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Economic potential of the green tech sector in Bavaria

Client

vbw - Bavarian Industry Association

Year

2024


The Bavarian green tech industry is growing significantly faster than the Bavarian economy as a whole. This is the finding of our study on the economic potential of the green tech sector, which we conducted for the Bavarian Industry Association (vbw).

Green technologies are becoming increasingly important. They solve environmental and climate problems while promoting sustainable and innovative developments in the economy and society. The achievements of the green tech industry include renewable energies, technologies to increase energy efficiency, to recover raw materials and materials, and sustainable mobility solutions.

Bavarian vehicle construction is at the forefront of green high-tech

The green tech industry is a cross-sectional industry: it is not explicitly recorded in existing statistical classification systems. With our own Prognos envigos model, we have established a comprehensive procedure for defining environmental technologies.

On behalf of the vbw, we analyzed the Bavarian green tech industry with a view to the following questions: How productive is the green tech industry? What is its current economic significance? What are the development trends? What are the particular strengths in Bavaria?

These are the key findings:

  • The green tech sector is developing much more dynamically than the Bavarian economy as a whole or important comparable sectors, such as mechanical engineering.
  • Compared to the national trend in Germany, the Bavarian green tech sector is growing disproportionately strongly.
  • The so-called green high technologies – environmental technologies with a high degree of innovation such as wind turbines, solar systems, recycling technologies and electric cars – are particularly dynamic. Since 2010, the number of people employed in this sector has increased by almost 7 percent annually. The main reason for this is Bavarian vehicle construction, which has seen a rapid market ramp-up for electric vehicles over the last five years.
  • Around two-thirds of employment and gross value added in the green tech sector are in the service sector.

Our approach

We used our envigos model to analyze the Bavarian green tech sector. This allowed us to conduct a detailed evaluation of gross value added and employment in the environmental technology sector in Bavaria.

We examined various services with relevant environmental benefits on the basis of seven lead markets. In addition, we distinguished four value-added levels to focus on the core areas of green technologies:

  • green high-tech
  • green basic technologies & goods
  • installation & construction
  • specialized environmental services

Links and downloads

The study (PDF, german)

More information (press release, vbw, german)

Project team: Jannis Lambert, Tim Bichlmeier, Robert Norpoth

Last update: 02.01.2025

Do you have questions?

Your contact at Prognos

Jannis Lambert

Principal

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Tim Bichlmeier

Consultant

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