Commercial Sectors:

Exchange Rate (used throughout this section)

EUR 1 = USD 1.45

Computer Software

(USD million)	2007	2008	2009(e)
Total Market Size	20,155	21,025	21,315

The German market for software ranks second in Europe, after the United Kingdom.  Growth rates in the 5% range were originally expected for 2009, but due to the global financial and economic crisis analysts were forced to lower their estimates significantly.   While some IT users are expected to postpone or cancel some of the planned IT projects, industry insiders expect IT investments to pick up again in the near future, since companies still need to focus on cost reduction, efficiency increase and compliance.

Even though German software companies are very competitive, analysts estimate that approximately 80% of software products sold in Germany are supplied by U.S. companies (the majority of large U.S. software developers have subsidiaries in Germany).  In 2007, the largest software companies in Germany accounted for more than USD 10 billion in sales.  This represents 50% of the German market.   Despite this fact, Germany is still open for imports.

Industry-specific and niche products will continue to find good sales opportunities in Germany. U.S. software products are well accepted and the United States is still widely acknowledged as a supplier of innovative and quality software products.  There are no trade barriers obstructing sales of U.S. software.  However, as the European Union continues to expand as a single market, competition from other European software vendors is expected to increase.

Best Products/Services

Business intelligence software, storage management software, customer relationship management software, IT security software, middleware, databank software, control tools, software as a service (Saas).

Opportunities

The German public sector, along with the banking, insurance, medical and utilities sectors, offers the best opportunities.  Despite the fact that the banking sector was badly affected by the financial crisis, financial institutes need to complete or initiate IT projects, due to the strategic role that IT plays in most banking operations.

Public tenders: www.bundesausschreibungsblatt.de, www.subreport.de

Resources

German Government Agencies:
BSI (Federal Agency for IT Security): http://www.bsi.de/english/index.htm

Trade Fairs:
CeBIT: www.CeBIT.de
IT Security Trade Show: www.it-sa.de
EBIF: www.ebif.de
CRM-Expo: www.crm-expo.com
Digital Management Solutions: www.dms-expo.de

Trade Associations:
www.bitkom.org
www.eito.com
www.vdbw.de
www.bvdw.org

Trade Publications:
www.computerwoche.de
www.informationweek.de
www.crn.de

Commercial Service Contact:
doris.groot@N0SPAM.mail.doc.gov

Computer and Peripherical Equipment

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	28,500	29,000	29,000
Total Local Production	11,760	12,000	12,000
Totol Exports	14,830	15,000	15,000
Total Imports	37,000	37,000	37,000
Imports from the U.S.	9,185	9,200	9,200

U.S. computer products are generally viewed as innovative, with superior quality and leading edge technology.  Germany accounts for approximately one quarter of the EU’s total IT market.  Assisted by the very weak dollar, the United States retained its 2007 import share of approximately 25% in 2008.  The market is expected to stagnate in 2009 due to the overall economic downturn.  Exports exceed production due to considerable amounts of imported equipment being directly resold abroad or included as value-added equipment in locally manufactured products that are exported.

Best Products/Services

Leading edge ICT products, servers, laptops, printers, W-LAN equipment, memory and networking products. 

Resources 

Government:
Federal Statistical Office: http://www.destatis.de/

Trade Fairs:
CeBIT, the world’s largest trade fair for ICT products and services: www.cebit.de

Associations:
Association of German Electro-technical Manufacturers: www.zvei.de
Association of German Information Technology Manufacturers: www.bitkom.de

Major trade journals:
www.computerwoche.de
www.informationweek.de
www.computerpartner.de
www.crn.de

Commercial Service Contact:
john.lumborg@N0SPAM.mail.doc.gov

Drugs and Pharmaceuticals

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	23,380	23,980	24,100
Total Local Production	35,900	37,700	39,200
Total Exports	57,200	62,900	69,200
Total Imports	44,680	49,150	54,100
Imports from the U.S.	8,100	9,072	9,080

