The German Machinery & Equipment Industry 2013 …...17.09.2013 | Market leadership powered by German engineering 4 The German M&E Market –Facts & Figures Worldwide machinery turnover

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The German Machinery & Equipment Industry 2013

Market leadership powered by German engineering

Jérôme Hull

Manager, Mechanical and Electronical Technologies

Germany Trade & Invest GmbH

September 2013, EMO Hannover, Germany

17.09.2013 | www.gtai.com 2Market leadership powered by German engineering

1. The German M&E Market – Facts & Figures

2. Business Opportunities in the M&E Market – Industrie 4.0

3. The Advantages of Germany as an Investment Location

4. About Germany Trade and Invest (GTAI)

Agenda


The German M&E Market – Facts & Figures

The Germany M&E industry is back on track, with expected record turnover

Source: VDMA (2012)

After having seen a strong sales decline in 2009, the

industry recovered in 2010 with a turnover plus of 6 %.

2011 a growth rate of about 12 %, 2012 turnover EUR

207 billion, expecting record turnover in 2013.

Germany‘s largest industry by level of activity, with more

than 6,000 companies and about 970,000 employees.

Germany’s 16.5 % world trade share of machinery,

awards it consecutively the title “export world

champion”.

Overall Annual R&D expenditures is at over EUR 13.2

billion - one of the most innovative industries in Germany

– companies register 28 % of the world’s mechanical

engineering patents.

Facts about the German M&E Industry

Annual Turnover of M&E Industry in

Germany (in EUR billion)

133143 151

167

190208

161173

201 207217

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013



Worldwide machinery turnover – top 10 countries (2011)

Source: VDMA (2012), (*2011)

4

1

3

2

5

7

8

ChinaEUR 563 bn

(+15%)

JapanEUR 292 bn

(+12%)

6South Korea

EUR 65 bn(+8%)

GermanyEUR 230 bn

(+14%)

USAEUR 276 bn

(+7%)

ItalyEUR 107 bn

(+8%)

FranceEUR 49 bn

(7%)

BrasilEUR 38 bn*

IndiaEUR 40 bn*

Great BritainEUR 43 bn(+10%)

10

9



Germany is Export World Champion in the M&E Industry

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Power transmission engineering

Materials handling technology

Construction equipm. and building materials machinery

Air-handling technology

Machine tools

Food processing machinery and packaging machinery

Agricultural machinery

Valves and fittings

Precision Tools

Compressors, sompressed ait and vacuum techn.

Export volume in EUR billion

The Global Market Share of the 10 largest M&E Sectors in Germany 2012

(Total export volume, world export share, world market position)

Source: VDMA (2012), GTAI Research (2013)

21,7% (1)

20,4% (1)

10,5% (3)

11,7% (2)

18,1% (2)

21,8% (2)

17,7% (1)

13,7% (2)

15,4% (1)

16,0% (1)






Agenda


Business Opportunities – Industrie 4.0

The four stages of Industrial Revolution – from centralized

mechanization processes to integrated value-added chains

Source: DFIK 2013

Mechanisation Electrification Automatisation Integration


The vision behind the smart factory concept – Industrie 4.0

Cyber-Physical Systems (CPS):

machines, storage, production

facilities etc. exchange information,

trigger actions and independently

control each other. Industrial

processes become more vertically

integrated and can be managed more

efficiently and flexible

Products in „Smart Factories“ are

always traceable. Operational and

embedded production processes are

horizontally linked and controllable in

real time – from order to supply

Continuous engineering over the

whole life cycle becomes possible.

• Within the High-Tech Strategy

2020 Action Plan, Industrie 4.0 has

received special attention in realizing

current innovation policy objectives:

€ 200 Mio subventions

What is Industry 4.0? What are the objectives of Industry 4.0?

Business Opportunities – Industrie 4.0

Self-organizing, Adaptive Logistics

Networked Production

Customer-Integrated Engineering

Resilient Factory

Technology Marketplace

Intelligent Maintenance

Source: Acatech2013; Industrie 4.0 Platform http://www.bmbf.de/pubRD/Umsetzungsempfehlungen_Industrie_4.0_final_2012-10-02.pdf

http://www.bmbf.de/pubRD/Umsetzungsempfehlungen_Industrie_4.0_final_2012-10-02.pdf

http://www.iwb.tum.de/Institut+f%C3%BCr+Werkzeugmaschinen+und+Betriebswissenschaften+(iwb).html

http://www.vdma.org/

http://www.bitkom.org/Default.aspx






Agenda


Advantages of Germany as an Investment Location

Leading Economy

Global Player

High Productivity

Excellent Workforce

Power of Innovation

First-Class Infrastructure

Inviting Incentives

Competitive TaxConditions

Secure InvestmentEnvironment

Quality of Life 10

8

6

4

2

9

7

3

5

1



Source: The German Federal Environment Ministry Source: VDMA 2012

GDP of G8-Countries by Sector

(2012, in %)

Development of Industrial production

sales in selected countries (2012)

Germany’s share of GDP from industrial production is comparatively

high, making Germany the largest manufacturer in Europe.

