Development Banks in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: August 2024
WZ K64.19eDERevenue
€27.4bn
Past 5-Year Growth
Profit
€X.Xbn
Employees
23,008
Businesses
18
Wages
€X.Xbn
Development Banks in Germany industry analysis
The industry players are the development banks of the federal and state governments. Turnover is expected to total €27.4 billion in 2024, which corresponds to an increase of 1.1% compared to the previous year. Between 2019 and 2024, industry turnover increased by an average of 0.5% per year. As the turnover of development banks consists almost exclusively of interest income plus comparatively low commission income, the past phase of low interest rates and the expiry of higher-interest legacy loans have reduced the level of income.Although the development banks were also confronted with falling earnings due to the low interest rates following the financial crisis in the years 2007 to 2009, they were able to benefit from the post-crisis economic environment in contrast to other credit institutions. Since then, most banks have found it very difficult to refinance themselves on the capital market at favourable conditions, as many investors consider the default risk for banks to be significantly higher than before the financial crisis. As the development banks can rely on the federal and state governments, they receive very good ratings and can refinance themselves at favourable conditions, enabling them to expand their business. Following the outbreak of the coronavirus pandemic, the development banks were faced with the task of making a significant contribution to supporting the German economy during the crisis. Due to the effects of the war in Ukraine, the volume of funding will remain at a high level in the current year.An average growth rate of 0.5% per year is expected for the period from 2024 to 2029. This means that industry turnover is expected to amount to 28.2 billion euros in 2029. IBISWorld anticipates a slow and slight decline in interest rates over the next five years, meaning that interest income is likely to fall slightly. At the same time, a high volume of funding is expected, as development banks are likely to play a key role in the recovery of the German economy and its transformation towards sustainability and digitalisation.
Trends and Insights
- The outbreak of the war in Ukraine has increased the need for promotion. Rising energy prices have resulted in considerable additional costs for German companies, which the promotional banks are counteracting with measures such as the KfW special programme UBR 2022.
- Loans taken out directly by companies or private households are by far the largest industry segment. The development banks do not pursue the goal of maximising profits, but rather attempt to remedy a market failure through their activities.
- Each federal state has a state development institute. In Hesse, KfW and Landwirtschaftliche Rentenbank are also based here.
- The sector consists mainly of the promotional institutions of the federal states. Their market share remains limited due to the geographical division of responsibilities. Only Landwirtschaftliche Rentenbank and KfW operate nationwide.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated €27.4bn in 2024.
Trends and Insights
The industry players take on the task of promoting social developments on behalf of the state
- In Germany, the development banks of the federal and state governments fulfil special tasks as credit institutions. Each federal state has its own development bank. In addition, there are two promotional banks that operate nationwide: KfW, by far the largest promotional bank in Germany, and Landwirtschaftliche Rentenbank.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Investments will increase with the economic recovery
- The development banks have played a decisive role in overcoming the coronavirus crisis to date and will continue to be called upon in the coming years when it comes to revitalising the German economy.
Biggest companies in the Development Banks in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
KfW Bankengruppe | 8,306.0 | |
NRW.Bank | 3,121.6 | |
Landwirtschaftliche Rentenbank | 2,235.2 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Loans, Grants and Global loans for commercial banks. Loans is the largest segment of the Development Banks in Germany.
Trends and Insights
With their loans, the development banks are remedying a market failure
- The loans are taken out directly by the company or private household to be supported.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Commercial Banks in Germany
- Savings Banks in Germany
- Mortgage Banks in Germany
- Building Societies in Germany
Complementors
- There are no industries to display.
International industries
- Global Commercial Banks
- Commercial Banking in the US
- National and Regional Commercial Banks in Australia
- Banking in New Zealand
- Banks in the UK
Table of Contents
About this industry
Industry definition
This sector includes credit institutions that fulfil special roles in the economy through their business activities. The majority of companies in this sector are in public ownership and support certain federal and state funding programmes by granting loans.
What's included in this industry?
LoansGrantsGlobal loans for commercial banksGuarantees and indemnitiesCompanies
KfW BankengruppeNRW.BankLandwirtschaftliche RentenbankPurchase this report to view all 6 major companies in this industry.
Related Terms
HOUSE BANK PRINCIPLESERIESCITIZENSHIPCENTRAL COUNTERPARTYIndustry Code
WZ 64.19.5 - Development Banks 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 outbreak of the war in Ukraine has increased the need for promotion. Rising energy prices have resulted in considerable additional costs for German companies, which the p...
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
Loans taken out directly by companies or private households are by far the largest industry segment. The development banks do not pursue the goal of maximising profits, but r...
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
Each federal state has a state development institute. In Hesse, KfW and Landwirtschaftliche Rentenbank are also based here.
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
The sector consists mainly of the promotional institutions of the federal states. Their market share remains limited due to the geographical division of responsibilities. Onl...
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
NRW.Bank supports projects that promote the switch to renewable energies and a more sustainable approach to the environment. For example, NRW.Bank promotes energy-efficient r...
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 KfW Bankengruppe's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of NRW.Bank's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Landwirtschaftliche Rentenbank's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for KfW Bankengruppe, and factors influencing its performance in the industry
- Description and key data for NRW.Bank, and factors influencing its performance in the industry
- Description and key data for Landwirtschaftliche Rentenbank, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The decline in government spending in the current year is having a negative impact on the industry. The creation and expansion of funding programmes depends heavily on the go...
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
As institutions under public law, the development banks, unlike private companies, do not pursue the goal of maximising profits. Their task is to support developments that se...
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)
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Development Banks industry in Germany in 2024?
The market size of the Development Banks industry in Germany is €27.4bn in 2024.
How many businesses are there in the Development Banks in Germany industry in 2024?
There are 18 businesses in the Development Banks industry in Germany, which has declined at a CAGR of 1.1 % between 2019 and 2024.
Has the Development Banks industry in Germany grown or declined over the past 5 years?
The market size of the Development Banks industry in Germany has been growing at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Development Banks industry in Germany over the next 5 years?
Over the next five years, the Development Banks industry in Germany is expected to grow.
What are the biggest companies in the Development Banks market in Germany?
The biggest companies operating in the Development Banks market in Germany are KfW Bankengruppe, NRW.Bank and Landwirtschaftliche Rentenbank
What does the Development Banks in Germany include?
Loans and Grants are part of the Development Banks industry.
Which companies have the highest market share in the Development Banks in Germany?
The company holding the most market share in Germany is KfW Bankengruppe.
How competitive is the Development Banks industry in Germany?
The level of competition is low and steady in the Development Banks industry in Germany.