The cash-rich pharmaceutical industry is afloat despite the current economic gloom.  Germany continues to be the most important destination for U.S. pharmaceuticals, representing the third largest market in the world after the U.S. and Japan.   For 2009 production growth is still expected in a still vastly overregulated market.  According to the German “Rote Liste” 2007 drug directory, 8,834 pharmaceuticals of 2,500 active ingredients from more than 500 companies were registered on the German market.  The number of available pharmaceuticals in different dosages and concentrations may account for over 40,000 pharmaceuticals registered with the German Federal Agency for Pharmaceuticals, BfArM, in 2007.  Synthetic drugs make up 80% of the market.  Ireland, the United States, Switzerland, France, the United Kingdom and Italy are the major suppliers to the German market.  Germany has roughly 1,031 local pharmaceutical manufacturers, among them 395 biotechnology firms specializing in the development of pharmaceuticals.  The exclusion of non-prescription drugs from reimbursement, the expansion of mail order supplies and varied ownership have stimulated competition over the past year. Proposed legislation on drug benefits assessment for new, innovative, patented pharmaceuticals is heavily opposed by the large research-based pharmaceutical manufacturers, including U.S. subsidiaries.  They consider the proposed procedure a major threat and barrier to biomedical innovation in Germany since it would impose high costs for additional clinical studies and jeopardize reimbursement of innovative drugs by German insurance funds.  Germany registered 11,499 pharmaceutical patents in 2007, an increase of 5.3%, ranking Germany second worldwide after the United States.  The sale of generic pharmaceuticals increased by 5.6% in the first quarter of 2008, with growth just below average and generic drug manufacturers increasingly becoming acquisition targets. Generic pharmaceuticals accounted for 60% of the market total in 2008, according to Insight Health. Along with France, Germany has the lead in the homeopathic medicines segment, which should see good growth over the coming months. 

Best Products/Services

Diagnostic and therapeutic drugs for dementia; auto immune diseases; inflammation; oncology; pain management.  Vaccines and cell- and  bio-therapeutics; biosimilars.

Resources

German Government Agencies:
German Health Ministry: www.bmg.bund.de
Federal Agency for Pharmaceuticals and Medical Products: www.bfarm.de
Federal Agency for Sera and Vaccines: www.pei.de
Federal Institute for Risk Assessment: www.bfr.bund.de
Federal Institute for Consumer Protection and Food Safety: www.bvl.bund.de

Trade Fairs:
CphI:  http://www.cphi.com
Expopharm: www.expopharm.de
Biotechnica: www.biotechnica.de
MEDICA: www.medica.de

Trade Associations:
BPI (Association of the German Pharmaceutical Industry): www.bpi.de
VFA (German Association of Research-Based Pharmaceutical Companies): www.vfa.de
BAH (Federal Trade Association of Pharmaceutical Manufacturers): www.bah-bonn.de
German Generics Manufacturers Association: www.generika.de

Commercial Service Contact:
anette.salama@N0SPAM.mail.doc.gov

Medical Equipment

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	23,960	30,990	34,000
Total Local Production	23,800	31,100	34,200
Total Exports	15,300	16,800	18,200
Total Imports	15,460	16,690	18,000
Imports from the U.S.	4,328	5,040	5,300

The German market for medical devices stood at USD 24 billion in 2007, up 6.9% from 2006.  Health expenditures in Germany amounted to USD 335 billion in 2007, approximately 10.6% of Germany’s GDP.  There are about 1,250 local medical device manufacturers, which produced medical devices valued at roughly USD 24 billion in 2007. The market continues to be export-driven, with 64% of local production going into foreign markets.  Major barriers to local market expansion are ongoing health reform efforts and cost-containment measures.  Demand will mainly be driven by demographics and a substantial increase in the number of patients, by the need for economies of scale and efficient procedures, and by a major investment backlog estimated at USD 63 billion in hospitals and doctors’ practices.  The German medical market defies the financial crisis and expects healthy growth between 5-8% for the next twelve months.  Industry experts characterize the medical device market as one with high growth dynamics and continuing consolidation, making it highly attractive for investors.  It will also continue to provide excellent potential for U.S. suppliers of innovative and price-competitive products.  U.S. medical device exporters to Germany continue to hold a 28-30% market share, depending on product.

Best Products/Services

High quality advanced diagnostic and therapeutic equipment. Innovative technologies and minimally invasive equipment, such as laser-optics in vascular surgery, urology, gastrology, dermatology, and neuro-surgery, new diagnostic and imaging devices, as well as specialized wound care and easy-to-use home care products. The trend is toward miniaturization of electro-medical equipment and nano-technology products.  Preventive diagnostics and medical products; innovative orthopedic and physiotherapy devices.  Biomaterials; cardiovascular and endoscopy products.  Natural orifice surgery; novel imaging technologies, e-health, telemedicine and telemonitoring products.

Opportunities

As a result of the general need for cost savings in the medical sector, there are no identifiable major projects in this sector.  As a result of ongoing health care reforms, the number of acute care hospitals decreased to 2,087 in 2007.  Private hospitals account for 26% of the total.  Investment opportunities may arise through a drive toward further hospital privatization and consolidation.  Diagnostic and integrated care centers and the combination of practices with private home care may provide additional opportunities.

