Electrical and digital industry
Reluctance to get involved in the security and defense industry
Despite the growing importance of security policy, the involvement of the electrical and digital industry in the German security and defense industry (SVI) remains limited. This is shown by a recent member survey conducted by the German Electrical and Electronic Manufacturers' Association (ZVEI).
According to the survey, over 60% of the companies surveyed in the sector are still distanced from SVI. Although a good third maintain business relationships in this area, the average share of turnover is only around five percent.
Companies cite excessive regulatory burdens (47%) and complex and lengthy procurement processes (41%) as the main obstacles. ZVEI President Dr. Gunther Kegel criticizes: "Despite the turnaround proclaimed three years ago, we have failed to adapt the regulatory framework to the new geopolitical realities." As a result, SVI is still not an attractive business area for many companies.
The importance of electronic components in defense is growing steadily - according to ZVEI, they already account for almost 20 percent of equipment. Kegel emphasizes: "Modernizing the military and increasing defence capabilities is only possible with the products of our member companies."
At the same time, there are initial signs of greater involvement: Almost one in four companies (23%) that have not been active in the defense sector to date are planning to become more involved in the future. A further 19 percent are still undecided.
The companies are particularly critical of the far-reaching requirements, which also affect civilian business. According to the ZVEI, the German government's catalog of measures to reform the procurement system falls short. Among other things, Kegel is calling for more differentiated rules for arms export controls for suppliers and an acceleration of procurement processes.
In addition, the association is encouraging a discussion about higher local value creation shares for safety-critical products ("local content").
The survey was conducted in May 2025 among 93 companies, which together represent around 18 percent of industry turnover.
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