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The Germany IT market size was valued at USD 130.397 billion in 2027 with a CAGR of 4.12% from 2023 to 2027. The growth of the market depends on several factors, including the increased adoption of IT solutions among SMEs in Germany, the increased adoption of cloud-based services by enterprises, and the increasing digital infrastructure in Germany.
|Market Size (2017) Historic Year
|USD 112.95 billion
|Market Size (2027) - Forecasted Year
|USD 130.97 billion
|Historic Opportunity (2017- 2021)
|USD 18.02 billion
|Forecasted Opportunity (2023-2027)
|USD 30.34 billion
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 48.36 billion
This Germany IT market report extensively covers market segmentation by end-user (manufacturing, government, BFSI, ICT, and business services and others) and application (large enterprise and SMEs). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased adoption of IT solutions among SMEs in Germany is notably driving the market growth, although factors such as the shortage of skilled IT professionals may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased adoption of IT solutions among SMEs in Germany is notably driving the Germany IT market growth. SMEs are the backbone of the German economy and represent more than 99% of all companies in the country. These companies range from sole proprietorships to companies with hundreds of employees and export their products and services around the world. German medium-sized companies are known for introducing and actively promoting innovation at the product and process levels. They invest in IT to stay up to date with the latest technology. Small and medium-sized businesses in Germany are making extensive use of technologies such as cloud computing, big data, and the Internet of Things (IoT) to improve operational efficiency and find new ways to generate revenue. The goals behind investing in these technologies include reducing IT infrastructure costs, extracting accurate business insights from enterprise data, and improving production efficiency and business processes. Digitization is one of the key priorities for German medium-sized companies. Many companies are replacing manual processes with digital workflows using software and IT services. Other companies are taking a holistic approach and looking to digitize the entire value chain, including the procurement, production, and delivery of products and services. Automotive groups such as Volkswagen, for example, have set up several self-managed production facilities to automate individual steps of the manufacturing process. German SMEs are increasingly deploying ERP solutions and CRM software to improve customer engagement and retention. These companies are reducing operating costs by investing in communication platforms to facilitate online and real-time collaboration, and by using social media platforms to promote their products and services. Many such factors drive the growth of the Germany-IT market during the forecast period.
Government support for AI is identified as the key trend in the Germany-IT market. Despite the general adoption of AI among German companies, the federal government encourages companies to consider all application areas for AI-based solutions. According to a 2018 study commissioned by the Federal Ministry for Economic Affairs and Energy, AI is expected to boost the country's manufacturing output by more than USD 34.35 billion by 2023. The federal government has announced that in its 2020 budget, it will provide USD 572.5 million to boost its AI strategy beyond 2020. The government plans to invest up to USD 3.44 billion by 2025 to implement this strategy. Germany is modernizing its AI competence centers at the regional level by establishing separate centers in each region and connecting them to a common network. With federal backing, many providers are opening their AI research centers in the country. Government efforts are supporting R&D to develop AI and promote AI adoption in German companies, which will drive the growth of the Germany-IT market during the forecast period.
The shortage of skilled IT professionals may impede the Germany-IT market growth. German companies are currently facing a serious shortage of IT specialists. A lack of professional qualifications is reducing the number of vacancies for candidates. Professionals with the necessary qualifications, work experience, and skills are highly remunerated. Therefore, it is difficult for SMEs and public sector companies to recruit suitable candidates. The federal government plans to recruit staff from other parts of Europe to fill these vacancies and is taking steps to simplify immigration laws for foreigners seeking employment in the country. The number of job openings in the IT sector has increased, reaching more than 1.3 million in 2020. But most of the vacancy still remains vacant. The shortage of qualified IT professionals in the areas of cloud, AI, big data, and IoT can seriously hamper German companies' digital transformation efforts. This may adversely affect the Germany-IT market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Germany-IT market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Broadcom Inc.- The company offers IT services such as networking and data centers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the manufacturing segment will be significant during the forecast period. Manufacturing is one of the most important sources of revenue generation for the German economy. The country is home to some of the world's largest automotive and engineering companies. There are many small and medium-sized manufacturers in the country.
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The manufacturing segment showed a gradual increase in the market share of USD 27.11 billion in 2017 and continued to grow by 2021. Manufacturing companies in Germany are adopting cloud-based software for enterprise applications, big data, and analytics applications. Using cloud-based solutions reduces data processing time for companies. This enables companies to build a data-driven operational environment. German companies are also working to develop execution systems with monitoring and control functions. Technology supports the planning, implementation, management, and investment of new technologies in manufacturing. Therefore, the use of manufacturing intelligence will enable industries to accurately infer mechanical and process engineering challenges and move to advanced data collection methods using sensors, actuators, equipment, production analytics, etc., thereby increasing efficiency. Such factors are expected to drive the growth of the segment during the forecast period.
The Germany IT market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the IT market in Germany as a part of the global IT consulting and other services market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. The global IT consulting and other services market covers companies that provide information technology consulting and information management services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Germany Information Technology (IT) Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 4.12%
Market growth 2023-2027
USD 30.34 billion
YoY growth 2022-2023(%)
|Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
badenIT GmbH, Broadcom Inc., Capgemini Service SAS, Cisco Systems Inc., Dell Technologies Inc., Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., HUNARI Arik and Hunneck GbR, Infosys Ltd., International Business Machines Corp., Juniper Networks Inc., Lenovo Group Ltd., nextevolution GmbH, Oracle Corp., Siemens AG, Tata Consultancy Services Ltd., Toshiba Corp., and VACE Systemtechnik GmbH
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
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