Life Sciences

Europe's No. 1 healthcare market

Germany's healthcare market is No. 1 in Europe by market volume, patients, manufacturers and providers. The life sciences industry is driven by innovations in medical technology, pharmaceuticals, medical biotechnology and digital health.

EUR 417 billion

Healthcare spending in Germany exceeded EUR 417 billion in 2020.

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.

7.6 million employees

With more than 7.6 million employees, healthcare is one of the largest economic sectors in Germany.

4.5 percent

The German healthcare market grew at 4.5 percent annually over the past 5 years.
In 2020, a record of approx. EUR 40 billion was spent on medical devices in Germany.

With sales of EUR 49.5 billion in 2020 the German pharmaceutical market is the largest in Europe and the fourth largest in the world.

In 2019, Germany spent a record-breaking EUR 7.8 billion on R&D in pharmaceuticals, putting it in first place in Europe.
Germany is the leading country in Europe in terms of EPO patent applications in biotechnology, and its biotech companies secured a record-breaking EUR 3 billion in funding in 2020.

Demographic change and technology – pushing healthcare forward

In the last 15 years, the number of people with diabetes mellitus has risen from 5.8 to 8 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)
Biopharmaceuticals now account for more than 30 percent (2020) of the overall pharmaceutical market and 50% of all new drug approvals (2017-2020) in Germany.

And 657 biopharma compounds were in clinical development.

An ideal location for high-quality production

99% of Germany’s medtech companies are small or medium sized enterprises.

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.
19 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.