Business Cycles & Markets

France is one of Germany’s most important economic partners and is also one of Europe’s largest markets. The neighboring country offers significant opportunities, particularly for the German electro and digital industry—driven by close trade ties and the advantages of the EU single market. This overview highlights France’s current economic significance as well as key developments in bilateral trade and the sectoral structure.

The Chinese electro market is by far the largest in the world. Between 2010 and 2024, its volume nearly tripled. However, for the first time since 2015, China is no longer the largest national destination of German electro goods. At the same time, China’s importance as a supplier to German industry continues to grow.

According to the latest calculations by the ZVEI, the global market for goods of the electro and digital industry reached a value of €5,765bn in 2024. For the current year, the global electro market is expected to grow by 3%. This would mean that growth remains subdued compared to the long-term average (5% p.a. since 1995). Next year, growth in the global market could pick up again slightly: the ZVEI forecasts growth of 5% for 2026. This would make the market be worth more than 6 trillion euros.

Trade conflicts in an increasingly fragmented global economy remain a significant risk. The electro and digital industry, with its international value chains and sales markets, is particularly dependent on the freest possible movement of goods.

The annual fact sheet summarizes the most important data and forecasts for the global Electro and Digital Industry.

China is of great importance to the German electro and digital industry. With a share of just under forty percent, the Chinese market is the world's largest national market. For the German electro and digital industry, China was not only the main target of exports in 2024, but was also the largest investment location for foreign direct investment in 2023.

With the widespread introduction of new (high) tariffs, the new US administration is implementing nothing less than a paradigm shift in decades of American trade policy: away from free trade wherever possible, towards a pronounced isolation of the US market. This paper analyzes the potential impact of US tariff policy on the German electro and digital industry (EDI).