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Basic Metals Manufacturing in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: September 2024 WZ C24.00DE

Revenue

€136.6bn

2024

€136.6bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

245k

Businesses

880

Wages

€XX.Xbn

Basic Metals Manufacturing in Germany industry analysis

The metal production and processing sector occupies a central position in the German economy, as it supplies many downstream sectors of the manufacturing industry with metal products and thus forms the first stage in the value chain of many industries. Between 2019 and 2024, turnover in the sector grew by an average of 2.2% per year. This development was driven in particular by strong sales growth in 2021 and 2022, which was due to high demand from the manufacturing and construction sectors as well as price increases for many metals such as steel, aluminium, copper and silver. In contrast, trade tensions between the European Union, the USA and China, the rise in energy prices and the coronavirus pandemic in 2020 had a negative impact on the German metals sector over the past five years.In 2024, turnover in the sector is expected to fall by 6.4% to 136.6 billion euros. This is likely to be due in particular to weak demand from the construction sector and the expected decline in global market prices for many metals. Competition in this sector is very intense. Metal producers are exposed to fierce international price competition and high substitution pressure from materials such as plastics. In addition, metal producers must constantly develop new alloys in order to be able to supply their customers with products with specific properties that meet their requirements. This in turn requires broad expertise and high investment in research and development.Turnover in the metal sector is expected to fall by an average of 2.1% over the next five years and amount to 122.9 billion euros in 2029. For reasons of fuel efficiency, many customer industries such as the automotive industry are likely to increasingly try to replace steel with lighter materials such as aluminium in the coming years. The rise of electromobility and the increasing digitalisation of the economy and society are likely to lead to higher demand for copper. In order to reduce their dependence on foreign suppliers, German metal producers are likely to invest heavily in expanding their recycling capacities. To comply with increasingly stringent environmental regulations, metal producers and processors will have to invest heavily in new machinery, technical equipment and research and development in the coming years. This is likely to result in further market consolidation.

Trends and Insights

  • The high energy prices in Germany are a burden on the sector. Large amounts of energy are required for the production and processing of metals. The high energy prices in Germany are therefore a competitive disadvantage.
  • Roheisen, steel and ferroalloys are the product group with the highest turnover in metal production and processing. Their share of sector turnover increased in the last five-year period.
  • The central region is home to the highest proportion of companies in the sector. The Ruhr region in particular is a historically important location for metal production, with rich deposits of iron ore.
  • In many cases, the products manufactured in the sector offer little potential for differentiation. This intensifies price competition and also weakens the negotiating position of companies vis-à-vis the customer industries.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.2 % over the past five years, to reach an estimated €136.6bn in 2024.

Trends and Insights

The high energy prices in Germany are affecting the competitiveness of German metal producers

  • The production and processing of metals requires several steps such as refining, melting and moulding. Large amounts of energy, such as electricity and gas, are required for this process.
  • Additional trends and insights available with purchase
Basic Metals Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

The trend towards lightweight construction is likely to have a negative impact on steel producers' sales in the coming years

  • The trend towards lightweight construction is having a significant impact on the demand for steel and aluminium. Lightweighting is the use of materials that reduce the weight of products while maintaining or even improving their structural integrity and performance.

Biggest companies in the Basic Metals Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Thyssenkrupp Steel Europe AG
10,528.0
Aurubis AG
7,269.0
ArcelorMittal S. A. (Deutschland)
6,404.9

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Basic Metals Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Copper, aluminium, lead, zinc and tin, Pig iron, steel and ferroalloys and Precious metals. Copper, aluminium, lead, zinc and tin is the largest segment of the Basic Metals Manufacturing in Germany.

Trends and Insights

The share of pig iron, steel and ferroalloys in sector sales has fallen over the past five years

  • This product segment includes flat products, steel bars, iron and steel blocks and similar products.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The metal production and processing sector comprises the activities of smelting and alloying ferrous and non-ferrous metals from ore, pig iron or scrap using electrometallurgical and other metallurgical processes. It also includes the production of metal alloys and superalloys by adding other chemical elements to pure metals and the manufacture of cast products.

What's included in this industry?

Production of pig iron, steel and ferroalloysProduction of pipes and pipe parts made of steelOther first processing of iron and steelProduction and initial processing of non-ferrous metalsProduction of cast products made of iron, steel and light metals

Companies

Thyssenkrupp Steel Europe AGAurubis AGArcelorMittal S. A. (Deutschland)

Purchase this report to view all 7 major companies in this industry.

Related Terms

3-D PRINTINGBIONICSEXTRUSION MACHINEKOKSKOHLECORROSIONALLOYINGNON-FERROUS METALSMIRROR TRAVELROLLINGDRAWING

Industry Code

WZ 2008

WZ 24.54 - Basic Metals Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The high energy prices in Germany are a burden on the sector. Large amounts of energy are required for the production and processing of metals. The high energy prices in Germ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Roheisen, steel and ferroalloys are the product group with the highest turnover in metal production and processing. Their share of sector turnover increased in the last five-...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The central region is home to the highest proportion of companies in the sector. The Ruhr region in particular is a historically important location for metal production, with...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

In many cases, the products manufactured in the sector offer little potential for differentiation. This intensifies price competition and also weakens the negotiating positio...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Thysenkrupp Steel Europe AG has the highest market share in metal production and processing. The supplier's most important customers are the automotive industry, mechanical e...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Thyssenkrupp Steel Europe AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Aurubis AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of ArcelorMittal S. A. (Deutschland)'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Thyssenkrupp Steel Europe AG, and factors influencing its performance in the industry
  • Description and key data for Aurubis AG, and factors influencing its performance in the industry
  • Description and key data for ArcelorMittal S. A. (Deutschland), and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Metal producers are severely affected by the regulations of the Greenhouse Gas Emissions Trading Act, as the metal sector releases significant amounts of greenhouse gases. Co...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The sector's profit margin is very low. The main reasons for this are the high cost of materials, labour and energy as well as the highly competitive market environment.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Basic Metals Manufacturing industry in Germany in 2024?

The market size of the Basic Metals Manufacturing industry in Germany is €136.6bn in 2024.

How many businesses are there in the Basic Metals Manufacturing in Germany industry in 2024?

There are 880 businesses in the Basic Metals Manufacturing industry in Germany, which has declined at a CAGR of 0.6 % between 2019 and 2024.

Has the Basic Metals Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Basic Metals Manufacturing industry in Germany has been growing at a CAGR of 2.2 % between 2019 and 2024.

What is the forecast growth of the Basic Metals Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Basic Metals Manufacturing industry in Germany is expected to decline.

What are the biggest companies in the Basic Metals Manufacturing market in Germany?

The biggest companies operating in the Basic Metals Manufacturing market in Germany are Thyssenkrupp Steel Europe AG, Aurubis AG and ArcelorMittal S. A. (Deutschland)

What does the Basic Metals Manufacturing in Germany include?

Production of pig iron, steel and ferroalloys and Production of pipes and pipe parts made of steel are part of the Basic Metals Manufacturing industry.

Which companies have the highest market share in the Basic Metals Manufacturing in Germany?

The company holding the most market share in Germany is Thyssenkrupp Steel Europe AG.

How competitive is the Basic Metals Manufacturing industry in Germany?

The level of competition is high and increasing in the Basic Metals Manufacturing industry in Germany.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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