What is the Biggest Industry in Germany?
The world-famous production and business location Germany is consistently at the forefront of the industry. From the historically renowned automotive industry to engineering and chemistry to digital innovation.
Germany continues to evolve into the digital age and embraces new industries. With world-class infrastructure, a flexible and skilled workforce, and an innovation-driven national strategy, Germany is a country where everyone can invest.
Below you will find the top 10 largest industries and sectors from the Datantify database:
1. Clubs
The club industry includes associations, sports clubs, organizations that arise from social initiatives, development and aid clubs, as well as clubs associating a group of people interested in some field, e.g. a computer club, etc.
The current number of clubs in the Datantify database: 82,948
2. Real Estate Agencies
What makes Germany one of the biggest players in the real estate market is being the most populous country in Europe. More than half of Germans live in apartments, and the homeownership rate in Germany is just over 50%. While the industry has also benefited from the boom in the real estate market in most large German cities in recent years, large tenants are gaining importance in these cities, and in most cases they manage their properties themselves, thus depriving the industry of potential revenues. Despite the consequences of the coronavirus crisis, which are more likely to affect commercial property management revenues, industry revenues are expected to increase.
The current number of real estate agencies in the Datantify database: 77,258
3. Specialist Medical Practices – Doctors
The industry includes specialists in various fields. Treatment services provided by specialist offices have a stable demand. However, industry revenues declined in the five years to 2021. A further decline in revenues is expected this year due to the pandemic crisis. The number of specialist apprenticeships has decreased over the same period. This is demonstrated by the decreasing number of private practice owners.
The current number of specialists in the Datantify database: 76,235
4. Insurance Agencies
This industry is currently in a difficult situation. Demand for long-term insurance products, such as life insurance and occupational pensions, has declined due to uncertain and tense capital markets. Some companies have expanded their online platforms, allowing contracts to be signed in seconds.
The current number of insurance agencies in this industry in the Datantify database: 67,328
5. Hairdressing Salons
This industry is very fragmented in Germany as it is made up mostly of small businesses. Each of them is responsible for a small fraction of the industry’s sales. Rising personnel costs and rising price pressures, revenues in the hairdressing industry declined. Cheap hairdressers tend to be larger chains and can only exist by belonging to the franchise system in the market. The hairdressing salon market is already saturated, but there is even greater potential for growth in the future as male customers become more and more the target group.
The current number of hairdressing salons in the Datantify database: 60,416
6. Associations or Organizations
All associations in Germany are known as “Verein”. The list of associations or organizations is long and covers roughly areas such as sports clubs, civic initiatives, kindergartens and schools organized by parents, all kinds of hobby clubs, environmental or human rights organizations, self-help groups, and remembrance committees. The visibility of the association is influenced by the letters: e. V. added to the name of the association. This indicates that the association is registered.
The current number of associations or organizations in the Datantify database: 54,992
7. Restaurants
The industry is becoming increasingly important to German consumers, as evidenced by the fact that restaurant sales are growing faster than revenues. Full service restaurant revenues will grow. The rate of increase in the revenues of self-service restaurants is both a positive and a negative indicator. This increase will be underlined by a composite annual increase in the Consumer Confidence Index. Restaurant-like companies such as coffee shops are excluded from the industry, as are catering services that operate under a license.
The current number of restaurants in the Datantify database: 54,472
8. Lawyers
This industry includes the offices of law practitioners known as barristers or solicitors. They provide expert knowledge in many areas or specific areas of law. These are often areas that include corporate, family and property, tax, criminal and real estate law.
The current number of lawyers in the Datantify database: 52,375
9. Architects
The activities of this industry include the entire activities of architectural offices in the areas of local, regional and state planning, building construction, interior design services, and the practice of professional architects. Over the past five years, the positive economic conditions in Germany, combined with low interest rates and growth in construction, have benefited the industry. Further demand for services is expected, as well as an increase in the number of graduates of architectural and related faculties.
The current number of architects and architects’ offices in the Datantify database: 51,424
10. Dentists
This industry includes dental practice and activities in the fields of dentistry, orthodontics and dental surgery. The industry does not cover inpatient treatment in hospitals or the production of dental prostheses in laboratories. It also includes pediatric and endodontic dental activities along with oral pathology. Over the next five years, industry growth is expected to pick up somewhat. Increasing digitization is also likely to transform the dental practice industry in the coming years.
The current number of dentists in the Datantify database: 47,764
Conclusion
The German economy is the fifth largest in the world. It produces one fifth of the European Union’s GDP. It is a country recognized as the largest European trade partner of the United States. It has the sixth largest US export market. The “social market economy” of Germany is largely market driven, but largely governed by government and extensive welfare programs.
With a population of 83.24 million, Germany is the largest consumer market in the EU. The world’s largest trade events, such as the Hannover Fair, MEDICA, Automechanika and the ITB Tourism Show, are hosting a huge volume of trade in Germany. All this means that many American companies are trying to build their expansion strategies in Germany as the center of the European Union.
Total number of companies located in Germany from the Datantify database: 5,243,328
The full database of Industries and their companies in Germany can be found here.