion of Ukraine, sentiment in Germany has shifted. Defence Minister Nicole Hoffmeister-Kraut (CDU) emphasised in Stuttgart that defence contracts open new opportunities for regional industry, stressing the importance of diversified supplier networks to secure higher production volumes and strengthen resilience.

According to the Federal Ministry for Economic Affairs, around 14,500 people were employed in the security and defence industry in Baden-Württemberg in 2022. The German Security and Defence Industry Association (BDSV) expects further job growth in the region. By comparison, the state’s automotive sector employed more than 230,000 people in 2023.

Industry Moves:

Heidelberger Druckmaschinen has partnered with Vincorion Advanced Systems to supply control and energy distribution systems for military applications, projecting €100 million in revenues across its industry segment within three years.
Ferreira Logistik (Stuttgart) plans to provide logistics services for defence suppliers, diversifying from a weakening automotive logistics market.
Trumpf (Ditzingen) has decided to make its laser technologies available for defensive weapon systems, following internal debate on the family-owned company’s role in the sector.
Porsche SE (Stuttgart) intends to expand into the defence sector by building an investment platform for technology-driven ventures, focusing on satellite surveillance, sensor systems, cybersecurity, and logistics.
Hodapp GmbH & Co. KG (Achern) – Correction: previously reported as Oberkirch – has begun supplying reinforced doors and gates for Bundeswehr facilities and defence contractors. The 300-employee metal construction firm, traditionally focused on the automotive sector, sees defence as a new growth field, with ambitions to generate 20% of turnover from defence contracts within five years.

While defence remains small compared to the automotive industry, regional firms — both large and mid-sized — are increasingly exploring opportunities in this expanding sector.

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