Germany - Manufacturing and ICT Nation

Germany - Manufacturing and ICT Nation

Germany enjoys an enviable position as it seeks to establish its role as lead market and provider of INDUSTRIE 4.0 and SMART SERVICE WORLD solutions.

Technological leadership and vision in the fields of manufacturing, automation and software-based embedded systems, as well as historically strong industrial networks, lay the cornerstone for the long-term success of the INDUSTRIE 4.0 and SMART SERVICE WORLD projects.

Seventy percent of GDP in Germany is generated by services. In marked comparison to many other industry nations, Germany has managed to remain a major production location in an age of global change - with production accounting for one quarter of GDP and a seven million plus strong industry workforce.

As a manufacturing and industry heavyweight, Germany accounts for around one third of European value added. But INDUSTRIE 4.0 can only succeed where there is close dialogue between the electrical engineering, machinery and equipment, and IT sectors. With a reputation as the world’s “factory supplier” and Europe’s leading ICT force, Germany is ideally situated to master the interdisciplinary challenges of integrated industry.

Supporting Industrie 4.0 and the Smart Service World

Germany is committed to supporting the INDUSTRIE 4.0 and SMART SERVICE WORLD forward-looking projects outlined in the High-Tech Strategy.

The country boasts a number of compelling arguments in its favor as it stakes a claim to establish itself as an integrated industry lead market and provider and the digital lead provider of smart services and their underlying platforms.

Industry Digitization Measures

Germany has set out a comprehensive raft of measures supporting and promoting the digitization of industry. These include:

  • Establishment and expansion of research and technology programs with high level of transferability for industry application (e.g. autonomic technology, 3D, big data, cloud computing, and microelectronics).
  • Creation of new business models and innovative services through the promotion and development of big data and cloud application providing increased security and data privacy
  • Reinforcing security and confidence in the use of digital services and measures to strengthen digital security sector.
  • Assistance for small and medium-sized IT enterprises in their internationalization efforts and increased access to growth capital.
  • Promotion of norms and standards to ensure seamless integration between traditional industry and ICT.

Creating Future Markets

Digitization in important future markets is likewise being supported by a far-reaching series of government measures.

  • Creation of INDUSTRIE 4.0 and SMART SERVICE WORLD centers of excellence and best practice in the SME and skilled-craft sectors and promotion of user-friendly applications and services.
  • Support for smart home applications.
  • Facilitation of ICT support for (electro-) mobility.
  • Support for digital transformation in media and creative industries to create new customer group opportunities.
  • Promotion of sustainability and climate protection (i.e. IT environmental awareness and use).
  • Support for digitization of construction.
  • Development of legal specifications for the integration of telemedicine.
  • Expansion of the eHealth initiative to enhance links with innovations delivered by health care businesses and safeguarding of IT system interoperability and security.

“Intelligent Connections" Strategy

An “Intelligent Connections” strategy to create addition growth and efficiency opportunities through ICT in the education, energy, health, transport, and administration sectors is currently at the draft proposal stage. The potential benefit of ICT solutions in these application sectors has not yet been fully leveraged. The creation of a cross-sectoral strategic approach promises to harness growth potential for the whole economy.

Germany’s ICT sector currently generates in the region of EUR 85 billion in value added, making it a larger contributor to the domestic economy than traditional lead industries including the automotive and mechanical engineering sectors.

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Asha-Maria Sharma Asha-Maria Sharma | © GTAI

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