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Shot of an Electronics Factory Workers Assembling Circuit Boards by Hand While it Stands on the Assembly Line. High Tech Factory Facility. Germany’s Industrial Production: Global Leadership, Innovation and Sustainability | © Gorodenkoff Productions OU
Overview: Industrial Production

Industrial Production in Germany

The development and use of new materials plays a central role in Germany’s innovative industry sectors. New materials R&D and the processing of plastic and metal semi-finished products to create finished components contribute significantly to industry value added in Germany. New applications fields including lightweight construction are transforming industrial production and driving industry sector innovation. 

Key Facts

37 %

Industrial production accounts for more than one third of all foreign direct investment (FDI).

21 %

Foreign Direct Investment Projects in manufacturing and R&D

11 %

Foreign Direct Investment Projects in logistics and distribution

6 %

Percentage of FDI projects opened an EU headquarters in Germany

Germany is a European industrial production leader and ranks amongst the world’s best. Industrial production contributes more than 20 percent to domestic GDP – with growth driven by strong R&D, a skilled labor force and robust infrastructure. Digitalization and increased global demand for high-quality machinery are positive trends driving growth, with EU policies also supporting innovation and competitiveness. 

Sustainability is central to Germany’s ambition to achieve climate neutrality by 2045. Green hydrogen, renewable energy and circular economy initiatives boost efficiency and attract global investment. These efforts enhance industry output and position Germany as a hub for sustainable manufacturing solutions.

Industry Sectors

Growing Industrial Production Sectors in Germany

Diversity Startup Business Team, in cooperaton with a three-dimensional printer. Diversity Startup Business Team, in cooperaton with a three-dimensional printer. | © GettyImages/vgajic

3D Printing Industry

Germany is Europe’s number one market for industrial and consumer 3D printing. Find out more about the 3D printing industry in Germany.

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

Electronics & Microtechnology

The German electronics industry stands in first place in terms of European semiconductor and display market size, and the "Silicon Saxony" region has become one of the top five semiconductor clusters worldwide.

Scientific apparatus and glassware on laboratory bench awaiting Experiment Scientific apparatus and glassware on laboratory bench awaiting Experiment | © gettyImages / Andrew Brookes

Chemicals Industry

Whether in the reinforcement of traditional industry products or the sustainable development of emerging technologies, Germany's chemical industry play a key role.

Automated Manufacturing Automated Manufacturing | © iStock.com/Baran Özdemir

Industrie 4.0

Germany has established itself as the world’s Industrie 4.0 hotspot.

Metallic steel and honeycomb element background texture Metallic steel and honeycomb element background texture | © www.fotolia.de – © Kaikoro

Lightweight Industries

The development and use of lightweight construction solutions is an important requirement for the competitiveness of German industry. Lightweight construction is of great importance for a number of industries.

Machinery & Equipment Machinery & Equipment | © © Liuhsihsiang - iStock.com

Machinery & Equipment

Market leadership powered by German engineering. A silent giant – Germany's machinery and equipment sector is the largest and strongest in Europe.

metal oxide particles metal oxide particles | © Pressefoto BASF SE

Nanotechnology

Germany has a rich and diverse nanotech landscape, with industry players of all sizes catering to the strong demand for nanotechnology both in our domestic markets and abroad.

Light refraction from a beam of light Photonik | © P_Wei/istock.com

Photonics Industry

Germany is home to Europe’s largest photonics market. The German photonics industry stands for outstanding innovation worldwide. 

Fraunhofer-Pilotanlagenzentrum für Polymersynthese und -verarbeitung PAZ in Schkopau: Blick in das Polymersynthesetechnikum Fraunhofer-Pilotanlagenzentrum für Polymersynthese und -verarbeitung PAZ in Schkopau: Blick in das Polymersynthesetechnikum | © PAZ_Panorama Skopau - Til lBudde

Plastics Industry

Germany is Europe's number one plastics Location. The industry plays a major role in providing new and innovative products and solutions to a number of key industries.

Maschinenprüfung von Siliziumwafern im Reinraumlabor, Nahaufnahme Silizumwafer | © GettyImages/Monty Rakusen

Semiconductor Industry

Germany is investing EUR 50 billion in semiconductor R&D and production to secure its position as an international microelectronics force.

News

Industrial Production Industry News

Germany’s industrial production industry operates in a vibrant and dynamic business location where new opportunities arise every day. Find out more about what's going on in Germany‘s industrial production markets.

  1. Jan 27, 2025 Energy Storage & Fuel Cell Industry
    Australian-German Lithium Company Raises Half Billion

    The European Investment Bank has extended a EUR 500 million line of credit to Vulcan Energy, which produces Lithium in Germany.

  2. Jan 24, 2025
    Taxation of Real Estate

    Real estate is subject to different taxes: the annual real estate tax on ownership and a one time real estate transfer tax, when purchasing real estate.

  3. Jan 24, 2025 Structural Change
    News from the Regions in Structural Change | January 2025

    Germany’s new federal states are a hotbed of innovation in areas as diverse as new battery technologies and biodegradable implants. Here we provide a brief look at recent developments and investments in the forward-looking region. 

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GTAI Investment Lounge Meet our Industry Experts | © Bildkraftwerk

Events

Discuss doing business in Germany with our industry experts. Meet us at upcoming live events or take part in our webinars. Schedule an appointment now!

Woman with Headset Contact | © iStock.com/skynesher

Contact

If you require further assistance or have any questions, please don't hesitate to reach out to us.

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Downloads

Looking for detailed reports on industry segments and opportunities? Download our free Industry Overview for more data, analysis and insights into Europe’s market.

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