Israel Germany | Business Guide | 2026

and hands-on application in global markets. High-precision sensors, including LiDAR and RADAR, together with advanced computer vision algorithms, have become essential components of modern vehicles. Israeli companies in this field have established global benchmarks. For Germanmanufacturers, integrating these technologies supports compliance with safety standards and the introduction of new driver-assistance capabilities within short development cycles. Beyond perception, Israel offers advanced data-processing tools that interpret complex sensor inputs and generate real-time insights. These tools improve driving safety and stability but also serve as a foundation for predictive maintenance, driver-monitoring solutions and new digital services. As manufacturers move toward software-driven architectures, the ability to manage and utilize vehicle data becomes a central component of their competitive strategy. Cybersecurity as a foundational layer Cybersecurity is not only a technological concern; it has become a regulatory requirement in Europe. UNECE’s cybersecurity frameworkmandates that every new vehicle sold in EUmarkets comply with rigorous risk-management and protection standards. Israel has a distinct advantage in this field thanks to decades of experience in developing advanced security systems in both the civilian and defense sectors. Israeli companies provide solutions for intrusion detection, secure communication, continuous monitoring, and vulnerability assessment. Many of these companies already collaboratewithGermanOEMs and Tier- 1 suppliers, supporting certification processes and facilitating the transition to software-rich vehicle architectures. These partnerships help Germanmanufacturers meet regulatory deadlines while maintaining high reliability and security standards. Urban mobility and public transport modernization Alongside private vehicles, German cities are investing heavily inmodernizing public transport systems. Real-time data integration, operational optimization, and demand forecasting are becoming essential for efficient network management. Israeli companies, which have already implemented similar solutions in largemetropolitan areas, offer technologies that support fleet management, traffic prediction, and multimodal mobility integration. Such systems helpmunicipalities improve service quality, reduce congestion, and enhance the resilience of their public transport infrastructure. As German cities respond to demographic change, sustainability goals, and evolving travel patterns, such data-driven platforms are gaining strategic importance. Closing capability gaps Despite its industrial strength, the German automotive sector faces capability gaps arising from rapid technological evolution. Manufacturers and suppliers are seeking mature solutions in software, artificial intelligence, sensing, and cybersecurity. Israel offers technologies that have already been validated through pilots and commercial deployments in international markets. Their integration into German development processes enables shorter time-to-market and provides a competitive edge in areas where traditional engineering is no longer sufficient. The value of Israeli partnerships lies not only in the technologies themselves but also in the development culture behind them. Flexibility, rapid prototyping, and a problem-solving mindset allow Israeli companies to support German partners in stages of development that require agility and fast iteration. Many German stakeholders note that this dynamic complements the structured strengths of their own engineering processes. A shared opportunity for long-term cooperation The coming decade will define the future of European mobility. Electrification, digitalization, connectivity, and artificial intelligence will determine the competitive landscape of the global automotive industry. Germany enters this transition with an unparalleled industrial foundation. Israel contributes complementary innovation that strengthens the technological and regulatory readiness required for next-generation mobility. For the German industry, cooperation with Israel provides access to advanced technologies, supports compliance with new standards, and accelerates the introduction of innovative features. For Israel, partnerships in Germany open doors to stable and highly structured markets and create long-term opportunities to integrate into a leading global industry. As the transition toward intelligent mobility continues, the combination of German engineering and Israeli innovation offers a compelling foundation for collaborative progress. Together, these strengths can support the development of safer, smarter, andmore efficient transportation solutions for Europe and beyond. 23