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Leading Sectors for U.S. Export and Investment

Exchange Rate

Exchanges rates used throughout this chapter unless otherwise stated:

Year

EUR 1 = USD

2012

1.24

2013

1.34

2014

1.27

Information Technology and Software

Overview

Unit: USD billion

Market Size Germany

2011

2012

2013
(estimated)

Software

21.1

21.2

23.3

Consumer Electronics

16.1

15.4

15.7

IT Hardware

27.3

26.5

27.9

Telecommunications Devices

9.2

10.3

12.8

Telecommunications Infrastructure

7.7

7.4

8.0

Exchange Rate: 1 USD

1.3

1.24

1.31

Data Source: BITKOM

Germany’s ICT market is the largest in Europe. Industry experts are expecting a larger growth rate in the near future due to the easing of the Eurozone crisis. Drivers for this growth are the necessity to increasingly focus on cost reduction, efficiency and compliance, as well as implementation of new technology for business expansions into new regions.

The German IT market is very competitive, but U.S. firms have a very strong position employing ten thousands of employees in Germany. IBM has operations in Germany for more than 100 years. Analysts estimate that approximately 75% of software products sold in Germany are supplied by U.S. companies. In 2012, the largest software companies (SAP, Oracle, IBM, etc.) in Germany accounted for more than EUR 9.4 billion in sales. This represents 55% of the German market. However, smaller companies also have a niche alongside the major players.

Today there are more than 72,000 ICT companies in Germany, employing 876,000 people. As in many other countries, Germany is suffering from a shortage of IT professionals.

Industry-specific and niche products will continue to find good sales opportunities in Germany. U.S. IT products are seen as innovative, having superior quality and cutting edge technology. The German public sector, banking, insurance, medical and utilities sectors offer good opportunities.

Opportunities

Investment plans for Germany in 2013 include ‘Green IT’. Green IT is driving demand for systems planning and design solutions. Government institutions are planning to implement digital solutions for e-government and e-health, fueling growth in the hardware and software market and could be seen as an opportunity to U.S. companies. The need to improve operations and profitability in a new global competitive environment is the main driver for an increased in-house IT spending by SMEs. Increasing number of network intrusions and data loss incidents, in addition to the adoption of mobility and cloud computing technologies, created the need for having an effective security framework in place.

Best Prospects

According to Industry Analysts, the following segments are considered the major trends in the German ICT industry: Cloud Computing, Mobile Applications, IT Security, Social Media, Virtualization, Business Intelligence, Bring your own device, Mobile Broadband, IT Outsourcing, BP Management, and Energy/Smart Grids.

Web Resources

Trade Fairs:
CeBIT (world’s largest ICT trade show): www.CeBIT.de
IT-SA (IT Security Trade Show): www.it-sa.de
conhIT (Europe’s largest event for Healthcare IT): www.conhit.de
gamescom (Europe’s leading games trade show): www.gamescom-cologne.com

Trade-Associations:
www.bitkom.org

www.bitmi.de

www.teletrust.de

www.eco.de

www.nifis.de

www.biu-online.de

www.vatm.de

Major trade journals:
www.computerwoche.de

www.crn.de

www.channelpartner.de

www.eito.com

Commercial Service Contact for Computer Hardware, Consumer Electronics and Telecommunication:
mathias.koeckeritz@trade.gov

Commercial Service Contact for Software:
doris.groot@trade.gov

Drugs and Pharmaceuticals

 

Overview

 

Unit: USD thousands

 

2011

2012

2013

(estimated)

2014

(estimated)

Total Market Size

38,380,000

39,480,000

40,680,000

41,890,000

Total Local Production

38,400,00

39,500,000

40,700,000

41,920,000

Total Exports

75,200

78,900

83,000

85,000

Total Imports

55,900

58,700

62,000

63,000

Imports from the U.S.

9,106

9,470

9,849

10,000

Exchange Rate: 1 EUR

1.34

1.24

1.3

1.3

In 2011, Germany’s drug market was the fourth largest worldwide after the United States, Japan and China, with annual sales of USD 43.22 billion. The German government remains committed to its fiscal austerity program and to further spending cuts by 2014. Market consolidation continues, and drug prices have been under pressure from de-reimbursement, fixed-level drug pricing, and referencing pricing schemes. Between 2011 and 2015, the market is projected to grow annually at 3%, with the fastest growth in the specialized hospital market for new and expensive pharmaceuticals. The statutory health insurance system accounts for about 80% of the market, with tight reimbursement rules, greater use of generics and downward pressure on generic prices due to the rebate system and the full VAT of 19% levied on drug sales. Opportunities also exist for local production, research and acquisition of German drug firms.

