The German Armed Forces plan to have their own satellite system by 2029: opportunities for the German space industry

The German Armed Forces (“Bundeswehr”) have ambitious plans to establish its own satellite constellation by 2029.  This initiative aims to enhance national security and improve communication and reconnaissance capabilities.  It marks a significant shift from the current reliance on European projects and US systems.  The project could cost up to ten billion euros and is expected to significantly benefit the German and European space industry.

Current Situation

Currently, the German Armed Forces operate only eight to ten satellites, which is insufficient for the planned tasks. The new constellation will consist of several hundred satellites, providing a substantial boost to the German and European space industry.  Domestic companies are expected to benefit greatly from this initiative, presenting a significant opportunity for the sector.

Government Involvement

Discussions about the project are taking place at the highest levels of the German Armed Forces and are expected to be included in the new federal budget after the formation of the government.  The Union and SPD, likely to form the next government, recognize the importance of this project and are focusing on regional providers.  This comes at a crucial time, as forecasts for the commercial satellite business of German and European providers were partially revised downwards at the end of last year.

Future Prospects

The growing awareness of the importance of space is also reflected in the structure of the ministries of the future federal government.  Initial reports suggest there will be a separate ministry for research, development, and space.

How HEUKING Can Support

We offer comprehensive support to companies looking to participate in this forward-looking project in various areas:

Contract Design and Negotiations

• Assistance in drafting and negotiating contracts between German space companies and the Bundeswehr.
• Support and advice during negotiations with the Bundeswehr and other government agencies.

Compliance and Regulatory Requirements

• Advice on specific compliance requirements in the defense and space sectors.
• Assistance in complying with national and European regulations.

Technology Transfer and Intellectual Property Protection

• Guidance on technology transfer issues and ensuring the protection of sensitive technologies.
• Support in securing and enforcing intellectual property rights.

Financing and Funding

• Advice on structuring financing models and utilizing government funding.
• Assistance in applying for and managing funding.

Venture Capital and Private Equity

• Structuring and negotiating financing rounds (Seed, Series A–E).
• Advising VC and PE funds on direct investments, co-investments, and secondary transactions.
• Legal due diligence, especially on technology-related IP, IT, and data protection issues.
• Support for management participation, exit strategies, and M&A transactions.
• Assistance with regulatory issues (e. g., BaFin, FDI, AI regulation).
• Design of convertible loans, SAFE agreements, and ESOP models.

Through this comprehensive service offering, we can help our clients navigate and capitalize on the opportunities presented by the planned Bundeswehr satellite network.