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The mechanical engineering sector, which primarily manufactures machines, components and other capital goods for a wide range of manufacturing industries, has experienced ups and downs over the past five years. In 2020, machine sales in the sector declined sharply because many industrial customers cut back on their own production and investments in new machines due to the economic slump caused by the pandemic. As the global economy recovered in 2021, the order situation and sales in the mechanical engineering sector improved significantly again, although cost increases and supply bottlenecks for primary products subsequently dampened the upturn. The outbreak of the war in Ukraine in 2022 significantly exacerbated inflation for raw materials and energy products. At the same time, increasingly weaker global demand for machinery led to a drop in the high order backlogs that players had built up since the pandemic, putting pressure on capacity utilisation and earnings in the sector over time. Over the entire period from 2020 to 2025, turnover in the sector fell at an average rate of 0.1% per year.
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IBISWorld's research coverage on the Machinery & Equipment Manufacturing industry in Germany includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released December 2025.
The Machinery & Equipment Manufacturing industry in Germany operates under the WZ industry code C28.00DE. Mechanical engineering includes the manufacture of combustion engines and turbines, hydraulic systems, pumps and compressors, fittings, mechanical drive elements, fans, hoists and hoisting equipment, power-driven hand tools, refrigeration and air technology products, machine tools, construction and agricultural machinery, food processing machinery, paper machines, plastics processing machinery and special machinery. Related terms covered in the Machinery & Equipment Manufacturing industry in Germany include internet of things, rest time and decarbonisation.
Products and services covered in Machinery & Equipment Manufacturing industry in Germany include Combustion engines, turbines and mechanical drive elements, Hydraulic and pneumatic systems, fittings, pumps and compressors and Construction and agricultural machinery.
Companies covered in the Machinery & Equipment Manufacturing industry in Germany include Siemens Energy AG, Siemens AG and Robert Bosch GmbH.
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Machinery & Equipment Manufacturing industry in Germany.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Machinery & Equipment Manufacturing industry in Germany.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Machinery & Equipment Manufacturing industry in Germany.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Machinery & Equipment Manufacturing industry in Germany. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
The Companies chapter covers Key Takeaways, Market Share and Companies in the Machinery & Equipment Manufacturing industry in Germany. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Machinery & Equipment Manufacturing industry in Germany. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Machinery & Equipment Manufacturing industry in Germany. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Machinery & Equipment Manufacturing industry in Germany.
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The market size of the Machinery & Equipment Manufacturing industry in Germany is €353.4bn in 2026.
There are 15,856 businesses in the Machinery & Equipment Manufacturing industry in Germany, which has declined at a CAGR of 0.2 % between 2020 and 2025.
The Machinery & Equipment Manufacturing industry in Germany is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.
The Machinery & Equipment Manufacturing industry in Germany is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
The market size of the Machinery & Equipment Manufacturing industry in Germany has been declining at a CAGR of 0.1 % between 2020 and 2025.
Over the next five years, the Machinery & Equipment Manufacturing industry in Germany is expected to grow.
The biggest companies operating in the Machinery & Equipment Manufacturing industry in Germany are Siemens Energy AG, Siemens AG and Robert Bosch GmbH
Combustion engines, turbines and mechanical drive elements and Hydraulic and pneumatic systems, fittings, pumps and compressors are part of the Machinery & Equipment Manufacturing industry in Germany.
The company holding the most market share in the Machinery & Equipment Manufacturing industry in Germany is Siemens Energy AG.
The level of competition is high and steady in the Machinery & Equipment Manufacturing industry in Germany.