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Healthcare Activities in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: July 2024 WZ Q86.00DE

Revenue

€463.4bn

2024

€463.4bn

Past 5-Year Growth

Profit

€XX.Xbn

Employees

3m

Businesses

47,143

Wages

€XXX.Xbn

Healthcare Activities in Germany industry analysis

Revenue generated in the healthcare sector increased at an average annual rate of 1% between 2019 and 2024. The healthcare sector is essential for the well-being of the population in Germany. The various sector services are subject to constant demand, which is independent of patient income but increases as the population ages.In connection with the population's declining purchasing power due to higher consumer prices, fewer dental and specialist services were utilised in 2022, a trend that continued in 2023. The inflation-related cost increases for energy, rents and wages were not or not fully taken into account in the prices that healthcare facilities are allowed to charge the health insurance funds. At the same time, revenue increases are capped by law. This has placed a heavy burden on the earnings situation of many players. Hospitals in particular have suffered greatly as a result of the large financial deficits and lack of liquidity support, which has led to a sharp rise in the number of insolvencies in 2023 and is expected to be exceeded further in the current year.In the current year, turnover is expected to increase by 0.8% compared to the previous year, totalling 463.4 billion euros. Inadequately financed operating costs, an increasing shortage of staff and the switch to digital processes are among the current challenges that are causing the mood among general practitioners, specialists and medical assistants to remain gloomy. The Digital Act and Health Data Utilisation Act passed by the Bundestag in December 2023 will significantly advance digitalisation in the healthcare sector, simplifying workflows and optimising processes in the future. This will leave more time for the individual treatment and care of patients. However, the implementation of the measures is associated with additional bureaucratic work for healthcare facilities, which ties up staff.In the next five years, turnover in the healthcare sector will grow by an average of 3.4% per year, reaching 548.5 billion euros in 2029. An ageing population, advances in medicine and increasing health awareness will continue to lead to higher demand for healthcare services in the future, while high cost pressure is likely to result in more mergers. However, all healthcare services are based on the knowledge and expertise of healthcare professionals. There is a threat of a worsening staff shortage in the sector, which politicians are increasingly trying to counteract. It is also important to counteract the urban-rural divide in healthcare provision and ensure better care in rural areas. Telemedicine is likely to play an important role in overcoming these challenges.

Trends and Insights

  • The shortage of specialists is worsening and jeopardising patient care. Although the number of doctors, midwives and nurses employed is increasing, this is not enough to meet the growing demand for healthcare services.
  • The largest share of revenue in the healthcare sector is generated by medical services. However, the sector also includes nursing and therapeutic services, accommodation and catering, medical goods as well as prevention and health protection.
  • The regional distribution of healthcare facilities follows the population distribution. As the most populous region in Germany, the centre region therefore has the most facilities in an interregional comparison.
  • Competition in the healthcare sector can be categorised as moderate. Within the area of responsibility of the health insurance funds, there is only weak price competition, as patients are only slightly price-sensitive when it comes to services covered by the health insurance funds.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 1.0 % over the past five years, to reach an estimated €463.4bn in 2024.

Trends and Insights

With the entry into force of the hybrid DRG regulation, outpatientisation should progress more quickly

  • The regulation on special sector-specific remuneration (hybrid DRG regulation), which is intended to further promote outpatient care in Germany, came into force on 1 January 2024.
  • Additional trends and insights available with purchase
Healthcare Activities in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Biggest companies in the Healthcare Activities in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Fresenius SE & Co. KGaA
7,560.0
Asklepios Kliniken GmbH & Co. KGaA
4,634.4
OCM Gemeinschaftspraxis eGbR
3,707.5

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Healthcare Activities in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Medical services, Nursing and therapeutic services and Accommodation and catering. Medical services is the largest segment of the Healthcare Activities in Germany.