Resources

German Government Agencies:
German Health Ministry: http://www.bmg.bund.de/
Federal Agency for Pharmaceuticals and Medical Products: www.bfarm.de
Federal Bureau for Physical-Technical Equipment: www.ptb.de
Federal Institute for Risk Assessment: www.bfr.bund.de
Federal Institute for Consumer Protection and Food Safety: www.bvl.bund.de

Trade Fairs:
MEDICA: www.medica.de

Trade Associations:
Federal Association of the Medical Devices Industry: www.bvmed.de
Federal Association of the Electro-Medical Industry: www.zvei.de/medtech
German Medical, Optical and Mechatronic Technologies Industry Association (SPECTARIS): www.spectaris.de
German Hospital Association: www.dkgev.de
Medical Dealers Association: www.zmt.de

Commercial Service Contact:
anette.salama@N0SPAM.mail.doc.gov

Industrial Chemicals 

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	136,260	126,730	126,350
Total Local Production	188,100	188,210	188,260
Total Exports	188,000	203,150	203,430
Total imports	136,160	141,670	141,520
Imports from the U.S.	15,107	15,862	16,030

The German market offers good opportunities for U.S. chemical exporters.  Germany is the largest market in Europe and a major hub for supplying other European countries.  In 2007, Germany’s total chemical imports reached USD 136 billion, approximately USD 15.1 billion of which originated from the United States, up 10% over the previous year.  By the Fall of 2008, the German chemical industry started to be affected by the global financial crisis.  While the first half of 2008 showed good growth, the results of the second were disappointing and the fiscal year concluded at pre-year levels.  However, insiders anticipate the market to improve by the end of 2009 or early 2010.  The outlook for 2010 and onwards is a positive one and predicts a return to healthy growth rates.   Demand in the German chemical sector is usually generated by the German processing industries.  Approximately 2,000 companies in Germany produce chemicals, among them global players such as Bayer, BASF, and Henkel.  Ninety percent of German chemical producers are small to medium in size.  

Best Products/Services

U.S. manufacturers offering innovative coatings, additives and nano materials have good market prospects in Germany.  In addition, biotechnologically-engineered chemical products see a growing market in Europe.  Products and processes resulting from a combination of biotechnology and chemistry, the so-called white biotechnology segment, are expected to have good sales potential at moderate cost.  Hence, demand for these products is high in Germany.  Fields of application are:  High performance enzymes for eco-friendly chemical processes (detergents, paper, and textiles production); active ingredients for cosmetics; active ingredients and bio-catalysts for chemical and pharmaceutical production (i.e., building blocks for polymers, fine chemicals, intermediates, or antibiotics).

Resources

Trade Fairs:
European Coatings:  http://www.european-coatings-show.de/
CphI:  http://www.cphi.com
Analytica:  http://www.analytica.de/link/en/18285323
Trade Associations:
Chemical Industry Association: http://www.vci.de/
Dechema:  http://www.dechema.de/en/The+DECHEMA.html

Commercial Service Contact:
kirsten.hentschel@N0SPAM.mail.doc.gov

Management Consulting Services

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	19,100	21,300	23,600

(Source: BDU)

Germany is the largest consulting market in Europe, followed by the UK. In 2006, around 73,000 management consultants worked in about 14,250 management consulting firms. About 35% of the consultants work in firms, which achieve revenues below EUR 1 million, and about 34% in large firms with more than EUR 45 million in revenue. These large consulting firms earn nearly half of all revenues in the consulting market.

Management consultants in Germany experienced their most successful year in 2007, with consulting firms of all sizes enjoying revenue growth. The two largest fields are strategic and organizational/process consulting. Consulting firms throughout Germany tend to be located in various regional centers, rather than in one city serving as a national center. Estimates for 2008 and especially 2009 are very difficult due to the economic crisis. The market may shrink by up to 10 percent.

Best Products/Services

More than half of the demand for consulting services comes from clients in both the manufacturing and financial services industries. Many large projects are being canceled or postponed. A demand increase is expected for projects in restructuring, cost-cutting and supply optimization. Six week quick-checks and long-term reorganization projects are expected to grow.

Resources

Associations;
Bundesverband Deutscher Unternehmensberater BDU e.V. 
(Federal Association of German Management Consultants)
www.bdu.de

Commercial Service Contact:
mathias.koeckeritz@N0SPAM.mail.doc.gov  

Automotive Parts and Services

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	38,700	38,700	n/a
Total Local Production	46,000	46,000	n/a
Total Exports	18,900	18,900	n/a
Total Imports	11,500	11,500	n/a
Imports from the U.S.	2,000	2,000	n/a

(Source: GAI)

In 2008, the automobile industry was one of the driving forces behind German economic growth.  During the first three quarters of 2008, both domestic demand and exports of German cars increased slightly. Because of increased global sourcing by German manufacturers, and a favorable EUR-USD exchange rate, U.S. parts manufacturers were able to increase their exports to Germany.  At the end of 2008, the German automotive industry was hit by the worst downturn in demand since the late 1950’s – demand for parts and services is expected to be negatively affected.  Experts anticipate that the German automotive industry will have to face serious challenges until 2013 and are not in a position to provide forecasts for 2009.

