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; ranging 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 is recognized the world over as an innovative microelectronics production and research location. The country is by some distance Europe’s leading production and sales market. One in three chips produced in Europe today is made in Germany.
The German Education and Research Ministry’s brochure "Photonics in Germany 2019" provides information about the latest innovations in research and industry, long-term trends and hot international topics in optical technologies. On pages 12-13, Germany Trade & Invest discusses the importance of the photonics industry for a variety of German economic sectors and opportunities for foreign investors in the country.
The publication outlines the current long-term trends in the area of microsystems technology. It informs about current developments and results from German science and industry.
Germany is a major microelectronics force, securing its place at the top of the international table as Europe’s leading semiconductor production location.
Roberto Multineddu, Managing Director - DAIKIN Applied Germany GmbH
„We are an applied dedicated company, sales and service for large scale air-conditioning for commercial and industrial applications. In 2016, we decided to expand our business especially in Germany, because there is a big market for us. The reason why we chose Frankfurt is that it is a central location within Europe, an international environment, and a vibrant start-up scence. To reach this conclusion, we had big support from the GTAI team to study the market and German culture in a very short term, which we appreciate very, very much!“ (2018)
"Formlabs, the leading manufacturer of accessible 3D printing solutions, chose Germany to establish its European operations. From our EU headquarter in Berlin we are able to work with leading engineering companies to implement 3D printing into their prototyping and digital manufacturing needs. Germany is the land of engineering and the perfect place to develop Formlabs' innovative 3D printing solutions." (2016)
Ed Nabrotzky, Chief Solutions Officer - Omni-ID Inc.
“Germany has long been a thought leader in manufacturing and automation. Most recently, the vision and investment in Industrie 4.0 has started bringing together some very interesting vendors and concepts that we are convinced will play a big part of the future of the plant floor. Being an engaged part of this ecosystem was a major factor in founding our new German subsidiary last year.“ (2016) .
"Germany is a high-tech country, one in which we treasure the professionalism, knowledge and high level of education among the workers. Talented workers are the most important conditions for the development of a company and the key element of Germany’s global competitiveness. That is a reason for us to select Germany as an investment location." (2013)
Our Industry in Numbers
EUR 191.5 billion turnover
872,000 employees in Germany (+ 706,000 abroad)
29% of all R&D employees in Germany
EUR 17.2 billion R&D expenses
EUR 26.5 billion innovation expenditures
24% of total R&D expenditures of German industry
26% of total patent applications in Germany (12,000 per year)
"Leadership in materials, equipment, and device manufacturing makes Germany an ideal place to bring next-generation electronics to market."
Oliver Seiler, Director Mechanical & Electronic Technologies, Germany Trade & Invest
Market Opportunities: Internet of Things
Internet of Things applications are of significant strategic importance for microelectronic manufacturers. According to McKinsey, IoT will create up to USD 11 billion in value added in 2025. This is equivalent to around 11 percent of global economic output; with the most lucrative application markets being the production (up to USD 3.7 billion), cities (USD 1.7 billion) and health economy sectors (USD 1.6 billion). Within Germany, IoT-generated turnover is expected to double in just two years from a forecast level of EUR 24.5 billion in 2018 to more than EUR 50 billion in 2020 according to Deloitte.
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 semiconductor growth of more than 100 percent over the last 18 years. Automotive electronics account for around 80 to 90 percent of innovations in modern vehicles and is the semiconductor sector’s main industry sector client, accounting for around 45 percent of domestic industry demand. Germany shows the highest growth rate forecasts in the usage of microelectronic for vehicles in Europe.
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