Germany-IT Market by End-user and Application - Forecast and Analysis 2023-2027

Published: Oct 2023

Pages: 148

SKU: IRTNTR70498

Snapshot

Germany IT Market Analysis Report 2023-2027:

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.

Analysis Period	2017- 2027
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
Historic CAGR	3.77%
Forecasted Opportunity (2023-2027)	USD 30.34 billion
Market Opportunity Transformation Growth	47%
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.

What will be the Size of the Germany IT Market During the Forecast Period?

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Germany-IT Market: Key Drivers, Trends, Challenges, and Customer Landscape

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.

Key IT Market Driver in Germany

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.

Significant IT Market Trends in Germany

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.

Major IT Market Challenge in Germany

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.

Key IT Market Customer Landscape in Germany

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

Who are the Major IT market Vendors in Germany?

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.

What is the Fastest-Growing Segment in the IT market in Germany?

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.

Segment Overview

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.

End-user Outlook (USD Billion, 2017 - 2027)
- Manufacturing
- Government
- BFSI
- ICT
- Business services and others

Application Outlook (USD Billion, 2017 - 2027)
- Large enterprise
- SMEs

Parent Market Analysis

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
Report Coverage	Details
Page number	148
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.12%
Market growth 2023-2027	USD 30.34 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.76
Competitive landscape	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
Market dynamics	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.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Germany IT Market Research Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the market between 2023 and 2027
Precise estimation of the size of the market and its contribution to the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the market across Germany
Thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of market vendors

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market Segmentation by End-user
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Application
- Exhibit 06: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 07: Parent market
- Exhibit 08: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 09: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 10: Market segments

3.3 Market size 2022

3.4 Market outlook: Forecast for 2022-2027
- Exhibit 11: Chart on Germany - Market size and forecast 2022-2027 ($ billion)
- Exhibit 12: Data Table on Germany - Market size and forecast 2022-2027 ($ billion)
- Exhibit 13: Chart on Germany: Year-over-year growth 2022-2027 (%)
- Exhibit 14: Data Table on Germany: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

4.1 IT market in Germany 2017 - 2021
- Exhibit 15: Historic Market Size – Data Table on it market in Germany 2017 - 2021 ($ billion)

4.2 End-user Segment Analysis 2017 - 2021
- Exhibit 16: Historic Market Size – End-user Segment 2017 - 2021 ($ billion)

4.3 Application Segment Analysis 2017 - 2021
- Exhibit 17: Historic Market Size – Application Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 18: Five forces analysis - Comparison between 2022 and 2027

5.2 Bargaining power of buyers
- Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

5.3 Bargaining power of suppliers
- Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

5.4 Threat of new entrants
- Exhibit 21: Threat of new entrants – Impact of key factors in 2022 and 2027

5.5 Threat of substitutes
- Exhibit 22: Threat of substitutes – Impact of key factors in 2022 and 2027

5.6 Threat of rivalry
- Exhibit 23: Threat of rivalry – Impact of key factors in 2022 and 2027

5.7 Market condition
- Exhibit 24: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by End-user

6.1 Market segments
- Exhibit 25: Chart on End-user - Market share 2022-2027 (%)
- Exhibit 26: Data Table on End-user - Market share 2022-2027 (%)

6.2 Comparison by End-user
- Exhibit 27: Chart on Comparison by End-user
- Exhibit 28: Data Table on Comparison by End-user

6.3 Manufacturing - Market size and forecast 2022-2027
- Exhibit 29: Chart on Manufacturing - Market size and forecast 2022-2027 ($ billion)
- Exhibit 30: Data Table on Manufacturing - Market size and forecast 2022-2027 ($ billion)
- Exhibit 31: Chart on Manufacturing - Year-over-year growth 2022-2027 (%)
- Exhibit 32: Data Table on Manufacturing - Year-over-year growth 2022-2027 (%)

6.4 Government - Market size and forecast 2022-2027
- Exhibit 33: Chart on Government - Market size and forecast 2022-2027 ($ billion)
- Exhibit 34: Data Table on Government - Market size and forecast 2022-2027 ($ billion)
- Exhibit 35: Chart on Government - Year-over-year growth 2022-2027 (%)
- Exhibit 36: Data Table on Government - Year-over-year growth 2022-2027 (%)

6.5 BFSI - Market size and forecast 2022-2027
- Exhibit 37: Chart on BFSI - Market size and forecast 2022-2027 ($ billion)
- Exhibit 38: Data Table on BFSI - Market size and forecast 2022-2027 ($ billion)
- Exhibit 39: Chart on BFSI - Year-over-year growth 2022-2027 (%)
- Exhibit 40: Data Table on BFSI - Year-over-year growth 2022-2027 (%)

