World market leader: How top companies survive the crisis
5 Min. Reading Time
While Germany debates the automotive industry crisis and Intel’s withdrawal, the Mittelstand continues to expand quietly. 1,307 Hidden Champions – global leaders in their niche – are based in Germany, more than in any other country. TRUMPF is opening Smart Factories in the USA, Kärcher reports a record €3.4 billion revenue, and SICK is developing AI-powered sensor technology in Freiburg. The quiet backbone of the German economy is thriving.
Key Takeaways
- 1,307 Global Leaders: Germany is home to 1,307 Hidden Champions – nearly half of the approximately 3,400 worldwide. Per million inhabitants, that’s 16 global leaders, ten times more than Japan with 1.6 (Simon-Kucher, 2024).
- TRUMPF Expands into the USA: In May 2025, TRUMPF opened a Smart Factory in Farmington, Connecticut – a $40 million investment, plus $150 million in US contracts (TRUMPF Press Release, 2025).
- Resilience as a Success Factor: In 2024, Kärcher achieved a record revenue of €3.446 billion (+7.9% currency-adjusted) and invested over €200 million in expansion (Kärcher Annual Report, 2024).
- Herrenknecht Delivers Globally: Herrenknecht supplies tunnel boring machines for the world’s largest infrastructure projects – from the Brenner Base Tunnel to the Fehmarnbelt Crossing. 90% of its revenue comes from abroad.
- SICK Invests in AI-Powered Sensor Technology: In 2024, SICK invested over €200 million in research and development – focusing on AI-based sensor technology and autonomous systems for Industry 4.0 (SICK Annual Report, 2024).
What Sets Hidden Champions Apart
Hermann Simon coined the term in 1990 and has since analyzed the strategies of over 3,400 companies. At its core, the formula is simple: a narrow niche, global reach, and obsessive customer focus. A Hidden Champion dominates its market, often with market shares of 50 percent or more, but operates in a niche small enough to remain under the radar.
The strength of this model becomes apparent during crises. While broadly diversified corporations announce restructuring efforts with every downturn, Hidden Champions have a structural advantage: their customers need their products because there are no equivalent alternatives. Replacing Herrenknecht’s tunnel boring machines or TRUMPF’s industrial lasers is not feasible with available global market solutions. The same principle drives Germany’s startup scene as it navigates the funding winter.
TRUMPF: Smart Factories on Two Continents
TRUMPF, the Ditzingen-based laser technology corporation and global leader in laser cutting machines and industrial lasers, is systematically expanding in the USA. In May 2025, the company opened its fourth Smart Factory in Farmington, Connecticut, with a $40 million investment. A third production line for press brakes will be added in summer 2026.
The logic behind this is straightforward: production needs to be where the customers are. The USA is TRUMPF’s largest single market, and local production reduces delivery times, tariffs, and currency risks. Simultaneously, TRUMPF has announced contracts worth $150 million with US suppliers – a signal that local value creation is more than just lip service. This is a trend being followed by other industries as well: the reshoring of production to Europe is gaining momentum.
“Supply chains are so intricately intertwined that even minor disruptions can trigger far-reaching domino effects. For companies built on trust and global networking, uncertainty is more damaging than regulation.”
— Hermann Simon, founder of the Hidden Champions concept, May 2025
Karcher: 85 Countries, One Principle
Kärcher, the global market leader in cleaning technology, achieved a record turnover of 3.446 billion Euro in 2024 – a 7.9 percent increase on a currency-adjusted basis. The company invested over 200 million Euro, opened subsidiaries in Bangladesh and Egypt, a robotics competence center in Singapore, and the first fully cloud-powered production facility of a European company in Vietnam.
The number of employees grew by 1,000 to over 17,000 in 85 countries. Kärcher’s strategy combines global presence with local adaptation: In India, a local manufacturer of floor cleaning machines was acquired to serve the market with tailored products – instead of importing German premium devices that are out of line with local price levels. Similar scaling strategies are evident in the energy transition, which is driving record profits for Siemens Energy and Nordex.
Why the Mittelstand is quieter, but more stable
Hidden Champions have a characteristic that becomes a strength in times of crisis: they are not dependent on quarterly reports. Most are family-owned and can invest in the long term without having to justify every step to analysts. Trumpf, Kärcher, Herrenknecht – none of these companies are listed on the stock exchange. At the same time, the European chip offensive secures the supply chains on which these companies depend.
This means: when a corporation like VW has to close factories, Kärcher invests 200 million Euro in expansion. When Intel cancels Magdeburg, TRUMPF builds a new factory in the USA. The crisis in the large industry is real – but it’s not the whole story. At C-level, the skills gap is being closed with AI copilots – an approach also pursued by Hidden Champions.
Frequently Asked Questions
Further Reading
- Reboot-Bilanz 2025: Five companies that have made a successful turnaround – MyBusinessFuture
- Cloud Trends 2026: What IT decision-makers need to have on their radar now – cloudmagazin
- EU AI Act 2026: What companies need to implement now – Digital Chiefs
Title image source: Pexels / Auto Tech