Sub-Sector Best Prospects

Recent sales growth has been for drugs for acute conditions such as cancer, rheumatoid arthritis, and multiple sclerosis; but also for chronic conditions such as cardiovascular diseases; diabetes; and preventive medicine. Drugs for rare diseases, so-called Orphan Drugs, with market exclusivity for 10 years in the European Union, should also see good market potential as should bio-based medication; personalized medicines; and biosimilars.

Opportunities

Despite moderate market growth in recent years following regulatory reform, Germany remains an attractive export market to innovative U.S. drug makers. Consumer spending on pharmaceuticals remains high, with an estimated per capita annual spending of USD 599, expected to increase further with an ageing population. More stringent regulatory reform is not to be expected, with statutory health insurance expenditures for pharmaceuticals down, for the first time since 2004, by USD 1.45 billion in 2012 to USD 38.3 billion. Early assessment of new and innovative drugs is expected to contribute to the decrease in consumer drug prices for the patented drug segment. The generic market is also growing as patents expire, resulting in additional opportunities for U.S. suppliers.

Web Resources

German Government Agencies:
German Health Ministry: www.bmg.bund.de
Federal Agency for Pharmaceuticals and Medical Products: www.bfarm.de
Federal Agency for Sera and Vaccines: www.pei.de
Federal Institute for Risk Assessment: www.bfr.bund.de
Federal Institute for Consumer Protection and Food Safety: www.bvl.bund.de

Trade Fairs:
CphI: www.cphi.com
Expopharm: www.expopharm.de
Biotechnica: www.biotechnica.de
MEDICA: www.medica.de

Trade Associations:
BPI (Association of the German Pharmaceutical Industry): www.bpi.de
VFA (German Association of Research-Based Pharmaceutical Companies): www.vfa.de
BAH (Federal Trade Association of Pharmaceutical Manufacturers): www.bah-bonn.de
German Generics Manufacturers Association: www.generika.de

Commercial Service Contact:
Anette.Salama@trade.gov

Medical Equipment

Overview

Unit: USD thousands

 

2011

2012

2013 (estimated)

2014

(estimated)

Total Market Size

30,000,000

32,000,000

33,400,000

34,700,000

Total Local Production

30,000,000

33,000,000

33,400,000

34,700,000

Total Exports

19,000

20,000

21,000

21,840

Total Imports

18,800

20,000

21,100

21,944

Imports from the U.S.

5,307

5,625

5,906

6,142

Exchange Rate: 1 EUR

1.3

1.24

1.24

1.3

Data Sources: Spectaris Trade Association; BVMED Trade Association; Eucomed; Statista

Germany is Europe’s largest market for medical devices and the world’s third largest, behind the United States and Japan, accounting for 4% or EUR 32 billion in 2012.  Although in decline, Germany’s population accounts for 20% of the total population in Western Europe with an estimated 80.5 million inhabitants in 2012. Germany counts 2,000 hospitals; 2,000 medical supply stores; 1,200 rehabilitation centers; 21,500 pharmacies; and 150,000 doctors’ offices. At over 11.6% of GDP in 2012, healthcare expenditures continue at high levels but constrained. Health reforms and cost-cutting measures keep the market tight, with continued downward pressure on prices. Government funding of hospital projects has remained static; major areas of opportunity are seen for private hospitals and clinics. Demand will mainly be driven by demographics and a substantial increase in the number of patients; and by the need for economies of scale and efficient procedures.  The German medical market grew by 4% in 2012 with an upward trend for 2013.  The medical technology sector continues to be strong on innovation and growth and will provide excellent potential for U.S. suppliers of innovative and price-competitive products.  U.S. medical device exporters to Germany continue to hold a 27-30% import market share, depending on product.

Sub-Sector Best Prospects

U.S. medical device exporters will find good market potential for the following products: high quality advanced diagnostic and therapeutic equipment; innovative technologies and minimally invasive equipment, such as laser-optics in vascular surgery, urology, gastrology, dermatology, and neuro-surgery, new diagnostic and imaging devices, as well as specialized wound care and easy-to-use home care products. The trend is toward demand for miniaturized electro-medical equipment and nano-technology products.  Preventive diagnostics and medical products, innovative orthopedic and physiotherapy devices, and biomaterial, cardiovascular and endoscopy products will also find good markets in Germany.  Novel imaging technologies, e-health and e-care, mobile medical products are also in demand in Germany. Keywords are: computerization and electronic diagnosis; therapy planning and survey; molecularization-biotechnology, cell and tissue engineering, personalized medicine; miniaturization-microsystems technologies, nanotechnology and optical technologies.

