Germany: Model train maker Piko invests in AI and jobs amid sales growth

The German model train manufacturer Piko Spielwaren GmbH is experiencing a resurgence, reporting a 7.9% increase in sales for the first five months of the year. This growth marks a significant turnaround from a 9.6% revenue drop in 2025, defying subdued consumer sentiment and global economic uncertainties. The company attributes its success to both domestic and international markets, with exports maintaining a steady share of nearly 40%.

Piko is strategically investing in its future by allocating approximately half a million euros towards digitalization and artificial intelligence. These investments target AI-driven technologies and new IT systems aimed at streamlining operations and accelerating innovation cycles. The company is also focusing on expanding its product offerings, with new electric and diesel locomotive models slated for release. This push towards modernization includes developing advanced, connected model railway systems designed to appeal to tech-savvy individuals and make the hobby more accessible.

To support its growth and product development, the Sonneberg-based company, which employs over 600 people in Germany and China, is actively hiring new staff. Piko's strategy emphasizes attracting new enthusiasts to the model railway hobby, positioning itself as more than just a traditional manufacturer but as a provider of modern, integrated systems. The company, known for its detailed miniature locomotives and accessories, is committed to enhancing its technological capabilities while continuing to produce high-quality models.