In 2023, Germany's defence R&D budget was significantly less than the projected figures for 2024 onwards. Starting from $3.79 billion in 2024, there is a consistent upward trajectory anticipated. The forecast predicts a year-on-year growth: 10.82% in 2025, 9.76% in 2026, 8.89% in 2027, and 8.19% in 2028. Over the five-year period, this represents a compound annual growth rate (CAGR) of approximately 9.41%, illustrating robust investment growth in defence R&D.

Future trends to watch for include:

Increasing focus on cutting-edge technologies in defence such as AI, cybersecurity, and advanced materials.
Alignment with EU and NATO standards which might influence further investments.
Potential geopolitical tensions necessitating further expenditure reallocations towards defence innovation.