An increasing number of companies are currently choosing to make major greenfield investments in Germany. As Europe’s largest economy, Germany is appealing to investors not only due to its central location but because it also provides a dynamic business destination for several industries. Current trends and major drivers of transformation processes spanning various industries present opportunities for profitable growth in Germany. However, greenfield investments are generally extremely complex and often require several months to complete.
Our modular support
KPMG has a comprehensive understanding of the challenges associated with investing in Germany. We provide investors with modular support across all demands, ranging from the planning, founding and construction phase (pre-phase) and up to the regular operations of the core business processes as well as the support processes (build-phase).
Andreas Glunz
Managing Partner International Business
KPMG AG Wirtschaftsprüfungsgesellschaft
Why are companies investing in Germany?
There are six megatrends driving transformation that make Germany an ideal location:
Energy & Automotive
Climate Change
- Transformation of energy mix from fossil energy to renewables
- Grid infrastructure to be built up for new energy mix
- Energy consumption in households and industries to be adapted to new energy mix
- Combustion engines to be replaced by electric engines
- Need for batteries
Tech & Semicond. industry
Digitization and AI
- AI will change the way of working, disrupt all traditional industries and will require massively increasing capacities in data centers
- Germany is leading in the research of AI innovations, but lacks in its application in businesses. Germany also lacks behind as regards the digitization of public administration and health industry
- Massivly growing semiconductor demand
- EU Chips Act to subsidize production in Europe and become independent
Health & Pharma Industry
Aging Society
and Migration
- Aging society and decreasing overall population demands new ways of care (e.g. robotics and tele care)
- Digitalization of health care system lacking behind in Germany (e.g. electronic patient record)
- New pharma blockbusters for aging society to treat cancer and other diseases, also to treat obesity, ..
Defense
Security Threats
- War in Ukraine caused reassessment of threat situation in Europe
- Wars in Middle East, risks of aggressions of China (esp. in Taiwan) and North Korea as well as elections in many countries in 2024 all emphasize need to increase own defense capabilities and build up defense industry in Germany
Circular economy
Geopolitical Tensions
- Intention to reduce dependency on raw material supplies from China by introducing a circular economy – which is climate-friendly too
- National Circular Economy Strategy for Germany
Infrastructure
Global Competition
- Postponed investments in physical infrastructure (rails, roads and bridges) in Germany for a decade
- Buildings and transportation infrastructure to be adapted to become climate-neutral (see also on left re. Climate change)
- Trend of immigration causes a higher, not satisfied demand for housing
- Digital infrastructure in Germany not ready for digital life and AI (see also on left re. Digitization)
