This year's ILA Berlin Air Show is setting new records, mainly driven by the booming defense sector, which is securing billions in contracts amid ongoing wars and crises.
Will it someday be feasible for climate-neutral aircraft to fly without leaving contrails? What does the rover designed to drill a two-meter-deep hole on Phobos, one of Mars' moons, look like? These are just two of the topics being investigated at the ILA in the German capital, one of Europe's largest air shows.
There is little sign of the current crisis affecting civil aviation due to the Iran war, and scant discussion about global complaints over high oil prices and fuel shortages, rising ticket costs, and canceled flights. At the opening, Michael Schöllhorn, CEO of Airbus Defense and Space and president of the German aerospace industry association (BDLI), referred to "a record-breaking ILA."
In 2024, 600 exhibitors from 31 countries participated in the trade show, while this year, over 750 exhibitors from 37 countries are present. "All the halls have been fully booked since November, and 300 political delegations from around the world are in Berlin," Schöllhorn stated.
Defense industry takes center stage
The primary emphasis is on the defense industry, which is thriving as conflicts continue to increase worldwide. Alongside the German military, the Bundeswehr, which is the biggest exhibitor, major players are also in attendance.
These include aircraft manufacturer Airbus, German defense giant Rheinmetall, Hensoldt—which specializes in advanced sensor systems and radar technology—and the European defense conglomerate MBDA, whose most in-demand products include sophisticated guided missile systems.
Unmanned systems in the spotlight
Unmanned systems, especially unmanned aerial vehicles (UAVs) or drones, are a key focus at this year's ILA. What started as a hobby for tech enthusiasts has evolved into a multi-billion-dollar industry.
A Bundeswehr soldier demonstrates the Black Hornet 4 in a "drone cage," a net-like structure stretched across several beams. This nano-UAV is used for military reconnaissance, capable of detecting heat sources and providing the operator with sharp images. The drone is so tiny it is nearly invisible, and after the demonstration, it is stored in a box that a drone pilot can carry on a strap around their neck.
A larger drone presented by the German-Ukrainian joint venture Quantum Frontline Industries (QFI) is already ready for use on the front line. It can fly up to 20 kilometers (12.5 miles) and carry up to four kilograms (8.8 pounds). Operators demonstrate how it can drop explosives. Munich-based Quantum Systems, founded in 2015, has played a key role in supporting the Ukrainian army.
Most companies showcasing drone technology and AI applications at the trade show are relatively new but already successful. For instance, Helsing and Stark Defense are two start-ups that have secured major contracts with the Bundeswehr. Both produce disposable combat drones, also known as loitering munitions. In Berlin, they are also presenting other autonomous unmanned systems expected to play an increasing role in future conflicts and wars.
Germany's defense budget to hit €108 billion in 2026
There is a gold rush atmosphere in Berlin, not least because Germany's defense budget has been increased to €108 billion ($125 billion) this year. Even companies from other sectors are trying to get a piece of the action.
For example, Heidelberger Druck, a precision mechanical engineering company that manufactures printing presses, has now entered the drone defense system market through a joint venture. "We're looking for a second source of revenue because the traditional printing press business is subject to economic fluctuations," one of the company's managers, Matthias Rössling, told DW. "We need something to keep growing. And that's where the defense market comes in, which in many cases is still untapped."
There is also a crowd at the Diehl Defense display, which is showcasing a new version of its Iris T, a short-range infrared homing air-to-air missile used by the Bundeswehr and other militaries. "We've got plenty of orders for the next few years," said chief program officer Harald Buscheck, adding that the company planned to invest about €1.5 billion in new facilities, buildings, and equipment.
He noted that there had been significant interest from potential new clients beyond the 10 countries the company already works with. "Of course, the Iran war is having an impact. We've already received calls to begin talks."
Given the current global situation, military air defense to protect territory, civilians, and critical infrastructure has once again become important.
Chancellor Merz says aerospace industry is a 'key strategic sector'
German Chancellor Friedrich Merz (CDU) also appeared impressed at the opening by the strong performance of German companies in the aviation industry, an exception amid an economic crisis. According to the German Economy Ministry, there was 19% growth in 2025, and employment in the sector rose to 130,000 workers.
"The aerospace industry is a key strategic sector," Merz said as he presented the government's new aviation strategy, which includes the military aviation sector for the first time. "Competitiveness and innovation in one of our country's key growth sectors are at the heart of our strategy," he stated, adding that civil aviation, the aviation industry, and military aviation belonged together.
Over the next few years, €35 billion has been allocated for defense purposes, and Merz said he hoped that the start-up ISAR Aerospace would successfully launch a rocket before the end of the month.
The government's new strategy is also explicitly designed to boost civil aviation, as air traffic is expected to double by 2050. "Over the next 20 years, more than 40,000 new aircraft will be needed worldwide," the chancellor explained.
The European aircraft manufacturer Airbus, headquartered in France, is expected to benefit, but Merz said that German investment should be reflected in production sites. "The next-generation short- and medium-range aircraft should be built in Germany again, with program management based in Hamburg," he insisted.
German engine maker Deutz pivots towards defense
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Environmental groups criticize aviation strategy
Environmental groups have criticized the German government's new aviation strategy for being too focused on economic development and not enough on the environment. In theory, Airbus could build climate-neutral aircraft that do not leave contrails, but in practice, key prerequisites still need to be met.
"The infrastructure for hydrogen-powered aircraft isn't in place yet," said Airbus CFO Thomas Toepfer at the ILA, adding that the necessary quantities of green hydrogen were not yet available and that planes could not yet refuel at airports. He said that such aircraft would become a reality in the early to mid-2030s at the earliest.
This article was originally published in German.