New study: A hidden champion with innovative capabilities
The Munich region is one of the leading centres in Germany for medical engineering. 350 companies in this industry give work to 19,000 socially insured employees and generate annual revenues of EUR 4.1 billion. These are the findings of a brand-new study of “Medical engineering in the Munich region”, commissioned in 2015 by the Department of Labor and Econom
Driving technological innovation
The Munich region boasts a broad spectrum of medical engineering companies whose offerings range from the production of hospital and laboratory equipment to complex high-tech devices. Digitization is transforming all kinds of industries and is driving innovation in medical engineering in particular. Examples include information and data management for patients, laboratory samples and medical equipment.
As the study shows, Munich's medical engineering sector channels an exceptionally large proportion of its annual revenue – 15 percent – into research and development. The region's medical engineering firms also have a powerful international focus, with around a third of them generating more than 75 percent of their revenue outside Germany.
Some 350 companies in and around Munich belong to this industry. Of these, 200 manufacture medical engineering products, 115 provide related services and 35 are component suppliers. Small and medium-sized enterprises (SMEs) are the backbone of the sector: Around half of all the companies in this industry employ fewer than 20 people.
Out of a total of roughly 21,000 gainfully employed persons in the region's medical engineering sector, about 90 percent are in socially insured employment.
Startup activity in the industry is highly dynamic: Around a quarter of the medical engineering companies, suppliers and service providers that currently operate in the Munich region did not exist before the turn of the millennium.
The sector has a strong international focus : Approximately one third of the companies generate more than 75% of its turnover abroad . The largest target markets are the EU countries and the USA .
Current trends and outlook
According to the study, industry players have very positive expectations for the next three years, looking forward to significant growth in both their own companies and the industry as a whole. The advance of digitization and all the associated downstream developments are seen as the most important technological trend. At the same time, companies are bracing themselves for fiercer competition from Asia while also anticipating strong growth stimulus from the same region.
Challenges include a possible lack of skilled and specialist labor, changes in medical product law and changes in national healthcare benefits.
Medical engineering in Munich – Overview
High-tech companies in the growing healthcare market
Munich's medical engineering cluster ranks as one of the leading centres of competence in Germany, benefiting from the plentiful presence of basic and cross-sector technologies that are important to its own activities. Mechatronics, microsystem technology, I&C systems, photonics/optics, materials science and the pharmaceutical and biotechnology sectors all help it realize a broad array of products and system solutions.
Munich's firms are young, flexible and mostly international in their outlook. Alongside global players of the caliber of Baxter, General Electric/GE Health Care and LivaNova (formerly the Sorin Group), the majority of the med tech firms based in and around Munich are small and medium-sized enterprises.
The city's universities, academies and respected research organizations supply the industry with a constant stream of innovative potential and highly qualified specialists. Munich is also an excellent healthcare hub with a high-quality medical and hospital infrastructure.
Last updated: March 2016