German Army's Puma infantry fighting vehicles will be modernized in two steps. Projekt System & Management GmbH (PSM) is the the contractor of upgrade programme. PSM calls the modernization program Puma S1 and Puma S2. The joint venture of Rheinmetall and Krauss-Maffei Wegmann (KMW), with S1, command control, situational awareness and increased anti-tank capability; S2 will also make improvements in killer-killer capability.

In S1 phase, PRC117 embedded satellite radio system will be integrated into Puma's open architecture electronic system. However, thermal colored cameras and a 360 degree situational awareness system will be integrated. At this point, the commander, the driver and the gunner screen will be able to monitor the outside environment in all weather conditions day or night. In addition, these attachments will provide the crew with the ability to perform reconnaissance and observation tasks without leaving the vehicle. Another system to be added in the S1 phase will be two EuroSpike LR missiles. The launchers will be located on the left side of the turret. In a two-year period, weapons will be certificated on the vehicle. The missile will be able to be controlled through the monitors in front of the commander or gunner. Missile's integration program will cost US $ 79.4 million.