Local Time in Germany: Print

Leading Sectors for U.S. Exports & Investments

Agricultural Sector

Overview

Germany is the second largest importer and third largest exporter of consumer oriented agricultural products worldwide, and by far the most important European market for foreign producers. The retail market’s key characteristics are consolidation, market saturation, strong competition, and low prices. Germany is an attractive and cost-efficient location in the center of the EU. While many consumers are very price sensitive, the market also provides many wealthy consumers who follow value-for-money concepts. These are looking for premium quality products and willing to pay a higher price. Germany still has the lowest food prices in Europe; German citizens spend less than 11 % of their income on food and beverages. Low food prices result from high competition between discounters and the grocery retail sale segment

Leading Sub Sectors

Tree Nuts

The category of tree nuts includes almonds, pistachios, pecans, hazelnuts, and walnuts. Germany does not produce significant quantities of these products; therefore, supply comes primarily from imports. The United States is the biggest supplier of tree nuts to Germany. The leading competitor for the United States in the German tree nut market is Turkey. Many U.S. agricultural associations actively promote their products in Germany, including the Almond Board of California, California Pistachio Commission and the California Walnut Commission. 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 walnuts, pistachios, and pecans.

in million USD

2015

2016

2017

2018 (Estimated)

Total Local Production

0

0

0

0

Total Exports

1102

1171

1185

660

Total Imports

3,628

3,137

3,253

3,800

Imports from the US

803

605

660

780

Total Market Size

2,526

1,966

2,068

2,300

Source: Global Trade Atlas query dated June 8, 2018

Fishery Products
Fish and fishery products enjoy growing popularity in Germany. 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. seafood exports are salmon, shrimps, crabs, caviar substitutes, cuttlefish and squid, sea urchin, catfish, lobster, and scallops. The two most important U.S. fishery export products to Germany are Alaska Pollock and salmon by value. 

 

2015

2016

2017

2018 (Estimated)

Total Local Production

2,186

2,315

2,400

2,500

Total Exports

2,322

2,478

2,522

2,750

Total Imports

4,883

5,302

5,477

5,900

Imports from the US

188

198

211

280

Total Market Size

4,747

5,139

5,355

5,650

Source: Global Trade Atlas query dated June 8, 2018

Web resources:

Fish International – is the leading fish and seafood show in Germany. It is held on an annual basis in Bremen. Next show: February 25-27, 2018

Wine
Germany is the world's largest importer of wine by volume and third largest by value. In 2017, German wine imports were valued at more than USD 2.9 billion. Italy, France and Spain are the leading suppliers of wine to Germany with a combined import market share of nearly 78%. U.S. wines, together with other “new-world” wines, have developed an increasingly good reputation for quality in the German market. In 2017, the value of Germany's imports of U.S. wines totaled USD 82 million.

in million liters

2015

2016

2017

2018 (Estimated)

Total Local Production

882

901

746

800

Total Exports

368

362

383

420

Total Imports

1,542

1,485

1,514

1,600

Imports from the US

43

40

36

30

Total Market Size

2,056

2,024

1,877

1,980

German production data is only available on a volume basis; therefore, this table is in liters

Sources: German Office of Statistics (German production)

Global Trade Atlas (trade) query dated June 12, 2018

Web resources:

Prowein – is the leading wine show in Germany. It is held on an annual basis in Dusseldorf. Next show: March 17-19, 2019

Pet Food

Germany is one of the leading countries for pet ownership in the world. Germans are willing to pay a premium to properly feed their pets and interest in specialty health pet food products is growing rapidly. Most pet foods are produced domestically and the EU requires pet foods to be derived from meat that can be used for human consumption. Despite the bureaucratic obstacles, opportunities for exporting pet food products to Germany are available given the considerable size of the market.

in million USD

2015

2016

2017

2018 (Estimated)

Total Local Production

3503

3,509

3,588

3,900

Total Exports

1,282

1,408

1,599

1,850

Total Imports

982

982

1,187

1,200

Imports from the U.S.

2

3

3

4

Total Market Size

3,203

3,083

3,379

3,250

Global Trade Atlas (trade) query dated June 12, 2018

Web resources:

Interzoo – is a world leading pet industry exhibition. It is held on a biennial basis in Nuremberg. Next show: May 19-22, 2020

Agricultural Attaché Reports

Attaché reports provide information on market opportunities, crop conditions, new policy developments and information on the German food industry. Some standard reports include: Retail Market Report, Exporter Guide, Food Service Report, and market briefs on wine, seafood, and other select products. Attaché reports can be found at https://gain.fas.usda.gov/Pages/Default.aspx. In recent years, many of the German reports have been consolidated and are submitted as EU reports. We recommend that companies interested in the German market also review the EU reports.

