Sector Report - Defense

Dear Defense-Enthusiasts,

We are pleased to share our latest defense market report today, in which we discuss trends, valuations and M&A activity in 2025.

Here are the three main takeaways:

1. Record defense spending accelerates industry growth.Germany’s defense budget will rise to €117 billion in 2026, making the country the fourth-largest global defense spender and driving strong demand in metal processing.

2. Capacity constraints across the value chain.Significant OEM order increases, including 3,000 - 5,000 Boxer vehicles by 2037, are resulting in high utilization levels and supply chain bottlenecks.

3. Certifications and supplier consolidation reshape the market.Rising access requirements limit the pool of qualified suppliers, while OEMs strengthen vertical integration and prioritize certified, scalable partners.