Germany’s healthcare market is No. 1 in Europe by market volume, number of patients, medical technology manufacturers, and healthcare providers.
Healthcare spending in Germany exceeds €400 Billion (2019), not including expenditure for wellness and fitness. The market has grown at a rate of 4.1% over the past 10 years. With more than 7.5 million employees and exports in excess of €126 billion, healthcare is one of the largest economic sectors in Germany.
With aging populations and increasing demand for medical services, AI and other digital innovations are going to become a crucial part of the healthcare of the future.
Germany achieves almost universal health insurance coverage
Health insurance coverage is mandatory in Germany. Insurance premiums are shared by employers and employees. The vast majority of the population is enrolled in public health insurance plans. About 10% choose private providers. Both publicly and privately insured can choose their provider. Currently, there are 105 public and 42 private health insurance companies operating in Germany (2020).
More than 1,900 hospitals with nearly 500,000 beds operate in Germany – not including rehabilitation or elderly care facilities. The overall number of medical hospitals is declining as smaller general hospitals close or merge with other hospitals to increase efficiency.
Key Data about German Hospitals
Hospitals
Beds
Cases
Medical staff (full time)
Average length of stay
Capacity utilization
2009
2,084
503,341
17,817,180
131,227
8.0
77.5%
2010
2,064
502,749
18,032,903
134,847
7.9
77.4%
2011
2,045
502,029
18,344,156
139,068
7.7
77.3%
2012
2,017
501,475
18,620,442
142,874
7.6
77.4%
2013
1,996
500,671
18,787,168
146,988
7.5
77.3%
2014
1,980
500,680
19,148,626
150,757
7.4
77.4%
2015
1,956
499,351
19,239,574
154,364
7.3
77.5%
2016
1,951
498,718
19,532,779
158,148
7.3
77.9%
2017
1,943
497,205
19,455,301
161,151
7.3
77.8%
2018
1,925
498,192
19,392,466
164,646
7.2
77.1%
Source: Destatis 2020
The share of privately operated hospitals continues to rise
Every year companies participate in thousands of research projects with other partners from industry and scientific institutions, emphasizing Germany’s reputation as a leading environment for healthcare and life sciences. Along the entire value chain – from R&D through scale-up and production to sales and marketing – Germany is known for its outstanding capabilities, resources, and infrastructure.
Germany is home to more than 30 specialized cluster networks focusing on medical technology. Dedicated cluster management teams help obtain funding for joint R&D projects, provide shared facilities, and organize educational training programs for their members.
Germany’s “BioRegions” are regional initiatives for the advancement of modern biotechnology. Over the past three decades, these biotechnology clusters have developed to become Europe’s leading R&D hubs. Each region specializes in particular areas and facilitates collaboration between universities, R&D institutes, and private sector companies.
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Markets Germany Gradian Diagnostics’ recent acquisition of Molzym is a fine example of international matchmaking, facilitated by Germany Trade & Invest.
Markets Germany Telemedicine in Germany has made the leap from maybe-someday to must-have, and the sector continues to evolve at “corona crisis speed.”
Markets Germany In the global race to deal with Covid-19, Germany’s extensive network of pharmaceutical companies are involved in major international collaborations and are benefiting from generous government support. German pharma is driving digitalization forward.
Markets Germany Germany’s market for medical technology – worth EUR 38 billion in 2019 – was already one of the largest in the world before the coronavirus. But the arrival of Covid-19 brought exponential growth in demand for German medical solutions.
One to Watch: Lidia Nachbaur, managing director of Qventis
Markets Germany An office, a lab and EUR 50,000 – that’s all Lidia Nachbaur needed to start Qventis, a medical devices firm in Hennigsdorf, a small town in the state of Brandenburg, outside Berlin.
Markets Germany More than 600 million people around the world suffer from chronic respiratory ailments, with over 3.5 million of them dying every year. Inhalation treatments are one effective response, but only if they’re used properly.
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