U.S. Agricultural Commodity Associations Active in Germany

A number of U.S. agricultural commodity and other trade associations conduct market development programs in Germany. In some cases, these associations maintain field offices in Germany, while others may have a trade representative or public relations company representing their interests. Others may cover Germany from elsewhere in Europe or from offices in the United States. The USDA-operated Market Access Program (MAP) and Foreign Market Development program (FMD) provide a portion of the funding for the market development programs of these associations. For further information about the MAP and FMD program or to know more about which associations are active in Germany, please contact the Office of Agricultural Affairs at the U.S. Embassy in Berlin (http://fas-europe.org/countries/germany/).

Trade Shows

In Germany, trade fairs play a key role in presenting new products to the trade or in finding additional buyers and importers.  The major international trade fairs are:

FRUIT LOGISTICA – is the leading show for fruit and vegetables, dried fruits, and nuts. It is held on an annual basis in Berlin. Next show: February 6-8, 2019

Biofach – is the leading European trade show for organic food and non-food products. It is held on an annual basis in Nuremberg. Next show: February 13-16, 2019

Prowein – is the leading wine show in Germany. It is held on an annual basis in Dusseldorf. Next show: March 17-19, 2019

ANUGA – is the world´s leading food fair for the retail trade and the food service and catering market. It is held every two years in Cologne. Next show: October 5-9, 2019

Fish International – is the leading fish and seafood show in Germany. It is held every two years in Bremen. Next show: February 9-11, 2020

Interzoo – is a world leading pet industry exhibition. It is held every two years in Nuremberg. Next show: May 19-22, 2020

Aerospace/ Defense/ Security

Overview

Total market size = (total local production + imports) – exports

Aerospace & Defense Market in USD millions (The security market is not reflected in the table but in the written paragraph below.)

 

2015

2016

2017

2018 estimate

Local Production

38,460

41,509

45,188

49,000

Total Exports

26,916

29,886

33,439

36,260

Total Imports

26,308

19,810

18,824

20,580

Total Market Size

37,852

31,433

30,573

33,320

US Imports = US Market Share

6,549

5,801

6,860

6,950

EUR-USD Exchange Rate

1.1095

1.1069

1.1297

1.23 projected

U.S. aerospace & defense manufacturers produce the highest trade surplus, year after year, of all manufacturing sectors. In 2017, U.S. aerospace exports to Germany amounted to $6.86 billion. The trade surplus was USD 3.8 billion, representing a 24 percent increase over 2016 (USD 3.06 billion). Aerospace & defense is complemented by homeland security & public safety, an industry spanning across 16 vertical markets with a projected global turnover of USD 400 billion in 2018. U.S. manufacturers are well-positioned to benefit from a robust market growth in Western Europe, especially Germany.

Germany hosts the world’s third-largest trade show for aerospace & defense (ILA Berlin Air Show), the world’s largest trade show for aircraft cabin interiors (Aircraft Interiors Expo / AIX) and Europe’s largest trade show for general aviation (AERO), making it an ideal platform for U.S. companies to meet with their global partners and buyers. The major safety & security shows that are relevant for the German market are held in Essen (Security Essen), but also in London (DSEI) and Paris (Milipol).

Leading Sub-Sectors

Germany has the third-largest aerospace & defense market in Europe, with 2017 revenues at USD 45.2 billion, following the UK at GBP 72 or USD 92.8 billion and France at USD 65.9 billion. The German homeland security & public safety market has exceded USD 19.2 billion in 2017 and will experience strong annual growth rates until 2020 due to ongoing upgrades of the German internal security and migration enforcement infrastructure technology.

Aerospace is a German Government priority. The Federal Ministry of Economic Affairs and Energy (BMWi) lists aerospace as a key industry with high growth rates and a strong industrial core in Germany. BMWi’s “Aerospace Strategy” from March 2014 states that the aerospace sector is of particular importance for Germany as an industrial country both technologically and economically. Moreover, BMWi has announced the 6th iteration of the Aerospace Research Program—a grant program for aerospace research and technology projects—for the fall of 2018. Best prospects for U.S. exporters exist in the following segments: commercial aircraft, business jets, turboprops, helicopters, UAVs, structures, propulsion systems, subsystems for aerospace vehicles; military aircraft, air defense systems; spacecraft, launch systems, communications systems; access control, identity management, integrated systems, security services.

The main vertical markets for homeland security & public safety in Germany are airport security, smart borders, telecommunications and critical infrastructure, and police modernization.

