Life sciences

Europe's No. 1 healthcare market

Germany's healthcare market is No. 1 in Europe by market volume. Patients, manufacturers and providers power a life sciences industry composed of medical technology, pharmaceuticals, medical biotechnology and digital health.

EUR 374 billion

Healthcare spending in Germany exceeded EUR 374 billion in 2017, not including private out-of-pocket spending, estimated at one billion euros per day.

1,900 hospitals

More than 1,900 hospitals operate in Germany with nearly 500,000 beds. The share of privately owned hospitals continues to rise.

5.5 million employees

With more than 5.5 million employees, healthcare is one of the largest economic sectors in Germany.

3.8 percent

The German healthcare market grew at 3.8 percent annually over the past 11 years.
In 2017, a record of EUR 36 billion was spent on medical devices in Germany.

With sales of EUR 41.5 billion in 2017 the German pharmaceutical market is the largest in Europe and the fourth largest in the world.

In 2016, Germany spent a record-breaking EUR 6.2 billion on R&D in pharmaceuticals, putting it in first place in Europe.
One in four European biotech companies is based in Germany. Together they secured a record-breaking EUR 673 million in funding in 2017.

Demographic change and technology – pushing healthcare forward

In the last 14 years, the number of people with diabetes mellitus has risen from 5.8 to 7.2 million people. The German market has reacted with smart solutions for diabetes management, which are expected to grow at a rate of 27 percent in the coming years.

Market for diabetes management solutions (in EUR million)

The E-Health Act of 2016 provided the basis for rapidly increasing implementation of digital health solutions, including health-IT, telemedicine and mobile platforms.

In 2017, 51 percent of all new drug approvals were biopharmaceuticals – more than ever.

And 639 biopharma compounds were in clinical development.

An ideal location for high-quality production

Out of 12,000 medical technology companies in Germany, less than 180 have more than 100 employees. These smaller companies offer excellent opportunities for investors.

One in three

medical devices sold in Germany is less than three years old.

More than 30

specialised cluster networks focusing on medical technology.

9 percent

of revenue is spent on R&D.

15 percent

of employees work in R&D.
24 independently managed medical technology clusters are certified to ECEI standards.

European Medical Valley

One example of an excellent innovation cluster in medical technology is the European Medical Valley in Nürnberg/Erlangen.

500 local companies

involved in medtech.

11 cluster staff

to coordinate R&D projects and funding.

65 hospitals

with 850,000 inpatients treated in 2017.

The life sciences industries in Germany are driven by a strong and stable healthcare market, support for research and development, and a wealth of companies and institutes. Germany offers the ideal investment climate for innovation in health. Get in touch to learn more.