Siemens AG has revealed its plans to invest approximately €1 billion ($1.11 billion) in its home market of Germany. Out of this amount, around €500 million will be allocated towards the establishment of a new global development and manufacturing hub in Erlangen.
The proposed technology campus will serve as the pivotal center for Siemens’ “industrial metaverse,” which is described as a real-time and digitized parallel world. This metaverse will have the capability to be linked to real-world assets, enabling virtual monitoring, analysis, and management through their digital twin.
Siemens predicts that the industrial metaverse will become a high-growth market worth $100 billion by the end of the decade. It will provide a platform where technology and ideas can be continuously simulated and evaluated for their effectiveness.
The focus of the new facility in Erlangen will be on sustainable and future-oriented high-tech manufacturing, along with supporting research and development activities. Siemens is aiming to complete the campus construction by 2029.
Erlangen, located in Bavaria, is already home to Siemens’ manufacturing of power electronics components and machine tool controls.
The investment reflects Siemens’ commitment to accelerate growth, drive innovation, and enhance its resilience. It also serves as a demonstration of support for Germany by addressing concerns about the country’s ability to compete, attract investment, and foster innovation.
This investment is part of a larger global push outlined last month, with Siemens planning to allocate approximately €2 billion towards boosting its manufacturing capacity.