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Electricity Distribution & Control Apparatus Manufacturing in Germany - Market Research Report (2014-2029)

David Riemeier David Riemeier Frankfurt, Germany Last Updated: June 2024 WZ C27.12DE

Revenue

€50.9bn

2024

€50.9bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

172k

Businesses

688

Wages

€XX.Xbn

Electricity Distribution & Control Apparatus Manufacturing in Germany industry analysis

The manufacture of electricity distribution and switching equipment suffered a drastic slump in sales in 2020. The coronavirus crisis significantly dampened consumer sentiment, causing many industrial companies to cut back on production in the first half of the year. This reduced wear and tear and therefore also the need to renew their systems. In addition, many customers in the industry experienced liquidity bottlenecks, meaning that modernisation of production facilities was postponed. In 2021, many customers became more optimistic about the future and invested in modern switchgear again. This trend is likely to continue in the current year. Industry players can therefore expect an increase in sales of 0.5% compared to the previous year. The average annual decline in turnover for the period from 2019 to 2024 is 0.3% to €50.9 billion.The production volume has a major impact on the turnover of manufacturers of electricity distribution and switching devices. Industrial companies not only install switchgear in the devices they manufacture, but also use it to automate their production. Vehicle manufacturers and producers of electrical appliances in particular require programmable switchgear. The expansion of the transport infrastructure is also important for the industry's sales development. Switchgear is currently mainly used in rail transport, but is likely to play an increasingly important role in road freight transport over the next five years as a result of the expected expansion of overhead lines on motorways. < />Revenue growth of 0.7% per year on average is expected over the next five years, meaning that industry revenue will total €52.7 billion in 2028. This means that the German economy in the field of production automation is expected to grow in the coming years, which should result in a slight increase in turnover for industry players by 2029. The positive sales trend over the next five years is also expected to be supported by the emergence of new technologies in the areas of building automation, green energy and medical technology, although growth rates are likely to slow down from 2023. According to the IBISWorld forecast, the number of employees and companies will stagnate over the next five years.

Trends and Insights

  • The industry is characterised in particular by innovations in the field of production automation. The further development of programmable logic controllers has made it possible to integrate machines and systems into internal factory communication networks.
  • In recent years, there has been no significant expansion of the electricity grid. Old systems have been repaired more often than new ones, which has led to an increase in demand for equipment and system parts in the last five years.
  • South Germany is the most important region for the manufacture of electricity distribution and switching equipment. Baden-Württemberg stands out with a particularly large share of companies in the sector, which is significantly higher than the state's population share.
  • The intra-sector competition faced by industry players is moderate. Although Siemens plays a dominant role in the industry, many medium-sized and smaller companies are also able to hold their own in the market.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated €50.9bn in 2024.

Trends and Insights

Personnel costs weigh on profit margins

  • The industry's profit margins have remained at a low level in recent years. While the large companies in the sector are making significant profits, most of the smaller market players are only covering their costs as they can hardly benefit from economies of scale due to their low production volumes.
  • Additional trends and insights available with purchase
Electricity Distribution & Control Apparatus Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

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

Trends and Insights

Awareness of the benefits of building automation is growing

  • IBISWorld assumes that the development of new market segments such as building automation will continue in the coming years.

Biggest companies in the Electricity Distribution & Control Apparatus Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Siemens AG
5,736.9
ABB AG
933.4
Phoenix Contact GmbH & Co. KG
902.6

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Electricity Distribution & Control Apparatus Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Parts for electricity distribution and switching equipment, Programmable controllers for low voltages and Switchgear and devices for high voltages. Parts for electricity distribution and switching equipment is the largest segment of the Electricity Distribution & Control Apparatus Manufacturing in Germany.

