Industry

German Economy Back on Track with Digital and Electronics Sectors Set to Boom

Germany’s economy is set to return to pre-pandemic levels this year, with the electronics and ICT industries forecasting above average growth in 2022.

Digital and electronics sectors forecast above average growth for year

Germany’s digital and electronics industries are set to enjoy continued growth in 2022 according to forecasts issued by the digital association Bitkom and the German Digital and Electro Industry Association (ZVEI). Exports grew by ten percent in 2021. IT spending is forecast by Bitkom to rise by almost six percent in the year ahead, with ZVEI assuming a production increase of four percent in 2022. This represents growth above the 3.6 percent forecast by the Federal Ministry for Economic Affairs and Climate Action (BMWK) in its recently published Annual Economic Report 2022. The government expects price-adjusted GDP to enjoy an annual year-on-year increase of 3.6 percent.

Economic output is back to pre-crisis levels for the first time since the coronavirus pandemic begun.

IT spending to grow by almost six percent

Information technology spending is forecast to grow by 5.9 percent in the year ahead according to digital association Bitkom, taking revenue to EUR 184.9 billion in 2022. Software spending is expected to record the greatest growth in the segment, climbing nine percent to EUR 32.4 billion. IT services will account for the largest share of the IT market in the year ahead, with turnover of EUR 43 billion (+3.9 percent) forecast. Spending on IT hardware is forecast to grow by 5.7 percent to EUR 33.2 billion in the current year.

Electronics sector to continue growth path of 2021

Turnover in Germany’s electronics sector almost reached the EUR 200 billion mark in 2021 according to ZVEI. Supply bottlenecks caused by the global Covid-19 pandemic failed to halt growth in the sector, with production up by nine percent for the period January to November 2021. Nominal revenues also increased by almost 10 percent during the same period. The industry association is now forecasting a production increase of four percent in 2022.

Coalition government manifesto strengthening digital and electronics growth

German Digital and Electro Industry Association Chairman of the Executive Board, Wolfgang Weber, believes that the new German coalition government agreement to promote digitalization is helping strengthen the sector’s position. Digitalization plays an important part of the new government’s climate targets, with Weber urging for an upgrading and expansion of the power grid synchronized with renewable energy expansion.

German Pharma Industry Benefits from Corona Vaccine Demand

Strong demand for coronavirus vaccines is driving sales and production growth in Germany’s pharmaceutical industry.

Pharma market turnover to grow by eight percent

Germany’s pharmaceutical industry is expected to enjoy sales growth of eight percent in the coming year according to vfa, the German Association of Research-based Pharmaceutical Companies. Production is forecast to grow by three percent during the same period, with the workforce set to grow by three percent to more than 122,000 by the end of 2022.

Biontech success sets the scene for domestic growth

According to vfa president Han Steutel, Biontech’s success in bringing the world’s first approved coronavirus vaccine to market has had direct and indirect positive effects for the domestic pharmaceutical industry.  “Not only has production by German companies increased, but foreign companies such as AstraZeneca and Johnson & Johnson are increasingly having production here” – he said.

The success of the Biontech vaccine has created a huge opportunity, with the domestic pharmaceutical industry recording a rapid upswing in sales and production according to the vfa.

Pharma Germany’s strongest R&D sector

Research and development spending of EUR 7.8 billion in 2020 makes the pharma industry the strongest R&D sector in the country according to the industry association. The German Chemical Industry Association (VCI) concurs that the coronavirus pandemic provides the country with an opportunity to consolidate its position as the world’s pharmacy. In 2020, the pharmaceutical industry generated turnover of EUR 47.2 billion, with most medicines created for export.

Electrical Flying Takes Off in Germany’s East

The eastern German regional state of Brandenburg has invested more than EUR 38.5 million in the Center for Hybrid Electric Systems in Cottbus (CHESCO), a new research institution focusing on environmentally friendly short- to medium-haul flight (up to 3,500 km).

The center is located at the Brandenburg Technical University (BTU) Cottbus-Senftenberg in the coal-producing Lusatia area. With coal power being phased out in Germany, efforts are underway to transform the regions affected into clean energy hubs for the future.

“CHESCO is a mega-project for Lusatia,” said Brandenburg Minister of Science and Research Manja Schüle at the launch ceremony. “It will be a site for top research on one of the biggest challenges of our times: developing climate friendly aviation propulsion. And CHESCO can be a pull factor for the entire region.”

Airplane engine manufacturer Rolls Royce is part of the project.

“We’re happy to be here in Brandenburg together with the other partners creating a one-of-a-kind industrial ecosystem for low-emissions, hybrid-electric aviation propulsion,” said Rolls-Royce Germany Head of Engineering Jörg Au. “Building upon the excellent skills of our electrical teams in Bavaria and Brandenburg, setting up development, test and production facilities in Dahlewitz and Lusatia will allow us to supply hybrid-electric propulsion systems for the next era of aviation.”

