GreenTech Atlas 2.0 – prepared by Roland Berger Strategy Consultants on behalf of the Federal Ministry for the Environment

• Study conducted by Roland Berger Strategy Consultants, commissioned by the Federal Ministry for the Environment: Development on global markets surpassing all forecasts; revenues in the world's environmental industries to hit EUR 3,100 billion by 2020
• Study covers 1,300 companies and around 200 research organizations, enriched by secondary research
• Germany, the market leader in many segments, stands to benefit handsomely from the global economy's "green recovery"; German biogas plant manufacturers especially successful (90% share of world market)
• Environmental technology one of the most innovative industries in Germany; government traditionally most important backer of research and development (R&D)
• Strong growth in all German federal states, though the level of internationalization varies from state to state

On behalf of Germany's Federal Ministry for the Environment, international strategy consultants Roland Berger have now compiled the second "environmental atlas of Germany". Federal Minister for the Environment Sigmar Gabriel today presented the findings of the study in Berlin: The German environmental industry has easily surpassed all growth forecasts. By 2020, it will be the country's foremost industry, accounting for 14% of GDP. The economic crisis will slow this development only briefly, as forceful growth is being driven by three megatrends: global population growth, industrialization in the emerging countries and the worldwide desire to increase prosperity. Accordingly, revenues from environmental industries will more than double to EUR 3,100 billion over the next eleven years. German manufacturers are benefiting more than others from the global green recovery that will inject fresh vitality into the world's languishing economy. Global market shares of between 6% and 30% already position them among the world's technological front-runners.

"Environmental technology is the lead industry in the 21st century", says Professor Burkhard Schwenker, CEO of Roland Berger. "There are high hopes that this sector will soften the blow of stagnation in other branches of industry, for example. It is also seen as a way to combat climate change and the raw materials crisis. In addition, environmental technology will ease the burden of pollution as the world's population continues to grow." The Green Tech Atlas 2.0, prepared by Roland Berger Strategy Consultants on behalf of the Federal Ministry for the Environment, lays a firm foundation for green programs to stimulate the economy. As such, it will make an important contribution to what is already being termed the "global green recovery" – the recovery of the global economy on the back of a booming environmental technology industry. "Environmental technologies already contribute about 8% of Germany's gross domestic product," Schwenker notes. "By 2020, this figure will have risen to 14%."

German businesses setting international standards

"Between now and 2020, the world's environmental industries will more than double their revenues to EUR 3,100 billion," predicts Roland Berger Partner Dr. Torsten Henzelmann. "Germany is well placed to reap handsome rewards from global growth." The updated atlas divides the environmental market into six "lead markets": environmentally friendly power generation and storage, energy efficiency, material efficiency, waste management and recycling, sustainable water management and sustainable mobility. "In all these segments, Germany's environmental technology companies boast global market shares of between 6% and 30%," Henzelmann points out. In particular, German firms rank among the world's leading producers of heating and air-conditioning systems (with a 10% share of the global market) and energy-efficient white goods (15%). "A 90% share of the global market gives German manufacturers of biogas installations an exceptionally dominant position," Henzelmann adds.

Environmental technology in Germany's federal states

All of Germany's 16 federal states are benefiting from strong growth in the environmental technology industry. Increasing convergence can be observed in the market structures of western and eastern Germany. "On average, environmental technology companies in the eastern German states will grow three percentage points faster than their peers in the western German states," explains Henzelmann. "Environmental technology has also become a powerful engine of employment in eastern Germany." Regional differences do exist in the degree of internationalization, however. "Southern German companies tend to do more business abroad than their competitors in the north of the country," Henzelmann says. "At the same time, internationalization among western German companies is about 11 percentage points ahead of that among eastern German companies."

Environmental technology in the international arena

Their position on the global market and their future potential make the six national markets of the USA, Japan, Brazil, Russia, India and China vitally important to the green-tech industry. "Almost all the lead markets hold out vast potential for German companies," Henzelmann says. "As things stand, though, these countries' markets are still largely dominated by domestic players." There are nevertheless many indicators that German firms will remain successful on the world's markets in future, and that environmental protection will continue to fuel employment in the years ahead. However, a forward-looking, innovation-focused environmental policy is essential if this potential is to be realized.