Industrial value added from growth markets in 2035, by sector in billion euros Value added from Germany Optimistic scenario, inertia scenario. (Source: IW Consult) © ZVEI

As a provider of cross-sectional technologies, the electrical and digital industry is involved in almost all of the growth markets identified for the study. In the areas of industrial automation, robotics and alternative drives alone, German value creation is estimated to total over half a trillion euros in 2035, assuming a positive development of the competitive environment. The electrical and digital industry has a significant share to play here: the development of key components for automation solutions - from components for industrial robots to intelligent control and communication units and embedded software - not only enables more efficient production processes, but also significantly advances the digital transformation in the user industries.

Industrial AI

There is particularly high potential in the field of industrial artificial intelligence (AI). According to the position paper, the global AI market is estimated to be worth around EUR 2 trillion by 2035. euros by 2035. "In the optimistic scenario, Germany can increase its market share to just over 7%, which means that the growth market of artificial intelligence has a value creation potential of up to 144 billion euros for Germany (source: IW Consult)," the paper states. Industrial AI is intended to make production processes more efficient and flexible, for example in manufacturing, logistics or maintenance. At the same time, the authors of the study expect productivity gains for Germany of 0.9% for the years 2025 to 2030 and 1.2% annually in the period 2030 to 2040 (source: IW Consult).

Automation and robotics

Automation and robotics are also among the biggest growth drivers. A value creation potential of between 155 and 276 billion euros is expected for Germany by 2035. According to the ZVEI position paper, this is a global market with an expected volume of around EUR 2 trillion. In the optimistic scenario, Germany could have a share of up to 285 billion euros.

"The growth area of digitalization, consisting of the markets of artificial intelligence, automation and robotics, generates a total value creation potential of up to 420 billion euros in the optimistic scenario 2035. EDI is considered one of the most important leading industries here and is a key driver of the digital transformation," the paper states.

Energy technology and electrification

In energy technology, EDI is becoming a key player, particularly through grid technology, heat pumps and direct current solutions. The position paper puts the potential added value for Germany at EUR 153 billion by 2035. The global markets for heat pumps and smart building technology alone are expected to reach over 1.4 trillion euros by 2035. euros by 2035. Direct current solutions are also seen as a significant growth area, for example for the coupling of renewable energies with electromobility and storage.

Microelectronics

According to the ZVEI, chips and sensors are indispensable for almost all future technologies - from medical technology to mobility and defense systems. The position paper points out that without additional support measures, the European production share could fall from 8.1% today to 5.9% in 2045. While the USA, China and Japan are investing billions in semiconductor production, the EU is lagging far behind. However, earlier funding programs in Europe have already proven to be a growth driver: According to the study, they led to new jobs, higher added value and additional tax revenue.

Defense and security

The importance of EDI for the defense industry continues to grow. The proportion of electronics in defense systems has risen from 10% to 17% since 2000 and is expected to reach 25% by 2035 to 2040. According to the position paper, modern defense systems are increasingly based on electronics, software and digital infrastructure. Important trends include unmanned systems such as drones and satellite communication for secure navigation and surveillance. At the same time, there are high barriers to entry for companies, for example due to certification requirements or export controls.

Need for political action

The ZVEI is calling for a strengthening of competitiveness through energy policy reforms, a reduction in bureaucracy and investments in technology-driven markets. The federal government's package of measures to date is not sufficient to fully exploit the opportunities for the industry.

In its position paper "Agenda for the industry of tomorrow", the ZVEI highlights the strategic role of the electrical and digital industry for the German and European economy. It is not only a key sector, but also a prerequisite for growth in other industries. According to the position paper, the industry has a cross-sectional function that is crucial for the competitiveness of Germany and Europe.

Download the ZVEI position paper here!