Policy Objectives and Challenges

U.S. suppliers should be aware of the effects of the U.S. Export Control Reform (ECR) regarding changes to the EAR and ITAR for U.S. aerospace & defense companies. The Commercial Service will continue to support U.S. companies by conducting frequent and active outreach to the Bundeswehr’s Federal Office of Equipment, Information Technology and In-Service Support (BAAINBw) in Koblenz, and following the latest aerospace, defense and security policy developments and discussions in Germany. On an international level, we will gain insight from organizations, such as the Aerospace and Defense Industries Association of Europe (ASD), the U.S. Aerospace Industries Association (AIA) and Homeland Security Research (HSR) in Washington, D.C. to understand their positions on transatlantic trade issues, and communicate U.S. objectives.

In a number of recent tenders, the German military and some state police forces have imposed non-ITAR/EAR/PESCO clauses on prospective bidders, asking them to attest that their products do not fall under the respective regimes. This excludes many U.S.-designed and U.S.-made defense-sector goods.

Opportunities

Opportunities include a 4.5 gen fighter jet program for the German Air Force; anti-submarine warfare (ASW) / anti-surface warfare (ASuW) helicopters for the German Navy; exo-atmospheric engagement systems for German F124 frigates; Search and rRscue (SAR) helicopters for the German Federal Armed Forces (Bundeswehr); heavy lift helicopters for the German Army; gas turbines for 4 multi-role combat ships (MKS 180) for the German Navy; Scalable Space Inertial Reference Units (SSIRU-L) for SARah, Germany's radar reconnaissance satellite constellation; lightning detection services to help support the aviation industry clients of the German Meteorological Office (DWD); integrated air and missile defense system (TLVS) for the Bundeswehr.

Web Resources

Trade Events

Other Web Resources

German Aerospace Industries Association (BDLI)

German Airport Technology & Equipment

HANSE-AEROSPACE e.V. (Largest independent association of aerospace suppliers and service providers in Germany)

ALROUND (Association of Aerospace-oriented SMEs in Germany)

German Helicopter Association (DHU)

Advanced Manufacturing

Overview

Advanced Manufacturing (AM) - the convergence of information and communications technologies with manufacturing processes to drive real-time control of energy, productivity and costs across factories and companies - was identified as one of the highest-priority manufacturing technology areas in need of federal German investment.

The OPC Foundation (Object Linking and Embedding for Process Control) is cooperating with the key German Association, the VDMA the (German Mechanical Engineering Industry Association). In June 2016, these two parties signed an MOU to build an international standards structure utilizing the OPC UA Machine Vision Companion Specification. This will make the machine vision and robotics industry fit for Industry 4.0 and for the factory of the future, andwill help SMEs to implement robotics and machine vision software language with their products.

Policy Objectives and Challenges

A major challenge for industry and government is the definition of reference architecture and frameworks necessary for interoperability. They are also challenged with how to build confidence around new and innovative approaches to security. In April 2016, the two major international players, the International Internet Consortium (IIC) and the German-led Industrie 4.0, agreed to collaborate for the benefit of interoperability of systems from the different domains. In Germany are the relevant associations, such as the ZVEI (The German Association for Electrical & Electronic Industry), VDMA (German Engineering Association), BitCOM (Federal Assocaition for Information Technology, Telecommunications and New Media) are driving the discussions

Leading Sub-Sectors

Advanced Manufacturing is believed to provide best export potential for industries such as Machine Tools/General Industrial Equipment, Robotics, Information and Communication Technology, Process Control Instrumentation and Electronics Industry Production Equipment, Additive Manufacturing and Advanced Materials for the next five to ten years. Through 2025, 84 percent of German manufacturers plan to invest EUR 100 billion plus per year into smart manufacturing technologies, but only 20 percent are already spending money on investments.

Robotics and Automation:

Germany is the fifth largest robot market in the world with about 20,000 industrial robots utilized in various industries each year. The main industries are automotive, electrical and electronics, metal working, chemical rubber and plastics, and the food industry. Please note that the data includes the industrial/commercial use of robotics only. The Robotics + Automation Association in Germany represents three industry segments: Robotics, Machine Vision and Integrated Assembly Solutions with combined annual sales of EUR 14 billion in 2017. Sales are expected to grow by 9 percent in 2018 to EUR 15.4 billion. Future topics are the utilization of artificial intelligence, human-robot collaboration, digital transformation in production, and service robotics in the commercial industry.

Additive Manufacturing and Advanced Materials:

Germany is home to the Europe’s largest advanced materials market. The strong growth of its high-tech industries requires appropriate materials. Depending on the material, growth rates can amount to 10 -15 percent annually. Among the materials sectors with the strongest market potential are composites and particularly additive manufacturing. Formnext, the major European additive manufacturing trade fair has just reached a new space record for the upcoming show in November 2018. Traditional materials such as chemicals and plastics are expected to reach more moderate but still good growth rates in 2018, plastics: 3-4 percent. In 2017, this market segment achieved annual sales of EUR 61 billion. In 2019, the triennial K’ Show will take place in Dusseldorf, October 16-23. The German chemicals industry is expected to grow an estimated at 5.9 percent in 2018, to approximately EUR 204 billion.