Best Products/Services

Engine electronics; multi-media products; forged and pressed parts.

Resources

Trade Fairs:
IAA: http://www.iaa.de/
Automechanika: http://automechanika.messefrankfurt.com/frankfurt/de/home.html

Trade Associations:
VDA (German Automobile Association): www.vda.de
ZKF (Central Association for Car and Body Technology): www.zkf.de
Central Association for German Motor Trades and Repair: www.kfzgewerbe.de

Commercial Service Contact:
paul.warren-smith@N0SPAM.mail.doc.gov

Telecommunications Equipment

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	20,900	21,100	n/a
Total Local Production	20,100	20,100	n/a
Total Exports	11,500	11,500	n/a
Total Imports	12,300	12,500	n/a
Imports from the U.S.	2,100	2,150	n/a

Source: RegTP, EITO)

Broadband will remain the key application with more than 7 million connections and a penetration rate of 8 percent.  DSL will continue to represent the overwhelming majority of broadband connections, with Deutsche Telekom (DTAG) providing more than 83% of all broadband connections.  VoIP is expected to change the competitive landscape.  In the mobile segment, providers are investing in UMTS infrastructure and WiMax applications.  Demand for mobile phones is beginning to decline due to market saturation.  Equipment suppliers hope that they can benefit from planned government investment in infrastructure and especially schools.  Due to the economic situation, forecasts for 2009 are not possible at this point in time.

Best Products/Services

Broadband equipment and services, W-Lan equipment and services

Opportunities

Broadband technologies (DSL and TV cable) will offer considerable opportunities for suppliers of technology and services.

Resources

German Government Agencies:
German Regulatory Authority: www.bundesnetzagentur.de

Trade Fairs:
CeBIT, the world’s largest trade fair for ICT products and services: www.cebit.de

Trade Associations:
Electro-technical Manufacturers: www.zvei.de
German Information Technology Manufacturers: www.bitkom.de
German telecommunications service providers: www.vatm.de

Commercial Service Contact:
volker.wirsdorf@N0SPAM.mail.doc.gov

Sporting Goods

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	4,205	4,226	4,247
Total Local Production	2,868	2,883	2,898
Total Exports	1,128	1,134	1,140
Total Imports	2,465	2,447	2,489
Imports from the U.S.	856	860	864

With 25 million Germans participating in sports activities, Germany is the second largest sporting goods market within the EU and accounted for 19% of the total EU market in 2007 (2003: 21%). The market is anticipated to grow annually by at least 0.5% over the next two years. Germany is the 3rd largest importer within the EU with total imports amounting to USD 2.5 billion, thus accounting for 13% of all EU imports by value. In 2007, the United States was Germany’s 10th largest import partner, achieving a 3.2% import market share. With an actual import gain of about USD 186 million between 2001 and 2007, there are excellent opportunities for U.S. sports products manufacturers. The major competitors on the German market include China (53% import market share), Italy (8.9%), Poland (7.8%), the Netherlands (4.3%), France (4.1%), and the Czech Republic (3.2%).

The ten most popular sports in Germany in terms of club membership are soccer (6.3 million), fitness (5.2 million), tennis (1.7 million), track and field (0.9 million), handball (0.8 million), horseback riding (0.8 million), fishing (0.7 million), table tennis and skiing ( both 0.6 million), volleyball and golf (both 0.5 million). Outdoor sports such as climbing, Nordic walking, and hiking have developed into one of the most important sports market segments in the last 15 years and appeal to a large part of the general public. Golf is another sport which has enjoyed a similar boom in recent years.

Team sports accounted for 27% (USD 1.1 billion) of the total sport market in Germany, with soccer (USD 113 million) being the most popular, followed by handball and volleyball. The market for outdoor activities ranks 2nd with 22% (USD 943 million), with camping goods accounting for 42% (USD 396 million) followed by equestrian sports with 30% (USD 283 million). Individual sports activities (e.g., track and field, swimming, combative sports, gymnastics, ice-skating, etc.) rank 3rd with USD 870 million sales, followed by fitness equipment (USD 580 million), winter sports (USD 539 million), and water sports (USD 181 million). While the demand for fitness, outdoor sports, and water sports is expected to increase, sales related to winter sports activities are expected to decline.

