Germany’s health industry demonstrates an extensive, robust infrastructure and a strong focus on innovation. In 2021, healthcare spending in Germany surpassed EUR 457 billion, which translates to an annual growth rate of 5.4% over the past five years. The sector employs 7.7 million people and generates over EUR 158 billion in exports. Germany’s healthcare system is underpinned by a comprehensive insurance model, where health coverage is mandatory. Insurance premiums are jointly paid by employers and employees, with the vast majority of the population enrolled in public health insurance plans. Approximately 10% of the population opts for private insurance. The system is highly competitive as 96 public and 41 private health insurance companies offer a wide range of options to consumers. The country has a vast network of more than 1,800 hospitals, providing nearly 500,000 beds, which cater to the inpatient care needs of its population. However, smaller general hospitals are struggling at large as more hospitals face closures or merge to improve efficiency. Germany's reputation as a leader in healthcare and life sciences is further aided by its research and development activities. Companies across the country participate in thousands of research projects annually. Central to Germany’s success in life sciences are its more than 30 specialized cluster networks focused on medical technology. These clusters provide a supportive environment for companies, offering funding for joint R&D projects, shared facilities, and educational training programs. Germany’s BioRegions further enhance this ecosystem as they encourage collaborations between universities, research institutes and private companies. Over the past three decades, these biotechnology clusters have evolved into Europe’s leading R&D hubs. Germany’s healthcare and life sciences market is the largest in Europe, making it an attractive destination for international companies looking to expand their presence. The country’s market growth is fueled by global trends such as demographic changes and technological advancements like digitization.