German Machine Tool and Precision Tool Market

The ongoing boom in almost all user industries worldwide had already driven production output to more than EUR 16 billion in 2017. Imports from the USA have been about EUR 120 million for machines and equipment. The capacity utilization was running at about 93 percent, according the German machine tool association. The German market consumption is about EUR 8 billion. The figures for German precision tools precision tools industry - whose most important partner is the USA with more than EUR 500 million imports - are similar with generated increase of 7 percent in 2017 up to EUR 10 billion, and expected production of EUR 11.1 billion in 2018.

Sensors and Instruments:

Sensors and instruments are another growth subsector. In 2015, sales were EUR 125 million, making it the fourth largest purchaser of U.S.-made products in the category. Between 2009 and 2015, sales of these products grew by 8.6 percent annually (CAGR). Major competitors include SICK AG, Siemens Sensor Systems, Bosch Sensortec, and Beckhoff Automation. The German industry expects further growth opportunity in 2018, particularly through the industrial automation/internet of things.

Opportunities

Germany’s advanced manufacturing companies usually require in-country partners. These partners could be agents and distributors selling to OEMs as final consumer or OEMs as distributor for an exclusively built component. A facility in-country and a membership in one of the German associations is recommended, and many often system integrators are the ideal partner for automation and internet of things products and services.

Challenges & Barriers

Germany maintains a highly open and transparent business environment, and there are few formal market access barriers. Probably the greatest challenge to entering the German market is conforming with German electro-technical standards and conformity assessment procedures, which differ markedly from those in the United States. For most electrical components such as plugs and cables, U.S. and European standards are nonaligned. In practice, this means that for most U.S. machinery makers, the additional labor required to assemble machinery for the German market will affect pricing, inflating the price paid by the customer while decreasing the cost competitiveness compared with domestic and other European-made machines. As part of the European Commission’s “Machinery Directive,” machinery sold throughout the EU is required to obtain a CE marking whenever the product is covered by specific product legislation. CE stands for “Conformité Européenne,” and it is intended to demonstrate compliance with European safety and environmental standards.

Web Resources

Trade Events

German Organizations:

U.S. Associations:

Healthcare

Overview

Germany has a long history of producing high quality medical equipment, with a particular emphasis on diagnostic imaging, precision medical instruments, dental products and optical technologies. Not only is Germany the third-largest market in the world after the United States and Japan, but it is also by far the largest European market, twice the size of the French market and three times as large as those of Italy, the United Kingdom and Spain. The German medical devices market ranks no. 1 in Commerce’s Top Market Reports.

The Healthcare/Life Sciences (HCT) industry is a priority both for the EU and Germany as reflected in the EU Fund for Regional Development (EFRE)) program 2014-2020 and the German Länder implementation and tendering of this program. Implementation will focus on smart health and aging; the German Government has established councils to pave the way for an integrated and cost-efficient healthcare system. All of this should result in increased opportunities for U.S. suppliers to participate in healthcare infrastructure development projects and partner with German and EU firms and offer export opportunities for U.S. health solutions providers.

Medical Technologies (MED) is the key sector of the HCT industry. The U.S. is home to the world’s leading medical device manufacturers, which employ more than 400,000 Americans directly and 2 million indirectly. Roughly 90 percent of the over 7,000 medical device manufacturers are often export-ready SMEs, and many of the world’s largest medical device manufacturers. Germany is Europe’s largest market for medical devices, accounting for roughly EUR 30 billion annually. Key industry drivers include the innovative strength of the sector; a solid financial basis of the industry, 80 percent of which are SMEs, and a vibrant startup scene. All major U.S. suppliers, such as GE Healthcare, Johnson&Johnson; Becton Dickinson; Stryker, Zimmer and 3M, have subsidiaries in Germany. U.S. medical device exporters continue to hold a 28-30 percent share of the German import market.

Germany has a strong healthcare system in terms of infrastructure, hospital beds and trained staff. In 2016, there were 498,796 beds in 1,951 hospitals (around 570 public hospitals, 554 non-profit and 827 private hospitals), 3,500 medical supply stores, 1,149 rehabilitation centers, 20,023 pharmacies and 102,000 doctors’ offices. Well-established infrastructure makes the healthcare industry the largest employer in Germany with currently 7.3 million employees, 16.6% of the labor market total. Another 4 million jobs depend on the healthcare sector. One out of five jobs in Germany is linked to the healthcare sector, which generates roughly EUR 500 billion, or 12% of Germany’s gross natural product; and with EUR 126.4 million, contributes 8.4 percent to Germany’s export total.

