Germany - Country Commercial Guide
Smart Cities

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-10-07

Overview

The term “smart cities” refers to the development and use of ICT in almost all areas of local life in order to link municipal infrastructures such as energy, buildings, governance, transportation, water and sewage on the basis of integrated development concepts. Enabled by the Internet of Things (IoT), sensors, networks, and mobile-based technologies are the basis of any smart city concept.

Digital transformation offers opportunities for moving towards sustainability and promotes resource-friendly, needs-based solutions for meeting the key challenges of integrated urban development and sustainability.

Germany is actively positioning itself as a lead provider of complete smart technology solutions and supported by the government, local authorities are launching their own smart city projects jointly with the private sector, utility companies and universities. To establish guidelines for future German city development, the German Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) published a Smart City Charta on how to make digital transformation at the local level more sustainable.

However, only about one third of the two hundred largest German cities use smart information and communication technology in their urban development to become Smart Cities according to a study of the German Institute for Urban Studies.

With 74% of Germans living in cities and towns, the relevance of strategic urban development through digital solutions is widely recognized. The technology disrupting urban living today has the potential to improve quality of life. Innovative solutions and good decision-making are key to success.

Chart showing revenue and growth of German smart city markets 2017-2022
Revenue and Growth of German Smart City Markets

 

Best Prospects for U.S. exports

Building and construction: energy-efficient buildings and modernization, smart homes

Energy: expansion of renewable energy generation, smart grids and distribution, and energy storage systems

Environmental technology: new solutions for waste recycling and waste-water treatment

Management: digital solutions/IoT for the municipal economy, security for critical infrastructure

Transportation/Logistics: investment in public transport and smart traffic systems, e-mobility, electric vehicle charging infrastructure autonomous driving

Ports: fully automated port where all devices are connected via IoT

Challenges

Both. the U.S. and Germany are leaders in innovation and early adopters of new technologies rapidly developing ideas into products. Being an innovative technology and solution provider in Germany usually means to compete and do business in a saturated market.

It is not an easy undertaking to compete, stand out and even thrive in a saturated market. However, a competitive marketplace is a sign that there is demand. Having the right approach, careful analysis, and a relentless commitment to providing something unique and of value to customers, will eventually set up for medium and long-term success.

Selected Trade Events

Resources

Federal Ministry of the Interior, Building and Community

Federal Office for Building and Regional Planning

Smart Cities Council

GTAI Germany Trad & Invest

German Renewable Energy Federation

German Partnership for Sustainable Mobility