Best Products/Services

Fitness equipment for physical exercise, gymnastics, or track and field; Footwear (all sports); golf equipment; inflatable balls for soccer, basketball, field hockey, handball; in-line skates; outdoor goods for hiking, climbing, trekking, and Nordic walking activities; roller blades; snow boards.

Resources

Trade Fairs:
EQUITANA 2009 (Equestrian Sports): http://www.equitana.com
FIBO 2009 (Fitness): http://www.fibo.de/en/index.php
Outdoor 2009: www.european-outdoor.de
EuroBike 2009: www.eurobike-exhibition.de
GOLF Europe 2009: http://www.golf-europe.com/link/en/16206330
ISPO Winter 2010 (Winter Sports): www.ispo-winter.com

Trade Associations:
German Sporting Goods Manufacturers Association: www.bsi-ev.com
German Association of Sporting Goods Retailers: www.vds-sportfachhandel.de
European Outdoor Group: www.europeanoutdoorgroup.com
Association of the German Fitness Industry: http://www.vdf-fitnessverband.de
German Golf Association: www.golf.de

Major Trade Journals:
www.saz.de
www.outdoor-magazin.com
www.golf.de/journal
www.skimagazin.de
www.wassersport-magazin.com
www.reitsport-markt.de

Commercial Service Contact:
dagmar.winkler-helmdach@N0SPAM.mail.doc.gov

Travel & Tourism

Overview

(USD million)	2007	2008	2009 (e)
Expenditure by German Tourists Abroad	89,900	89,175	87,725
U.S. Expenditure by German Tourists	5,156	6,700(e)	6,700

Facilitated by a strong Euro, creative packaging and promotional activities of German tour operators and their U.S. industry partners, German travel to the United States increased 17% in 2008, totaling nearly 1.8 million visitors. Germans are still the world’s number one travelers per capita and are expected to take advantage of the strong Euro to visit the United States. Continuing negative public perceptions of entry and visa regulations and aggressive marketing by other destinations are barriers to development.  The “Obama Effect” has already provided positive media coverage for the destination USA and is expected to help influence public perception about the United States to the extent that travel will be positively influenced.  Additionally, as other regions in the world lose tourism business due to war, terrorism, natural disasters, etc., the United States is perceived to be a safer destination.

Best Products/Services

Flexible itinerary elements for FITs; innovative and unique study tours; value-added accommodation and rental offers; Native American inventory packaged with local attractions and service providers, which should be activity-based rather than language dependent; sports packages, both spectator and participatory; incentives for small groups.

Resources

Government: 
Entry and visa regulations information
http://germany.usembassy.gov/germany/visa/
https://esta.cbp.dhs.gov
Trade Fairs:
Reisen Hamburg, http://www.hamburg-messe.de/reisen
f.re.e Munich, http://www.free-muenchen.de
ITB Berlin, http://www.itb-berlin.com
IMEX Frankfurt, http://www.imex-frankfurt.de
TravelTour & Trends Cologne, http://www.reisemarkt-koeln.de
CMT Stuttgart, http://www.messe-stuttgart.de/cmt

Other:
http://www.usa.de  German language consumer travel website on United States
http://www.vusa-germany.de  Official site of the Visit USA Committee Germany e.V.

Commercial Service Contact:
elizabeth.powell@N0SPAM.mail.doc.gov

Biotechnology

Overview

(USD million)	2007	2008	2009(e)
Total sales related to Biotechnology (incl. the estimated sales of the biotech segments of big pharmaceutical companies)	26,700	30,700	33,800
Total sales of German core biotech companies	948	1,003	1,055

While agricultural biotech applications (in Germany, often referred to as “green biotech”) are controversial, demand for so-called “white biotechnology” applications, which aim to make industrial processes more environmentally sound is expected to increase.  Medical applications, referred to as “red biotech,” remain an important area for German pharmaceutical research and product development. 

The biotech sector in Germany is growing and will continue to grow. Despite the financial crisis, more than 90% of German biotech companies regard their current situation as good or satisfactory. This is revealed in a survey conducted by the Biotechnology Industry Organization of Germany, BIO Deutschland. According to the results of the survey, 2009 investments in research and development, however, are expected to slightly decrease by 7% – while 40% of the firms plan to increase their investment in this area in 2009. According to the results of the survey, one can expect to see a continued increase in jobs in biotechnology during 2009. Half of the surveyed biotech companies stated that they plan to expand the number of employees in the coming year (71% last year). Peter Heinrich, Chairman of the Board of BIO Deutschland said, "The notably more cautious optimism shown in the survey results clearly indicates the increasingly more difficult times facing innovative small and medium-sized enterprises in particular."

