Mechanical engineering in Germany – statistics and facts

Konrad Wolfenstein

6 years ago

Mechanical engineering is undergoing a transformation. Digital transformation, IoT, Industry 4.0 and AI towards the Smart Factory are changing our perception of gear-driven and oil-smeared mechanical engineering.

Mechanical engineering in Germany – Image: Ase|Shutterstock.com

Mechanical engineering, with its leading global market position, is one of the largest industrial sectors in Germany. The German Engineering Federation (VDMA), headquartered in Frankfurt am Main, is the most important trade association for the mechanical engineering industry.

Classification of German Mechanical Engineering:
On the international market, Germany is one of the most important mechanical engineering countries. Only China and the USA recently generated higher sales in the sector. After a decline during the financial crisis of 2008/2009, sales in German mechanical engineering have increased steadily again – most recently reaching around 229 billion euros. Within the mechanical engineering sector, the machine tool, drive technology, and material handling equipment sectors are the most important in terms of annual sales.

Regarding developments in international trade, the mechanical engineering sector is strongly export-oriented. Germany's export ratio has fluctuated between 74 and 80 percent in recent years. Among the most important countries for German machinery exports are the USA, China, and France.

Companies and Investments in the Sector:
The German mechanical engineering sector comprises nearly 6,700 companies. In total, over one million people are employed in the German mechanical engineering industry. Most of these employees work in the areas of machine tools, drive technology, and material handling equipment. Among the largest German mechanical engineering companies recently were Siemens, KION, Bosch, and thyssenkrupp.

Investments in mechanical engineering in Germany have increased significantly in recent years. Around €8.3 billion was invested in the sector in 2019. A large portion of these investments flows annually into research and development, including the further development of innovative mechanical engineering solutions.