The mood in Germany’s green tech industry is rather patchy. Irrespective of the lead market in which they operate, nearly half of the respondent firms (47 percent) rate their current business situation as “good”. 45 percent see it as “satisfactory”, while 8 percent regard their business situation as “bad”.

Looking ahead to the near future, a picture of cautious optimism emerges. One third of respondent companies across all lead markets believe that their business situation will improve through 2021. 60 percent expect their business situation to remain unchanged, and only 6 percent expect it to deteriorate (see Figure). The upbeat assessment of their current situation and the confidence about future prospects in evidence among companies focused on the lead market for energy efficiency aligns well with the considerable importance attached to energy efficiency in the context of mitigating climate change. The EU’s energy policy motto “Efficiency first” gives providers of efficiency solutions good reason to be optimistic. At the same time, it is conspicuous that companies focused on the lead market for environmentally friendly power generation, storage and distribution are comparatively cautious in their view of both the current situation and medium-term business development. This stance reflects the situation on international markets, where competition and cost pressures are growing. Germany’s photovoltaics industry has ceded global market share to Chinese players in recent years. Now, the fear is that similar developments could unfold in the wind power Segment.


Business expectations by lead market