6.6 ICT - Market size and forecast 2022-2027
- Exhibit 41: Chart on ICT - Market size and forecast 2022-2027 ($ billion)
- Exhibit 42: Data Table on ICT - Market size and forecast 2022-2027 ($ billion)
- Exhibit 43: Chart on ICT - Year-over-year growth 2022-2027 (%)
- Exhibit 44: Data Table on ICT - Year-over-year growth 2022-2027 (%)

6.7 Business services and others - Market size and forecast 2022-2027
- Exhibit 45: Chart on Business services and others - Market size and forecast 2022-2027 ($ billion)
- Exhibit 46: Data Table on Business services and others - Market size and forecast 2022-2027 ($ billion)
- Exhibit 47: Chart on Business services and others - Year-over-year growth 2022-2027 (%)
- Exhibit 48: Data Table on Business services and others - Year-over-year growth 2022-2027 (%)

6.8 Market opportunity by End-user
- Exhibit 49: Market opportunity by End-user ($ billion)
- Exhibit 50: Data Table on Market opportunity by End-user ($ billion)

7 Market Segmentation by Application

7.1 Market segments
- Exhibit 51: Chart on Application - Market share 2022-2027 (%)
- Exhibit 52: Data Table on Application - Market share 2022-2027 (%)

7.2 Comparison by Application
- Exhibit 53: Chart on Comparison by Application
- Exhibit 54: Data Table on Comparison by Application

7.3 Large enterprise - Market size and forecast 2022-2027
- Exhibit 55: Chart on Large enterprise - Market size and forecast 2022-2027 ($ billion)
- Exhibit 56: Data Table on Large enterprise - Market size and forecast 2022-2027 ($ billion)
- Exhibit 57: Chart on Large enterprise - Year-over-year growth 2022-2027 (%)
- Exhibit 58: Data Table on Large enterprise - Year-over-year growth 2022-2027 (%)

7.4 SMEs - Market size and forecast 2022-2027
- Exhibit 59: Chart on SMEs - Market size and forecast 2022-2027 ($ billion)
- Exhibit 60: Data Table on SMEs - Market size and forecast 2022-2027 ($ billion)
- Exhibit 61: Chart on SMEs - Year-over-year growth 2022-2027 (%)
- Exhibit 62: Data Table on SMEs - Year-over-year growth 2022-2027 (%)

7.5 Market opportunity by Application
- Exhibit 63: Market opportunity by Application ($ billion)
- Exhibit 64: Data Table on Market opportunity by Application ($ billion)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 65: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Drivers, Challenges, and Trends

9.1 Market drivers

9.2 Market challenges

9.3 Impact of drivers and challenges
- Exhibit 66: Impact of drivers and challenges in 2022 and 2027

9.4 Market trends

10 Vendor Landscape

10.1 Overview

10.2 Vendor landscape
- Exhibit 67: Overview on Criticality of inputs and Factors of differentiation

10.3 Landscape disruption
- Exhibit 68: Overview on factors of disruption

10.4 Industry risks
- Exhibit 69: Impact of key risks on business

11 Vendor Analysis

11.1 Vendors covered
- Exhibit 70: Vendors covered

11.2 Market positioning of vendors
- Exhibit 71: Matrix on vendor position and classification

11.3 Broadcom Inc.
- Exhibit 72: Broadcom Inc. - Overview
- Exhibit 73: Broadcom Inc. - Business segments
- Exhibit 74: Broadcom Inc. - Key news
- Exhibit 75: Broadcom Inc. - Key offerings
- Exhibit 76: Broadcom Inc. - Segment focus

11.4 Capgemini Service SAS
- Exhibit 77: Capgemini Service SAS - Overview
- Exhibit 78: Capgemini Service SAS - Business segments
- Exhibit 79: Capgemini Service SAS - Key news
- Exhibit 80: Capgemini Service SAS - Key offerings
- Exhibit 81: Capgemini Service SAS - Segment focus

11.5 Cisco Systems Inc.
- Exhibit 82: Cisco Systems Inc. - Overview
- Exhibit 83: Cisco Systems Inc. - Business segments
- Exhibit 84: Cisco Systems Inc. - Key news
- Exhibit 85: Cisco Systems Inc. - Key offerings
- Exhibit 86: Cisco Systems Inc. - Segment focus

11.6 Dell Technologies Inc.
- Exhibit 87: Dell Technologies Inc. - Overview
- Exhibit 88: Dell Technologies Inc. - Business segments
- Exhibit 89: Dell Technologies Inc. - Key offerings
- Exhibit 90: Dell Technologies Inc. - Segment focus

