"We expect the industry's revenue to break the 200 billion euro mark in 2019," said Dr. Klaus Mittelbach, Chairman of the ZVEI Executive Board, at the industry association's annual kick-off press conference in Frankfurt on January 22.

From January to November 2018, price-adjusted production in the electrical industry rose by 2.8% compared to the previous year. Turnover - which also includes services and software - increased by 3.2% to €179.8 billion in the same period. The ZVEI forecasts that it should have amounted to a good 197 billion euros for the whole of last year.

Exports were once again a central pillar last year: from January to November, total industry exports, including re-exports, increased by 5.4% to EUR 195.4 billion. According to ZVEI estimates, exports for the year as a whole reached 212 billion euros, the fifth all-time high in a row. However, export growth was only half as high as in 2017.

China remained the largest customer, followed by the USA. Between January and November 2018, exports worth 19.4 billion euros went to China - an increase of 11.4% compared to the previous year. Exports to the USA increased by 3.8% to 16.4 billion euros in the same period. By contrast, exports to the UK (-1.5%) and Turkey (-13.4%) fell noticeably.

Successfully shaping the transition to the data economy

"Many companies are facing major challenges on the threshold of a data and platform economy. There is no master plan for digitalization in general, for the use of artificial intelligence or for cybersecurity requirements," says Dr Mittelbach. In order to provide companies in the electrical industry with guidance on how new data-based business models can be developed on the basis of existing data, McKinsey was commissioned by ZVEI-Services GmbH and with the support of ZVEI to develop the 'Data Economy Opportunity Compass'.

To date, the industry has only generated around 20% of its turnover with smart products and smart services. "Many companies still have plenty of room for improvement," says Dr. Mittelbach. However, a high-performance digital infrastructure is a prerequisite for more data-based business models: "Only with local 5G networks for industry can we secure the leading role of our companies in the competition." The expansion must not be delayed.

China: Creating a level playing field

As the largest export customer of the German electrical industry, China must open up its market further and remove barriers to investment for foreign companies. Dr. Mittelbach: "The same conditions must apply to everyone". This could further strengthen the already successful cooperation on many future topics, especially in the field of artificial intelligence. For example, Germany's strengths in industrial AI could be combined with China's data analysis capabilities for mutual benefit. "In the digital world, cooperation in platforms stands in the way of pursuing particular interests," emphasized the ZVEI Chairman.