29.01.2025 • NewsMobile AutomationAutomation

The future of the German electrical and digital industry in 2025

Despite economic setbacks and high levels of bureaucracy, the ZVEI sees potential in electrification, digitalization and automation for a sustainable recovery of the industry.

ZVEI-Logo. Image: ZVEI
ZVEI-Logo. Image: ZVEI

The German electrical and digital industry is facing major challenges. In 2024, the industry recorded significant declines in production, revenues and exports. Price-adjusted production fell by over nine percent, while revenues declined by six and a half percent. Employment in the industry also fell by two percent. These declines are not only cyclical, but also structural. The ZVEI criticizes the high level of bureaucracy and overregulation in Germany, which impair competitiveness. The association calls for an efficiency turnaround, less bureaucracy and more freedom for innovations.

The ZVEI predicts a further slight decline in production of two percent by 2025. The next federal government must take urgent measures to avoid another year of recession. These include reducing the costs of bureaucracy, which currently amount to over 65 billion euros annually, and reforming the Supply Chain Due Diligence Act.

Despite the challenges, the ZVEI sees opportunities in the megatrends of electrification, digitization and automation, which could create new economic momentum. To improve the investment climate, the association is calling for a corporate tax reform, the abolition of the solidarity surcharge and a reduction in the corporate tax burden. Electricity prices should also be lowered to reduce the financial burden on companies.

The ZVEI emphasizes the importance of a liberal and open society and rejects racism, anti-Semitism and xenophobia. The association calls on people to vote in the federal election to counter right-wing extremism, in order to protect the democratic order and social cohesion.

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