Significant Drop: Germany's Global Market Presence Decreases Dramatically

In a recent study, the Association of Research-Based Pharmaceutical Companies (vfa) has highlighted concerns about Germany's declining market share in key industries such as automotive and machinery. The study, based on data from the United Nations database, reveals that Germany's global market share has decreased by an average of 0.11 percentage points per year since 2013.

High costs, dependence on international suppliers, and lack of flexibility in digital business models, such as connected vehicles and software solutions, are contributing to Germany's losses in the automotive industry. The study identifies the automotive industry as the main reason for Germany's losses, due to its failure to keep up with central future trends such as the shift to alternative drives.

China, on the other hand, has been gaining more significance on world markets, particularly in Germany's export-driven industries like the automotive sector. China has gained an average of 0.36 percentage points per year in global market share from 2013 to 2024. However, China has had to accept losses in America due to high import tariffs during Trump's first term.

The trade dispute between Germany and the US is causing issues for Germany, especially at a critical time. The gradual loss of market share is becoming increasingly visible. Claus Michelsen, the chief economist of vfa, summarizes the situation as "China is gaining in Europe, Europe in the US - Germany is left behind."

The study suggests that German industry has significant potential, implying that there is room for improvement. To address this, Germany needs more speed in central technologies and an investment offensive in infrastructure, research, and facilities. The study also suggests that the EU, including Germany, needs to deepen the internal market to keep up with competition.

Meanwhile, other EU countries, such as the Irish and Swiss pharmaceutical industries, are gaining market share in the US. The most important European countries that gained more market share than Germany in the US pharmaceutical market, according to the study by the Association of Research-Based Pharmaceutical Companies, are Belgium and Ireland, with Switzerland also mentioned as having increased its presence. These countries grew significantly due to factors including tax incentives, structural measures, and in Belgium’s case, the production of COVID-19 vaccines in 2021/22.

Despite the decline, Germany's industry is still successfully positioned on international markets. However, it is clear that action is needed to address the challenges facing Germany's automotive and pharmaceutical industries and maintain Germany's competitive edge in the global market.