Market Entry and Best Practices

The German market for medical devices is regulated by German and European Union (EU) directives, standards, and safety regulations. Companies seeking market entry should carefully map their distribution strategy depending on their target group(s). CE marking is mandatory for selling into Europe. Entry strategies to be considered are top-down or bottom-up marketing, picking the right partners and ensuring patient- and customer-centric system solutions and support. Most medical equipment imported into Germany is either sold direct through a local subsidiary with a field sales force, through medical distributors with an established distribution network, often on a regional/territorial basis, or through appointed agents or manufacturer representatives. Local representation or market presence is essential when considering differing standards and certifications, warehousing costs, maintenance, accessibility, and local marketing/sales preferences/discussions. An agency agreement is often a cost-effective mechanism to enter the market, but under German law - even if the agent’s performance is not satisfactory - it can be difficult and costly to terminate the arrangement. A representation or distributorship agreement may be harder to arrange, but the German associate will, in fact, purchase the product to be sold, thus sharing the market risk. Licensing, partnering with large corporate partners, or buying a local firm provide alternatives in times where traditional distributors are bought up by corporates and the market increasingly consolidates. Further information is available in Commerce’s Global Markets Healthcare Team’s annual Healthcare Resource Guide.

Germany hosts the world’s largest annual HCT trade show, MEDICA, making Germany a premier marketplace for U.S. companies to reach their global partners and buyers. The U.S. HCT industry, represented by 500+ U.S. exhibitors, converge every year for the 4-day long MEDICA trade show to sell to Europe and the rest of the world.

The German Medical Equipment Market 2015-2018 (USD billion)

 

2015

2016

2017 (proj.)

2018 (proj.)

Market Size

31.5

32.8

33.8

35.1

Local Production

30.6

32.6

33.8

35.1

Imports

21.6

22.6

23.3

24.2

Exports

21.2

22.4

23.3

24.2

Imports from the U.S.

6.2

6.6

6.8

7.3

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)

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

General statistics on Germany is available https://www.destatis.de/EN/Homepage.html . This information is published by the German Federal Statistics Office.

Leading Sub-Sectors

Leading HCT sectors include: Health IT, pharmaceuticals, dental products, and biotechnology.

Health IT: Opportunities in health IT are growing in Germany, with health IT applications representing more than $280 million at present, according to Top Market Reports where it ranks no. 7. An ageing society, with significant share of chronic disease, rollout of e-health patient portals by public health plan providers, and high Internet and mobile phone penetration, make Germany a strong health IT market and offers good potential to specialty solution providers. From 2014 to 2017, revenue in m-health increased by EUR 68 million, and growth is expected to continue.

Germany has an excellent base for health IT, with over 80 percent of its workforce holding a degree and a startup-friendly environment. This makes it a very strong market for m-health and e-health products and services. The strong German medical technology clusters develop telehealth and telemedicine solutions and in cooperation with hospitals and industry, form excellency clusters for oncology, neurological disorders, and chronic disease management. The German government’s medical informatics initiative aims at improving medical R&D and patient care through innovative IT solutions for specific applications; create integrated health data centers. The multi-million-dollar funding scheme should pose excellent opportunities for U.S. solutions providers.

Pharmaceuticals: The German pharmaceuticals market was valued at USD 60.5 billion in 2017 and remains one of the most attractive worldwide over the coming years. Major growth drivers are the aging population and chronic diseases. It is regarded as a test market for other EU countries for pricing and distribution.

Medical Biotechnology: The German medical biotech market is valued at USD 1.6 billion with over 600 dedicated local players generating revenue of EUR 3.54 billion. In addition, most pharma giants such as Bayer, Merck, Boehringer and U.S. subsidiaries (Pfizer, Amgen, etc.) have their own biotech development in pre-clinical pharma, and also license in/out. There are good opportunities for US biotech startups/SMEs to seek partnerships with large pharma in Germany and incubator/accelerator partnerships.

Dental products: U.S. exports to Germany amounted to USD 112 million for dental equipment & supplies, and USD 49 million for dental laboratory products in 2017. Over 200 companies are actively exporting, with heavyweights Henry Schein, Danaher Corp. and Dentsply having major market share. Germany is Europe’s largest market for dental equipment. The 200 members of the German Dental Manufacturers Association reported annual sales of USD 6.4 billion in 2016, up 2.5 percent over previous-year levels. Similar levels are expected for 2017. 61 percent was generated by exports, up 11 percent over previous-year levels. The major U.S. dental technology supplier Henry Schein has a subsidiary in Germany and is one of the largest distributors in in the German dental market, with annual sales of more than USD 123 million and an estimated 10 percent market share. Many U.S. dental technology exporters consider the German market the “test lab” for Europe and make it the first stop for European rollout. Germany hosts the world’s largest biennial dental trade show, IDS, making Germany a premier marketplace for U.S. companies to reach their global partners and buyers. The U.S. dental industry, represented by 200+ U.S. exhibitors, converge every second year for the 4-day long IDS trade show to sell to Europe and the rest of the world.

