Safety begins in space

In Andøya, at the northern edge of Europe, the sky is grey, the coastline rugged, and the ground frozen. When it was visited by Germany’s Federal Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre in March 2026, the space centre on the small island off the Norwegian coast came to symbolise a new era in European space collaboration. Germany and Norway want to deepen their cooperation on space travel with a view to securing satellite communication, strengthening reconnaissance capabilities and expanding Europe’s technological sovereignty.

The visit is testimony to an industry with a bright future: Germany’s aerospace industry is experiencing a boom – in both its civilian and military branches. Established companies and research institutes are expanding, and more and more start-ups are entering the field with pioneering spirit. 

Strategic key technologies of global importance 

The technological foundation of the sector is of vital importance. It encompasses virtually all strategic key technologies – from drone systems to satellite construction. Its capabilities have also become indispensable for equipping the Bundeswehr and its allies amid global geopolitical tensions. 

This includes the development of the European satellite constellation IRIS² for sovereign and resilient communications, for example. With around 300 small satellites, the constellation is to become a European counterpart to the US Starlink system – an orbital network that can operate independently of other world powers. German companies such as OHB from Bremen and Airbus Defence and Space, based in Munich, are directly involved. The creation of a comprehensive air defence system is also seen as a central challenge when it comes to protecting Europe against attacks. Here, the IRIS-T missile defence system from Diehl has a crucial role to play: it is now becoming established as the European standard for intercepting threats in the so-called medium-altitude layer – between six and 35 kilometres – exactly where current threat scenarios are most likely. 

German space strategy in response to global threats

In late 2025, the Federal Government responded to the growing security significance of outer space by launching its first Space Safety and Security Strategy. Space is no longer simply used for the purposes of peaceful research - it is an arena in which geopolitical rivalries are played out. One reason for this new view of space are Russia’s attacks on Ukraine’s satellite-based communication. They have revealed how vulnerable modern societies are. The aim of the strategy is to ensure and secure Germany’s long-term ability to act in space - in both the civilian and military sectors - in times of peace and crisis alike.

It centres around a whole-of-government approach that involves civilian, state and military actors. It includes protecting critical infrastructure, expanding Germany’s own capabilities and strengthening its resilience in the face of growing threats. At its heart is the Bundeswehr’s military space strategy. This encompasses activities to achieve space situational awareness, i.e. continuous observation and assessment of objects and activities in orbit, expansion of secure satellite-based communication and autonomous reconnaissance capacities to obtain an independent situation picture. At the same time, the focus is increasingly on protecting these systems - from kinetic threats, electronic attacks and cyber operations. In organisational terms, the Bundeswehr Space Command in Uedem in North-Rhine Westphalia combines these capabilities and serves as the interface to NATO and partners, whereas European programmes such as IRIS² or GOVSATCOM and cooperation with commercial providers are used to increase technological sovereignty.

At the same time, the Federal Government is prioritising close cooperation with European partners and NATO allies to develop common rules for the responsible and sustainable use of space. In view of the great importance of satellite-based services for communication, navigation and weather forecasting, space security is thus an essential prerequisite for security, prosperity and the political ability to act.

An economic driver and export success 

No surprise, then, that Germany’s aerospace companies are flying high. Industry revenue rose from 46 to 52 billion euros in 2024, according to the German Aerospace Industries Association (BDLI). Employment figures increased from 115,000 to 120,000. The outlook is very strong. 

And it’s not just spaceflight and air defence on the rise: civil aviation is also clearly recovering from the pandemic-related slumps of recent years. Many airlines are renewing or expanding their fleets. At the world’s most important aviation trade fair – the Paris Air Show – Airbus achieved a historic order record in June 2025: the European aerospace group, in which Germany and France are key stakeholders, secured 250 firm orders and preliminary agreements for jets and cargo aircraft. Customers include Riyadh Air from Saudi Arabia, Vietjet from Vietnam, and LOT, Poland’s national airline.  

This highlights the international strength of Germany’s aerospace sector, which has an export ratio of nearly 70 per cent. “Aerospace is a future-oriented industry in Germany. Our companies are growing steadily – against the general trend – and making a vital contribution to Germany’s technological independence and global competitiveness,” says BDLI president Michael Schöllhorn. 

Germany’s role in the ESA 

Germany is a pillar of the European Space Agency (ESA, whose 23 members recently celebrated its 50th anniversary. Accounting for more than 20 per cent of the agency’s total budget, Germany is its largest contributor – ahead of France – and also a strong partner in the International Space Station (ISS). Several German astronauts have been to space, including Thomas Reiter, Alexander Gerst, and most recently – as a scientist – Rabea Rogge.  

Many key ESA institutions are located in Germany: the European Space Operations Centre (ESOC) in Darmstadt, the European Astronaut Centre (EAC) in Cologne, the Columbus Control Centre of the German Aerospace Center (DLR) in Oberpfaffenhofen, and the test site for rocket propulsion in Lampoldshausen. 

Thanks to the expertise of these institutions, complex missions like the JUICE Jupiter moon orbiter are managed, new launch systems like Ariane 6 are tested – and future crewed spaceflights are being prepared. The ESA’s “geo-return” principle – which ensures that member states receive industrial contracts proportional to their contributions – means German industry directly benefits from these investments. 

Innovation hub Bavaria 

The centre of Germany’s aerospace industry is Bavaria, particularly the Greater Munich area. Heavyweights such as Airbus and engine manufacturer MTU are based here – as are a growing number of dynamic firms currently reshaping the market, such as drone maker Quantum Systems and the AI start-up Helsing. 

One particular focus across the industry lies on supporting so-called “New Space” start-ups. For example, Isar Aerospace Technologies – headquartered in Ottobrunn near Munich – is developing launch vehicles to transport smaller satellites into orbit at significantly lower cost. The new NATO Innovation Fund is among its backers.  

New players on the launchpad 

Other companies are fuelling the industry’s momentum: Rocket Factory Augsburg is working on the RFA One, a modular rocket system designed for scalable production. HyImpulse is currently testing hybrid engines with reduced explosion risk. Exolaunch in Berlin specialises in transporting and integrating small satellites, while OroraTech provides early-warning systems for wildfires via its microsatellites – and is now part of Europe’s Copernicus Earth observation programme. 

To maintain this momentum, the BDLI is calling for long-term political support and targeted investment in spaceflight locations and innovation networks. This would help German spaceflight to remain internationally competitive for years to come – while also making a pivotal contribution to Europe’s strategic independence.