Urbanization

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Urbanization

The City of the Future

The majority of people now live in cities. Growing and denser urban populations create challenges for accommodation, transportation, and energy infrastructure. Climate change has created an urgent need for resilient infrastructure. Urbanization is a worldwide phenomenon and its effects are also being felt in Germany. From vehicle charging networks and smart district heating to climate-neutral buildings – Germany is a leading business location and market for international companies with innovative urban products and services.

Germany Trade & Invest can support your expansion to Germany with a wide range of investor support services.

Sustainable Buildings

There is high demand for residential property in Germany’s largest cities. Investment in construction continues to grow and building companies’ order books are full. Energy efficient renovation is expected to become the focus of new investment. With generous government funding available for energy efficient construction and renovation, Europe’s largest construction market presents huge potential for international companies offering innovative building products and services. Digitalisation and the circular economy are also creating new opportunities.

Germany aims to have a nearly climate-neutral building stock by 2050. Measures to reduce energy demand in both new buildings and existing stock include measures such as insulation, new windows, ventilation systems with heat recovery, energy management systems, and much more. Any remaining energy requirements are being met increasingly with renewable energy; be it with heat pumps, solar-thermal systems, smart district heating, or even fuel cells. While new buildings have efficient HVAC systems, there are an estimated 13 million inefficient heating systems in need of replacement. Homeowners and building operators can take advantage of a wide range of government incentives to build energy efficient buildings, carry out retrofits, or install efficient HVAC systems. Meeting the 2050 target will be a huge challenge and presents innovative green building and HVAC companies with significant opportunities.

Future Mobility

Germany has set itself the target of becoming the leading market and supplier for electric vehicles by 2020. Autonomous driving is closely linked to this. Digitization has arrived in the German automobile industry and is creating opportunities for manufacturers, suppliers, and service providers.

Electric mobility will play an increasingly important role in Germany’s energy system. The transport sector of the future is electrified and powered by renewables, which has implications for the grid. The demand for charging infrastructure and innovation is growing. The number of charging stations in Germany grew 200 percent in 2016 – the strongest growth rate worldwide.

Resilient Cities

According to the United Nations, the world’s population will have grown by up to 70% until 2050. Most people will live in cities, and the need for water will increase enormously. Nowadays more than half of the global population – in Germany three out of four people – are living in cities (BMUB 2017). Climate change and local environmental impacts as well as demographic changes are creating pressure to act. Smart City – Solutions, such as the provision of decentralized municipal wastewater or rainwater, are required.

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