Policy Objectives and Challenges

The Commercial Service will evaluate the broad impact of trade policies on German companies in the HCT and Life Sciences sector, with a particular focus on SMEs by working with the local MED cluster and their members and encourage a positive outlook on transatlantic trade among industry contacts we meet at events and in the context of partner search outreach. We will also organize a workshop on Compliance in Trade with a local strategic partner (1/2019). We will closely monitor impact of the EU’s new medical devices directive and its challenges for U.S. exporters to Germany.

We will follow the latest healthcare policy developments and discussions in Germany, and work with U.S. associations, such as the Advanced Medical Technology Association and Medical Device Manufacturers Association based in Washington to ensure fair access and standards interoperability for U.S. firms to the German and European markets.

Opportunities

Germany’ healthcare market offers more than just agents and distributors; it is full of different opportunities along the value supply chain route: design and research and development collaboration; strategic partnerships; equity partner and investor engagements; mergers and acquisitions; project collaboration, and other types of opportunities for SME’s to get involved with to grow business and expand in the market. For example, one of Germany’s lead healthcare companies and a U.S. medical imaging SME have recently partnered in order to advance the realm of digital imaging. Combining the resources and talents of the two entities, we will see a unique and powerful partnership that will enable cutting edge research into radiology.

The German government’s health informatics funding initiative and the German states’ initiatives on healthcare digitization offer good opportunities for U.S. firms to engage in the market. An example would be a procurement for NRW Public Hospitals re-organizing their system and reconstructing and upgrading of existing facilities. In a four-year span, U.S. companies will have the opportunity to participate in consortia or as sub-contractors.

The German Government is jump starting a “Medical Informatics” funding scheme as part of the Health Research Framework Program. In an aging society where diseases like cancer, dementia, and various cardiovascular, metabolic, and muscular ailments will become more prevalent, it is important to improve the exchange of data across different institutions and locations. The aim of the scheme is that faster diagnoses and treatments will help cut costs and help individuals receive faster and more precise care.

For more information on procurements you can get involved in, visit http://ted.europa.eu/TED/main/HomePage.do

Web Resources

Trade Events

Local Associations

BVMED

ZVEI Health Pages

Spectaris

DKGEV

BVITG

BiM

Government Links

Private provider for tender information

Government Health Plans:

International Federation of Health Plans

Association of Public Health Plan Providers

ICT

Overview

 

2015

2016

2017

2018 (Estimated)

Total Local Production

174.8

174.6

182.2

201.7

Total Exports

37.7

39.4

43.0

 

Total Imports

64.0

64.5

71.8

 

Imports from the U.S.

1.9

2.2

2.4

 

Total Market Size

201.1

199.7

211.0

 

Exchange Rates

1.1095

1.1069

1.1297

1.23

(in Billion USD | total market size = (total local production + imports) – exports)

Germany has one of the largest ICT markets in the world and the single largest software market in Europe. There is a strong demand for U.S. products and services across all segments. Key players such as Microsoft, IBM, Oracle and SAP have large market shares. At the same time, there are many highly specialized SME’s active in the market. According to the German Association for Information Technology, BITKOM, the subsector market sizes in 2017 (in USD billion) were: IT-hardware 27.3, software 25.9, IT-services 44.0, consumer electronics 10.6, telecommunication devices 11.8 and telecommunication infrastructure 7.4.

Germany hosts several key ICT trade shows, making it a premier marketplace for U.S. companies to reach global partners and buyers. U.S. exhibitors have frequently found buyers from Europe, Middle East, Africa, Asia and Latin America at CEBIT, Gamescom, ITA Berlin, or IT-SA.

Computers, electronics and visual products was the largest U.S. ICT export sector to Germany in 2016 with USD 8.5 billion of exports. In 2017, circuits and electronically integrated "IC circuits" worth USD 2.1 billion, automatic data processing machines worth USD 1.0 billion and telecommunication devices worth USD 0.8 billion were exported from the U.S. to Germany.

ICT is a German Government priority. Germany’s economic and innovation policy focuses on digital infrastructure, digital economy, digital workplaces, innovative public administration, digital environments in society, education, research, science, culture and media, security, protection and confidence for society and business, and European and international dimension of the Digital Agenda.

Policy Objectives and challenges

Policy objectives include the digitization of the German economy and the expansion of the German broadband network across the country. Challenges include the impact of the EU Digital Single Market, the General Data Protection Regulation (GDPR), the E-privacy Regulation on U.S. ICT companies, and the latest cybersecurity policy developments.

