Automotive Overview
The automotive industry in Germany is the nation’s largest industry sector, accounting for nearly 20% of total German industry revenue and directly supporting 833,000 jobs. Germany is Europe’s #1 automotive market in terms of both global automotive sales (2019: EUR 436 billion) & production (2019: 4.66 million vehicles=ca. 25% of EU capacity). The automotive industry is considered the backbone industry in Germany, which is home to many global industry leaders. Germany has the highest concentration of OEM plants in Europe (43 in total) and 18 of the world’s TOP 100 automotive suppliers are German companies.
Germany is recognized as a leading global market when it comes to the engineering of automotive components, systems, and vehicles. In 2018, the German auto industry invested as much as EUR 27 billion in R&D and more than 40 percent of all patent registrations in Germany originate from the automotive industry. Competition for U.S. exporters of vehicles and components comes mostly from European companies across all industry segments, as well as foreign manufacturers, many of which maintain R&D, design, manufacturing, distribution and sales networks in Germany and Europe. The German automotive market is considered highly competitive and saturated. However, the market remains open and opportunities exist for new-to-market, competitive and especially for innovative products and services.
GErmany
Trends & Opportunities - Mobility & Transport:
A combination of technological innovations and socio-economic trends are significantly challenging the status quo of today’s mobility sectors and its related stakeholders. Several relevant trends can be observed: (a) emergence of new, often data-centric and increasingly digital business models; (b) rise of new contestants challenging traditional automakers & suppliers; (c) industry convergence & sector coupling; (d) shifting demand and new mobility paradigm that include shared, sustainable, flexible (use vs. own), and multi-modal mobility; and (e) strong implications due to socio-economic trends, especially in growing urban centers.
Germany’s Federal Government has identified the transition to a clean and sustainable future of mobility and transportation as a fundamental objective and core element of the country’s future-oriented roadmap. Several strategic (sub-)sectors and measures were identified across modes, industries and geographies, including individual, public, and commercial transport.
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