Best Products/Services

Cardio-, cancer- and neuro-therapeutical products. Peptides in the treatment of diabetes find more and more applications. Enzymes used in washing powders and in the textile industry are in high demand.

Resources

Trade Fairs:
Analytica, http://www.analytica-world.com
Biotechnica, http://www.biotechnica.de

Trade Associations:
Bio Germany, http://www.biodeutschland.org
European Private Equity & Venture Capital Association, http://www.evca.com/
BVK (Association of Equity Firms), http://www.bvk-ev.de
Dechema (Chemical Manufacturers), http://www.dechema.de
VCI (Chemical Industries), http://www.vci.de

Commercial Service Contact:
nils.roeher@N0SPAM.mail.doc.gov

Renewable Energies

As prices for conventional fuels continue to increase and prices for renewable energy steadily decrease, the renewable energy sector is expected to continue to grow. Electricity generation from renewable energies is substantially based on the German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG), which is in accordance with European policy (Directive 2001/77/EC). Germany aims for 12.5 percent of electricity to be produced from renewable sources by 2010. Experts forecast as much as 47 percent of German electricity from renewable sources by 2020.

Charts: Forecast of Electricity Mix in 2020 in Germany: 47% of all grid power stemming from Renewable Energy Sources and Renewable Energy Electricity Generation Development

Wind Energy
Of all renewable energy sources, wind energy will remain the most significant. Until 2020, 25 percent, or 149 TWh, of the entire electric consumption in Germany is expected to be met by wind energy.  Most of this production will be realized on shore, with installed capacities expected to reach 45 GW in 2020 (24 GW in 2008). Off-shore installations are expected to reach 10 GW.

Bio Energy
Total installed capacity of bio energy power plants is expected to more than double from 4.1 GW (2007) to 9.3 GW in 2020 to reach an electricity production of 54 TWh. The major share will come from biogas, followed by solid biomass (mainly wood and plants), liquid biomass (plant oils), and sewage and landfill gas. Bio energy is expected to be the second largest source for electric power.

Photovoltaic (PV) Energy
In 2020, 39.5 GW of installed cells will generate 40 TWh (2007: 4.3 TWh).  PV will then generate around seven percent of the electricity used in Germany. To reach these ambitious growth goals, a further increase in efficiency combined with drastic price reductions are necessary, particularly since the feed-in tariffs for power generated by PV installations are subject to an annual digression of eight percent on average.  It is expected that PV-generated power will cost as much as ‘conventional’ power by 2015. According to the German Solar Association (BSW), EUR 2.9 billion will be invested in upgrading or new construction of PV manufacturing plants, and EUR 224 million Euro in additional R & D activities by 2010.

Hydro Power
Major investments are expected in the hydro power segment, not only for refurbishing existing facilities and upgrading them to meet environmental standards (e.g., elimination of barriers, installation of fish passes) but also by reactivating decentralized small units.

Geothermal Energy
At present, total installed electrical power equals to 7 MW generating 150 Million kWh per year. It is expected that this energy form will reach as much as 6000 MW and 400 Million kWh/year by 2020.  150 designated areas for geothermal exploration have been designated in Germany, some of which allow for the realization of several projects. About 62,000 heat pumps are installed, mostly in private residences. More than half use water-to-water or brine-to-water technology for which vertical drilling or horizontal netting is required. A little less than half use air-to-air heat pump technology, which is expected to carry the highest growth potential.

Overview

(USD million)	2007	2008	2009 (e)
1) New domestic installations, not including resulting energy generation or sales	15.950,000	18.125.000	n/a
2) Energy sales generated using renewable energies	21.025,000	24.735,000	28.000,000
Total Domestic Market (1+2)	36.975,000	42.860,000	n/a
Total exports (products,parts,manufacturing equipment, and services only, not including energy sales)	13.050,000	13.000,000	13.500,000

Resources

Trade Associations: 
Hydro Energy:
Bundesverband Deutscher Wasserkraftwerke e.V. (BDW): www.wasserkraft-deutschland.de/
Wind Energy:
Bundesverband Windenergie (BWE): www.wind-energie.de
Solar Energy:
Bundesverband Solarwirtschaft (BSW): www.solarwirtschaft.de
Geothermal Energy:
Bundesverband Geothermie (GtV-BV): www.geothermie.de
Biogas:
Fachverband Biogas: www.biogas.org
Renewable Energy:
Bundesverband Erneuerbare Energie (BEE): www.bee-ev.de
Agentur fuer Erneuerbare Energien: www.unendlich-viel-energie.de 

Government:
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU): www.bmu.de , www.erneuerbare-energien.de
German Energy Agency (DENA): www.dena.de
International Renewable Energy Agency (IRENA): www.irena.org

