Zvei information 07/2025

Daniel Hager nominated as ZVEI President-elect

The ZVEI Executive Board today nominated Daniel Hager, Chairman of the Supervisory Board of Hager Group, as ZVEI President-elect. He is to be elected at the General Assembly on 20 May 2026 in accordance with the articles of association and rotation and will succeed ZVEI President Dr. Gunther Kegel, who has held the office since 2020.

Daniel HagerDanielHager has been involved in the Association of the Electrical and Digital Industry for more than 15 years, currently on the Narrower Board and as Chairman of the Buildings Platform. He was previously Chairman of the Electrical Installation Systems Association, of which he remains a member. Daniel Hager sees the further electrification and digitalization of Germany, the success of the energy transition and the stronger networking and cooperation of the association at European level as priority tasks.

ZVEI: The association of the electrical and digital industry

The ZVEI represents the common interests of the electrical and digital industry and the associated service companies in Germany and at international level. The association has more than 1,100 member companies and 170 employees in the ZVEI Group.

At the end of 2024, the industry employed around 900,000 people in Germany. This makes it the second largest industrial sector in Germany. Turnover in 2024 amounted to 220 billion euros.

The electrical and digital industry is one of the most innovative economic sectors in Germany. Every year, the industry spends around 20 billion euros on R&D and more than seven billion euros on investments.

Electrical exports weaker again recently

At a value of 20.1 billion euros, exports from the German electrical and digital industry fell 0.9% short of the previous year's figure in April 2025. "On the one hand, this was a setback compared to the high growth in March. On the other hand, there were no immediate major upheavals following the US President's so-called 'Liberation Day'," said ZVEI Chief Economist Dr. Andreas Gontermann. "Half of the industry's deliveries to the top 10 customer countries were positive in April and the other half negative." In the first four months of this year as a whole, cumulative electrical exports increased by 1.2% to 84.9 billion euros.

In contrast, imports of electrotechnical and electronic goods to Germany grew by 5.0% in April compared to the previous year, reaching a value of 21.6 billion euros. In the year to date from January to April, their cumulative increase was slightly higher at 6.9% to 89.8 billion euros.

More detailed information on exports: in April, there was a particularly strong increase in electrical deliveries to Spain, which rose by 30.8% year-on-year to 892 million euros. Exports to Belgium (+10.4% to €453 million), Poland (+10.3% to €1.0 billion), the Czech Republic (+9.4% to €882 million) and Austria (+8.8% to €876 million) also recorded high growth rates. Growth in foreign business with Italy (+3.4% to € 892 million) and Switzerland (+3.0% to € 659 million) was more moderate.

In contrast, exports to the Netherlands (-3.0% to € 1.2 billion), Romania (-4.1% to € 440 million), the USA (-4.2% to € 2.1 billion), France (-5.2% to € 1.1 billion) and the United Kingdom (-6.0% to € 740 million) declined. In the case of Hungary (-10.5% to € 610 million) and China (-12.9% to € 2.0 billion), these were even in double figures.

"While exports to the two largest customer countries, China and the USA, fell in April, things went better on the EU domestic market," said Gontermann. "German electrical and electronic exports to the countries of the European Union rose by 2.3% to €10.2 billion in April, accounting for a good half of total industry deliveries abroad."

No major diversion effects due to US tariffs so far

Imports from Vietnam (+9.0% to €475 million) and China (+7.5% to €6.6 billion) were both higher in April 2025 than a year earlier. "However, this does not necessarily set them apart from the development of imports from other countries of origin, such as the EU," said Gontermann. For example, the increase in deliveries from the Czech Republic (+12.3% to €1.2 billion) was more pronounced. Electrical imports from Hungary (+6.9% to €1.4 billion) and Poland (+5.5% to €1.1 billion) also recorded significant growth.

Imports from Taiwan (+3.6% to € 724 million), Romania (+2.5% to € 591 million), the USA (+2.5% to € 1.1 billion), Japan (+0.8% to € 567 million) and France (+0.2% to € 546 million) were also up in April. Imports from Malaysia, on the other hand, were down on the previous year (-2.0% to € 558 million).

Electrical and electronic imports from the EU as a whole increased by 4.7% year-on-year to €7.9 billion in April. "However, with a share of less than 37%, the EU plays a smaller role on the import side than vice versa for exports," says Gontermann.

Decline in PCB and EMS production threatens European security and sovereignty

Germany and Europe cannot continue to stand idly by and watch the decline of their PCB industry and electronics manufacturing service providers (EMS). Only two percent of globally produced PCBs are now manufactured in Europe. Europe currently only accounts for ten percent of the global market volume in electronics manufacturing. PCBs and EMS production are indispensable for the secure operation of critical infrastructures and for the defense industry. If Germany and Europe can no longer rely on their own capacities and expertise, this is associated with considerable risks: Supplies could be withheld or even manipulated. "We need a reliable de-risking strategy that safeguards our European interests through targeted measures," demands Wolfgang Weber, Chairman of the ZVEI Executive Board.

