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Electronic components held in hand in laboratory, close up Electronic components held in hand in laboratory, close up | © Monty Rakusen/Getty Images

Electronics & Microtechnology

Electronics Industry in Germany

Germany is recognized the world over as an innovative microelectronics production and research location. The electronics industry in Germany is also Europe’s leading production and sales market.

Germany boasts an unparalleled density of renowned R&D institutes and world-leading manufacturers and suppliers for electrical and electronic materials, components, and equipment across the value chain. These range from microelectronic components to electrical household appliances, automation systems, electronic medical equipment, and automotive electronics. Investment opportunities are many and varied. Plug in and find out why Germany satisfies the essential conditions for market success in one of the world’s most dynamic industry sectors.

Germany’s Electronics Industry in Numbers

Germany's electronics sector is responsible for ten percent of domestic industrial output, three percent of GDP and 23 percent of total country R&D spending. Take a look at these and other key data from the thriving industry.


  • EUR 182 billion
  • 10% of total German industrial output
  • 3% of gross domestic product (GDP)


  • 867,700 employees in Germany (+ 777,000 abroad)
  • 2nd largest industry branch in Germany
  • 14% of total employees in German industry

R&D Expenditure

  • EUR 19.7 billion
  • 23% of total R&D expenditure of German industry
  • 30% of all R&D employees in German industry (114,000)

Innovation Expenditure

  • EUR 27.5 billion
  • 21% of all innovation expenditures of German industry
  • 24% of total patent applications in Germany (13,500 per year)


  • EUR 203 billion (13% of total German exports)


  • EUR 190 billion

Source: German Electrical and Electronic Manufacturers' Association (ZVEI) 2021

Market Opportunities: The Internet of Things

The Internet of Things (IoT) is one of the most promising innovation accelerators for digital enterprises. Areas of application cover everything from manufacturing and construction to retail as well as transportation – in fact almost all sectors that utilize online devices or sensors. Internet of Things applications are of significant strategic importance for microelectronic manufacturers. Within Germany, IoT spending will exceed EUR 35 billion (making Germany  the biggest spender in Europe) and IoT-generated turnover is expected to double from EUR 22.5 billion in 2018 to a forecast level of EUR 45 billion in 2023.

Market Opportunities: Automotive Electronics

Advances in automotive electronics are creating new market opportunities with the advent of the "connected car" and autonomous vehicles.

The Internet of Things also gives rise to the age of the “connected car” and, ultimately, autonomous vehicles. The automobile sector is driving increased chip demand, with increased digitalization and electrification creating above-average semiconductor growth. Automotive electronics account for around 80 to 90 percent of innovations in modern vehicles and is the semiconductor sector’s main industry sector client.

Germany counts among the highest growth rate forecasts for the use of microelectronics in vehicles in Europe, leading the way out of the coronavirus pandemic and forward to a new mobility era.

Growth forecasts for automotive electronics are significantly higher in Germany and China compared to other traditional automotive locations. It is predicted that the use of automotive electronics for vehicles in Germany will grow by 5.6 percent per year, reaching USD 9.6 billion value in 2021. Automotive electronics accounts for around 80 to 90 percent of innovations in modern vehicles.

Germany Welcomes Tesla Gigafactory to Berlin-Brandenburg Location

Political and business leaders have hailed electric vehicle giant Tesla's plans to build its European plant just outside Berlin.

Our Investor Services Explained... in 100 Seconds

Are you looking to expand your business to Germany? Watch our explainer video to find out how we can support your business plans.

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