Opportunities

The “Medical Technology Action Plan” pools the Federal Ministry of Education and Research’s varied funding activities and programs under three main topics: Medical technology in rehabilitation and care (intelligent implants); Molecular imaging; Medical technology for regenerative medicine. Incentives are provided as R&D project grants/cash incentives with a maximum 50% of eligible project costs. The European Union is subsidizing transnational R&D through its 7th Research Framework Program. A budget of EUR 6.1 billion for the period 2007 to 2013 has been earmarked for health research.

Web Resources

German Government Agencies:
German Health Ministry: www.bmg.bund.de/
Federal Agency for Pharmaceuticals and Medical Products: www.bfarm.de/EN/Home/home_node.html

Federal Bureau for Physical-Technical Equipment: www.ptb.de
Federal Institute for Risk Assessment: www.bfr.bund.de
Federal Institute for Consumer Protection and Food Safety: www.bvl.bund.de

German Medical Devices Law: www.dimdi.de/static/en/mpg/recht/index.htm

Trade Fairs:
MEDICA: www.medica.de and http://export.gov/industry/health/eg_main_032846.asp

Trade Associations:
Federal Association of the Medical Devices Industry: www.bvmed.de
Federal Association of the Electro-Medical Industry: www.zvei.de/medtech
German Medical, Optical and Mechatronic Technologies Industry Association (SPECTARIS): www.spectaris.de
German Hospital Association: www.dkgev.de
Medical Dealers Association: www.zmt.de

Commercial Service Contact:
Anette.Salama@trade.gov

Industrial Chemicals  

Overview

Unit: USD thousands

 

2011

2012

2013

(estimated)

2014

(estimated)

Total Market Size

189,419,130

112,224,000

114,034,000

116,532,000

Total Local Production

190,000,000

171,000,000

173,000,000

175,600,000

Total Exports

200,859,800

199,516,000

202,480,000

204,500,000

Total Imports

142,772,300

140,740,000

143,514,000

145,432,000

Imports from the U.S.

14,604,700

14,384,000

14,612,000

14,812,000

Exchange Rate: 1 EUR

1.34

1.24

1.24

1.24

Data Source: German Chemical Association (VCI)

The financial crisis led to a pent-up demand, and, consequently to increased local chemical production. For 2013, production is likely to see a small growth of about 1.5%. Overall chemical imports, including those from the United States, showed the same tendency over the past two years. Chemical imports into Germany declined from USD 142 billion in 2011 to USD 140 billion in 2012. U.S. imports showed a similar trend, totaling USD 14.6 billion in 2011 and USD 14.4 billion in 2012.

Annual sales in 2011 and 2012 by German chemical industry remained positive. In 2012, they reached USD 232 billion, for 2013, experts expect an increase of 2%.

Sub-Sector Best Prospects

Prospects for U.S. chemical exporters, seeking to market their products in Germany, are good. It can be expected that the U.S. shale gas exploration will lead to highly competitive chemical products from the United States. In addition, German local production is likely to suffer from higher energy costs over the next few years caused by the change towards alternative energy.

U.S. chemical producers of innovative chemicals find good to best prospects in the German chemical market while producers of standard materials can face substantial competition from local German or EU producers. Several globally active chemical producers are located in Germany, among them giants like BASF; Bayer; Wacker etc. The German chemical market does not offer many opportunities for standard chemicals since they are usually produced locally or imported from Asia.

Opportunities

Germany offers good to excellent business opportunities across all chemical sub-sectors for U.S. companies that offer innovative chemicals. “Green” products are of particular interest: Chemicals based on natural ingredients, i.e., plastics based on corn, soy beans, algae etc., or substances processed with natural substances such as detergents produced by enzymes. Also in demand are renewable chemicals; innovative coatings and adhesives; photovoltaic chemicals, i.e., additives for plastics that enhance electrical conductivity; high performance solvents; reactive substances for UV sensitive materials, i.e., photo initiators; fuel cell chemicals; innovative APIs etc. U.S. companies can often supply several EU markets by signing up with one single German distributor.

Web Resources

Trade fairs in Germany generally offer good business opportunities.

Analytica: http://www.analytica.de/link/en/18285323
CphI: http://www.cphi.com (certified by the U.S. Department of Commerce)
European Coatings Show: http://www.european-coatings-show.de/
Fakuma: http://www.fakuma-messe.de/en/fakuma
K’ Show: http://www.k-online.de/

Commercial Service Contact:
Kirsten.Hentschel@trade.gov

Automotive Parts and Services

Overview

Manufacturing of Parts and Accessories

2011

2012

Change in %

Revenue (USD million)

85,422

84,512

−1.1%

Domestic Sales (excl. VAT)

54,753

54,110

−1.2%

Foreign Sales

30,669

30,402

−0.9%

Employees (Ø/year)

284,130

291,751

+2.7%

Exchange rate: In order to avoid misinterpretation, a fixed USD/EUR exchange rate (1 USD=0.809 EUR) is used for the figures provided in this section.

