Market and challenges (Distribution and Installation)


The market segment – Distribution and Installation – includes all activities related to wholesalers, master distributors and installers.

With a total investment volume of around € 2.0 billion (€ 1.2 billion standard), the German market is the largest in Europe. This is driven by the high and stable investment level of the construction and commercial sector, a friendly domestic economy, and Germany's strong position in the export sector.

Most of the goods and services are used in Germany, but the master distributors have an export share of around 30%.

In Germany, there are five large master distributors, which consolidate around 50% of the market. The other half consolidates in the wholesale sector, which is dominated by six wholesalers. Leading in Germany is the wholesale company Sonepar, as well as in the rest of Europe. Over the last few years, traditional wholesale has withdrawn a significant share of its purchasing volume from master distributors and is once again assuming the task of storage, provision of goods and the procurement process in cooperation with the producers.

In the last years the market has been heavily influenced by the issue of Construction Products Regulation (BauPVo), which has resulted enormous efforts in data and documentation management. Furthermore, the product classification standard "ETIM" has become widely established in Germany. Among other things, this is a prerequisite for the further shift of procurement and sales processes into the digital world of online trading.

The main challenge in the following years will be the task of following the digitization processes in the area of procurement and the goods provision process on the part of the producers. A transparent, optimized and trouble-free process chain will become a critical success factor in the future and in the cooperation between producer and customer.