Trade Fairs:
Hydro Energy:
E-World energy + water, www.e-world-2009.com
Wind Energy:
Husum Wind Energy, www.husumwind.de,
Hannover Messe Energy, www.energy-hannover.de
Solar Energy:
Intersolar,  www.intersolar.de

Geothermal Energy:
GeoTherm expo + congress, www.geotherm-offenburg.de
Biogas:
Eurotier, www.eurotier.de,
IFAT, www.ifat.de,
Entsorga, www.entsorga-enteco.com

Renewable Energy:
Hannover Messe Energy, www.energy-hannover.de
enertec, www.enertec-leipzig.de
E-World energy + water, www.e-world-2009.com
RenExpo, www.renexpo.de

Commercial Service Contact:
Andrea.stahl@N0SPAM.mail.doc.gov

Scientific and Laboratory Instrumentation

Overview

(USD million)	2007	2008	2009 (e)
Total Market Size	8,300	8,700	9,135
Total Exports	4,500	4,700	5,075
Imports from the U.S.	888	900	920

Best Products/Services

Laser and opto-electronic instrumentation (primarily for medical applications – applications for the automotive and semiconductor industries are presently declining);
Laboratory automation and information systems (LIMS), as well as the broad spectrum of chromatographic technologies; other trends within the S&LI industry are automation, process analysis, and miniaturization.

Opportunities

Due to the strong export orientation of German manufacturers (about 55% of the annual production output is exported), the industry depends greatly on imported technologies.  Imports derive mainly from European countries (approx. 41%) and from Asia (approx. 26%).  However, with 31% imports from the U.S., the United States remains an important foreign supplier of S&LI to Germany.

Resources

Trade Fairs:
Analytica (Instrumental analysis, laboratory technology and biotechnology):
http://www.analytica-world.com
Achema (Chemical Engineering, Environmental Protection and Biotechnology):
http://www.achema.de/ACHEMA-lang-en.html
Interkama (Automation technology): http://www.hannovermesse.de/interkama_e
Laser (World of Photonics): www.world-of-photonics.net
Medica: www.medica.de
Optatec (Optical Technologies, Components, Systems and Manufacturing): http://www.optatec-messe.com/en/optatec

Trade Associations:
Association of German Electrotechnical Manufacturers (ZVEI): http://www.zvei.org
European Optical Society:  http://www.europeanopticalsociety.org/
Spectaris (Optical, Medical and Mechatronical Technologies Inc.): www.spectaris.de
VDE (Electrical, Electronic and Information Technologies): http://www.vde.de/
AIF( Federation of Industrial Cooperative Research Associations): www.aif.de

Other:
Fraunhofer Institut für Angewandte Optik und Feinmechanik (IOF): www.fhg.de
Fraunhofer-Institut für Lasertechnik (ILT): www.ilt.fraunhofer.de
VDI Technologiezentrum GmbH: www.kompetenznetze.de
Chemie.de Information Service GmbH: www.chemie.de

Commercial Service Contact:
Doris.Groot@N0SPAM.mail.doc.gov

Educational Services

Overview

(Students visiting the U.S.)	2007	2008	2009 (e)
total	582,984	623,805	642,436
from Germany	8,656	8,907	9,173

The United States is home to many of the world’s top universities and is a popular destination for students of all subject areas, hosting 623,805 international students of higher education in 2008. Germany is the twelfth leading sender of international students to the United States, sending 8,907 students in 2008, an increase of 2.9% over the previous year. The academic year of 2006 saw 82,174 German students of higher education studying abroad. More than one-third of German students prefer to study in an English-speaking country, with the United Kingdom and United States the most popular destinations. The majority of German students in the United States study at the graduate level.

Best Products/Services

Percentage of Students (%)	Level of Education
37.20	undergraduate
42.80	graduate students
4,90	other
15,10	OPT (Optional Practical Training)

Resources

Associations:
German Academic Exchange Service www.daad.de
Institute of International Education, Opendoors – Report on International Educational Exchange www.iie.org/opendoors

Recruitment Fairs:
QS World MBA Tour, Oct. 26th 2009 in Munich and Oct. 31st 2009 in Frankfurt
www.topmba.com

Commercial Service Contact:
Elizabeth.Powell@N0SPAM.mail.doc.gov

Farm Machinery

Overview

(USD million)	2007	2008	2009 (e)
Total Market	8,182.0	n/a	n/a
Ag. Machines (German Production)	3,037.3	3,955.6	n/a
Tractors (German Production)	3,023.5	3,547.9	n/a
Total Exports	4,493.2	5,625.8	n/a
Ag. Machines	2,111.9	2,829.0	n/a
Tractors	2,381.3	2,796.8	n/a
Imports (Total)	2,121.0	n/a	n/a
Imports form the U.S.	437.0	n/a	n/a

