Gold rush among arms manufacturers

When and how will airplanes be able to fly climate-neutrally and without condensation trails? What does the rover that European researchers plan to use to drill a two-meter-deep hole on the Martian moon Phobos look like in 2028?

The answers to such questions were offered at the International Aerospace Exhibition (ILA), one of the largest trade fairs of its kind in Europe. The ILA ends this Sunday (June 14) in Berlin.

The crisis that has befallen civil aviation due to the war with Iran is barely felt there. Namely, the whole world is talking about high oil prices and a shortage of kerosene. Airline ticket prices are rising, and flights are being canceled.

The fair's organizers, however, celebrated the record, as Michael Schellhorn, president of the Association of the German Aerospace Industry, said at the opening.

While 600 exhibitors from 31 countries participated in 2024, this year there are more than 750 from 37 countries. Exhibition spaces in all halls have been “booked since November,” said Schellhorn.

Reconnaissance drones that fit in a box around your neck

The defense industry is in the spotlight. The world is rapidly arming itself, and in times of war and global threats, this industry is doing better than ever.

Special emphasis is placed on unmanned systems, especially drones. What was once a hobby and entertainment is now an industry worth billions of euros.

In a so-called drone cage, a cage surrounded by nets, a Bundeswehr soldier pilots a tiny reconnaissance drone called the Black Hornet 4. The drone takes high-quality images and can detect heat sources on the ground. It is so small that after the demonstration, it disappears into a box that the pilot wears around his neck.

The focus is on combat use with the drone, which is a German-Ukrainian joint venture called Kvantum Frontline Industries. The model can fly up to 20 kilometers and carry a payload of up to four kilograms. The dropping of explosives is demonstrated using plastic imitations.

It is clear that its development has incorporated experiences from Russia's war against Ukraine. The high-tech company Kvantum Systems from Munich, founded in 2015, plays an important role in supporting the Ukrainian armed forces.

Changes in the defense sector are also clearly visible at ILA: young and agile companies are often at the forefront of drone development and the application of artificial intelligence and are heavily represented at the fair.

Defense startups Helsing and Stark Defense have already received large orders from the Bundeswehr for disposable combat drones, so-called “wandering munitions.” At the trade fair, these companies are promoting additional unmanned systems with autonomous functions, which are likely to play an increasingly important role in future war scenarios.

Civilian companies want a piece of the pie too

Due to the significantly increased German defense budget – which is expected to reach 108 billion euros this year – there is a gold rush at this year's ILA.

Companies from completely different economic sectors also want a piece of the big pie, or rather a piece of the abundant funds earmarked for defense.

Among them is the traditional company Druk from Heidelberg, whose core business is the production of printing machines, and which now offers drone defense systems through a subsidiary.

"We are looking for a second pillar of business because the classic printing press market is exposed to cyclical fluctuations," Matthias Resling, head of the company's Brandenburg site, told DW. He explains that the defense market is "still underutilized" in many areas.

There is also great interest at the fair in the exhibition space of the Dil Defense company, which is presenting a new version of the Iris-T air defense system.

The system is not only used by the Bundeswehr, but is also in high demand on the international market. The company says it has a lot of orders, and plans to invest up to 1,5 billion euros in the construction of production sites, new halls and machines.

This shows that air defense has once again become extremely important, as it is about protecting one's own territory, civilian population, and critical infrastructure from air attacks.

Government presents new aviation strategy

This view is shared by German Chancellor Friedrich Merz, who is also pleased with the good business results of German companies. In times of economic difficulties in Germany, the aviation industry is a rare exception.

According to data from the German Ministry of Economics, this sector achieved growth of 19 percent in 2025, and the number of employees increased to 130.000. Merc was visibly pleased with these figures at the ILA.

"The aerospace industry is a strategically key sector," he said after visiting the fair, pointing to the federal government's new aerospace industrial strategy, which includes the military sector for the first time. In the coming years, 35 billion euros are planned for defense activities in space.

Merc also expressed hope that ISAR Aerospace will successfully launch its launch vehicle as early as June.

Number of flights doubled by 2050

The government's strategy should also boost civil air traffic. Forecasts predict that the number of flights will double by 2050. "In the next twenty years, the world will need more than 40.000 new aircraft," said Merz.

The European concern Airbus should particularly benefit from this. In communication with its French partners, the German Chancellor, in line with the growing investments, is also insisting on a larger production share in Germany.

Environmental organizations criticize the new aviation strategy as being too focused on economic growth. They believe that climate protection has been pushed into the background. Airbus could theoretically soon produce aircraft in Hamburg that fly climate-neutrally and without condensation trails.

However, key prerequisites are still missing. "The infrastructure for hydrogen-powered aircraft does not yet exist," Airbus CFO Thomas Toepfer said at the ILA.

The necessary quantities of green hydrogen are not yet available, explained Tepfer, and airports do not have the ability to supply such aircraft with fuel. He estimates that this could happen in the early or mid-2030s at the earliest.