Note: *refers to EU-28; Source: IMD 2012, Eurostat 2013

19,0

19,3

21,7

24,2

28,7

30,1

30,5

36,0

79,0

79,6

77,0

73,8

69,3

68,3

68,5

60,1

0 50 100

France

USA

United Kingdom*

Italy

Canada

Japan*

Germany

Russia

Agriculture Industry Services

*2011 data



Germany is a major global R&D player. Germany’s federal states R&D

expenditures correspond with that of other European countries.

Source: VDMA (2013); Note: For 2012 only forecasts available; Source: OECD 2013 according to OECD, UNESCO 2012 (right)

Global Top 10 - R&D Expenditures

(2011, in EUR bn)

19,7

20,4

21,7

27,3

31,0

44,9

73,6

96,6

128,5

298,3

0,0 100,0 200,0 300,0 400,0

Italy

Australia*

Canada

Korea*

United Kingdom

France

Germany

China

Japan*

USA

Global Top 10 - R&D Expenditures

(2011, in EUR bn)

German Machinery & Equipment Innovation

Expenditures 2006-2012 (in EUR bn)

8,1 8,8 9,6 8,8 9,1 9,6

12,8

3,1

3,3

4.0

2,7 2,6

3,1

5,8 5,66.0 6,3

5,6 5,4

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010 2011 2012

investment-related innovation expenditures

ongoing innovation expenditures

percentage of innovation expenditures to turnover



Share of High-Tech Industries of Gross Value Added (in %, 2010)1

3,9

2,2

1,6

1,1

3,4

3,0

0,70,6

1,8

0,9

0,50,4

1,8

1,21,1

0,9

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

Germany Japan EU-14 USA

Machinery Automotive Electrical Equipment Chemicals

Germany’s high-tech industries like machinery, automotive, chemicals

and electrical equipment perform outstandingly strong.

Source: German Institute of Economic Research (DIW) 2013; Note: 1High-tech industries are characterized by high internal R&D expenditures of between 2.5%-7%

of the average OECD turnover; Cutting-edge technologies show an internal R&D intensity of more than 7% of the average OECD turnover



R&D Excellence // Germany’s top innovation clusters - Kompetenznetze

Universities, research centers and companies

establish interdependent relations with access to

technology and supplier networks, creating

innovative value chains.

Collaboration between industry and research is

improved and foreign investors can find information

and project partners for R&D.

The Clusterplattform Deutschland provides

information on cluster policy measures, as well as on

upcoming events, and essentially serves to facilitate

access to the individual initiatives. It also encourages

a mutual and intensive exchange of information and

experience relating to the measures, their

development, and impact.

Selected M&E industry-related innovation

clusters in Germany

Source: Fraunhofer Innovation Clusters, GO-CLUSTER Initiative

http://www.clusterplattform.de/en






Agenda


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Federal Republic of Germany

About Germany Trade & Invest (GTAI)

Investment Attraction

Location PromotionExport Promotion

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Federal Government

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Thank you for your Attention!

For further information, please contact us:

© 2012 Germany Trade and Invest GmbH All information provided by Germany Trade and Invest has been put together with the utmost care. However we assume no liability for the accuracy of the information provided.

Mr. Stefan Di Bitonto

Manager

Transportation Technologies

T. +49 30 200 099 401

[email protected]

Ms. Peggy Görlitz

Senior Manager

Machinery & Equipment

T. +49 30 200 099 602

[email protected]

Beijing Office

Mr. Markus Hempel

China Representative

Beijing, China

T. +86 10 6539 6725

F. +86 10 6590 6167

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Senior Manager

Transportation Technologies

T. +49 30 200 099 405

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Mr. Emilio Brahmst

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F. +1 312 377 6134

[email protected]

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Director

Mechanical & Electronic Technologies

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[email protected]

North America

Europe

Asia-Pacific

Tokyo Office

Mr. Iwami Asakawa

Japan Representative

Tokyo, Japan

T. +81 3 5275 2072

F. +81 3 5275 2012

[email protected]

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Mr. Claus Habermeier

Director

New York, USA

T: +1 212 584 9715

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Manager

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[email protected]

San Francisco Office

Ms. Angelika Geiger

Director

San Francisco, USA

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Mr. Jonathan Schoo

Manager

Electronics & Microtechnology

T. +49 30 200 099 430

[email protected]

Mr. Jérôme Hull

Manager

Machinery & Equipment

T. +49 30 200 099 406

[email protected]

Mumbai Office

Ms. Asha-Maria Sharma

India Representative

Mumbai, India

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F. +91 22 6665 2179

[email protected]

Dr. Rainer Müller

Senior Manager

Applied Sciences & Technology Transfer

T. +49 30 200 099 410

[email protected]

Documents

The German Machinery & Equipment Industry 2013 …...17.09.2013 | Market leadership powered by German engineering 4 The German M&E Market –Facts & Figures Worldwide machinery turnover