A new report by the Innovation Centre Denmark (ICDK) in Munich highlights Germany’s growing role as a driving force in the NewSpace sector and the significant position that the State of Bavaria holds within this landscape. The publication presents key stakeholders shaping the southern German space ecosystem – from leading research institutions to industrial space-tech innovators – and highlights current trends.
In the report, Munich Aerospace appears alongside key players such as the Technical University of Munich, the Bavarian Ministry of Economic Affairs, and OHB SE, with an interview contribution. In this interview, Dr. Andreas Lermann, CEO of Munich Aerospace, discusses Germany’s trajectory toward becoming the largest financial contributor to the European Space Agency (ESA) in 2025 and elaborates on the implications this development may have for the broader space community.
Below you can read the interview — the full report can be downloaded for free here.
Germany as a Driving Force in Space
Germany is on track to become the European Space Agency’s most significant financial contributor in 2025, committing nearly €952 million. This commitment goes beyond numbers. It reflects a vision for Europe’s leadership in space at a time of global competition.
“The financial commitment to ESA is more than a budget line. It is a strategic investment into Europe’s capacity to remain a strong and independent space power,” says Dr. Andreas Lermann, Managing Director at Munich Aerospace. Munich Aerospace serves as a bridge between academia, research, and industry, ensuring that innovations transition smoothly from the lab to the market.
According to Lermann, the investment fuels Europe’s flagship space programmes, from satellite navigation and Earth observation to secure communications, while opening new frontiers in orbital sustainability and commercial access to space.
“Germany’s strong contribution also enables it to influence the strategic direction of ESA, to strengthen its industrial base, and to help set the standards that will shape the next generation of technologies. In short, it reflects Germany’s determination to ensure that Europe is not simply a participant, but a leader, in the global space race,” Lermann says.
“Germany’s strong contribution also enables it to influence the strategic direction of ESA, to strengthen its industrial base, and to help set the standards that will shape the next generation of technologies. In short, it reflects Germany’s determination to ensure that Europe is not simply a participant, but a leader, in the global space race,” Lermann says.
The balancing act between reliability and agility is central to Europe’s ability to stand on equal footing with the US and China.
(Dr. Andreas Lermann, CEO Munich Aerospace)
Anchoring Autonomy and Building Regional Strengths
For Lermann, strategic autonomy in space is not about isolation but about ensuring resilience and freedom of action. Germany plays a pivotal role by combining industrial strength, research excellence, and political credibility within the European framework. By driving flagship programmes such as Galileo and IRIS², Germany helps secure Europe’s independent capabilities in navigation, secure communications, and launcher access.
“Germany ensures that Europe maintains its own navigation systems, Earth observation capabilities, and increasingly also secure communications and launcher access,” he explains and adds: “The balancing act between reliability and agility is central to Europe’s ability to stand on equal footing with the US and China.”
Bavaria, in particular, illustrates how this vision can be grounded in a regional context. The state’s dense ecosystem of universities, research organisations, industrial champions, and startups creates fertile ground for innovation. According to Lermann, Bavaria is powerful in optical and secure satellite communications, resilient navigation and timing systems, and advanced manufacturing. “Its real strength is the integration of proven German engineering quality with the agility demanded by the New Space economy,” he stresses.
Germany’s other hubs, such as Bremen and Baden-Württemberg, play equally vital roles in creating Europe’s competitive edge. Together, these regions shorten the path from research to market and reduce fragmentation by fostering collaboration between academia, research organisations, and industry. They act not only as national but European engines of innovation.
An Ecosystem of Giants, Startups, and Investors
Germany’s space sector demonstrates how established aerospace giants and startups complement one another rather than compete. Large companies provide expertise, capacity, and global reach, while startups inject creativity, speed, and disruptive solutions.
“The German space sector shows that established giants and startups are not competitors in a zero-sum game but rather complementary forces in one ecosystem. Large companies bring long-standing expertise and global networks. Startups bring speed, creativity, and disruptive ideas. When these elements are combined, Europe gains both credibility and dynamism,” Lermann explains.
This complementarity also makes Germany highly attractive to investors. The country’s reputation for engineering excellence, combined with strong research institutions and a well-educated workforce, gives startups both credibility and the ability to scale. Integration into European programmes further increases the appeal, allowing young companies to expand beyond national borders from the very beginning.
Cross-Border Partnerships: Denmark and Germany
Beyond national strengths, Lermann sees strong potential in German-Danish collaboration. “Denmark’s agile smallsat platforms and advanced electronics can integrate with Germany’s industrial base and access to large-scale production. Together, we can ensure Europe remains competitive against global players,” he says.
The partnership is just as much about culture as it is about technology. Denmark’s speed, flat hierarchies, and openness to experimentation can inspire Germany to move faster, while Germany’s scale, industrial reliability, and regulatory expertise can give Danish innovation a path to larger markets.
“Denmark’s speed with Germany’s scale, agility with reliability, that is a model of European collaboration that is greater than the sum of its parts,” Lermann remarks.
By 2030, Lermann envisions Germany not just as a financial contributor but as a recognised leader in shaping Europe’s space strategy. Success will be defined by a thriving ecosystem where startups, research institutions, and industry work seamlessly together, by resilience in critical areas such as navigation and communications, and by true European strategic autonomy.
“Ultimately, success will be measured not only by technical achievements but by Europe’s ability to collaborate across nations, sectors, and disciplines,” Lermann concludes.
Das Innovation Centre Denmark ist eine Kooperation zwischen dem dänischen Außenministerium und dem Ministerium für Hochschulbildung und Wissenschaft. Das ICDK ist in sieben Innovationsregionen vertreten, die aufgrund ihrer Relevanz für dänische Unternehmen, Forschende und Hochschulen ausgewählt wurden.
