According to Richard Clemens, spokesperson for the VDMA Process Technology Forum, Europe remains a key market for German environmental technologies. At IFAT Munich 2026, exhibitors and visitors will gain direct insight into the sector’s technological developments and innovation capabilities.
Recycling technology benefits from circular economy investments
The waste treatment and recycling technology sector expects a gradual recovery after a mixed performance in 2025. According to the latest economic survey by the VDMA Waste and Recycling Technology association, order intake and revenue are both improving in 2026.
Manufacturers expect nominal revenue growth of 2.3 percent this year after a decline of 1.3 percent in 2024. Revenue had already returned to moderate growth in 2025 with an increase of 1.5 percent. Order intake also improved. Following a real decline of 0.8 percent in 2024, incoming orders rose by 2.2 percent in 2025. Companies now expect growth of 4.5 percent in 2026.
Demand is increasingly concentrated within Europe. Around 60 percent of exports are expected to go to European Union member states this year, significantly more than in the previous year. At the same time, several international markets are losing relevance. Manufacturers expect exports to non-EU European countries to account for 7.8 percent, North America for 9 percent, the Middle East for 4.2 percent and China for only 0.6 percent.
The sector is benefiting from European investments in the circular economy, stricter environmental regulations and public support programmes designed to accelerate resource efficiency and recycling infrastructure.
Air handling technology relies on international business
The air handling technology sector reported mixed results in 2025. Real order intake declined by 5 percent compared with the previous year. Domestic business fell by 14 percent, while foreign orders increased by 5 percent and stabilized the market.
The beginning of 2026 showed signs of recovery. In the first two months of the year, total order intake increased by 13 percent year on year. Foreign markets drove the growth with an increase of 24 percent.
Exports from Germany reached 14.5 billion euros in 2025, slightly above the previous year’s level. Regional developments varied significantly. Exports to the United States declined by 5 percent, while exports to China dropped by 14 percent. In contrast, exports within the European Union increased by 2 percent and accounted for more than half of total exports.
Imports also reflected the sector’s strong European integration. Of the 11.6 billion euros in imports recorded in 2025, around 7.9 billion euros originated from EU member states. The figures underline the importance of European supply chains and cross-border industrial cooperation.
Industrial valves sector slows after strong 2025
The industrial valves sector entered 2026 with weaker momentum after a strong previous year. Revenue in 2025 increased by 7 percent, or 4 percent after adjusting for price changes. Domestic revenue rose by 4 percent and international business by 9 percent.
However, the market weakened considerably at the beginning of 2026. Between January and February, total sales declined by 8 percent and by 10 percent in real terms. Domestic sales fell by 9 percent, while international sales decreased by 7 percent.
The eurozone remained comparatively stable with a slight increase of 1 percent. Outside the eurozone, sales dropped by 10 percent. Europe continues to be the most important export region for the sector, accounting for around 48 percent of exports.
The export ranking also shifted. For the first time in many years, China moved to second place among the leading customer countries, while the United States became the largest individual market. Exports to both the United States and the European Union increased by 5 percent during the first two months of the year.
Manufacturers continue to face high energy and raw material costs as well as weak investment activity in key markets. The VDMA Valves association therefore expects a slight decline in sales during 2026, although the long-term outlook for the sector remains positive.
Liquid pumps sector reports stable export development
Exports of liquid pumps excluding hydraulic pumps increased by 1.7 percent in 2025 to 6.3 billion euros. In the first two months of 2026, exports rose by a further 0.5 percent to 1 billion euros.
The EU-27 remained the largest destination market with a share of 47 percent. The leading customer countries were the United States, China and France.
Imports rose by 2.6 percent to 3.2 billion euros. China, Italy and the United States were the most important supplier countries.
Real order intake increased by 2 percent in 2025 but declined by 8 percent during the first two months of 2026. Nevertheless, pump manufacturers remain optimistic about business prospects in the water and wastewater sectors. In the latest VDMA survey, a majority of respondents rated current market conditions in these sectors as good or very good.
Compressor technology records improving order intake
Exports of compressors, compressed air and vacuum technology declined by 5.3 percent in 2025 to 5.9 billion euros. In the first two months of 2026, exports fell by another 8 percent year on year.
The European Union remained the most important destination market, accounting for 49 percent of exports. The largest customer countries were the United States, China and Italy.
Imports increased by 6.3 percent to 3.2 billion euros. China, Italy and Poland were the leading supplier countries.
Real order intake remained weak throughout 2025, falling by 16 percent. However, the start of 2026 showed a clear recovery, with incoming orders rising by 15 percent in the first two months of the year.
Process plant engineering under pressure from high costs
German process plant and equipment manufacturers generated exports worth approximately 6.3 billion euros in 2025, an increase of 3.6 percent compared with the previous year. Growth mainly came from European Union partner countries, while exports to the United States and China weakened.
The domestic market remains challenging. In the first two months of 2026, exports declined by 4.7 percent overall. Positive momentum came primarily from Europe, East Asia and South America.
Exports to European countries outside the EU-27 increased by 18.4 percent. Developments in the two largest individual markets differed sharply. Exports to the United States fell by 32.2 percent, while exports to China increased by 37 percent.
Order intake remains below previous levels. In 2025, domestic orders declined by 11 percent in real terms, while foreign orders dropped by 33 percent. Nevertheless, February 2026 showed some improvement. Domestic orders increased by 7 percent and foreign orders by 42 percent compared with the same month last year.
Manufacturers continue to face high production and energy costs, which are limiting profitability and investment activity.
Water and wastewater technology loses momentum
Water and wastewater technology, a sub-sector of process plant engineering, recorded export growth of 5.6 percent in 2025, reaching 1.37 billion euros.
The first two months of 2026 were weaker, with exports declining by 5.3 percent. The U.S. market, the sector’s second-largest export destination, recorded a significant decline of 17.9 percent.
