With a gross domestic product of 824.4 billion euros (as of 2025), Bavaria outperforms 21 of the 27 EU member states. Even when measured by economic output per capita, Bavaria is one of Germany's strongest federal states economically and ranks above the national average.
As a globally active market, Bavaria is home not only to global players such as Adidas, Allianz, Audi, BMW, MTU Aero Engines, MAN and Siemens, but also to a strong basis of small and medium-sized businesses in industry, trades and the service sector. Investors thus encounter a broad spectrum of competitive suppliers, potential customers and cooperation partners.
Bavaria enjoys an outstanding position in many fields:
- The Free State is the number one location in Germany for insurance and number two for banking
- Bavaria is number one in Germany for tourism
- The two trade show centres in Munich and Nuremberg are of great international significance
- Bavaria offers optimum provision in the fields of transportation, telecommunications and energy
- High-level apprenticeships and further training and intensive promotion of research and technology have contributed to Bavaria achieving top values in international comparison, spending three per cent of the gross domestic product on research and development.
46.00
Percent – That is how much Bavaria's nominal GDP grew (2014–2024)
33204
EUR – the disposable income per resident (2024)
29.70
per cent – Bavaria's share of German patent applications (2025)
31036.00
the number of people who have moved to Bavaria (net migration 2025)
100 projects were completed by Invest in Bavaria in 2025, 69 of them alone cases of new locations and 29 expansions. Last year, 2.539 new jobs were created throughout Bavaria. The companies supported, including many start-ups, came from 26 different countries of origin – proof that Bavaria is valued as a leading location for innovation worldwide.
Innovation is blue and white: Bavaria continues to rank among Germany’s leading states for patent activity. According to the 2025 Annual Report of the German Patent and Trade Mark Office (DPMA) a total of 12,575 patent applications from Bavaria were filed in 2025. With a share of 29.7 percent of all German patent applications, Bavaria ranks second nationwide.
Munich is one of the world’s leading start-up locations: In Startup Genome’s Global Startup Ecosystem Report 2025 Munich ranks 34th among the world’s leading start-up ecosystems. The location combines a strong research landscape with established companies, investors and a dynamic technology and start-up environment.
Bavaria – a strong business location with a promising future: The Prognos Future Atlas 2025 confirms the strong future prospects of Bavaria’s regions. Numerous Bavarian cities and districts achieve top positions nationwide, particularly in the areas of competition and innovation, the labour market, demographics and prosperity. The Munich district, for example, ranks first in Germany in the category “Competition & Innovation”, followed by Ingolstadt in third place and the City of Munich in fifth place.
Bavaria is Germany’s largest federal state by area. More than 13.2 million people live in seven administrative districts spread across approximately 70,500 square kilometers.
In addition to its major cities and metropolitan areas, rural areas in particular define the Free State. They account for about 89 percent of the state’s total area and serve as living, economic, and working spaces for 55 percent of Bavaria’s population. Thus, Bavaria combines thriving metropolitan regions with strong rural areas.
You can find statistical data on a range of economic sectors from the Bavarian State Office of Statistics.