11.7 Fujitsu Ltd.
- Exhibit 91: Fujitsu Ltd. - Overview
- Exhibit 92: Fujitsu Ltd. - Business segments
- Exhibit 93: Fujitsu Ltd. - Key news
- Exhibit 94: Fujitsu Ltd. - Key offerings
- Exhibit 95: Fujitsu Ltd. - Segment focus

11.8 Hewlett Packard Enterprise Co.
- Exhibit 96: Hewlett Packard Enterprise Co. - Overview
- Exhibit 97: Hewlett Packard Enterprise Co. - Business segments
- Exhibit 98: Hewlett Packard Enterprise Co. - Key news
- Exhibit 99: Hewlett Packard Enterprise Co. - Key offerings
- Exhibit 100: Hewlett Packard Enterprise Co. - Segment focus

11.9 Hitachi Ltd.
- Exhibit 101: Hitachi Ltd. - Overview
- Exhibit 102: Hitachi Ltd. - Business segments
- Exhibit 103: Hitachi Ltd. - Key news
- Exhibit 104: Hitachi Ltd. - Key offerings
- Exhibit 105: Hitachi Ltd. - Segment focus

11.10 Infosys Ltd.
- Exhibit 106: Infosys Ltd. - Overview
- Exhibit 107: Infosys Ltd. - Business segments
- Exhibit 108: Infosys Ltd. - Key news
- Exhibit 109: Infosys Ltd. - Key offerings
- Exhibit 110: Infosys Ltd. - Segment focus

11.11 International Business Machines Corp.
- Exhibit 111: International Business Machines Corp. - Overview
- Exhibit 112: International Business Machines Corp. - Business segments
- Exhibit 113: International Business Machines Corp. - Key news
- Exhibit 114: International Business Machines Corp. - Key offerings
- Exhibit 115: International Business Machines Corp. - Segment focus

11.12 Juniper Networks Inc.
- Exhibit 116: Juniper Networks Inc. - Overview
- Exhibit 117: Juniper Networks Inc. - Product / Service
- Exhibit 118: Juniper Networks Inc. - Key offerings

11.13 Lenovo Group Ltd.
- Exhibit 119: Lenovo Group Ltd. - Overview
- Exhibit 120: Lenovo Group Ltd. - Business segments
- Exhibit 121: Lenovo Group Ltd. - Key offerings
- Exhibit 122: Lenovo Group Ltd. - Segment focus

11.14 Oracle Corp.
- Exhibit 123: Oracle Corp. - Overview
- Exhibit 124: Oracle Corp. - Business segments
- Exhibit 125: Oracle Corp. - Key news
- Exhibit 126: Oracle Corp. - Key offerings
- Exhibit 127: Oracle Corp. - Segment focus

11.15 Siemens AG
- Exhibit 128: Siemens AG - Overview
- Exhibit 129: Siemens AG - Business segments
- Exhibit 130: Siemens AG - Key news
- Exhibit 131: Siemens AG - Key offerings
- Exhibit 132: Siemens AG - Segment focus

11.16 Tata Consultancy Services Ltd.
- Exhibit 133: Tata Consultancy Services Ltd. - Overview
- Exhibit 134: Tata Consultancy Services Ltd. - Business segments
- Exhibit 135: Tata Consultancy Services Ltd. - Key news
- Exhibit 136: Tata Consultancy Services Ltd. - Key offerings
- Exhibit 137: Tata Consultancy Services Ltd. - Segment focus

11.17 Toshiba Corp.
- Exhibit 138: Toshiba Corp. - Overview
- Exhibit 139: Toshiba Corp. - Business segments
- Exhibit 140: Toshiba Corp. - Key offerings
- Exhibit 141: Toshiba Corp. - Segment focus

12 Appendix

12.1 Scope of the report

12.2 Inclusions and exclusions checklist
- Exhibit 142: Inclusions checklist
- Exhibit 143: Exclusions checklist

12.3 Currency conversion rates for US$
- Exhibit 144: Currency conversion rates for US$

12.4 Research methodology
- Exhibit 145: Research methodology
- Exhibit 146: Validation techniques employed for market sizing
- Exhibit 147: Information sources

12.5 List of abbreviations
- Exhibit 148: List of abbreviations

Methodology

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

What are the key global market and the regional market share?
What are the revenue-generating key market segments?
What are the key factors driving and challenging this market’s growth?
Who are the key market vendors and their growth strategies?
What are the latest trends influencing the growth of this market?
What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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