How Germany’s industry is shaping the future

Germany’s economic strength is based not only on its SMEs SMEs The German economy is characterized first and foremost by small and medium-sized enterprises as well as the self-employed and the independent professions. Some 99.4 percent of all companies are small and medium-sized enterprises. These are firms with annual sales of below EUR 50 million and a… Read more › , but also on the efficiency and innovative capacity of its industry. Employing around 780,000 people, the automotive indus­try in particular is seen as a prime example of “made in Germany“.

These six major carmakers from Germany are driving the transition towards green mobility worldwide:

• Volkswagen
• Mercedes-Benz
• BMW
• Audi
• Opel (Stellantis)
• Porsche

In order to stay competitive, German businesses are investing billions in research and development (R&D). Electric motors, digital networks and assisted or even autonomous driving are megatrends in automotive transportation. Roughly 70 percent of cars made by German manufacturers are produced abroad.

Traditionally strong branches of the German economy also include the global corporations of the chemicals industry, as well as plant and mechanical engineering firms. Established in 1865 and headquartered in Ludwigshafen, BASF employs a good 108,000 people at its 234 production sites in 93 countries, making it the world’s largest chemicals company.

The leading German plant and mechanical engineering firm is also a global leader in the key sector of electrical engineering and electronics: Siemens is a global player operating in more than 190 countries that offers highly innovative applied solutions - from mobility to renewable energies.

The leading economic centres in Germany are its big metropolitan regions, which include:

• the Ruhr region
• the greater Munich and Stuttgart areas (high tech, automotive engineering)
• Rhine-Neckar (chemicals, IT)
• Frankfurt am Main (finance)
• Nuremberg (industry, services)
• Cologne (media)
• Hamburg Hamburg In the city and state of Hamburg it is the port that is the power-house of the economy, though with Airbus, Otto Versand and Beiersdorf also located here, this is not immediately apparent. The tanker terminals, mean that almost all the major oil-refining companies are represented in the port. For… Read more › (port, aircraft construction)

In the east of Germany, leading high-tech centres have been set up in the following “flagship regions”:

• Dresden
• Jena
• Leipzig
• Leuna
• Berlin Berlin Once a year, during the Berlinale film festival, the world of the silver screen focuses its attention on Berlin. And the city’s inhabitants are used to global interest. After all, the people of Berlin have lived in a capital city since 1458. However, there is also a shady side to the city’s history… Read more › - Brandenburg Brandenburg Brandenburg surrounds the capital city of Berlin and benefits from the latter’s “gin and martini belt”. However, with its numerous lakes and forests it also has several trump cards of its own. With the Hohenzollern castles, and in particular Sanssouci Castle, which is included in the UNESCO World… Read more ›

The list of Germany’s biggest companies - in terms of turnover - was headed in 2025 by firms in the automotive and retail sectors:

• 1st place: Volkswagen
• 2nd place: Schwarz Group (Lidl/Kaufland)
• 3rd place: BMW
• 4th place: Mercedes-Benz

Germany’s standing as a location for industry is also characterised to a large extent by the service sector. 80 percent of all firms are active in this sector, generating almost 70 percent of GDP and providing three quarters of the country’s jobs – nearly 35 million in all.

Germany is one of the world’s leading industrial nations. German businesses are highly specialised developers of complex goods, especially capital goods and innov­ative production technologies. The German economy’s ability to innovate is considered the driving force behind the country’s economic strength. Intensive research and development (R&D) activity is yielding very positive results. The High-Tech Agenda Germany is generating crucial impetus in this context: concrete roadmaps and flagship projects aim to accelerate the transfer of research into real-world application. This process is complemented by an AI Robotics Booster, a funding package designed to make Germany internationally competitive in the area of AI-based robotics. New financing instruments are also available to strengthen the ties between research, development and application.

In 2024, around 137.1 billion euros was spent on R&D in Germany, equivalent to 3.17 percent of GDP, and well above the OECD average of 2.7 percent.