Germany’s technology sector has been having a huge relevance in the era of digitalization. Owing to this, the sector has been able to generate annual sales revenues which is in excess of €230 billion as well as one million jobs. If collated together they have contributed nearly 7% of German economic output.
If we put things into context as far as digitalization is concerned, it has been a key innovation driver and business enabler and it plays a significant impact in driving growth across different sectors. Its products and services are laying the foundation across industries and these are facilitators of new digital business models.
Germany constitutes around a quarter of the European software market by value. It is above the United Kingdom and France that take second and third places.
This sector has been growing right through the years. It has grown from about 19 billion euros in 2014 to almost 25 billion in 2019 and the trend has only grown.
The ICT sector in Germany has been the leader in investing in innovation. The companies have invested a high percentage of their revenues in order to develop new technologies and it has also created new brand products.
These significant investments have been reflected in the results – there is around 20 percent of the revenue of the industry which is generated through product innovations. Innovation rate among German ICT companies, viz, the percentage of companies that have introduced a minimum of one new product or service in the last few years stands at around 57 percent.
The primary aim of small and medium-sized enterprises (SMEs) in ICT is to drive demand for software solutions and it has, hence, created significant customer base which has generated more jobs for people. And, the German government has extended support to Mittelstand which has made it more resilient and stable.
Under a broad umbrella, the German security technologies market can be described as a high growth dynamic and there is constant change that has helped create a plethora of new opportunities for investors and tech players.
The IT security market in Germany is projected to grow 9.2 percent year-on-year in 2018–2021, and this places Germany as one of the most positive destinations in Western Europe.
As per Germany’s Digital Association (BitKom), two of every three companies in the country have been applying cloud technologies in their activities.
Cloud computing, along with Big Data and the Internet of Things (IoT), are locomotive technologies in fast digitalization of the whole of Germany’s economy. As per a number of different estimations, the country’s cloud services market has been predicted to become the largest one in Europe by 2020. They will trump even the United Kingdom.