The world champions slumped to a shock 2-0 defeat to Poland in Warsaw on Saturday as the Group D favourites suffered a slight set-back in their automatic qualification bid.
"Obviously, we know the challenge in front of the players," the Republic of Ireland and Manchester United legend told Sky Sports News.
"But we have got a lot of experience and they have played in big games before. Yes, they should look forward to it and hopefully they will.
"Like any good team, they'll respond to a setback, so we will expect Germany to come out firing on all cylinders and we have to be ready for that."
O'Neill's side come into the clash on the back of a 7-0 thrashing of minnows Gibraltar.
Tuesday's encounter is scheduled to get underway at 7.45pm.