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An increasing number of companies are currently choosing to make major greenfield investments in Germany. As Europe’s largest economy, Germany is appealing to investors not only due to its central location but because it also provides a dynamic business destination for several industries. Current trends and major drivers of transformation processes spanning various industries present opportunities for profitable growth in Germany. However, greenfield investments are generally extremely complex and often require several months to complete.

Our modular support

KPMG has a comprehensive understanding of the challenges and potential difficulties associated with investing in Germany. We provide our customers with modular support across all areas, ranging from the planning and foundation stages to the construction of production facilities (pre-phase) and the transition to regular operations (build-phase).

Why are companies investing in Germany?

There are six megatrends driving transformation that make Germany an ideal location:

Energy & Automotive

Climate Change

  • Transformation of energy mix from fossil energy to renewables and shutdown of nuclear powerplants in Germany; Intention to use green hydrogen as an alternative
  • Grid infrastructure currently not sufficient for new energy mix
  • Energy consumption in households and industries to be adapted to new energy mix
  • Combustion engines to be replaced by electric engines

Tech & Semicond. industry

Digitization and AI

  • AI will change the way of working and will require massively increasing capacities in data centers
  • Germany is leading in the research of AI innovations but lacks in its application in businesses as well as being behind in regard to the digitization of public administration and health industry
  • Massively growing semiconductor demand; EU Chips Act to increase production in Europe and become independent

Health & Pharma Industry

Aging Society
and Migration

  • Aging society and decreasing overall population demands new ways of care (e.g. robotics and tele care)
  • Digitalization of health care system lacking behind in Germany (e.g. electronic patient record)
  • New pharma blockbusters for aging society to treat cancer and other diseases

Defense

Security Threats

  • War in Ukraine caused re-assessment of threat situation in Europe
  • Wars in Middle East, risks of aggressions of China (esp.in Taiwan) and North Korea as well as potential re-election of Trump as US-president all emphasize need to increase own defense capabilities and build up defense industry in Germany

Circular economy

Geopolitical Tensions

  • Intention to reduce dependency on raw material supplies from China by introducing a circular economy – which is climate-friendly too
  • National Circular Economy Strategy for Germany

Infrastructure

Global Competition

  • Postponed investments in physical infrastructure (rails, roads and bridges) in Germany for a decade
  • Buildings and transportation infrastructure to be adapted to become climate-neutral
  • Trend of immigration causes a higher, not satisfied demand for housing
  • Digital infrastructure in Germany not ready for digital life and AI