Strong Industry Sectors - Strong Saxony

The Backbone of Business Location Saxony

are it's vibrant industrial branches. Already in the 18th century, the Industrial Age began in Saxony with the founding of the first machine construction companies. The region, thus, headed the field on the European mainland. The first locomotive to be designed and engineered in Germany, the first sixcylinder engine, the centrally positioned gearshift lever in automobiles – all of these pioneering innovations come from Saxony.  

Industrial branches continue to contribute towards Saxony’s value creation today. The branches which define the infrastructure are the automobile industry, machine and plant construction as well as the microelectronics / ICT sector.

Diagram: Saxony‘s  Most Important Branches – Share of Saxony‘s Industrial Turnover (2022)


In 2022, Saxony's industry (results for enterprises with 20 and more persons employed in the manufacturing trade as well as in mining and quarrying) generated a total turnover of 83,572 million euros; this exeeds the previous year’s value by 15 percent. The export rate, i.e. the proportion of foreign sales of the total turnover, amounted to 37.6 percent (previous year: 40.8 percent).

The most important industrial branch continues to be the automobile industry with a share of 25.2 percent of all sales. It is followed by the electrical engineering / microelectronics branches and the metal production sector with a share of 14 percent respectively 13.8 percent, as well as by machine construction with a share of 10 percent of Saxony's industrial turnover.



With five production sites of BMW, Porsche, and Volkswagen as well as approximately 780 suppliers, equipment and service providers of the industry sector, “Autoland Saxony” is one of the top locations in Germany. The automobile industry with its more than 95,000 employees is Saxony’s branch with the highest turnover. It contributes over one quarter of the industrial turnover and more than one third of foreign sales.

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“Silicon Saxony” is Europe’s largest microelectronics / ICT cluster and the fifth largest of its kind around the globe. Every third chip produced in Europe bears the label of origin “Made in Saxony.”

About 2,400 companies with a total of 64,000 employees are active along all steps of the ICT value creation chain.

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The Cradle of German Mechanical Engineering

Saxony is considered to be the cradle of German machine construction. For about 200 years now, such globally coveted mechanical engineering products as, for example, textile, tool, and printing machines have been coming from Saxony. With about 45,000 employees in approx. 1,000 firms, mechanical engineering is one of the most important industry sectors in Saxony.

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Nature's Friends

In Saxony, the environmental and energy technology branch is an important economic factor. Saxony’s enterprises assume a leading position, above all, in such key markets as, for example, power generation and energy storage as well as recycling management. The industry sector benefits from Saxony’s long tradition as an industrial venue specifically for machine and plant construction. Saxony’s mountains had also been important mining centers for many centuries – during the Middle Ages, silver and other „precious“ raw materials were extracted; later, the focus was more on lignite and uranium. 

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Life Sciences Hotspot

Saxony is one of Germany’s most dynamic life science regions today. About 300 companies committed towards biotechnology, pharmaceutical, and medical technology successfully cooperate with well-known research institutions. They focus on the fields of regenerative medicine (e.g. tissue engineering), diagnostics, molecular bioengineering, bioinformatics, lon-term monitoring as well as implants and prostheses.


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Gabelstablerfahrt im „Logistikzentrum Auslandsversorgung" von DB Schenker in Leipzig

Source: Deutsche Bahn AG

Industrial diversity is Saxony's strength

Saxony, with its healthy mix of traditional and future-oriented industry sectors is not only one of the most innovative, but also one of the fastest growing German Federal States.

In addition to the main industry sectors, which essentially determine the economic structure, the business venue Saxony is also characterized by such branches as, for example, railway and aerospace technology as well as company-related service sectors as, for example, logistics or the software industry.

Im Rahmen des Exzellenzclusters „cfaed“ wird auch an der Echtzeit-Interaktion von Robotern und Menschen geforscht. „Versuchsobjekt“ ist ein gestengesteuerter NAO-Roboter (im Bild), der zukünftig zum Beispiel im Haushalt helfen könnte.

Source: Dresden University of Technology / cfaed / 5G Lab Germany, photo: Matthias Hahndorf

Saxony's Innovative Power

A great plus for Saxony is its extraordinary innovative power. The region is a European "innovation leader" (source: EU’s "Regional Innovation Scoreboard").

Saxony’s researchers and entrepreneurs play a decisive role in developing intelligent solutions for everyday use in the future. Their focus is on intersectoral topics such as lightweight engineering, energy storage technologies, electromobility or organic & flexible electronics.

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