Note: As the German automotive industry is greatly benefiting from globalized markets and as German manufacturers as well as OEMs have production facilities worldwide, it makes more sense to define markets and segments of interest for U.S. exports on a global rather than a German scheme. As most purchasing decisions are still made in Germany, data depicting the strength of the German industry as a whole appears to make more sense.

Sub-Sector Best Prospects

emission control and reduction technology; climate control systems; engine electronics; automotive semiconductors, LED lighting; Software, IT, and communication technology, smart driving assistance and entertainment/”Infotainment”; alternative drives (electric/hybrid/fuel cell technology etc.) as well as components; Clean Diesel technology; lightweight materials such as carbon fiber parts (CFRP); “downsizing” technologies; eMobility; (integrated) mobility services and concepts; range extender technology; efficient and economical battery technology.

Opportunities

Due to the nature of Germany’s success as a leading automotive technology provider and its sophisticated market structure, accessing Germany’s various automotive sub-sectors is difficult. However, market opportunities exist for technological innovations and applications. Due to increasingly strict EU regulation and policy, especially regarding emission control, opportunities arise as manufacturers and suppliers are adapting to the regulatory requirements. Consequently, new technologies and business models are developed, tested and implemented. Business opportunities exist especially in high-tech sectors such as new materials and components, alternative drive technology and new vehicle designs, as well as innovative (urban) mobility concepts.

Limitations exist in the automotive aftermarket. It is extremely difficult for U.S. companies to enter Germany’s very sophisticated market: warranty concerns as well as fierce global competition provide high barriers for NTM manufacturers and products, especially for product groups such as lubricants, additives, care products, as well as certain mass market IAM parts and accessories. NTM companies must commit to high investments in marketing and/or local sales staff in order to gain market shares, which will only be achieved through displacement of competitors. Distributors and agents are very reluctant to take on new products and brands, unless the product’s USP is strong and the foreign manufacturer shows commitment to invest in the product development in Germany.

Web Resources

Trade Fairs:
Automechanika (Frankfurt): http://www.automechanika.messefrankfurt.com/frankfurt/de/besucher/willkommen/erleben.html
Zulieferer Innovativ (Saturn Arena/Ingolstadt): http://bayern-innovativ.de/zulieferer2012

Trade Associations:
VDA (German Automobile Association): www.vda.de
ZKF (Central Association for Car and Body Technology): www.zkf.de
Central Association for German Motor Trades and Repair: www.kfzgewerbe.de

Commercial Service Contact:
Felix.Happe@trade.gov

Sporting Goods

Overview

Unit: USD million

 

2011

2012

2013 (estimated)

2014

(estimated)

Total Market Size

4,055

4,136

4,198

4,261

Total Local Production

2,690

2,710

2,720

2,730

Total Exports

1,125

1,136

1,140

1,145

Total Imports

2,490

2,562

2,618

2,676

Imports from the U.S.

865

870

880

890

Data Sources: German Sporting Goods Manufacturers Association; German Association of Sporting Goods Retailers; Hochschule Niederrhein - eWeb Research Center; Individual Research

With 25 million Germans participating in sports activities, and an approximated average annual growth of 1.5% over the next few years, the German sports market continues to be a profitable area for U.S. companies for export and investment. Sports activities remain a mega trend in Germany, thus offering excellent opportunities for U.S. sports products manufacturers.

In 2012, the German sporting goods market grew by another two percent, while most other European markets experienced sales decreases of up to 15 percent. The market is expected to grow annually again by at least 1.5% over the next two years. The German sporting goods industry is characterized by mostly medium-sized enterprises with nearly 120,000 employees. The wide ranging production line (about 10,000 items) splits into three product groups with corresponding percentages of the total annual sales: Sports apparel (55%), sports shoes (29%), and sports hardware (16%).

In 2012, the demand for the all-season boom segment of outdoor sports increased by 4.4% (market share: 22%) followed by the multi-sport segment with a market share of 19% (sales decrease by 1%). Winter sports equipment and accessories accounted for 15% (+12%). Running, Nordic walking and racket sports achieved 11% (+2.7%), and soccer 10% (+0.4%) of the total market. The Swimming/beach segment experienced a decrease in sales of 6% (market share: 7%).

