Business Outlook

Large industrial plant manufacturing in a VUCA world
The business environment in the large industrial plant manufacturing industry has been difficult in recent years, and this trend is likely to hold up for the foreseeable future.

General market situation

Mega-projects less in demand – flexible plants are becoming the focus
Mega-projects, i.e. complex projects with order values of over half a billion euros to several billion euros, were typical over many years of the demand for large-scale plants.
Growing risks for large industrial plant manufacturing
Given its internationalism and the long-term nature of the projects the sector is more reliant than other sectors of industry on stable political and financial framing conditions.

Raw Materials

Strong swings on the commodity markets
2020 was also a year of extremes in commodity markets; demand for crude oil fell in the wake of the pandemic.

Near and Middle East

Demand for large-scale industrial plants in the Near and Middle East fell by 25%. The most important customer country in 2016, measured by new orders, was Saudi Arabia.

North Africa

Business is currently booming in Egypt. The country is planning to practically double its power generation capacities by 2018, and it is turning to German technology to achieve this.


The weakness in the Chinese market is persisting. Against that, in 2016 large-scale plant manufacturing succeeded in acquiring a few projects of over EUR 100 million, unlike in 2015. However, the level is too low to suggest a change in the general trend.
Klaus Gottwald
Klaus Gottwald
Press, Communications, Engineering Summit, Constructionmanagement
069 6603 1264
089 6603 2264