Germany ICT Market Size (2024 - 2029)

The Germany ICT market is poised for significant expansion, driven by advancements in technology such as cloud computing and artificial intelligence. The sector benefits from a strong workforce, a supportive environment for technological innovations, and collaborative efforts between industry and government in research funding. The increasing adoption of IoT devices across various industries and the development of infrastructure like smart cities and data centers are further propelling market growth. Additionally, the shift towards cloud and remote working models, accelerated by the COVID-19 pandemic, is creating new opportunities, despite challenges related to supply chain dependencies.

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Market Size of Germany ICT Industry

Germany ICT Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.70 %
Market Concentration High

Major Players

Germany ICT Market Major Players

*Disclaimer: Major Players sorted in no particular order

Germany ICT Market Analysis

The Germany ICT market is expected to grow at a CAGR of 9.7% over the forecasted period. Germany's ICT sector distinguishes itself by creating innovative software and security solutions, using the country's strong workforce, a robust market for technological innovations, and the collaborative support of industry and government in funding for research. Furthermore, the increasing adoption of IoT-based devices across various industries, including BFSI, IT and Telecom, Retail and E-commerce, and others, is propelling the ICT technology industry in the country.

  • Germany's ICT market is gaining traction with advanced technology, such as cloud computing. Artificial Intelligence is also extending its application across the end-user segment, fueling the market growth over the next five years. For Instance, 5G became a new engine for industrial digital transformation. Cisco announced it is collaborating with Axians, a Vinci Energies brand, to provide Cisco private 5G to enterprises across industries in Germany and the Netherlands.
  • The increasing infrastructure developments, such as smart city and data center construction, would drive the ICT market growth over the next five years. For Instance, ZTE Corporation signed a 5G innovation cooperation agreement with True Group. Through this cooperation on the 5G joint innovation center to develop 5G networks, digital services, smart islands, intelligent manufacturing, research innovation, talent training, and other fields, with outstanding commitment to comprehensively carrying out 5G-oriented innovative technology and business cooperation.
  • Key players in the ICT market are focusing on expanding their businesses and strengthening their cloud services through collaborations and partnerships. For Instance, IBM collaborated with SAP to deliver technology and consulting experience to help clients embrace a hybrid cloud strategy and migrate mission-critical workloads from SAP systems to the cloud in regulated and non-regulated industries.
  • Germany prospered due to globalization, but the global network of supply chains that gave it is economy a significant boost may now be a severe drawback. Executives and policymakers are compelled to evaluate supply chains and try to lessen reliance on a small number of Asian and American suppliers. It is due to shortages of semiconductors and other industrial components that threaten the nation's economic recovery.
  • Due to the COVID-19 pandemic, the demand for IT services adoption and Telecom services saw a positive rise, augmented by technology demand growth due to shutdowns. Companies upgrading IT infrastructures to support remote working amid shutdowns may have shifted the workloads to the public and private cloud. Over the coming years, this is expected to drive the demand further as enterprises move towards cloud and remote working models, creating new growth opportunities for the ICT market.

Germany ICT Industry Segmentation

The information and communication technology (ICT) sector combines manufacturing and service businesses whose products primarily fulfill or allow information processing and communication via electronic methods, including transmission and display. The ICT sector contributes to technical advancement, increased output, and productivity.

The Germany ICT Market is segmented by type (hardware, software, IT services, telecommunication services), size of an enterprise (small and medium enterprises, large enterprises), industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals). 

The market sizes and forecasts are in value (USD million) for all the above segments.

By Type
Hardware
Software
IT Services
Telecommunication Services
By Size of Enterprise
Small and Medium Enterprises
Large Enterprises
By Industry Vertical
BFSI
IT and Telecom
Government
Retail and E-commerce
Manufacturing
Energy and Utilities
Other Industry Verticals
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Germany ICT Market Size Summary

The Germany ICT market is poised for significant growth, driven by its robust technological infrastructure and innovative solutions in software and security. The sector benefits from a strong workforce and supportive government and industry collaborations, which foster research and development. The increasing adoption of IoT devices across various sectors such as BFSI, IT and Telecom, and Retail is a key factor propelling market expansion. Advanced technologies like cloud computing and artificial intelligence are further enhancing the market's trajectory, with initiatives such as Cisco's collaboration with Axians to provide private 5G solutions exemplifying the sector's commitment to digital transformation. Infrastructure developments, including smart cities and data centers, are also expected to contribute to the market's growth, supported by strategic partnerships and collaborations among major players like IBM and SAP.

Germany's ICT market is characterized by a competitive landscape with both small and large players, including prominent companies like ZTE Corporation, Cisco Systems Inc., and Fortinet Inc. These companies are actively engaging in product and service innovations, mergers, and acquisitions to maintain their competitive edge. The market's growth is further bolstered by the increasing demand for IT and telecom services, accelerated by the COVID-19 pandemic, which prompted a shift towards cloud and remote working models. The country's digitalization efforts, supported by initiatives like the National Digital Strategy and the Gigabit Strategy, aim to enhance digital infrastructure and connectivity, aligning with the EU's 2030 Digital Decade ambitions. As internet usage continues to rise, with a significant portion of the population engaging in online activities, the demand for ICT services is expected to grow, reinforcing Germany's position as a key player in the European digital landscape.

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Germany ICT Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Stakeholder Analysis

    3. 1.3 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Hardware

      2. 2.1.2 Software

      3. 2.1.3 IT Services

      4. 2.1.4 Telecommunication Services

    2. 2.2 By Size of Enterprise

      1. 2.2.1 Small and Medium Enterprises

      2. 2.2.2 Large Enterprises

    3. 2.3 By Industry Vertical

      1. 2.3.1 BFSI

      2. 2.3.2 IT and Telecom

      3. 2.3.3 Government

      4. 2.3.4 Retail and E-commerce

      5. 2.3.5 Manufacturing

      6. 2.3.6 Energy and Utilities

      7. 2.3.7 Other Industry Verticals

Germany ICT Market Size FAQs

The Germany ICT Market is projected to register a CAGR of 9.70% during the forecast period (2024-2029)

ZTE Corporation, Ciena Corporation, Cisco Systems Inc., CommScope, Inc. and Fortinet Inc. are the major companies operating in the Germany ICT Market.

Germany ICT Report Snapshots

Germany ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)