Germany's green tech dominance fades as China and US surge ahead

Germany's green tech dominance fades as China and US surge ahead

Michael Erickson
Michael Erickson•
• 2 Min.
Line graph showing renewable electricity generation in Cyprus from 2010 to 2022, with blue and green lines representing different renewable energy sources and their annual generation amounts.

Germans want stronger promotion of green technologies - Germany's green tech dominance fades as China and US surge ahead

Germany's position in the global green technology market has weakened over the past decade. Once a leader with 17-19% of worldwide exports in 2010, its share has now dropped to around 8-10%. Meanwhile, countries like China and the US have surged ahead, reshaping the industry's landscape.

Between 2010 and 2023, Germany's share of green tech exports fell steadily. By 2022-2023, it stood at roughly half its earlier peak, according to data from the World Bank, OECD, and reports by Clean Energy Wire and McKinsey. China now dominates the sector, holding over 50% of global exports, largely due to its expansion in solar energy and electric vehicle production since 2015. The US has also made gains, with its share rising to 12-15% after the Inflation Reduction Act was introduced in 2022.

Germany's decline has been linked to slower growth in renewable energy and high energy costs, particularly after 2022. Despite this, the green technology sector remains a significant part of the economy. It contributes over 8% of the country's total exports and has boosted gross value added by around 5% annually since 2010. Public opinion reflects strong support for green innovation. A recent survey found that 93% of Germans see technological progress as vital for the future. Additionally, 80% believe that producing and exporting eco-friendly technologies is essential for economic success. Many also want faster action on environmental protection, with 69% urging the government to provide more support.

The drop in Germany's export share highlights growing competition in green technology. However, the sector still plays a major role in the economy, and public backing for innovation remains high. With calls for stronger government measures, the country's future in this field may depend on how quickly it can adapt and scale up.