Over the last decade, Germany maintained the position of the 3rd largest importer within the EU. Major competitors in the German market include China (approx. 50% import market share), Italy (approx. 9%), Poland (approx. 8%), the Netherlands and France (both approx. 4%), and the Czech Republic (approx. 3%). About 84% of all exports are purchased by EU member states. The U.S. ranks second after Switzerland among the most important non-EU buying countries, followed by Russia, Japan, Turkey and, to an increasing degree, China.

Despite economic uncertainties, the German sporting goods market is expected to grow moderately over the next few years, fueled largely by the fitness and health awareness among broad levels of the population, as well as increasing numbers of elderly consumers taking up a more active lifestyle. Germany already has the largest proportion (25 million) of the 50+ age group – the so-called “Best Agers” – within the EU, which is expected to grow more rapidly than elsewhere. New high-tech materials, technical refinements as well as new innovations within the fibers and textiles industries will continue to play a decisive role as a competitive advantage. Sports activities remain a mega trend in Germany, thus offering excellent opportunities for U.S. sports products manufacturers. Beside winter sports, the demand for the all-season boom segment of outdoor sports, team sports activities (e.g. running, golf, riding, swimming, soccer), are expected to further increase.

Sub-sector Best Prospects

Fitness equipment for physical exercise, gymnastics, or track and field; footwear (all sports); golf equipment; team sports equipment (for soccer, basketball, field hockey, handball in particular); winter sports equipment and apparel; in-line skates; roller blades; outdoor goods for hiking, climbing, trekking, and Nordic walking activities

Web Resources

Trade Fairs:
OutDoor, Friedrichshafen, www.outdoor-show.com
EuroBike, Friedrichshafen, www.eurobike-show.com/eb-en
GOLF Europe, Augsburg, www.golf-europe.com/en/home
ISPO, Munich, www.ispo.com
FIBO (Fitness), Essen, www.fibo.de

Trade Associations:
German Sporting Goods Manufacturers Association: www.bsi-ev.com
German Association of Sporting Goods Retailers: www.vds-sportfachhandel.de
European Outdoor Group: www.europeanoutdoorgroup.com
Association of the German Fitness Industry: http://www.vdf-fitnessverband.de
German Golf Association: www.golf.de

Major Trade Journals:
www.saz.de

www.outdoor-magazin.com

www.golf.de/journal

www.skimagazin.de

www.wassersport-magazin.com

www.reitsport-markt.de

Commercial Service Contact:
Dagmar.Winkler-Helmdach@trade.gov

Travel & Tourism

Overview

Unit: USD thousands

 

2011

2012

2013 (estimated)

2014

(estimated)

Expenditure by German Tourists Abroad

76,400,000

79,100,000

82,300,000

n/a

U.S. Expenditure by German Tourists

6,338,000

7,000,000

n/a

n/a

Exchange Rate: 1 USD = 0.809 EUR

Data Sources: “Reisestudie” 2012 and 2013 by Commerzbank Research

Office of Travel and Tourism Industries, U.S. Dept. of Commerce

German travel abroad, including to the United States, is expected to show modest growth. Germans are high-spending travelers, and the United States is their most popular long-haul destination. Germans tend to stay longer than most travelers to the United States, and a wide array of non-stop direct flights to the United States continues to facilitate this travel.

German travel to the United States increased by 2.9 percent in 2012, with 1,876,000 Germans visiting the United States last year. It is forecast to increase by 4 percent in both 2013 and 2014 and is expected to grow by an overall 12 percent from 2012 to 2018, according to the Office of Travel and Tourism Industries (OTTI). Germany’s travel and tourism spending in the United States went up to an all-time record of USD 7 billion in 2012, an increase of 10 percent. Germany maintained its 7th place in the spending ranking in 2012, behind Canada, Japan, UK, Mexico, Brazil and China. Travel and tourism exports account for 28 percent of all U.S. services exports to Germany. Germany now ranks number three in travel expenditure worldwide, behind China and the United States, according to recent research.

Germany ranks third in arrivals to the United States from overseas, following the UK and Japan. (Canada and Mexico are not included). While domestic tourism has become a trend in Germany, the United States continues to be the favorite long-haul destination. The most popular U.S. states for German travelers are New York (33%), California (23%) and Florida (19%), with New York being the most popular city. Other top city destinations are Los Angeles, San Francisco, Las Vegas and Miami. German travelers are also the top overseas visitors in several western states. The average length of stay for German tourists in the United States, 19.6 nights, is considerably longer than for other overseas visitors.

