How Germany’s machinery industry must transform to compete
The German machinery and equipment industry has long been synonymous with engineering excellence, precision, and global leadership. But that legacy alone is not enough to secure long-term business success.
With 54% of companies reporting stagnating or declining markets, while new competitors are emerging from non-European markets and adjacent sectors, the industry faces a structural inflection point. At the same time, customer demand is shifting from product ownership to outcome-based models focused on availability, productivity, and total lifecycle cost. While companies still generate 66% of their revenue through product sales, future growth increasingly lies in operations, system enablement, and digitally connected ecosystems. Industry reinvention is no longer optional, it is essential.
To understand how far the industry has come and what still needs to happen, Strategy& surveyed nearly 200 senior executives from the German machinery and equipment industry. Combined with in-depth expert insights from the PwC network and industry representatives, this study examines the most critical questions around business model reinvention:
- How urgent is the need for new business models?
- How advanced is the industry in its implementation?
- Which business models hold the most promise?
- And what separates the frontrunners from the rest?
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