Production (2007)
Worldwide:	approx. € 2,500 bn
Europe:	approx. € 500 bn
America:	approx. € 475 bn
of which USA:	approx. € 375 bn
Asia:	approx. € 1,500 bn
of which China:	approx. € 750 bn
of which Japan:	approx. € 325 bn

Growth markets for sales/production
 
China

• Investment in infrastructure (expansion of energy supply, electricity and communications networks)
• Backlog of demand for consumer products
• Growth rates of over 20% per year
• Largest sales market since 2006
• High proportion of own production

Eastern Europe/Russia

• Investment in infrastructure (expansion of energy supply, electricity and communications networks)
• Backlog of demand for consumer products
• Accelerated growth due to higher per-capita income and industrialization

India

• Investment in infrastructure (expansion of energy supply, electricity and communications networks)
• Backlog of demand for consumer products
• Market volumes still relatively low
• Higher growth rate (>15%) than in the industrialized countries 
  

Opportunities in established markets
 
USA

• Contracting market
• Important production location for materials and supplies and capital goods
• Modernization of the electricity grid is planned

Western Europe

• Diversification of products and markets spreads the risk
• High market share in the case of capital goods
• Automation is the biggest sales segment
• Energy-efficiency and clean production are key themes
• EU standards regulate the energy consumed by domestic appliances, consumer electronics and lighting

Japan

• High innovations capability
• Expertise in high-quality technology
• National economic stimulus programme promotes energy technology 
  

Technology trends
The sector thrives on innovations. Product cycles are very short and the input in R&D is relatively high. Here are just a few examples of future-capable technology:

• Improved energy-efficiency in all product groups
• Further advances in LED technology
• Innovations in semiconductors
• Expansion in vehicle technology (GPS, parking assistance, etc.)
• Trend towards multi-functional communication devices
• Intelligent building systems
• Hybrid TV (Internet TV)
• Blu-RayGames consoles with multi-functions
• Expansion of digital transmission for HDTV
• LCD televisions (lower energy consumption thanks to LED technology)
• Improved cabling for faster data transmissions
• Organic and printed electronics  

Commercial trends

• Consumer goods, standardized commodities and mass products are very labour-intensive and mainly produced in the emerging countries. Demand in those countries is strong because of higher incomes, whereas market saturation has already been reached in the industrialized countries. Sales of these products are generally not subject to economic cycles  

• Capital goods, on the other hand, are capital-intensive and demand corresponding expertise and specialized employees. These goods are mainly produced in the industrialized countries of the west. They are dependent on capital investment and particularly affected by economic cycles  

• Energy-efficient products are opening up opportunities for industry, private and public customers to save energy and thereby reduce costs. They generate additional demand    

Sources: ZVEI, Deutsche Bank Research, Germany Trade & Invest