Munich is booming as a hub for young defence tech firms making everything from AI-powered drones to cutting-edge military software as Europe rearms to face an increasingly dangerous world.

UAV makers Quantum Systems, Helsing and Tytan Technologies are among dozens of mil-tech players around the German city best known for beer extravaganza the Oktoberfest, football team Bayern Munich, and as a gateway to the Alps.

As Europe overhauls its defences against a hostile Russia at a time of wavering US security commitments, a new generation of innovative defence firms have joined the region's traditional industrial heavyweights.

They have benefited from long defence and aerospace legacies, top-flight technical universities, a ready pool of talent and a supportive political climate, industry insiders say.

"Munich and the greater Munich area offer a great combination of skills, talent and history," Martin Karkour, chief revenue officer of spy drone maker Quantum Systems, told AFP at the firm's headquarters on the outskirts of the city.