The U.S. Commercial Service aims to follow these developments and continue to work with associations and multipliers such as BMWi (German Federal Economics Ministry), BITKOM (Association for Information Technology), BDI (Federation of German Industries), GTAI (Germany Trade and Investment) and AmCham (American Chamber of Commerce).

Leading Sub-Sectors

Key segments and topics of interest include Big Data, IT Security, Internet of Things, Health IT, Cloud Computing, Business IT: ERP, Data Centers, Smart Social Business Platforms, Integrated Systems, Virtual & Augmented Reality and Digital Factory.

Major subsectors in 2017 for U.S. exports were computers (USD 589 million), computer accessories (USD 682 million), and telecom equipment (USD1.2 billion.).

Opportunities

  • Big Data (hardware, infrastructure, services, database and analytics technologies)
  • IT Security
  • Health IT
  • Artificial Intelligence
  • Smart Social Business Platforms
  • Enterprise Resource Planning (industry-specific ERP solutions)

Web Resources

Trade events

Gamescom

Interactive games and entertainment

Cologne, August 21-25, 2018

IFA Berlin

Consumer electronics and home appliances

Berlin, September 31 - Aug 5, 2018

it-sa

IT security: cloud, mobile & cyber security, data & network security

Nuremberg, October 9-11, 2018

ISE-Europe

AV and integrated system

Amsterdam, February 5-8, 2019

InfoSecurity Europe

Information security

London, June 4-6, 2019

CEBIT

IT software, hardware & telecommunication technologies

Hanover, June 24-28, 2019

Trade Associations

Bitkom, Federal Association for Information Technology, Telecommunication and New Media

Bitmi, Federal Association for Medium-Sized IT Businesses

Teletrust, IT Security Association Germany

ECO, Association of the Internet Industry

NIFIS, National Initiative for Information- and Internet-Security

German Games Industry Association, Organization that represents the German computer and video games industry

VATM, Association of Telecommunication and Value-Added Service Providers

Government Entities

Federal Office for Information Security, National cyber security authority in Germany

German Regulatory Authority, Ensures compliance with the Telecommunications Act (TKG), Postal Act (PostG) and Energy Act (EnWG) and their respective ordinances

Trade Publications

Computer Woche, Weekly newspaper for CIOs and IT-Managers about computers and information technology

CRN, Computer Reseller News magazine,

Channel Partner, Portal for Technology trends, Channel-News and strategic advice for computer retailers, ICT dealers and distributors

EITO, The European IT Observatory, offering reports on the ICT and Consumer Electronics markets in Europe and Internationally

Smart Cities

Overview

Cities consume two-thirds of the world’s major resources. By the year 2025, 34 cities worldwide will have a population of more than 10 million people. With 75 percent of Europeans and 80 percent of Americans living in cities it is no surprise that the U.S. and Europe, and especially Germany, are spearheading “smart cities” projects with investments, research and technologies.

Increased demand on city resources – including the demand for municipal water, the reliability of energy and power, the quality of the air, and the flow of traffic – will impact the quality of living.

Germany is actively positioning itself as a lead provider of complete smart technology solutions. In the current 2014-2019 financial framework alone, USD 23.6 billion is available for German cities and municipalities. Additionally, to this, there is the multi-billion Horizon 2020 funds, which is meant to support regional innovation.

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Best Prospects for U.S. exports

Building and construction: energy-efficient buildings and modernization, smart homes

Energy: expansion of renewable energy generation, smart grids and distribution, and storage systems

Environmental technology: new solutions for waste recycling and waste-water treatment

Management: Planning and organization, models for financing and cooperation in administration, public facilities and the municipal economy, security for critical infrastructure

Ports: fully automated port where all devices are connected via IoT

Transportation/Logistics: investment in public transport and smart traffic systems, e-mobility

Policy Objectives and Challenges

The major concern is cyber attacks. Unfortunately, most Smart Cities vendors are either unaware of cybersecurity or lack the personnel with the technical know-how on how to address these issues. Smart Cities need to establish operational centers that are specific not only for purposes of sharing information but also for the counter-checking of vulnerabilities across functions and to establish a contingency response.

Selected Opportunities in the Energy and Transportation sector

Energy: Infrastructure projects grid development

  • Ultra-High Grid development, existing grid, 4700 to 5200 miles, est. $6.6 billion, 2015-2025
  • Offshore grid development 1400 to 2300 miles, 7 to 11.4 GW, est. $4.8 billion, 2018-2030
  • Smart meter roll-out, est. $1.4 to 2.9 billion, 2018-2028

Transportation

  • Autonomous driving, Driver Assistance & Safety, electrification, digital services & sales, advanced manufacturing, Multi- billion USD, 2017-2030
  • Electric Vehicle Charging Infrastructure, private and public, est. $300 million, 2017-2025

