Germany Industrial Electronics Market Size, Share, and COVID-19 Impact Analysis, By Component (Semiconductors & Power Devices, Sensors & Transducers, Control Systems, Embedded Systems & Processors, and Passive Components), By Equipment Type (Automation & Control Equipment (PLCs, SCADA, HMIs), Industrial Robots & Robotics Systems, Test & Measurement Equipment, Power Electronics Equipment, and Industrial Communication Systems), By Application (Manufacturing & Process Industries, Energy & Power, Automotive & Transportation, Healthcare & Medical Devices, Aerospace & Defense, and Consumer Electronics), By End User (Automotive, Electronics, Machinery, Chemicals, Food & Beverages, Pharmaceuticals, and Oil & Gas) and Germany, Industrial Electronics Market Insights, Industry Trend, Forecasts to 2035

Germany Industrial Electronics Market Insights Forecasts to 2035

• The Germany Industrial Electronics Market Size is Expected to Grow at a CAGR of 4.8% from 2025 to 2035
• The Germany Industrial Electronics Market Size is Expected to Hold a Significant Share by 2035

According to a research report published by Spherical Insights & Consulting, the Germany industrial electronics market is expected to hold a significant share by 2035, at a CAGR of 4.8% during the forecast period 2025-2035. Germany's industrial electronics market expands with its Industry 4.0 focus, huge demand for innovative technologies such as augmented reality, and strong investments in innovation and R&D, making it Europe's largest electronics market.

Market Overview

The industrial electronics market of Germany refers to the development, production, and use of electronic devices and systems used in an industrial environment for controlling, sensing, automating, and powering. Examples include sensors, PLCs (Programmable Logic Controllers), industrial PCs, power electronics, and embedded systems that enhance productivity, safety, and efficiency in manufacturing, automotive, energy, and logistics industries. Germany's strong industrial base, specifically automotive and advanced manufacturing, drives demand for high-performance electronics. Industry 4.0 technologies adoption, increasing automation, and upgrading to energy-efficient and smart industrial solutions are the key market drivers. Future growth opportunities lie in increased deepening digitalization, smart factory implementations, and increased cybersecurity requirements in industrial networks. Government programs such as the High-Tech Strategy 2025 and investment in 5G infrastructure, artificial intelligence, and environmentally friendly industry practices also enhance market growth. The German government in June 2025 sanctioned a new act allowing 30% depreciation accelerations for investments in machinery and equipment from July 2025 to the end of 2027, increasing infrastructure outlays and driving expansion in the industries of advanced manufacturing and industrial electronics.

Report Coverage

This research report categorizes the market for Germany industrial electronics market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Germany industrial electronics market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Germany industrial electronics market. 

Driving Factors

The industrial electronics market in Germany is fueled by the nation's robust manufacturing sector, growing adoption of Industry 4.0 solutions, and need for automation and energy-efficient equipment. Other drivers of growth are government initiatives to promote digital transformation, spending on smart factories, growing industrial cybersecurity requirements, and developments in semiconductor and sensor technologies enabling precision, safety, and productivity in industrial processes.

Restraining Factors

Restraints for Germany's industrial electronics market are supply chain disruption, especially in consumer electronics, shortages of labor, increasing inflation, and the requirement to fulfill sustainability regulations and conform to changing technological requirements.

Market Segmentation

The Germany industrial electronics market share is classified into component, equipment type, application, and end user. 

• The semiconductors & power devices segment held a significant market share in 2024 and is projected to grow at a substantial CAGR during the forecast period.

The Germany industrial electronics market is segmented by component into semiconductors & power devices, sensors & transducers, control systems, embedded systems & processors, and passive components. Among these, the semiconductors & power devices segment held a significant market share in 2024 and is projected to grow at a substantial CAGR during the forecast period. This segment is led by rising demand for energy-efficient devices, growth in electric vehicles, industrial automation growth, and Germany's focus on improving its semiconductor production capabilities and technology development.

