Germany concludes 2024 with unprecedented milestones in the armament and defense industry, solidifying its position as a key global player in military exports and domestic modernization. On Wednesday, the Bundestag Budget Committee approved 38 new armament projects, raising the total to 97—significantly surpassing the 55 projects approved last year.
Additionally, German arms exports reached a historic high, exceeding the 2023 record before the year’s end, now standing at €13.2 billion. For context, this figure was just €4 billion a decade ago.
Ukraine emerged as the largest recipient, accounting for 62% of Germany’s military equipment exports. Other major recipients include Turkey, Israel, India, and strategic Asian partners aiming to reduce reliance on Russian arms. These markets reflect Berlin’s strategy to support allies in the power dynamics against China and Russia.
Domestically, Germany has accelerated modernization across all branches of its armed forces. Highlights include substantial investments in the Bundeswehr’s digitalization, air defense systems, and naval capabilities. Among the notable projects: The procurement of 212CD class submarines jointly developed with Norway, with costs estimated at €4.7 billion. These submarines, optimized for deployment in the North Atlantic, are designed to counter Russia’s Northern Fleet. Construction of F127 air defense frigates at an estimated cost of €15 billion, equipped with Lockheed Martin Canada’s CMS 330 system, promoting “Europeanized” production free from U.S. export restrictions.
While Germany leads in advanced submarine classes, its frigate production reflects a blend of domestic and international systems, underscoring the collaborative nature of European defense manufacturing.
The approved projects span multiple military branches, including rocket artillery, thermal imaging equipment, and IT systems for the “Digitalization of Land Operations” project, Patriot missiles, Iris-T air defense systems, and space surveillance radar for the Air Force, and new data centers and armored vehicles for cyber forces. The 38 new projects alone account for €21 billion, with additional costs anticipated for future phases.
The German arms industry achieved record-breaking exports in 2024, with licenses totaling €13.2 billion by December 17. This marks a 200% increase compared to 2014. Arms deliveries to Ukraine played a pivotal role, with licenses worth €8.1 billion granted in 2024 alone.
Germany’s export strategy reflects its geopolitical alignment. Turkey, despite previously strained relations, ranked fifth in exports with €230.8 million. In Asia, Singapore and South Korea emerged as significant buyers, with licenses valued at €1.218 billion and €256.4 million, respectively. Germany has also deepened ties with India, authorizing licenses worth €437.6 million over the past two years to reduce New Delhi’s reliance on Russian defense supplies.
