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Electronic Component Manufacturing in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: September 2024 WZ C26.11DE

Revenue

€25.7bn

2024

€25.7bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

69,168

Businesses

250

Wages

€X.Xbn

Electronic Component Manufacturing in Germany industry analysis

The electronic component manufacturing industry can look back on a volatile but slightly positive trend. Overall, industry turnover has grown by an average of 1% per year since 2019. The level of annual growth rates between 2019 and 2024 was heavily dependent on demand and technology trends in key customer industries, but also on the general economic situation. The outbreak of the coronavirus pandemic in 2020 intensified an already declining demand from the automotive sector in the first half of the five-year period and, in combination with the global disruptions in supply chains, initially led to a strongly negative sales trend in the industry. From 2021 onwards, however, the relatively dynamic catch-up process in industrial production led to a sharp rise in demand for semiconductor products such as microchips in many sectors of the economy. This trend continued into 2023. Currently, demand from the industry's most important customers, many of whom are reducing the high inventories they have built up in recent years, is again subdued, and the industry's sales trend is also characterised by a slight decline in raw material prices. IBISWorld expects industry turnover to fall by 11.6% year-on-year to €25.7 billion in the current year.The development and production of semiconductors and other electronic components is characterised by intense competition. Increasing customer requirements are forcing industry players to invest heavily in research and development. Domestic producers are trying to set themselves apart from the strong international competition in North America and Asia by becoming increasingly customer-focused and developing high-quality microchips for special applications.The industry is expected to record robust growth over the next five years. IBISWorld anticipates an average annual increase in turnover of 4.2%, meaning that this is likely to amount to 31.7 billion euros in 2029. Although foreign manufacturers will continue to ensure strong competition in the future, the coming years are likely to be characterised by the electrification of mobility and industrial networking, which will be associated with an increase in demand for specially adapted, energy-efficient microchips. Against this backdrop, the automotive industry and industrial electronics in particular should help the sector to grow in the future.

Trends and Insights

  • The recovery of the automotive industry has greatly increased demand for semiconductors. This has led to an improvement in the business outlook, but supply bottlenecks have set in that are likely to continue until 2024.
  • The industry's main product is integrated circuits, also known as chips or microchips. Other important industry products are transistors and piezoelectric elements.
  • Most of the sector's companies can be found in the south of Germany. The strong economy and good infrastructure attract many industry players. In addition, a number of car manufacturers such as Audi, Daimler and BMW are based in the region and have production sites there.
  • The production of electronic components is dominated by Asian manufacturers. The European Union would like to strengthen its role in international semiconductor manufacturing in the future through subsidies and tax breaks.

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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 1.0 % over the past five years, to reach an estimated €25.7bn in 2024.

Trends and Insights

The semiconductor industry is considered particularly important because its products are indispensable for modern technologies

  • Electronic components are indispensable for almost all electronic devices and are used extensively in smartphones, computers, vehicles, industrial equipment and medical technology.
  • Additional trends and insights available with purchase
Electronic Component 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

Biggest companies in the Electronic Component Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Infineon Technologies AG
4,775.0
Robert Bosch GmbH
2,548.0
Globalfoundries, Inc.
1,635.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Electronic Component Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Integrated circuits, Transistors and Piezoelectric components. Integrated circuits is the largest segment of the Electronic Component Manufacturing in Germany.

Trends and Insights

Integrated circuits are the industry's main product

  • Integrated circuits are the industry's most important product. They are also known as chips or microchips.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector manufacture integrated circuits, raw semiconductors, transistors, printed circuit boards and other components for electronic applications. These components are required for the production of various electronic devices in the automotive, industrial and consumer electronics and medical sectors.

What's included in this industry?

Integrated circuitsTransistorsPiezoelectric components

Companies

Infineon Technologies AGRobert Bosch GmbHGlobalfoundries, Inc.

Purchase this report to view all 4 major companies in this industry.

Related Terms

5G TECHNOLOGYARTIFICIAL INTELLIGENCE (KI)NEAR FIELD COMMUNICATION (NFC)POWER ELECTRONICSINDUSTRIAL INTERNET OF THINGSAPPLICATION-SPECIFIC INTEGRATED CIRCUIT (ASIC)MODULATION

Industry Code

WZ 2008

WZ 26.11 - Electronic Component 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 recovery of the automotive industry has greatly increased demand for semiconductors. This has led to an improvement in the business outlook, but supply bottlenecks have s...

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

The industry's main product is integrated circuits, also known as chips or microchips. Other important industry products are transistors and piezoelectric elements.

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

Most of the sector's companies can be found in the south of Germany. The strong economy and good infrastructure attract many industry players. In addition, a number of car ma...

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 production of electronic components is dominated by Asian manufacturers. The European Union would like to strengthen its role in international semiconductor manufacturing...

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

Market leader Infineon is further expanding its production capacities. The new chip factory at the Dresden site is scheduled to go into operation in 2026.

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 Infineon Technologies AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Robert Bosch GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Globalfoundries, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Infineon Technologies AG, and factors influencing its performance in the industry
  • Description and key data for Robert Bosch GmbH, and factors influencing its performance in the industry
  • Description and key data for Globalfoundries, Inc., and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

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

Analyst insights

Electronic components manufactured in Europe must comply with the RoHS and WEEE directives. These restrict the use of certain hazardous substances such as lead, mercury and c...

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 cost of materials is by far the largest cost item in the industry. It has recently increased due to rising prices for semiconductor materials and scarce production capaci...

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 Electronic Component Manufacturing industry in Germany in 2024?

The market size of the Electronic Component Manufacturing industry in Germany is €25.7bn in 2024.

How many businesses are there in the Electronic Component Manufacturing in Germany industry in 2024?

There are 250 businesses in the Electronic Component Manufacturing industry in Germany, which has declined at a CAGR of 0.1 % between 2019 and 2024.

Has the Electronic Component Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Electronic Component Manufacturing industry in Germany has been growing at a CAGR of 1.0 % between 2019 and 2024.

What is the forecast growth of the Electronic Component Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Electronic Component Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Electronic Component Manufacturing market in Germany?

The biggest companies operating in the Electronic Component Manufacturing market in Germany are Infineon Technologies AG, Robert Bosch GmbH and Globalfoundries, Inc.

What does the Electronic Component Manufacturing in Germany include?

Integrated circuits and Transistors are part of the Electronic Component Manufacturing industry.

Which companies have the highest market share in the Electronic Component Manufacturing in Germany?

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

How competitive is the Electronic Component Manufacturing industry in Germany?

The level of competition is high and steady in the Electronic Component Manufacturing industry in Germany.

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Competitors

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View all industries in Germany

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.