Because PCBs and EMS (Electronic Manufacturing Services) production play a key role in the microelectronics ecosystem, the new German government must also address this issue. Increasing dependence on a few suppliers from the Far East in the current geopolitical context is associated with high risks that call European security into question. In the worst-case scenario, technical infrastructure and defense technology could be manipulated. These could be carried out with little effort at any stage of production, for example through "hardware Trojans" (see GT 6/25 p. 708) or hidden backdoors in electronic systems. Detecting them, on the other hand, would be extremely difficult.

In addition, the tariffs imposed by President Trump on Chinese products threaten to further exacerbate the situation. There is a risk that PCBs from cheap Chinese production will increasingly enter the European market - with serious consequences for the competitiveness of domestic suppliers. Europe must therefore resolutely defend its independence and resilience. This includes, in particular, strengthening the PCB and EMS manufacturing industry through a combination of trade and industrial policy. "We must examine trade protection instruments - such as anti-subsidy or anti-dumping measures - and impose them where they are justified," Weber continues.

It is also important to establish trustworthy sources of supply: To protect critical infrastructures and defense, PCBs and electronics manufacturing should only be purchased from reliable and trustworthy sources. Weber: "We also need to think about reducing customs duties on base materials: European PCB manufacturers have to import base materials, but these are subject to customs duties. At the same time, PCBs from China are exempt from customs duties. This is absurd and cannot remain so, because it creates an absurd competitive disadvantage for European production." In terms of industrial policy, the competitiveness of PCB manufacturers and electronics production in international competition must be increased through targeted support and, in the continuation of the European Chips Act, the downstream production steps (PCB, packaging, advanced packaging, EMS) in particular must also be taken into account in the process know-how in the value chain.

German battery market experiences a setback in 2024

The German battery market will reach a volume of 20.5 billion euros in 2024. With a decline of €3.8 billion (-16%) compared to 2023, it will not be able to continue the strong growth of the previous five years. The decline is almost entirely attributable to lithium batteries. These recorded losses of just under 3 billion euros. This is due to the recent weak development of electromobility in Germany, partly due to the expiry of the e-car premium at the end of 2023.

"Without batteries, the switch from fossil fuels remains an illusion," comments Dr. Christian Rosenkranz, Chairman of the ZVEI Batteries Association and Managing Director of battery manufacturer Clarios. "To ensure that Germany does not continue to lose ground as a battery location, decisive political action is now needed: competitive energy costs, accelerated approval procedures, a noticeable reduction in bureaucracy and reliable, targeted funding programs, especially in battery research." Companies finally need a more competitive environment compared to Asian suppliers. This is the only way to secure investments and avoid new dependencies. Rosenkranz: "The coalition agreement contains the right approaches, from lowering the electricity tax to reducing bureaucracy. But good signals are not enough - action must be taken."

No energy transition without batteries

The market for lead-acid batteries was again comparatively robust in 2024. This fell by just one percent to just over one billion euros. Lead-acid batteries have proven their worth for uninterruptible power supplies in hospitals and data centers as well as for mobile storage and low-voltage batteries (starter and on-board batteries) in cars.

Declining exports and imports

Exports of batteries from Germany fell to just under 8 billion euros in 2024. This represents a drop of around 3% compared to 2023. Almost two thirds of battery exports from Germany went to Europe in 2024. Around 18% went to Asia and around 16% to the USA and Canada.

The production of lithium batteries fell by 7% to €3.6 billion in 2024. This was offset by exports of €5.2 billion (-9%) and imports of €18.3 billion (-15%). This shows that Germany covers its demand for lithium batteries mainly through imports. Due to their high energy density, lithium batteries are primarily used in mobile devices, such as electrical appliances for home and garden, in smartphones, for storing solar power and in electromobility.

Exports of batteries from Germany fell in 2024

The import volume of batteries fell in 2024 for the first time in more than five years. It was 16% lower than in 2023 and amounted to around €21 billion (2023: €25 billion). Asia is once again the main supplier, after Europe had been in the lead for the previous four years. With an import value of around €18 billion, lithium batteries accounted for the largest share.

Almost all battery imports to Germany come from Asia (52%) and Europe (47%). The volume of imports from Europe in particular fell significantly by 26%, while imports from Asia were down 6%. China remains the largest global supplier of lithium batteries with an import volume of 8.9 billion euros. In Europe, Hungary is the main supplier of lithium batteries to Germany with 2.9 billion euros.

Many economic sectors in Germany are dependent on safe and powerful batteries, including the entire strategic infrastructure and defense technology. The German government has announced new purchase incentives for electric cars. The market for home and large-scale storage systems is also growing. The ZVEI therefore expects market figures to improve in the current financial year.

Dates

Contacts

Semiconductors Association
Lyoner Street 9
60528 Frankfurt am Main
Tel. 069/6302-276/-251
Fax 069/6302-407
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Trade Association PCBs Components and Systems
Lyoner Street 9
60528 Frankfurt am Main
Phone 069/6302-437
Fax 069/6302-438
e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.