Germans view 2013 optimistically, with 28 percent expecting to spend more money on travel than the year before. In 2013, 55 percent of potential German travelers (aged 14-70) have already thought about their travel plans for the year, according to a recent poll.

Sub-Sector Best Prospects

Outlet shopping packages; city packages including wellness and a unique travel experience; a focus on value for money; all-inclusive packages; nature- hiking and camping holidays; Native American inventory packaged with local attractions and service providers, which should be activity-based rather than language dependent; incentives for small groups.

Opportunities

The Visit USA Committee Germany e.V. together with Brand USA offer partners opportunities to outreach to travel agencies during a Germany a Halloween event from Oct. 25-27, 2013, in Frankfurt. They also plan two travel media outreach events in Hamburg and Munich in October and coordinate participation for U.S. clients at Germany’s major tourism shows, listed below.

Web Resources

Government:
Entry and visa regulations information
http://germany.usembassy.gov/visa/

https://esta.cbp.dhs.gov

Trade Fairs:
CMT Stuttgart, www.messe-stuttgart.de/cmt
Reisen Hamburg: www.hamburg-messe.de/reisen
f.re.e Munich: www.free-muenchen.de
ITB Berlin: www.itb-berlin.com
IMEX Frankfurt: www.imex-frankfurt.de
Travel Expo & FVW Congress, Trade fair for Tourism, Business travel und Technology in Cologne (B2B fair): www.fvw-kongress.de/

Other:
www.usa.de German language consumer travel website on United States
www.vusa-germany.de Official site of the Visit USA Committee Germany e.V.
www.discoveramerica.com
Brand USA’s consumer website, German version coming soon

Commercial Service Contact:
Elizabeth.Walsh@trade.gov

Renewable Energies

Overview

 

2011

2012

Changes

2012/2011

Share of renewable electricity in total electricity consumption

20.5 %

22,9 %

+ 11.7 %

Final energy electricity from renewables

123.5 billion kWh

136.1 billion kWh

+ 10.2 %

Share of renewable heat in final energy consumption for heat

10.4 %

10.4 %

0 %

Renewables’ share in total fuel consumption

5.5 %

5.5 %

0 %

Renewables’ share in total final energy consumption

12.1 %

12.6 %

+ 4.1 %

Greenhouse gas emissions avoided through renewables

134 million tons

146 million tons

+ 9.0 %

Investments in the construction of renewable energy facilities

23.2 EUR billion

19.5 EUR billion

− 15.9 %

Turnover from operation of renewable energy facilities

13.6 EUR billion

14.4 EUR billion

+ 5.9 %

(Source: www.erneuerbare-energien.de/)

Exchange Rate: In order to avoid misinterpretation, a fixed USD/EUR exchange rate (1 USD=0.809 EUR) is used for the figures provided in this section.

Despite an ongoing debate about rising energy prices, the renewable energy sector is expected to continue growing. Electricity generation from renewable energies and the appropriate subsidies are substantially based on the German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG), which is in accordance with European policy (Directive 2001/77/EC).

Best Products/Services

Wind Energy
Wind energy currently offers the most extensive opportunities for expansion. Technological development in this field is highly advanced. In Germany, wind turbines are exclusively used for the production of electricity which is fed into the grid. Wind turbines produced 45.9 TWh in 2012 (48.9 TWh in 2011). Future wind energy deployment in Germany will require further development of suitable locations on shore and the replacement of old and small installations with more modern and powerful equipment (repowering).

Bio-Energy
By 2020, bio-energy is expected to account for 54 TWh/aelec. or 9.1% of all electricity generation, 150 TWh/athermal or 13% of heating energy, and 111 TWh/a or 21% of all fuels. The major share will come from biogas, followed by solid biomass (mainly wood and plants), liquid biomass (plant oils), and sewage and landfill gas.

Photovoltaic (PV)
PV plants produced 27.9 TWh in 2012 (19.3 TWh in 2011). The production increased by 44% compared with 2011. Solar energy produced 5.0% of the gross electricity generation. In spite of a slight rise in new capacity (7.5 GW in 2011: 7.6 GW in 2012), investments in PV systems dropped by around one quarter. Potential is seen for storage solutions and for distribution systems of hot water via local heating grids. PV systems are supported by the Federal Government with the Renewable Energy Sources Act (EEG). The EEG provides a high degree of planning and investment security due to fixed tariffs over a period of 20 years.

Solar Thermal Energy
Small-scale solar installations are already standard for heating industry and specialized energy segments. The EEG entered into force on January 2009 introduces an obligation to use renewable energies for heat supply in new buildings, for which solar energy is ideal e.g. by using the building’s own solar collectors or by purchasing district heating in combination with a centralized large-scale solar heating system. Both small- and large-scale solar heating systems are supported by the Market Incentive Program. The German solar market is an import market due to high labor costs. A strong trend to decentralized energy supply can be observed.

