Study by German government finds market will defy global financial strife to more than double in size over the next decade
By BusinessGreen staff
12 Sep 2012
Vince Cable in COn-Dem government wants to talk about an industrial strategy. A bit late in the day?
In UK, tourism accounts for 11% of GDP.
In Germany, clean technology accounts for 11% of GDP.
The worldwide market for clean technology is worth more than €2tr a year and is on track to double in size by the mid 2020s, according to a study commissioned by the German government.
The report finds the market has grown at an average of almost 12 per cent a year since 2007, and predicts it will continue to accelerate over the coming years.
“The economic and financial crisis has not stopped the worldwide expansion of the green tech industry,” said the study’s author, Torsten Henzelmann, head of the Civil Economics, Energy & Infrastructure Competence Centre at Roland Berger Strategy Consultants. “On the contrary, the worldwide market volume has now overshot the €2tr mark, thus exceeding our forecasts from 2009.
“Things will be a bit slower than in previous years, but by 2025 we expect the worldwide market to double in value to €4.4tr.”
The report reveals Germany has a dominant 15 per cent share of the global clean tech market and is also set to experience more growth from the sector than its competitors. The country’s clean tech companies already generate 11 per cent of the country’s GDP and employ 1.4 million workers, the report said, but the clean tech market volume is predicted to more than double, reaching €674bn by 2025.
Luc Bas, director of European programmes and international state and regions at NGO The Climate Group, said Germany’s success could be attributed to not only its early-mover advantage, but also its “clear vision and guarantees [of] investment security”.
The study also suggests the sector’s rapid growth is stimulating more traditional segments of the economy, including Germany’s giant manufacturing sector.
“More and more companies are finding that using green tech is a way to stand out among their international competitors,” said report co-author Ralph Büchele. “Better efficiency regarding energy and [raw] materials is increasingly becoming a strategic advantage in international competition – that goes for all sectors of the economy in general.”