“The German aviation ecosystem has traditionally been geared towards pushing the boundaries of traditional mobility.  To name just one prominent example, it is the German thirst for novel technologies that propels the design of drones and air taxis so that urban air mobility could become a reality in the not-so-distant future” – added Dr. Rainer Müller, GTAI industry expert for aerospace.

Machinery & Equipment News

Innovative digital software and robotics solutions developed in Germany are being deployed on land, sea and beyond.

Berlin firm contracted to equip lunar space station

A Berlin company has been contracted to work on the “Lunar Gateway” joint project of the space agencies of the USA, Europe, Japan, and Canada. According to Wirtschaftswoche, Berlin firm Space Structures has been commissioned to work on the living module of the planned space station that is set to orbit the moon from 2024. The Lunar Gateway project is a central component of the Artemis program to explore moon colonization conducted by US space agency NASA. Space Structures specializes in developing the lightest and most compact parts possible for space travel. According to Wirtschaftswoche, this technology will now be used to develop and manufacture the inner structure of the space module.

Cargo drone world premiere in Hamburg

Air cab pioneer Volocopter demonstrated its “Volodrone” or cargo unmanned aerial vehicle (UAV) at the ITS World Congress in late 2021. The 10 meter-wide, two-meter high UAV reached a height of 22 meters carrying a loading box with a pallet-sized cargo. According to Volocopter and logistics partner DB Schenker, the cargo drone will be capable of transporting loads of up to 200 kg up to distances of 40 km per hour. The end-to-end freight demonstration is proof of how cargo drones can be integrated into existing logistics supply chains according to the two companies.

Delivery robots take the bus in university anchor project

The Institute of Technical Logistics at the Technical University of Hamburg has developed a driverless delivery shuttle and robot that takes the bus before completing the last mile of its journey on its own. Part of the ITS “TaBuLa-LOG” anchor project, the robot – dubbed “Laura” – transports internal post for various local authorities as part of the research initiative to determine the technical feasibility and public acceptance of robots in the public space. According to the ITS, the TaBuLa shuttle acts as a mother ship, driving the delivery robots close to their  end destination, letting them off at bus stops to complete their journey. The project is one of several research projects currently underway in the Hamburg Metropolitan Region in receipt of more than EUR 3 million in funding as part of the Federal Ministry of Transport and Digital Infrastructure’s “Automated and Connected Driving” and “Sustainable Mobility System for the Future through Automated Driving and Networking” programs.

Start-up develops smart harvesting robot

A start-up in the university city of Constance has developed a smart harvesting robot capable of scanning, recognizing, sorting, placing and packing fruit in just eight seconds. The six-axis robot, developed by Organifarms, makes use of a 360 degree camera to identify the fruit and determine its level of ripeness and harvest class. The company has ambitious plans to develop a range of robots for pollination, plant care and fruit monitoring in order to make indoor vertical farming more efficient and sustainable.

Modular diving robots for every application

A start-up in Rostock is building modular diving robots that can be individually adapted to a wide variety of application scenarios. Operating out of the Ocean Technology Campus in the coastal city, Framework Robotics claims that its modular surface and underwater sensor platforms have created a new benchmark and standard that help reduce costs compared to established systems on the market. Typical application environments include offshore wind farming, deep sea wells, fish farming, and environmental data collection.

Bremen start-up develops "celluveyor“ assembly line solution

Researchers at the Bremen Institute for Production and Logistics (BIBA) have designed an intelligent conveyor technology for production and logistics. Spin-off company Cellumation’s “celluveyor” assembly line solution makes use of a cellular solution to accelerate and digitalize the conveying process. According to the company, the development is equivalent to the creation of the Lego bricks of conveyor technology, with revolutionary potential for the market. The company has grown quickly, with a workforce of 65 employees supporting customers from across Europe.

Digital platform takes metal purchasing online

A Stuttgart-based start-up has developed a digital procurement platform for industrial SMEs and metal construction companies that provides a unified purchasing and sales solution. Clients configure and calculate their order requirements using the Laserhub platform that provides access to more than 80 producers in the company’s manufacturing network. Laserhub provides production quotes in real time on a commission basis, allowing purchasing and delivery times to be made more efficient.

Bochum start-up creating smart materials for manufacturing industry

Established in 2009 as s spin-off from the Institute for Materials at the Ruhr-Universität Bochum, smart materials producer Ingpuls has announced a series of double-digit million euro joint ventures with industries in individual sectors. Initially active in the automotive sector, the Bochum venture has crossed over into household appliances, space technology and building services engineering. The company enjoys a special place in production as the only shape memory alloy manufacturer in Germany capable of spanning the whole vertical manufacturing range from raw materials to finished components.