Global Growth Strategy

How HENSOLDT successfully captures new markets

In 2023, the world watched the major flashpoints in Ukraine and in the Middle East, as well as increasing tensions between China and Taiwan. HENSOLDT looks beyond, using a global strategy for profitable growth to lay the foundation for a successful future, independent of the current crises.

The latest geopolitical conflicts have demonstrated once again that the significance of sensors and electronics has never been greater than at present. This defence industry submarket alone already has a volume of around 25 billion euros and global growth here is forecast to be around 9 percent per year. This is because, similar to many other areas, data and their analysis and use in real time often become critical factors. Or, as HENSOLDT CEO Thomas Müller has put it in a nutshell: “Tomorrow’s armed forces will to a large extent have to rely on networked sensors to give them a superior assessment of the situation.”

Already today, this manifests itself in HENSOLDT’s bulging order books, which provide a solid basis for sustainable and continuous profitable growth. All the while, HENSOLDT is adapting to these trends, continually expanding its international business with a “tailored strategy” (Celia Pelaz, Chief Strategy Officer), including beyond the existing core markets in Europe, and investing in the implementation.

Europe –
Together for Success

Given its already strong industry presence beyond the German home market, with locations in France and the United Kingdom (UK) and the corresponding portfolio, HENSOLDT is in an excellent position. However, partnerships are the key to future success, firstly through alliances with other European original equipment manufacturers (OEMs), and secondly, in HENSOLDT’s role as a German sensor solution champion, acting as a partner in important European cooperation programmes.

Ready for a Mega Market

The US armament market makes up just under half of the global market. In order to take better advantage of this potential, the local HENSOLDT Inc. was changed into HENSOLDT North America (NA) in 2023. This makes it easier for the company to meet local security requirements and to comply with the provisions of the Buy in America Act by entering into selective partnerships.

South America –
Greater Security
for the People

In South America, HENSOLDT takes part in a number of projects of the regional security and defence forces.

Asia –
Customer Proximity as
a Path to Success

With agility and proximity to the different customers in the highly diverse Asia region, HENSOLDT responds locally to the specific requirements and very special needs. Local projects there receive support in the form of targeted solutions supplied from locations in Australia and New Zealand. This approach pays off, both in existing alliances and through new partnerships that provide access to new profitable markets and projects.

(South) Africa –
Regional Market Presence,
Global Success

With sites around Pretoria and Cape Town, South Africa is HENSOLDT’s biggest production location after Germany. Not only does this improve access to African markets, including the MENA region, but HENSOLDT South Africa also plays a key role on the company’s road to becoming the leading platform-independent provider of defence and security sensor solutions with a global reach.

Germany –
from the Home Market
into the World

In its home market, which is as important as ever, key technologies and solutions from HENSOLDT make up the core of German defence electronics. As a leading provider of sensor technology, the company supplies systems for platforms such as the Eurofighter, the Leopard 2, for submarines, frigates, and equipment for soldiers on the ground. By the same token, these German programmes are often considered a ‘launchpad’ for the development of other national and international projects of the next generation. The 100 billion euro special fund, the commitment to NATO targets (2% of GDP to be spent on defence), and the continuing support for Ukraine have added to that momentum. In 2023, this was reflected in four major contracts, among other achievements.

“In a changing defence environment, HENSOLDT is well positioned and ready to deal with the significant expansion ahead”, says CFO Christian Ladurner to summarise the developments of 2023.

To deal with the high order backlog and order intake, appropriate measures have been taken and programmes launched. The growing internationalisation and industrialisation will form the basis for making this expansion sustainable and profitable. With our proven delivery reliability and highly qualified employees. With efficient project implementation and investments in organic and inorganic growth. For appropriate solutions today and to meet the security needs of tomorrow. And ultimately in a company whose decisions are based on data-based real-time control and implementation of all business processes. Find out more in the next sections of this Annual Report.