Trends and Insights

Advances in science and technology are making medical services increasingly expensive

  • This segment comprises medical examination and treatment services that are subject to the scale of fees for doctors and dentists and the standardised evaluation scale (EBM). In the EBM, the services provided by SHI-accredited physicians are divided into general practitioner, specialist and jointly billable services.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The healthcare system provides healthcare for the German population. Healthcare providers include hospitals (Q86.10DE), general medical practices (Q86.21DE), specialist medical practices (Q86.22DE), dental practices (Q86.23DE) and healthcare professionals such as midwives and physiotherapists (Q86.90DE). Not included are retirement and nursing homes and outpatient care.

What's included in this industry?

Medical servicesNursing and therapeutic servicesAccommodation and cateringMedical goodsPrevention and health protection

Companies

Fresenius SE & Co. KGaAAsklepios Kliniken GmbH & Co. KGaAOCM Gemeinschaftspraxis eGbR

Purchase this report to view all 4 major companies in this industry.

Related Terms

TELEMATICSTELEMEDICINEADIPOSITASENDOPROTHETICSMAXIMUM SUPPLYREMEDY PROVIDER

Industry Code

WZ 2008

WZ 86 - Healthcare Activities in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The shortage of specialists is worsening and jeopardising patient care. Although the number of doctors, midwives and nurses employed is increasing, this is not enough to meet...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The largest share of revenue in the healthcare sector is generated by medical services. However, the sector also includes nursing and therapeutic services, accommodation and ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The regional distribution of healthcare facilities follows the population distribution. As the most populous region in Germany, the centre region therefore has the most facil...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition in the healthcare sector can be categorised as moderate. Within the area of responsibility of the health insurance funds, there is only weak price competition, as...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no main players in the healthcare sector. The sector has a large number of players. Although the number of group practices is increasing, the majority of general pr...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Fresenius SE & Co. KGaA's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Asklepios Kliniken GmbH & Co. KGaA's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of OCM Gemeinschaftspraxis eGbR's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Fresenius SE & Co. KGaA, and factors influencing its performance in the industry
  • Description and key data for Asklepios Kliniken GmbH & Co. KGaA, and factors influencing its performance in the industry
  • Description and key data for OCM Gemeinschaftspraxis eGbR, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Appointment Service and Care Act is intended to ensure that patients receive doctor's appointments more quickly and that care is improved. The number of minimum consultat...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profit margin can vary greatly from player to player. The size and area of activity of the respective facilities, but also the proportion of patients with statutory and p...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Healthcare Activities industry in Germany in 2024?

The market size of the Healthcare Activities industry in Germany is €463.4bn in 2024.

How many businesses are there in the Healthcare Activities in Germany industry in 2024?

There are 47,143 businesses in the Healthcare Activities industry in Germany, which has declined at a CAGR of 1.0 % between 2019 and 2024.

Has the Healthcare Activities industry in Germany grown or declined over the past 5 years?

The market size of the Healthcare Activities industry in Germany has been growing at a CAGR of 1.0 % between 2019 and 2024.

What is the forecast growth of the Healthcare Activities industry in Germany over the next 5 years?

Over the next five years, the Healthcare Activities industry in Germany is expected to grow.

What are the biggest companies in the Healthcare Activities market in Germany?

The biggest companies operating in the Healthcare Activities market in Germany are Fresenius SE & Co. KGaA, Asklepios Kliniken GmbH & Co. KGaA and OCM Gemeinschaftspraxis eGbR

What does the Healthcare Activities in Germany include?

Medical services and Nursing and therapeutic services are part of the Healthcare Activities industry.

Which companies have the highest market share in the Healthcare Activities in Germany?

The company holding the most market share in Germany is Fresenius SE & Co. KGaA.

How competitive is the Healthcare Activities industry in Germany?

The level of competition is moderate and steady in the Healthcare Activities industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Residential Care Activities in Germany
  • Residential Nursing Care in Germany
  • Social Services for the Elderly & People with Disabilities in Germany

Complementors

  • Compulsory Social Security Activities in Germany
  • Residential Care Activities in Germany
  • Residential Nursing Care in Germany

International industries

  • Healthcare and Social Assistance in the US
  • Hospitals in Canada
  • Health Services in Australia
  • Hospitals in New Zealand
  • Telehealth Services in the UK

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.