Hydro Power
Hydro power produced 18.1 TWh in 2012. The share of the gross electricity generation was 3.0%. The potential of hydropower in Germany has largely been exploited. Most hydro power plants operating in Germany were built before the 1960s and the majority is in the 5-10 MW class. Experts state that the present 20 TWh/aelec. that are presently generated can be increased (mainly by repowering existing plants) to over 31 TWh/aelec. by 2020 and then account for 5.4% of the electric power generation in Germany. In addition to repowering, major investments are also expected for environmental protection measures for hydro power plant surrounding waterways (fish steps, re-naturalization of riverbeds, and optimization of river flow).

Geothermal Energy (Industrial, deep geothermal energy)
At present, total installed electrical power equals 7.3 MW generating 19 GWh and 6,300 GWhthermal per year. It is expected that this energy form will reach as much as 6,000 MW installed capacity generating 38 TWhelec. and 14,400 GWhthermal by 2020. Surface geothermal energy: In 2011, over 60,000 heat pumps were installed, most in private residences bringing the total number of heat pumps to over 350,000 units. More than half use water-to-water or brine-to-water technology for which vertical drilling or horizontal netting is required. A little less than half use air-to-air heat pump technology, which is expected to carry the highest growth potential.

Grid, Energy Storage, Fuel Cells
The German Government has to expand the country’s grid infrastructure. This means grid-expansion, integration of storage technologies as well as demand-side management with smart grid and smart home technologies respectively. Improving  the power grid, adding storage technologies, building and expanding transmission lines, etc., add up to estimated €550 billion investments by 2020.  An enormous expansion of the high voltage grid system is required. The new grid expansion plan from November 2012 requires 3,800km of new high voltage lines (2,100km DC, 1700km AC) by 2020. At the same time, the grid will become smart, providing business opportunities not only in the hardware sector as mentioned above – but also in the service sector in areas such as automated energy trading, innovative operating models, innovative financing, plant management, remote house control, electricity purchase bundling.

Best potential is seen for

  • energy management / smart grid applications
  • energy storage (battery) technology
  • fuel cell technology
  • green / smart building technology; building automation technology
  • energy & resource efficiency solutions
  • lightweight / advanced materials
  • renewable energy (especially Wind)
  • sustainable production technology (environmentally friendly materials, coatings)
  • integrated production IT / Industrial Automation technology

Web Resources

Trade Associations:
Hydro Energy: Bundesverband Deutscher Wasserkraftwerke e.V. (BDW): www.wasserkraft-deutschland.de/
Wind Energy: Bundesverband Windenergie (BWE): www.wind-energie.de
Solar Energy: Bundesverband Solarwirtschaft (BSW): www.solarwirtschaft.de
Geothermal Energy: Bundesverband Geothermie (GtV-BV): www.geothermie.de
Biogas: Fachverband Biogas: www.biogas.org
Renewable Energy: Bundesverband Erneuerbare Energie (BEE): www.bee-ev.de
Agentur fuer Erneuerbare Energien: www.unendlich-viel-energie.de 

Government:
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU): www.bmu.de, www.erneuerbare-energien.de
German Energy Agency (DENA): www.dena.de
International Renewable Energy Agency (IRENA): www.irena.org

Other:
Germany Trade and Invest (GTAI): www.gtai.com
Fraunhofer ISE: www.ise.fraunhofer.de

Trade Fairs:
Wind Energy: Husum Wind Energy, www.husumwind.de
Hannover Messe Energy, www.energy-hannover.de
Solar Energy: Intersolar, www.intersolar.de
Geothermal Energy: GeoTherm expo + congress, www.geotherm-offenburg.de
Biogas: Eurotier, www.eurotier.de
Bio Energy Decentral, www.bioenergy-decentral.com
Renewable Energy: Hannover Messe Energy, www.energy-hannover.de
enertec, www.enertec-leipzig.de
RenExpo, www.renexpo.de

Commercial Service Contact:
Sabrina.Leipold@trade.gov

Laboratory and Scientific Equipment

Overview

Unit: USD millions

 

2011

2012

2013 (estimated)

2014

(estimated)

Total Market Size

8,000

8,190

8,270

na

Total Local Production

7,961

8,310

8,390

na

Total Exports

4,251

4,460

4,510

na

Total Imports

4,290

4,340

4,390

na

Imports from the U.S.