Trends and Insights

Parts for electricity distribution and switching equipment are required in particular for repairs and maintenance

  • Parts for electricity distribution and switching equipment include components for the distribution and control of electrical energy in systems such as switches, fuses, control panels and transformers.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The manufacture of electricity distribution and control equipment industry is concerned with the production of electrical switchgear and controlgear for high and low-voltage networks as well as parts of electrical switchgear. The industry definition does not include the manufacture of electrical installation materials such as switches and plugs and sockets for low-voltage networks.

What's included in this industry?

Parts for electricity distribution and switching equipmentProgrammable controllers for low voltagesSwitchgear and devices for high voltagesSwitchgear for low voltagesControl cabinets with numerical controls for low voltages

Companies

Siemens AGABB AGPhoenix Contact GmbH & Co. KG

Purchase this report to view all 6 major companies in this industry.

Related Terms

LOW TENSIONHIGH VOLTAGERELAYPROGRAMMABLE LOGIC CONTROLLER (SPS)NUMERICAL CONTROLINTERNET OF THINGSCOMPUTERISED NUMERICAL CONTROL (CNC)MICRO GRID

Industry Code

WZ 2008

WZ 27.12 - Electricity Distribution & Control Apparatus 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 industry is characterised in particular by innovations in the field of production automation. The further development of programmable logic controllers has made it possib...

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

In recent years, there has been no significant expansion of the electricity grid. Old systems have been repaired more often than new ones, which has led to an increase in dem...

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

South Germany is the most important region for the manufacture of electricity distribution and switching equipment. Baden-Württemberg stands out with a particularly large sha...

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

The intra-sector competition faced by industry players is moderate. Although Siemens plays a dominant role in the industry, many medium-sized and smaller companies are also a...

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

Siemens is significantly involved in the development of overhead line-controlled road transport. The company wants to combine the efficiency of electrified railway lines with...

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 Siemens AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of ABB AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Phoenix Contact GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for Siemens AG, and factors influencing its performance in the industry
  • Description and key data for ABB AG, and factors influencing its performance in the industry
  • Description and key data for Phoenix Contact GmbH & Co. KG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

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

Analyst insights

The German Electrical and Electronic Equipment Act (ElektroG) regulates the proper disposal of waste electrical and electronic equipment. It stipulates that waste electrical ...

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 profit margins of the larger market players tend to be higher than those of the smaller industry players. The latter are often unable to benefit from economies of scale d...

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 Electricity Distribution & Control Apparatus Manufacturing industry in Germany in 2024?

The market size of the Electricity Distribution & Control Apparatus Manufacturing industry in Germany is €50.9bn in 2024.

How many businesses are there in the Electricity Distribution & Control Apparatus Manufacturing in Germany industry in 2024?

There are 688 businesses in the Electricity Distribution & Control Apparatus Manufacturing industry in Germany, which has grown at a CAGR of 2.4 % between 2019 and 2024.

Has the Electricity Distribution & Control Apparatus Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Electricity Distribution & Control Apparatus Manufacturing industry in Germany has been declining at a CAGR of 0.3 % between 2019 and 2024.

What is the forecast growth of the Electricity Distribution & Control Apparatus Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Electricity Distribution & Control Apparatus Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Electricity Distribution & Control Apparatus Manufacturing market in Germany?

The biggest companies operating in the Electricity Distribution & Control Apparatus Manufacturing market in Germany are Siemens AG, ABB AG and Phoenix Contact GmbH & Co. KG

What does the Electricity Distribution & Control Apparatus Manufacturing in Germany include?

Parts for electricity distribution and switching equipment and Programmable controllers for low voltages are part of the Electricity Distribution & Control Apparatus Manufacturing industry.

Which companies have the highest market share in the Electricity Distribution & Control Apparatus Manufacturing in Germany?

The company holding the most market share in Germany is Siemens AG.

How competitive is the Electricity Distribution & Control Apparatus Manufacturing industry in Germany?

The level of competition is moderate and steady in the Electricity Distribution & Control Apparatus Manufacturing industry in Germany.

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Competitors

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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.

Learn more about our methodology and data sourcing on the Help Center.