Many people associate Germany with their cars. Volkswagen and BMW are world-renowned brands and are usually related to high quality and reliability. But there’s more than that.
Today, we’re bringing you closer to not only 100 companies in Germany that you should know but also some key takeaways on the actual landscape – and what to do to become the new one on the list.
Company landscape in Germany – entering into 2024
Financial metrics and market capitalization changes
The KPMG Financial Performance Index (FPI) for Germany improved marginally in 1Q24 compared to 4Q23. It indicates a gradual recovery in certain sectors.
Compared to 2023, sectors like technology and IT remain robust, with companies like SAP and Siemens leading in value. Also, sectors like food and beverage, utilities, and business services saw the largest improvement in the KPMG FPI Score. However, the pharmaceuticals sector with raw materials and natural resources sector experienced declines due to weaker global demand and rising costs. Revenue growth slowed slightly across industries such as energy and construction, driven by high energy prices and logistics disruptions.
Overall, 2024 remains a year of cautious optimism, with projections indicating a more stable financial outlook as inflation eases and demand stabilizes in key industries.
Market capitalization is an increasingly important metric for evaluating company performance, as it reflects its total market value. It has become a crucial benchmark for investors and analysts alike, providing insights into a company’s size, influence, and growth potential. In 2024, companies in sectors such as enterprise software and industrial technology maintained the highest market capitalization in the German market. These are the industries that underscore their global importance. Also, this year, we saw a rise in firms from the tech and digital sectors, such as AUTO1 and Bechtle, whose market caps have grown substantially due to their expansion into digital platforms and IT services.
The impact of global events on German companies
The global events of 2024 have not left German companies unaffected. Inflation, changes in supply chains, sustainability concerns, technology integration issues, geopolitical tensions, and market demands have transformed various industries and prompted companies to reconsider their sourcing strategies and diversify their supply chains. The automotive and manufacturing sectors, for example, have been particularly affected by delays in the availability of raw materials and components, forcing companies to look for local and sustainable alternatives.
Sustainability and renewable energy
One of the most noteworthy trends – not only in Germany – is the growing emphasis on sustainability and renewable energy. Companies like Nordex, which focuses on renewable energy sources, have gained prominence. This aligns with Germany’s national goals for sustainability and indicates a broader shift in the business landscape towards eco-friendly initiatives.
Innovation in company growth
Innovation has become one of the main differentiators among the top companies in Germany. Whether it’s advancements in automation, digitization, or sustainable practices, the companies that have invested in innovation are the ones showing remarkable resilience and growth. This is particularly evident in sectors like IT and medical services, where innovation is not just a buzzword but an actual business strategy.
Global expansion and market reach
Another trend worth noting is the global expansion strategies employed by German companies. Many of the top 100 companies have diversified their market reach, venturing into emerging markets in Asia and Africa. This global footprint can boost revenue and mitigate risks associated with economic downturns in specific regions. It’s a strategy that has paid off, especially during the recent global challenges.
Employee well-being and corporate culture
Employee well-being and corporate culture have become critical pillars of success for companies in Germany and worldwide. A strong focus on well-being boosts employee morale and enhances productivity, retention, and innovation. Companies prioritizing mental and physical health are better equipped to attract top talent, particularly as younger generations increasingly value work-life balance and supportive environments. Even 81% of employees consider corporate culture crucial when choosing a job.
Moreover, firms that take the well-being of their employees seriously report much higher productivity levels. And according to a Gallup survey, companies with high levels of employee engagement report 21% greater profitability than those without such initiatives.
Updated rankings and industry leaders
We are getting closer to presenting the ranking of the top 100 companies in Germany in 2024, which comes from CompaniesMarketcap.com and ranks German companies according to various criteria on an ongoing basis. This ranking is meticulously updated to reflect the most current data.
From year to year, we can see changes among the industry leaders. Traditional sectors like the automotive and chemical industries continue to hold strong positions, but digital and tech sectors are rising in prominence. Notably, Atoss and AUTO1, which specialize in software and e-commerce, respectively, have made their debut in 2024’s top companies, signaling the rising importance of digital transformation and tech innovation.
And now, without further ado – let’s see who made our list.
Top 100 Companies in Germany: List 2024
The German economy is one of the biggest in Europe and consists of many successful businesses. In ranking below, you can find the top 5 industries:
1. Automotive
- Number of companies: 10 (e.g., BMW, Volkswagen, Porsche, Daimler Truck)
- It focuses on manufacturing and selling vehicles, including cars, trucks, and related components.
- The industry also includes related services like maintenance, logistics, and leasing.
2. Chemicals
- Number of companies: 6 (e.g., BASF, Covestro, Lanxess, Wacker Chemie)
- It involves the production of chemicals used in manufacturing, agriculture, pharmaceuticals, and consumer goods.
- These companies are critical to the supply chains of numerous industries, including automotive, construction, and healthcare.
3. Telecommunications
- Number of companies: 4 (e.g., Deutsche Telekom, Freenet, United Internet)
- It provides services like internet, mobile communications, and networking infrastructure.
- As a backbone of digital transformation, telecommunications companies invest in 5G technology, data services, and cloud-based solutions.
4. Real Estate
- Number of companies: 4 (e.g., Vonovia, LEG Immobilien, Deutsche Wohnen)
- It usually involves the acquisition, development, leasing, and sale of residential and commercial properties.
- Real estate companies also manage properties, maintain tenant relations, and ensure regulatory compliance.
5. Insurance
- Number of companies: 4 (e.g., Allianz, Hannover Rück, Talanx)
- It offers risk management solutions in life, health, property, and casualty insurance.
- It’s highly regulated and must maintain large reserves to cover potential risks, with an increasing focus on digitalization and cybersecurity.
The other industries represented in the list include pharmaceuticals, healthcare, energy, retail, machinery, financial services, technology, construction, and shipping. These industries are diverse and cover both traditional manufacturing and emerging digital technologies.
Check the whole TOP 100 companies in Germany list (in alphabetical order):
Source: https://companiesmarketcap.com/germany/largest-companies-in-germany-by-market-cap/ (view date: 15.10.2024.)
Final thoughts
As you can see in the table above, there are many successful companies that were born in the German market. All of them are creating power in the German economy and working hard to create a good reputation for German products. Germany’s resilience in the face of global challenges, combined with its commitment to innovation, e-commerce possibilities, and responsibility for sustainability, points to a promising future for companies that operate in the country.
Looking for more inspiration or information about the German market?
