Overview

Germany has one of the largest ICT markets in the world and the single largest software market in Europe with around 100,000 IT companies employing approximately 1.189 million people in 2023. There is a strong demand for U.S. products and services across all segments. Large players such as Microsoft, Apple, Dell, Adobe, IBM, Oracle, and SAP enjoy a large market share.

In 2022 revenue in the different IT subsectors consisted of USD 45.3 billion in IT-Services, USD 34.9 billion in IT-Hardware and USD 34.1 billion in the software subsector. Since 2007, total revenue in the IT sector has increased from USD 76.4 billion to an estimated USD 141.6 billion in 2023, showing a pattern of consistent growth.

Germany hosts several key ICT trade shows, making it a premier marketplace for U.S. companies to reach global partners and buyers. U.S. exhibitors have frequently found buyers from Europe, Middle East, Africa, Asia and Latin America at the Hannover Messe, IFA Berlin, IT-SA, Gamescom or Cloud Expo Europe.

Figure 1. IT Revenue in Germany

Image Source: Statista Germany IT Revenue 2023

Policy Objectives and Challenges

ICT is a priority sector for the German government. Germany’s economic and innovation policy is outlined in the Digital Agenda of the BMWK (Federal Ministry for Economic Affairs and Climate Action). It focuses on digital infrastructure, the digital economy, digital workplaces, innovative governance, digital environments in society, education, research, science, media, and security.

Policy objectives include cybersecurity, the digitization of the German economy and the expansion of the German broadband network. Challenges include the impact of the EU Digital Single Market, the General Data Protection Regulation (GDPR), the E-privacy Regulation on ICT companies, and the latest cybersecurity policy developments, bolstered by the German National Digital Strategy 2025 plan, whose 10-year adoption timeline began in 2016.

The U.S. Commercial Service follows these developments and continues to work with associations and multipliers such as BMWK, Bitkom (Association for Information Technology), BDI (Federation of German Industries), GTAI (Germany Trade and Investment) and AmCham (American Chamber of Commerce) to unearth opportunities and flag policy concerns.

Leading Sub-Sectors

Key segments and topics of interest include cybersecurity, internet of things (IoT), big data, health IT, cloud computing, business IT: ERP, data centers, smart social business platforms, integrated systems, virtual & augmented reality, and digital factory. Specific national focus has been given to AI research and adoption, guided by Germany’s National AI Strategy (updated 2022).

Opportunities

IT Security is the 2nd largest in Europe and has had strong growth.

Health IT has experienced strong growth in recent years; experts expect a consolidation process and fundamental changes in the next couple of years.

The Artificial Intelligence market is expected to grow significantly.

Smart Social Business Platforms

Big Data, such as hardware, infrastructure, services, database and analytics technologies, are all key drivers for a fast digitalization of the German economy.

Enterprise Resource Planning (industry-specific ERP solutions)

Resources

Trade events 

• Hannover Messe – Industrial: “Largest industrial trade show in the world. Of interest for U.S. producers of industrial IT solutions”, Hannover, April 12 - 261, 2024
• Gamescom – Interactive games and entertainment, Cologne, likely summer 2023 (last iteration took place August 21-25, 2024)
• IFA Berlin – Consumer electronics and home appliances, Berlin, September 2-6, 2022
• it-sa – IT security: Cloud, mobile & cyber security, data & network security, Nuremberg, October 24, 2024

Trade Associations

Bitkom, Federal Association for Information Technology, Telecommunication and New Media 

Bitmi, Federal Association for Medium-Sized IT Businesses

Teletrust, IT Security Association Germany

ECO, Association of the Internet Industry

NIFIS, National Initiative for Information- and Internet-Security

German Games Industry Association, Organization that represents the German computer and video games industry

VATM, Association of Telecommunication and Value-Added Service Providers

Government Entities

Federal Office for Information Security, National cyber security authority in Germany

Federal Network Agency, Ensures compliance with the Telecommunications Act (TKG), Postal Act (PostG) and Energy Act (EnWG) and their respective ordinances.