Munich (Germany) (AFP) - Munich is famous for its beer festival, Bayern Football Club and stunning views of the Alps, but it has also become a hub for defense startups, driven by Europe's rearmament in the face of the Russian threat.

Published on: 01/09/2026 - 11:09

A new generation of companies specializing in drones, artificial intelligence, and military software has joined the major industrial groups in the region, while Europe is reconsidering its security and the United States is gradually reducing its military involvement on the continent.

The Munich region currently includes about 60 emerging defense companies, double the number a few years ago, according to the local Chamber of Commerce and Industry.

"Munich and its region offer an exceptional mix of expertise, talent and industrial heritage," Quantum Systems' Chief Revenue Officer Martin Karkor told AFP.

The reconnaissance drone manufacturer, along with Hellsing and Titan Technologies, is among the new players reshaping the local industrial landscape.

Those working in the sector enumerate the advantages of the capital of Bavaria, from its legacy in the aviation and defense industries to its leading technical universities, the availability of competencies, and the supportive political climate.

According to Karkur, the region brings together capabilities in engineering, software, artificial intelligence, and robotics, in a combination that is rarely available in one place.

Fertile environment

The war in Ukraine, where drones supported by artificial intelligence play a pivotal role, contributed to driving this wave of innovation, and stimulated the German and European armies to surpass traditional equipment such as tanks and artillery.

Quantum Systems, founded in 2015, supplies Kiev and other militaries with drones. It has also expanded its activities to include new unmanned systems operating on land and at sea.

Titan Technologies also owes a lot to Munich.

The company, which manufactures interceptor drones designed to neutralize enemy drones in 2023, was founded by two students from the Technical University of Munich, after their participation in an innovation competition organized in Kiev.

The company's production director, Nemo Farber, told AFP that its goal is to "rebuild the economics of European air defense."

Within two years, the company's employee count has increased from 20 to 200, and it is preparing to open a new production facility. It cooperates, in particular, with the German army to protect facilities from drones.

Its expansion comes at a time when Germany, the largest European military supporter of Kiev, announced recording suspicious drones flying over sensitive sites, including Leipzig Airport, where in August a drone loaded with explosives was found.

Farber believes that the “integrated system” in Munich and Bavaria is driving the growth of the sector.

He pointed out that the region's well-established automakers, which have reduced the number of their employees in the face of the crisis, are supplying the defense sector with a highly qualified workforce.

The Green Party mayor of Munich, Dominik Krause, attributes the region's success to cooperation between large and small companies, as well as close links between universities and authorities.

"This ultimately creates a fertile environment in which many good ideas can grow," he told AFP.

Administrative obstacles

However, despite this prosperity, emerging companies in the sector complain of several obstacles.

It criticizes the allocation of a small share of investments to autonomous systems, while conventional weapons such as tanks account for the largest portion, despite the ease of targeting them with low-cost drones.

According to the Chamber of Commerce, lengthy procedures for obtaining security clearances for employees and bureaucracy are additional obstacles.

The chamber's defense expert, Maximilian Ip, told AFP that building the necessary infrastructure to keep up with demand represents another challenge.

He added, "Startup companies face real difficulties when growth is achieved and orders are available, but they are unable to exploit their full production capacity because permits for new warehouses and production facilities have not yet been issued."

But he indicated that there was a supportive will on the part of the Bavarian regional government.

Defense industries were long banned in Germany due to Nazi atrocities.

Officials in the sector believe that his emergence again into the spotlight also carries security risks.

The CEO of the Bavarian company "Donauchtal", which manufactures drones, has been living in hiding since the revelation of a plot to assassinate him attributed to Russia, while a similar plot targeting the head of the "Rheinmetall" group, Armin Paperger, was foiled in 2024.

Defense companies contacted by Agence France-Presse confirmed that they had strengthened their security measures.

© 2026 AFP

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