• The automation & control equipment (PLCs, SCADA, HMIs) segment dominated the market in 2024 and is expected to grow at a substantial CAGR during the forecast period.

The Germany industrial electronics market is segmented by equipment type into automation & control equipment (PLCs, SCADA, HMIs), industrial robots & robotics systems, test & measurement equipment, power electronics equipment, and industrial communication systems. Among these, the automation & control equipment (PLCs, SCADA, HMIs) segment dominated the market in 2024 and is expected to grow at a substantial CAGR during the forecast period. This segment is dominating due to growing adoption of Industry 4.0 technologies, increasing demand for real-time monitoring and process optimization, rising smart factories growth, and increasing automation in the manufacturing and energy sectors in Germany.

• The automotive & transportation segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Germany industrial electronics market is segmented by application into manufacturing & process industries, energy & power, automotive & transportation, healthcare & medical devices, aerospace & defense, and consumer electronics. Among these, the automotive & transportation segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The automotive & transportation sector dominated the market due to Germany's robust automotive manufacturing industry, increasing use of electric vehicles, greater adoption of advanced driver-assistance systems (ADAS), and mounting demand for embedded electronics, sensors, and power devices in smart mobility and connected vehicle technology.

•  The automotive segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Germany industrial electronics market is segmented by end user into automotive, electronics, machinery, chemicals, food & beverages, pharmaceuticals, and oil & gas. Among these, the automotive segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The automotive segment dominated the market, attributed to Germany's market leadership in automotive engineering, growing electric vehicle manufacturing, more extensive integration of electronics for efficiency and safety, and robust government incentives for sustainable mobility and automotive development.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Germany industrial electronics market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Siemens AG
• Infineon Technologies AG
• Bosch GmbH
• Pepperl Fuchs SE
• ifm Group
• Manz AG
• Hella GmbH & Co. KGaA
• Wurth Elektronik Group
• Phoenix Contact GmbH & Co. KG
• Rohde & Schwarz GmbH & Co. KG
• Metzler Electronics GmbH
• Others

Recent Developments

• In April 2025, Infineon launched the first gallium nitride (GaN) power transistors with integrated Schottky diode, enhancing industrial power system efficiency by reducing deadtime losses and simplifying design, while lowering bill of materials costs.

• In January 2025, Siemens showcased at CES 2025 its vision of integrating data, AI, and software-defined automation to drive flexibility, optimization, and continuous improvement, empowering industries of all sizes to achieve groundbreaking innovation through advanced industrial software.

• In October 2024, Pepperl Fuchs joined Bosch Rexroth’s ctrlX World partner network, expanding solutions for the modular ctrlX AUTOMATION system by contributing selected products compatible with the Linux-based ctrlX OS ecosystem.

• In March 2024, Robert Bosch Engineering unveiled Phantom Edge, an AIoT platform combining AI and IoT to deliver real-time insights on energy consumption, operating usage, electrical parameters, and appliance-level data.

Key Target Audience 

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Germany, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Germany industrial electronics market based on the below-mentioned segments:

Germany Industrial Electronics Market, By Component

• Semiconductors & Power Devices
• Sensors & Transducers
• Control Systems
• Embedded Systems & Processors
• Passive Components

Germany Industrial Electronics Market, By Equipment Type

• Automation & Control Equipment (PLCs, SCADA, HMIs)
• Industrial Robots & Robotics Systems
• Test & Measurement Equipment
• Power Electronics Equipment
• Industrial Communication Systems

Germany Industrial Electronics Market, By Application

• Manufacturing & Process Industries
• Energy & Power
• Automotive & Transportation
• Healthcare & Medical Devices
• Aerospace & Defense
• Consumer Electronics

Germany Industrial Electronics Market, By End User

• Automotive
• Electronics
• Machinery
• Chemicals
• Food & Beverages
• Pharmaceuticals
• Oil & Gas