Germany ranks third as a destination for U.S. farm equipment exports after Canada and Australia and before Mexico, the U.K., and Russia. The industry grew by 29% in the first half of 2008 and by 17% in the second half, in comparison to the previous year. The tractor segment increased by 10%, and for other machinery the demand was likewise consistently higher than in previous years. The 2007/2008 harvesting machinery season ended with growth rates of 22% (to 2,365 units) for combine harvesters, 33% for round balers (2,057 units) and 8% for forage harvesters (540 units) in Germany.  Even at the end of 2008, unlike other industries, the agricultural machinery industry is not facing an abrupt decline in orders. While business is expected to become more difficult in the large Eastern European markets over course of the year, a better economic environment can still be found in Western Europe.

Best Products/Services

Tractors (average performance of 103 kW), ploughs, fertilizer spreaders, combine harvesters, round balers, forage harvesters

Resources

Trade Fairs:
Agritechnica:  www.agritechnica.com

Trade Associations:
German Engineering Association (VDMA):
http://www.vdma.org/wps/portal/Home/en/Branchen/A/LT/Wirtschaft_und_Recht?WCM_GLOBAL_CONTEXT=/Home/en/Branchen/A/LT/Wirtschaft_und_Recht&initsearch=
DLG German Agricultural Society: http://www.dlg.org/home-en.html

Commercial Service Contact:
bettina.kutsche@N0SPAM.mail.doc.gov

Agricultural Sector

BEST PROSPECTS FOR AGRICULTURAL PRODUCTS(All figures are in metric tons, unless otherwise stated.)

1: Tree Nuts
2: Fishery Products
3: Wine
4: Pet Food

1. Tree Nuts (HTP)

The category of tree nuts includes almonds, pistachios, pecans, hazelnuts and walnuts. Germany does not produce significant quantities of these products, therefore, supply comes primarily from imports.   A number of U.S. agricultural associations actively promote their products in Germany, including the Almond Board of California, California Pistachio Commission and the California Walnut Commission. The leading competitor for the United States in the German tree nut market is Turkey.  In 2007, U.S. tree nut exports to Germany were valued at $328 million out of a total import value of $1.5 billion.

MT	2006	2007	2008 (e)
Total market	144,800	146,300	143,400
Production	*	*	*
Total exports	41,748	56,397	49,639
Total imports	223,380	261,743	269,600
Imports from the U.S.	60,421	65,880	71,800

2. Fishery Products (FFPD)

Fish and fishery products enjoy growing popularity in Germany. The two most important fishery products the U.S. exports to Germany are frozen Alaska Pollock and codfish.  In 2007, U.S. total exports of fishery products to Germany were valued at $259 million, out of a total import value of $4.3 billion.  China is the main U.S. competitor for Alaska 

Pollock and codfish exports.
MT	2006	2007	2008 (e)
Total market	920,300	900,800	864,700
Production	473,361	482,000	475,600
Total exports	541,600	527,652	8511,822
Total imports	908,523	952,579	914,480
Imports from the U.S.	55,889	77,407	71,200

3. Wine (HTP)

Germany is the world's largest importer of wine.  In 2007, German wine imports were valued at more than $2.9 billion.  Italy, France and Spain are the leading suppliers of wine to Germany with a combined import market share of nearly 78%.  U.S. wines, together with other “new-world” wines, have developed an increasingly good reputation for quality in the German market. In 2007, the value of Germany's imports of U.S. wines totaled approximately $68 million.

hl (1,000)	2006	2007	2008 (e)
Total market	36,428	34,620	34,014
Production	9,005	10,361	10,500
Total exports	3,643	3,850	3,500
Total imports	14,437	15,080	11,000
Imports from the U.S.	372	415	400

4. Pet Food (G&FD)

Germany is one of the leading countries for pet ownership in the world. Germans are willing to pay a premium to properly feed their pets and interest in specialty health pet food products is growing rapidly. The majority of pet foods are produced domestically and the EU requires pet foods to be derived from meat that is fit for human consumption. In 2006, the value of U.S. pet food exports to Germany totaled $3.5 million, out of a total import value of nearly $775 million. Despite the bureaucratic obstacles, opportunities for exporting pet food products to Germany are available given the considerable size of the market.

(USD million)	2006	2007	2008 (e)
Total market	2,355	2,575	2,600
Production	2,464	2,443	2,500
Total exports	543	681	800
Total imports	775	842	900
Imports from the U.S.	4	3	6