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Hospitals in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: October 2024 WZ Q86.10DE

Revenue

€119.3bn

2024

€119.3bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

1m

Businesses

1,269

Wages

€XX.Xbn

Hospitals in Germany industry analysis

Industry revenue fell by an average of 0.5% per year between 2019 and 2024. The inflation-related cost increases, which are not fully reflected in the prices that hospitals are allowed to charge to the health insurance funds, are offset by legally capped revenue increases. As a result, the earnings situation of a large majority of hospitals has increasingly deteriorated over the past two years. In addition to a lack of inflation compensation, many hospitals have been affected by investment subsidies from the federal states that have been too low for years and various tariff increases.

Trends and Insights

  • The federal states are still not sufficiently fulfilling their funding obligations. In view of the simultaneous increase in investment requirements, numerous hospitals have recently run into financial difficulties and had to leave the market.
  • The high number of mental illnesses is leading to an increasing demand for therapeutic services. In view of the removal of taboos surrounding such illnesses, this trend is likely to continue in the coming years.
  • The number of hospitals is linked to the population of the federal states. A larger population is generally associated with a higher demand for inpatient treatment and thus also for hospitals.
  • There are clear consolidation trends in the industry. A wave of takeovers by private hospital groups can be observed, particularly among public hospitals.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated €119.3bn in 2024.

Trends and Insights

The lack of investment cost financing is leading to numerous clinic closures

  • While the operating costs are paid by the health insurance funds, the federal states are obliged to cover the investment costs. Public clinics receive a comparatively large amount of funding, whereas private clinics in particular do not want to wait long for funding for investments and have more of their own funds available.
  • Additional trends and insights available with purchase
Hospitals 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

As part of the planned hospital reform, the industry is particularly critical of the funding of the hospital reserves

  • The planned hospital reform, which is due to come into force in 2025, aims to change the current system of remuneration with flat rates per case for treatment cases by means of reserve financing. Hospitals are to receive a large proportion of their remuneration for providing certain services. However, the coexistence of two financing systems with flat rates per case and reserve financing is likely to cause additional bureaucracy in the form of documentation obligations and tie up staff.

Biggest companies in the Hospitals in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Fresenius SE & Co. KGaA
7,697.6
Asklepios Kliniken GmbH & Co. KGaA
5,779.4
Sana Kliniken AG
2,946.2

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

Products & Services Segmentation

Hospitals in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Medical services, Nursing and therapeutic services and Medical goods (excluding pharmaceuticals). Medical services is the largest segment of the Hospitals in Germany.

Trends and Insights

The increasing demand for medical services as the pandemic subsides is leading to supply bottlenecks

  • Medical services are examinations carried out by a doctor, which are subdivided into basic, special, laboratory and radiological diagnostic services.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Hospitals are facilities for the inpatient treatment of patients under specialised medical supervision. Their purpose is to recognise illnesses, alleviate and treat their symptoms and provide obstetric care by providing medical and nursing assistance. The sector includes medical activities in general hospitals, specialist, university, preventive and rehabilitation clinics.

What's included in this industry?

Medical servicesNursing and therapeutic servicesMedical goods (excluding pharmaceuticals)Accommodation and cateringPharmaceuticals

Companies

Fresenius SE & Co. KGaAAsklepios Kliniken GmbH & Co. KGaASana Kliniken AG

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

Related Terms

TELEMEDICINECASE MIX INDEX (CMI)DIAGNOSIS RELATED GROUPSWHOLE HOUSE APPROACHHEALTH TELEMATICS

Industry Code

WZ 2008

WZ 86.10 - Hospitals 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 federal states are still not sufficiently fulfilling their funding obligations. In view of the simultaneous increase in investment requirements, numerous hospitals have r...

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 high number of mental illnesses is leading to an increasing demand for therapeutic services. In view of the removal of taboos surrounding such illnesses, this trend is li...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

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

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 number of hospitals is linked to the population of the federal states. A larger population is generally associated with a higher demand for inpatient treatment and thus a...

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

There are clear consolidation trends in the industry. A wave of takeovers by private hospital groups can be observed, particularly among public hospitals.

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

The profit losses of recent years are forcing Fresenius to change course. The previous aggressive takeover strategy is to be abandoned and unprofitable business areas are to ...

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 Fresenius SE & Co. KGaA's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Asklepios Kliniken GmbH & Co. KGaA's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Sana Kliniken AG'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 Fresenius SE & Co. KGaA, and factors influencing its performance in the industry
  • Description and key data for Asklepios Kliniken GmbH & Co. KGaA, and factors influencing its performance in the industry
  • Description and key data for Sana Kliniken AG, 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

The federal states are legally obliged to finance the investment costs of hospitals. In addition, state funds are available to the industry players for investments in digital...

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 shortage of skilled workers among doctors and nurses is strengthening the bargaining position of employees and thus increasing personnel costs. Industry players are tryin...

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 Hospitals industry in Germany in 2024?

The market size of the Hospitals industry in Germany is €119.3bn in 2024.

How many businesses are there in the Hospitals in Germany industry in 2024?

There are 1,269 businesses in the Hospitals industry in Germany, which has declined at a CAGR of 1.2 % between 2019 and 2024.

Has the Hospitals industry in Germany grown or declined over the past 5 years?

The market size of the Hospitals industry in Germany has been declining at a CAGR of 0.5 % between 2019 and 2024.

What is the forecast growth of the Hospitals industry in Germany over the next 5 years?

Over the next five years, the Hospitals industry in Germany is expected to grow.

What are the biggest companies in the Hospitals market in Germany?

The biggest companies operating in the Hospitals market in Germany are Fresenius SE & Co. KGaA, Asklepios Kliniken GmbH & Co. KGaA and Sana Kliniken AG

What does the Hospitals in Germany include?

Medical services and Nursing and therapeutic services are part of the Hospitals industry.

Which companies have the highest market share in the Hospitals in Germany?

The company holding the most market share in Germany is Fresenius SE & Co. KGaA.

How competitive is the Hospitals industry in Germany?

The level of competition is moderate and increasing in the Hospitals industry in Germany.

Related Industries

Widen your competitive advantage with related industries

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.