Smart Manufacturing in Germany

Opportunities in Germany’s Smart Manufacturing Industry

A number of industries are increasing their digital efforts, with global businesses turning to digital services for the implementation of new business models that support increased productivity and the development of new products and services.

The Internet of Things

The Internet of Things ("IoT") is one of the most promising innovation accelerators for digital enterprises. Use cases span manufacturing, construction, retail, and transportation — almost all areas that utilize online devices or sensors. The short-term focus is on use cases and initiatives that can provide immediate and easy financial benefits with IoT enabling a new level of automation.

Big Data

Germany is the fifth largest digital economy in the world. All major industries – automotive, electrical and chemicals sector – rely on big data. Developments in the IT infrastructure are set to fuel further market growth: 5G networks see strong growth (86.5 percent of Germany covered in 2021; commercial launches of standalone networks). Eighty percent of all companies in the manufacturing sector plan to digitalize their value chain up to 2024. Besides big data, analytics and IT infrastructure, additive manufacturing is another very promising sector in the field of industry digitalization. Around one in three large German industrial companies currently use 3D printing.

Generous R&D Support

Companies can count on generous smart manufacturing research support in Germany. The European Union supports technological innovation through the Horizon Europe program and Germany has established several funding programs in order to consolidate its status as an leader in smart manufacturing.

University and Non-university research institutes

Internationally renowned universities, non-university R&D institutes and associated institutes that focus their research activities on digitalization, production technologies and Industrie 4.0 cooperate closely with industry players.  These include numerous Fraunhofer Institutes, the German Center for Artificial Intelligence (DFKI) and the National Research Center for Applied Cyber Security (ATHENE). As well as conducting research and promoting knowledge transfer with industry, universities also train the engineers of tomorrow.

Clusters and Networks

Investors can find an impressive number of regional and national networks and clusters in Germany. Plattform Industrie 4.0 is the central network to advance digital transformation in production in the country. The initiative seeks to consolidate Germany’s leading Industrie 4.0 role by engaging in ongoing dialogue with partners and developing action recommendations for all stakeholders that serve as the basis for a common framework. Another national network – Plattform Lernende Systeme (“Germany’s Platform for AI”) – focuses on AI in the industry.  

Further important national industry associations working in the field of Industrie 4.0 include acatech (National Academy of Science and Engineering), Bitkom (Germany's digital association), VDMA (Association of German Machinery and Plant Manufacturers), and ZVEI (German Electrical and Electronic Manufacturers Association).  

In numerous regional clusters and networks, companies cooperate closely with R&D institutes and universities with a focus on automation and production technologies and Industrie 4.0.

SME Support Institutions

Small and medium-sized companies in particular can find a lot of support with their digitalization activities. Mittelstand 4.0 Competence Centers raise awareness about digitalization among companies and provide support including information, training and the opportunity to view and test new solutions in practice across the country. In addition, universities and research institutes provide test and demonstration labs for smart manufacturing applications.

The online map shows where universities and research institutes, networks and clusters as well as SME support institutions are located in Germany.