Cologne-based engine manufacturer Deutz plans to further expand its business in the security and defense industry in a targeted manner. The company currently projects revenue of around €300 million in this sector by 2030. “We see significant growth potential here,” Marco Herre, CEO of Deutz’s Defense division, told Table.Briefings. Revenue in the defense sector most recently stood in the mid-double-digit millions. Overall, Deutz is aiming for consolidated revenue of around €4 billion by 2030.
For a long time, the defense business was a side issue for Deutz. The company is known for engines installed in vehicles for the agricultural and construction industries. The defense business was “pursued very opportunistically before the turning point in 2022,” said Herre. In 2025, the company’s management then decided to establish the defense business as an independent go-to-market division. It is intended to bring the group’s entire product portfolio – from internal combustion engines to battery-electric powertrains – to the defense market.
Deutz aims to collaborate with traditional defense contractors and young defense startups. The defense strategy thus rests on two pillars. On the one hand, the company is positioning itself as a supplier to the traditional defense industry. On the other hand, Deutz has its sights set on the growing market of defense startups.
Last year, the Cologne-based engine manufacturer acquired stakes in Tytan Technologies and Arx Robotics. Prior to that, it acquired the Sobek Group, a manufacturer of drone propulsion systems. Deutz supports Arx and Tytan as a strategic partner:
Deutz is providing production capacity for Arx Robotics – and aims to support upscaling. The Munich-based company’s ground drone, Gereon, will be assembled by Deutz employees at the Ulm plant in the future.
Tytan, on the other hand, sources the propulsion system for its specially developed interceptor drones from the Cologne-based company. The two companies are also collaborating on energy systems for launcher applications.
The startups also benefit from the cooperation, says the Deutz manager. “For the startups, it’s also an important signal to the outside world: I have a strong partner behind me. When I receive an order, I can deliver,” says Herre. In his view, it is precisely this credibility that many young defense tech companies still lack.
To achieve its revenue targets in the defense sector, Deutz is focusing on organic and inorganic growth. The goal is to bring existing powertrains to the defense market and make further acquisitions or investments, according to Herre. Deutz explicitly does not see itself as a traditional venture-capital investor: “We won’t simply invest capital in the hope of a high return.” The company aims to combine investments with “collaboration on the product side or an industrialization partnership.”
Deutz holds a minority stake in each of the two startups. According to the commercial register, Deutz holds approximately 4% of the shares in Arx Robotics. On inquiry, the long-established Cologne-based company describes its stake in Tytan as a “strategic minority stake.”
You can also hear more of the conversation with Deutz Defense CEO Marco Herre in the latest episode of the Table.Today podcast.