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The Electronics and Microtechnology Industry in Germany

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The Electronics and Microtechnology Industry in Germany INDUSTRY OVERVIEW The Electronics and Microtechnology Industry in Germany ISSUE 2019/2020 THE ELECTRONICS AND MICROTECHNOLOGY INDUSTRY IN GERMANY Industry Innovation for the Digital Economy “The vision and investment in Industrie 4.0 has started bringing together some very interesting vendors and concepts that we are convinced will play a big part of the future of the plant floor. Being an engaged part of this eco- system was a major factor in founding our new German subsidiary.” Ed Nabrotzky CSO, Omni-ID 1/6 1/3 of all German "hidden champion" companies of all sales from new products - proof of high that are world leaders in niche markets innovation level in the microtechnology sector 26% 29% of all patent applications in Germany made by of all R&D employees in German industry active companies from the electronics & micro- in the electronics & microtechnology sector technology sector 24% of total German industry R&D expenditure 44% found in the electronics & microtechnology added value over production – highest rate industry among all big industry branches in Germany Germany is recognized the world over as an innovative and automotive electronics. It enables companies to develop microelectronics production and research location. The coun- cutting-edge technologies that perfectly address tomorrow’s try is by some distance Europe’s leading production and sales digitalization needs. market. One in three chips produced in Europe today is made in Germany. Germany will continue to strive to provide top-class techno- logical performance through its outstanding infrastructure, The country boasts an unparalleled density of renowned prestigious international research facilities and dynamic R&D institutes and world-leading manufacturers and sup- investment climate. Investment opportunities are many pliers for electrical and electronic materials, components, and varied. Plug in and find out why Germany satisfies the and equipment across the value chain. These range from essential conditions for market success in one of the world’s microelectronic components to electrical household appli- most dynamic industry sectors. ances, automation systems, electronic medical equipment, The German Electronics Industry in Numbers Germany’s industry numbers speak for them­ selves and for a secure and successful invest­ ment in the country. Europe’s Biggest Electronics Market Germany is Europe’s number one electronics EUR 191.5 bn 858,000 market in production and sales terms. Germany’s Industry Turnover Workforce electronics & microtechnology (E&M) industry generated turnover of EUR 191.5 billion in 2017, with an export share of around 52 percent. Total industry turnover is forecast to grow to EUR 197 billion in 2018. Employing a workforce of more than 1.5 million at home and abroad, the E&M sector represents the second-largest industry seg- EUR 26.5 bn 52% ment in Germany in manpower terms. Innovation Expenditures Export Share Research and Development Leadership Source: ZVEI 2018 Electronics and microtechnology in Germany is exemplified by its innovativeness: EUR 17.2 billion is invested in research and development (R&D) annu- Technological Trends ally. As a result, companies generated almost one The German electronics industry is increasingly third of 2018 turnover from products less than three focusing its activities in automotive and industrial years old. As well as making provision for significant electronics. This is being driven by megatrends internal R&D expenditure, the German E&M sector including smart manufacturing (Industrie 4.0), spends about EUR 10 billion on external R&D – this e-mobility, and the German energy transition is equivalent to almost half of the country’s exter- towards renewable energy. nal R&D investments. Research personnel within the German E&M industry is equivalent to around 29 percent of all R&D employees in German industry. Industry Sector Turnover in Germany Industry Sector Employees in Germany in EUR billion yearly average in thousand Total Turnover Manufacturing: Total Employees Manufacturing: 308 1,019 EUR 1.4 bn 298 5.3 m 1,005 854 858 226 773 786 215 46 46 191 179 49 49 144 7 7 136 452 467 53 53 106 114 292 294 58 58 Chemicals Foods Electronics* Machinery Automotive Chemicals Foods Automotive Electronics* Machinery 2016 2017 2016 2017 *excluding information technology Sources: Federal Statistical Office, VDMA 2018 3 MARKET OPPORTUNITIES Photonics and Optical Technologies Germany boasts one of the world's most thriv­ Technology for the Digital Transformation ing and innovative photonics sectors. German Photonics have a pivotal role to play in the global companies are world leaders in a num ber digital transformation as