1,300

1,200

1,300

na

The German market for Laboratory and Scientific Instruments amounted to almost USD 8.2 billion in 2012 which represents a growth of approximately 2.4% over the prior year. Industry experts anticipate further growth of around 1% for 2013. The German market for Laboratory and Scientific Instruments is very competitive and German companies are famous for innovation, customer-specific solutions, and special niche products as well as for their flexibility and customer service. About 8% of the overall sales of the 330 German manufacturers who are active in this industry (many of which are SMEs) is invested into research and development. Despite the competitiveness of local suppliers, the German market is very open to imports. The countries with the largest import market shares in 2011 were Japan (26.4%), the U.S. (23.1%) and Switzerland (13.2%). The main end users are the industrial production companies, the public sector, pharmaceutical and chemical companies, the environmental sector, chemical and medical laboratories, biotechnology and nutraceutical firms as well as research and development entities. Hence, the market for S&LI heavily depends on developments in these industry segments.

Sub-Sector Best Prospects

Laboratory automation and information systems (LIMS), as well as the broad spectrum of chromatographic technologies; recent trends within the S&LI industry including automation, process analysis, and miniaturization continue to shape the industry’s future.

Laser and opto-electronic instrumentation for the Laboratory and Scientific Instruments sector.

Web Resources

Trade Fairs:
Analytica (Instrumental analysis, laboratory technology and biotechnology):
http://www.analytica-world.com

Achema (Chemical Engineering, Environmental Protection and Biotechnology):
http://www.achema.de/index.php?selectedArea=1&selectedItem=1&spkz=E

Interkama (Automation technology): http://www.hannovermesse.de/interkama_e
Laser World of Photonics: www.world-of-photonics.net
Medica: www.medica.de
Optatec (Optical Technologies, Components, Systems and Manufacturing):  http://www.optatec-messe.de/optatec/

Trade Associations:
Association of German Electrotechnical Manufacturers (ZVEI): http://www.zvei.org
European Optical Society:  http://www.europeanopticalsociety.org/
Spectaris (Optical, Medical and Mechatronical Technologies Inc.): www.spectaris.de
VDE (Electrical, Electronic and Information Technologies): http://www.vde.de/
Photonics21 (European Technology Platform for Photonics) http://www.photonics21.org/
AIF (Federation of Industrial Cooperative Research Associations): www.aif.de

Trade Journals:
GIT Laborfachzeitschrift: www.gitverlag.com
Labo: www.labo.de
LaborPraxis: www.laborpraxis.de

Other:
Fraunhofer Institut für Angewandte Optik und Feinmechanik (IOF): www.fraunhofer.de
Fraunhofer-Institut für Lasertechnik (ILT): www.ilt.fraunhofer.de
VDI Technologiezentrum GmbH: www.kompetenznetze.de
Chemie.de Information Service GmbH: www.chemie.de

Commercial Service Contact:
Doris.Groot@trade.gov

Agricultural Sectors

Agricultural Sectors

Product Category
(in USD million)

Total German Imports 2012

German Imports from the U.S.

U.S. Import Growth (2008-12)

Market attractiveness for USA

Fish and Seafood Products

4,698

237

−10.7%

The German market offers lucrative opportunities for fish and seafood products. Fish consumption is growing as consumers associate fishery products with a healthy diet. Best prospects for U.S. and seafood exports are salmon, (lobster), shrimps, crabs, caviar substitutes, catfish and scallops.

Tree Nuts

1,699

417

36.4%

The United States is the biggest supplier of tree nuts to Germany. Most tree nuts are used as ingredients by the food processing sector. Almonds are the most important commodity within this category. Further products with good sales potential include hazelnuts, pistachios, pecans and walnuts.

Wine and Beer

3,667

94

36.9%

Germany has a high share of domestic wine production. However, good prospects exists for “new world wines” including those from the U.S.

Pet Foods (Dog and Cat)

811

2

−47.3%

Sales of cat food have the biggest market share. U.S. exports are declining but potential exists for premium pet food.

Processed Fruits and Vegetables

5,390

83

−8.2%

German imports are slowly increasing. Those products are mostly used as ingredients by the food processing sector for the production of pastries and cereals. Dried fruits and prepared nuts are also popular as a snack.

Snack Foods (excl. Nuts)

3,145

7

14.1%

German demand for healthy, organic, innovative, and exotic snacks continues to grow.

Red Meats Fresh/Chilled/
Frozen

5,143

76

1237%

Good opportunities for U.S. high quality beef produced without growth hormones. The EU quota size and administration system have recently seen changes.

U.S. Embassy Contact:
Office of Agricultural Affairs: agberlin@usda.gov