Die Mannschaft of composites innovation in Germany

The German startups scene. Source | Yannick Willemin

As part of the Startups & Investors series exploring how different regions shape the future of the composites industry, this edition focuses on a country with deep industrial roots, strong engineering culture and a growing ecosystem of materials-focused startups and investors.

After exploring France and Switzerland, I now turn to a country that has long felt like home: Germany. With a German mother and a French father, I was raised between cultures. After my engineering studies, I began my professional journey in Germany at SGL Carbon to learn the full composites value chain from the inside out.

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Germany was, and still is, the natural destination for engineers: home to world-class leaders in automotive, aerospace, chemicals, machinery and technical textiles. Yet beyond the industrial heavyweights, what continues to impress me is the power of the Mittelstand: a network of specialized, export-driven SMEs that form the true backbone of the German economy. This decentralized strength gives Germany’s composites ecosystem its distinct edge.

A market defined by scale, depth and precision

Germany is the largest composites market in Europe, but more than its size, it’s a hub for applied innovation. Investors and startups are drawn by the country’s tight integration between academia and industry. Institutions like Fraunhofer, Leibniz and top universities in Aachen, Dresden, Munich and Berlin are at the forefront of research, often working hand-in-hand with startups and SMEs.

Recent public investments have reinforced this ecosystem. The German government has approved €272 million in funding for industrial R&D, with composites and advanced materials among the beneficiaries. Initiatives like the AVK Innovation Award and programs from Composites United (CU) help transform research into market-ready technologies.

“The German composites industry is particularly attractive to investors due to its heterogeneity and diversity,” says Elmar Witten, managing director at AVK. “The market is characterized by many small- and medium-sized, highly innovative companies with well-trained employees, while at the same time, many of the leading large companies in the application industries [e.g., automotive and chemical] are based in Germany.”

A startup scene rooted in academia

The DNA of German startups is deeply academic. Many are spin-offs from leading universities, typically founded by Ph.D.s translating research into scalable business models. Innovation hotspots include RWTH Aachen, TU Dresden, TUM and TU Berlin.

These startups often cluster near their academic roots and focus primarily on circularity — including recycling, design-for-sustainability and closed-loop manufacturing. Others push forward in automation, digital process optimization and advanced part production.

But despite their strengths, scaling remains a key hurdle.

“Industrial processes are highly optimized, which raises barriers for new entrants and thus slows down the innovation power. On the other hand, compliance with waste regulations is traditionally high and waste disposal is costly, this increases the need for waste reduction and recycling options,” says Mark Ludwig, COO and executive board at Infinici.

While Germany is home to several major corporate venture capital (CVC) entities — such as BMW i Ventures, Airbus Ventures and BASF Venture Capital — investment in composites startups remains cautious and highly selective.

Source | Yannick Willemin

“Hot topics in the CU network include sustainability and AI-supported composites design and production, with many events drawing strong interest from both industry and research stakeholders in Germany,” explains Bastian Brenken, CTO and managing director at CU. “Some investors, however, see growing opportunity. At KGAL [KGAi GmbH], composites are viewed as a strategic lever for sustainability.”

“We’re particularly focused on end-of-lifecycle solutions, where circular economy technologies reduce waste, cut carbon and boost supply chain resilience. Recycled carbon fiber, for example, can help reduce dependency on virgin resources in high-value applications.” – Alexander Rietz, managing director, KGAi GmbH (KGAL Industries).

Germany’s dual advantages, industrial depth and regulatory pressure, are creating ideal conditions for startups tackling sustainability bottlenecks, especially as EU legislation like the Circular Economy Action Plan and ELV Directive come into force.

The role of ecosystem builders

Organizations like AVK and CU play critical enabling roles. AVK advances innovation through awards, working groups and technical education. CU, reported to be one of the world’s largest composites networks, actively connects companies with partners, technologies and talent. “CU’s mission is to connect the right players for projects, knowledge sharing and most importantly, business,” notes Brenken.

In that same spirit, JEC Group, an organization dedicated to promoting composite materials and fostering innovation, has brought its successful JEC Forum format to the DACH region, in recognition of Germany’s leadership in the European market. Organized in collaboration with AVK, CU, Composites Germany and EuCIA, the event brings together key stakeholders from across the value chain and showcases the strength of the ecosystem.

With a robust industrial base, top-tier academic institutions and regulatory momentum around sustainability, Germany is uniquely positioned to lead the next era of composites innovation. And with a growing number of mission-aligned investors entering the space, the runway for deep-tech startups is wide open.