Around the Bavarian capital, the infrastructure of modern warfare is designed, built, and tested. According to the Bavarian Chamber of Commerce and Industry, approximately 50,000 employees in this region generate roughly one-third of the nation’s total added value in the security and defense industry.
This ecosystem extends far beyond household names like Airbus or Krauss-Maffei Wegmann. Research institutes, specialized medium-sized enterprises, and high-tech startups also develop critical defense products or supply essential components to the global market.
An Industry with Historical Roots
The foundation was laid in the 19th century: the locomotive factories of Krauss and Maffei merged in 1931, eventually developing the Leopard main battle tank. Originally, their sites were located at opposite ends of Munich—Krauss in the Marsfeld district and Maffei in Hirschau, within what is now the English Garden.
In 1935, the merged company moved production to a new site in Allach, where main battle tanks are still manufactured today.
The south of Munich has also long been synonymous with aviation and defense. Companies like Messerschmitt and Bölkow defined the industrial landscape of Ottobrunn and Taufkirchen for decades. During Franz Josef Strauss’s tenure as Bavarian Prime Minister (1978–1988), military-technical facilities such as the IABG testing center were established, which remains a cornerstone of military R&D.
Key Players in the Munich Defense Hub
Helsing: AI Valued at €12 Billion
Founded in 2021, the Munich-based startup Helsing has seen meteoric growth. Specializing in military Artificial Intelligence, its software powers drones and fighter jets, including those currently deployed in Ukraine. Valued at approximately 12 billion euros, it is considered Germany’s most valuable startup. In September 2025, Helsing unveiled its new combat drone, the CA-1 Europa, at its Grob Aircraft subsidiary in Tussenhausen.
ARX Robotics: Autonomous Systems from Oberding
Located 40 kilometers northeast of Munich, ARX Robotics develops unmanned ground vehicles (UGVs). Their Gereon robots handle logistics, casualty evacuation, and combat tasks. Founded by former Bundeswehr soldiers, ARX operates what it describes as Europe’s largest production facility for autonomous defense systems in the Munich metropolitan region.
KNDS: The Steel Heart of Munich-Allach
KNDS Deutschland (the successor to Krauss-Maffei Wegmann) builds the new Leopard 2 A8 in northern Munich. While the facility employs nearly 1,900 people, production remains highly specialized: only about 40 to 50 Leopard tanks leave the factory annually, with a lead time of roughly two years from order to delivery.
Quantum Systems: Drone Innovation in Gilching
Specializing in reconnaissance drones, Quantum Systems has supplied over 600 units to Ukraine. Founded by former officer Florian Seibel, the company recently became the first German defense firm to establish a production site within Ukraine to secure its supply chains.
MTU Aero Engines and Airbus Defence
MTU Aero Engines manufactures central components for military engines, such as the EJ200 for the Eurofighter. Meanwhile, in Ottobrunn and Taufkirchen, Airbus Defence and Space is developing a new satellite communication system for the Bundeswehr and coordinating the Future Combat Air System (FCAS). The synergy is reinforced by the Technical University of Munich (TUM), which opened a new Department of Aerospace and Geodesy in Ottobrunn in 2025, right next to Airbus.
Hensoldt and Tytan Technologies
Headquartered in Taufkirchen, Hensoldt provides the radar and sensor technology that helps the Ukrainian military intercept drones and cruise missiles. Newer players like Tytan Technologies (founded in 2023) are working with KNDS to develop tank-mounted interceptor drones to protect convoys from kamikaze drone threats.
Broad Industrial Support: From MBDA to Siemens
- MBDA Germany: Based in Schrobenhausen, they specialize in air defense and laser systems.
- Rohde & Schwarz: Located in Munich’s Werksviertel, they provide essential aviation and weapons electronics.
- Diehl Defence: Operates several Bavarian sites focusing on guided missiles.
- Isar Aerospace: Developing the Spectrum launch vehicle to enhance Germany’s defense capabilities in space.
Siemens: Supplies everything from radar systems to fuel cells for modern military platforms.
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