Trade Events

  • Building and Construction:

o ISH, Frankfurt, March 11-15, 2019

o Chillventa, Nuremberg, Oct 16-18, 2018

  • Energy:

o PowerGen Europe, Paris, Nov 12-14, 2019

o E-world of energy and water, Essen, Feb 5-7, 2019

  • Environmental technology:

o Wasser Berlin, Berlin, March 26-28, 2019 (digitalization in the water industry)

o IFAT Munich, Munich, May 4-8, 2020

  • Management:

o CeBIT Hannover, Hannover, June 24-28, 2019

o Smart City Expo World Congress Barcelona, November 13-15, 2018

  • Transportation/Logistics

o IAA Frankfurt, Frankfurt, September 12-22, 2019

  • Ports:

o SMM Hamburg, Hamburg, September 4-7, 2018 (smart ports, technology for fully automated ports)

Web Resources

dena German Energy Agency

GTAI Germany Trade&Invest

German Renewable Energy Federation

German Partnership for Sustainable Mobility

Smart Cities Council

Travel and Tourism

Overview

Travel and tourism is the second-largest export industry in the United States and the largest services sector export. Every 40 visitors to the U.S. will create one new U.S job. For 2018, the National Tourism and Travel Organization (NNTO) estimates a total of 78 million international visitors to the United States and 2.1 million visitors from Germany, accounting for 2.7 percent of international arrivals. Germany is ranked 6th worldwide in terms of visitors per year making it a profoundly important market for the United States.
 
The majority of German visitors to the United States book their travel through German tour operators and/or travel agencies, thus availing of the protection of German consumer travel protection laws safeguarding their holiday investment. German visitors plan ahead and book early. Typically, they stay longer and spend more money than domestic visitors.

The U.S. Travel Association estimates that spending by international travelers to the United States in 2016 reached USD 245 billion and supported directly or indirectly 1.2 million of the 8.8 million American jobs in the tourism industry. (This includes passenger fares on U.S. carriers by international travelers to the United States.) In 2016, German visitors to the United States spent a total of USD 8.1 billion (ranked 10th worldwide and 2nd after the UK in Europe).

Promotion

Germany hosts the world’s largest travel show, ITB, making Germany a premier marketplace for U.S. tourism companies to reach their global partners and buyers. VUSA Germany (Visit USA Committee Germany e.V.), together with Brand USA, will promote the Visit the USA brand at 3 major consumer travel shows, 3 trade events, 2 media events, approximately 12 webinars, several networking events and online and in print. In addition, Brand USA will conduct familiarization trips to the U.S. for travel agents, promote their giant screen films on the U.S. National Park Service (as part of its great outdoors theme) and America’s Musical Journeys (as part of its music cultural theme), support culinary tourism events and continue its cooperative advertising campaign with major tour operators. The goal is to attract 2.1 million German visitors to the United States in 2018.

Policy Objectives and Challenges

Policies in the German and European markets for travel to the United States which could potentially cause challenges are  flight access, visa waiver, ESTA, immigration issues, and drivers’ license issues.

The Commerial Service will continue to follow the latest policy developments and discussions in Germany led by trade organizations such as DRV (German Travel Agents and Tour Operator Association) and VUSA (Visit USA Committee Germany e.V.) and monitor travel related media coverage and report these back to NTTO so that U.S. clients are better positioned to maintain the 2.21 million visitor goal from Germany.

Trade Events

Trade events featuring the Visit USA Pavilion in 2018-2019

TC Leipzig

East Germany’s largest consumer travel show focusing on tourism ad caravaning, 60,000 visitors in 2017.

Dates: November 21-25, 2018


CMT Stuttgart

Germany’s largest and longest travel consumer show, 265,000 visitors in 2018.

Dates: Janaury 12-20, 2019

f.re.e Munich

Bavaria’s largest travel consumer show focusing on tourism and leisure, 135,000 visitors in 2018.

Dates: February 20-24, 2019

ITB Berlin

Germany and one of the world’s largest travel trade shows, new focus on medical tourism, with 200+ exhibitors in the Brand USA Pavilion. 170,000 total visitors in 2018, with 110,000 trade visitors and 60,000 consumers.

Dates: March 6-10, 2019

IMEX Frankfurt

Worldwide exhibition for incentive travel, meetings and events, 14,055 visitors in 2018.

Dates: May 21-23, 2019

Travel Expo & FVW Congress Cologne (B2B fair)

B2B exhibition event for tourism, business travel and technology organized by Germany’s largest travel trade publication, fvw. The congress had 750 visitors, and the travel expo had 1,400 visitors in 2017.

Dates: September 18-19, 2018

Web Resources

Entry and visa regulations information:

U.S. Embassy and Consulates in Germany

DHS

Other:

Official site of the Visit USA Committee Germany

Brand USA’s consumer website in German

Consumer travel website on United States in German

German landing page for Recreation.Gov


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