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Opportunities exist for UK companies across a wide range of sectors, including technology, automotive, health and life sciences, food and drink and renewable energy.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Renewable energy

Germany is the EU’s largest market contributing 21% to GDP. The new government will increase the target for renewables from 65% to 80% by 2030 with impressive growth trajectories for offshore wind, hydrogen, grid technologies and solar. This is fertile ground for UK exporters.

Growth potential for offshore wind

Offshore wind will increase from 20GW to 30GW by 2030, 50GW in 2035, and 70GW in 2045. Upcoming opportunities include marine geophysical, geotechnical and environmental survey services, design planning and engineering services, CTVs, SOVs, logistic and transport services. There will also be opportunities in remote and autonomous technological solutions enabling condition monitoring and maintenance and blade recycling.

Hydrogen

German H2 strategy envisages 5 Gigawatts (GW) of generating capacity by 2030, plus 5 GW by 2035 to 2040 latest. A new supply chain and innovative solutions are required to replace the fossil resource in ~217 Terrawatt power for industry alone. €9bn funding (€2billion dedicated to R&D) are allocated to build it. With 30 small scale pilot projects underway, the German Hydrogen market will be working closely with UK projects and companies.

Photovoltaic and solar thermal

New developments in photovoltaic and solar thermal opportunities are emerging due to targeted expansion of solar power to around 200GW by 2030, compared to 54GW installed capacity in Q4 2020. In future, solar power installation will become mandatory on commercial property, and encouraged on domestic building. Germany occupies one quarter of the EU market with around 80.7 GWp, more than double of Spain and Italy’s 30GWp.

Future mobility

The future mobility sector remains the strongest and most export-driven industry in Germany with a total turnover of €410.9 billion and 786,100 people employed in the industry as a whole in 2021. It’s transition towards connected and autonomous vehicles, and clean mobility creates excellent opportunities for UK companies providing solutions in vehicle connectivity, mobility management, sustainable mobility, and battery technology development.

Investment in future mobility

German automotive companies are investing heavily to meet the transport needs of the future and contribute to decarbonisation efforts. They transform their business from a manufacturer to a 'future mobility' service provider. With an increased focus in autonomous technologies, energy efficiency and battery technology new opportunities arise for UK companies.

Demand for UK skills

The biggest challenge German automotive companies are facing is the need for new software and engineering talent. The UK's reputation for high-end engineering and software skills is recognised in Germany. Automotive companies are also more open than ever to engaging in partnerships, rather than direct procurement.

Ties with the UK

The ties between the German and UK automotive industries run deep. Leading global players based in Germany have significant existing manufacturing ties to the UK, including VW, BMW, Ford, Daimler AG, Opel and Bosch. The UK automotive industry is close to home for German carmakers and respected for its business practice and innovation.

Health and life sciences

Germany is at the forefront of healthcare innovation while also being the number one in Europe’s healthcare market by market volume, number of patients and healthcare providers. In this sophisticated and demanding market, the opportunity for companies providing innovative products and services is substantial.

Market size

Germany offers one of Europe’s largest markets for healthcare and life sciences products. Healthcare expenditure reached €457 billion with an annual growth of 5.4% in 2021. High market demand and Germany’s strategic location make it a preferred choice for many international healthcare and life sciences companies preparing to expand.

Health technology

An increasing demand for healthcare services in Germany, combined with widespread digitisation and rapidly changing policy and legislation for healthcare system reforms, is paving the way for digital solutions in healthcare. With a 27% market share and sales of almost €43 billion Germany is by far the largest European market, Germany is also a world leader in medical technology and biotechnology, offering considerable opportunities for UK companies.

Pharmaceuticals

Germany presents significant opportunities with a sales increasing by 5.4% and industry revenue reaching €56.5 billion in 2022. The country can offer unique benefits to UK companies in the pharmaceuticals sector, including direct access to internationally renowned scientists, outstanding research units, and major international markets.

Food and drink

With around 84 million inhabitants, Germany represents a very receptive market for international food and drink products. There are significant growth opportunities in spirits, including low and non-alcoholic spirits, confectionery, sweet and savoury snacks, vegan, organic, free from and international products produced in the UK.

Growth in the online market

The German food and drink industry is highly competitive, but until now has also been relatively conservative in its operating models. The introduction of new technology and digitalisation has helped to change this and resulted in the number of imports from the UK increasing.

Increasing demand for goods from other countries

The German public is becoming more open to new tastes and flavours. Food and drink imports from the UK remain concentrated at the medium to high end of the market, but interest is growing steadily, enabling the range of products to increase.

Opportunities for specialist sectors

Specialist sectors such as vegan, organic and free from foods are becoming increasingly popular in Germany. This has been underlined with organic food product retail sales exceeding €15 billion in 2022 and a 42% growth in vegetarian or vegan meat and dairy alternatives. As in most European countries, the demand for private label products is increasing. This is visible throughout the supermarket chains and discounters. As the UK is one of the leading private label products manufacturers, there is considerable potential in this sector.

Consumer goods

Germany is the largest consumer market in Europe, having 82 million possible consumers, with a low unemployment rate and an affluent population. With an excellent logistics infrastructure both domestically and extending into neighbouring countries, Germany is well-located for distribution to Western, Central and Eastern Europe.

Growth due to innovative sales methods

E-commerce is growing fast in Germany, especially among consumers aged 50 plus, a major group with strong purchasing power. Germany is responsible for around one quarter of all European B2C e-commerce turnover. Demand is also increasing in mobile commerce, social media shopping and innovative omnichannel sales solutions.

World-leading trade fairs

Germany hosts some of the world’s largest trade fairs across all consumer sectors. Just some examples include IFA, the worlds largest consumer electronics shows, living, dining, and giving at Ambiente Frankfurt and child and baby at Kind und Jugend Cologne.

High-potential products

Major growth areas in the 2020s are homewares and interiors, personal care and cosmetics, and DIY and gardening.