key enabling tech- of photonics areas including laser technol­ nologies thanks to their tool, sensor and visual ogy, lighting, microscopy, and imaging. communication properties. Optical sensing and imaging, computer vision and optical communica- Europe’s Photonics Leader tion, materials processing, and 3D printing are Germany is Europe’s leading photonics nation, central drivers of digitalization. The digitalization with more than 41 percent of continental produc- of technologies, production environments and the tion. Since 2005, the photonics industry has grown world of work creates new and disruptive busi- at a rate double that of domestic and global ness models and networks. The image processing GDP (between six and seven percent annually). & measurement technology (22 percent share), Germany enjoys around six percent share of the medical technology & life sciences (19 percent), global photonics market. An export quota rate of optical components & systems (18 percent), and around 70 percent testifies to the international production technology (15 percent) represent the competitiveness of innovative photonics solutions major photonics subsector markets within the made in Germany. Since 2011, domestic production country. According to the VDMA, photonics is one volume has grown at an annual average growth of Germany’s most research-intensive sectors, rate of three per cent – from EUR 27 billion to its with high R&D spending levels maintained since current level of EUR 31 billion. This is forecast to 2011. Average company R&D spending of nine rise to around EUR 39 billion in 2020 according percent of revenue underpins the importance to the VDMA (Mechanical Engineering Industry of photonics to domestic economic growth and Association). innovation. German Photonics Production 2016 and Forecast 2020 in EUR billion Image Processing & 8.2 Measurement Tech. 6.4 Medical Technology & 7.8 Life Science 6.0 Optical Components 7.0 & Systems 5.8 6.2 Production Technology 4.4 4.9 ICT, Displays 3.9 2020 2016 3.8 Light Sources 3.7 1.9 Photovoltaics 1.8 Source: Optech Consulting 2017 4 Industry Overview 2019/20 | gtai.com National Excellence Network LOCATION AVANTAGES Schleswig- for Photonic Research and Holstein Mecklenburg OptecNet Network Hamburg Western-Pomerania HansePhotonik Bremen Niedersachsen PhotonicNet Berlin OptecBB Hannover Saxony- Brandenburg Max Planck School of Photonics Anhalt North Rhine- Göttingen Westphalia University/ Saxony Optonet University of Applied Science Jena Aachen Max Planck Institute Hessen Thuringia Fraunhofer Institute Rhineland- Palatinate Optence Leibniz Institute Darmstadt Erlangen Helmholtz Centre Saarland OptecNet Deutschland Karlsruhe Bavaria Photonics BW Aalen Baden- bayern photonics Württemberg Munich Sources: Fraunhofer Institute for Laser Technology ILT, Optecnet 2017 Networks and Clusters German Regional Competence Networks for Opti- Germany is home to an impressive number of cal Technologies. Founded in 2000 as an initia- regional and national networks and clusters. The tive of the BMBF, OptecNet Deutschland is the rapid proliferation of science and industry clusters supraregional association of the seven regional can be attributed to the country’s advanced level competence networks. OptecNet’s mission is to of industrial diversity, aligned to a sustained and support the optical technologies as key technolo- forward-looking innovation policy. Generous R&D gies for Germany. funding promotes innovation as part of a long- term roadmap for the photonics future. Max Planck School of Photonics The Federal Ministry of Education and Research go­cluster Initiative (BMBF) has announced support for a new network The Federal Ministry for Economic Affairs and of excellence under the lead of the Fraunhofer Energy (BMWi) “go-cluster” excellence program Institute of Applied Optics and Precision Engineer- brings together around 100 innovation clusters ing (IOF). The new Max Planck School of Photonics from across Germany. Cluster members are at (MPSP) focuses the key strengths of the German the cutting-edge of innovation and represent photonics community and aims to provide world- the technological diversity with the country’s class research support. The consortium aims to industry and technology sectors. The initiative connect all major and innovative photonics com- provides financial stimulus – in the form of munities to an interdisciplinary cluster. The MPSP support for innovative services and fund- will share in annual funding of EUR 9 million for ing for novel solutions – to optimize cluster an initial period of five years. management. Membership provides numerous advantages to innovation clusters, actors and OptecNet Deutschland partners. Of the 17 photonics clusters and The German optics and photonics industry is networks recognized by the Clusterplattform concentrated within
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