Germany ICT Market Size
| 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
*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 Market Trends
This section covers the major market trends shaping the Germany ICT Market according to our research experts:
Rapid Rise in Digitalization and Scalable IT Infrastructure
- Germany slightly outperforms the EU average in terms of digitalization. When connected to ultra-fast broadband, it performs poorly. Also, German businesses focus strongly on security and data protection while fusing new digital technology with industrial innovation.
- The economy, government, and vast portions of the country aim to speed up digitalization by investing in digital infrastructures, devices, software, and services. Furthermore, digital services have greatly benefited users, and new business opportunities have developed.
- Domestic investment in information technology and telecommunications sometime increased by almost 4.2% in the previous year, according to the German digital organization Bitkom. Also, sales are expected to increase by 4% from last year. As a result, IT software and hardware sales will continue to be strong in the upcoming years.
- Furthermore, as a collaborative effort of federal governments, municipalities, and the telecommunications sector, the Gigabit Strategy is the ultimate goal of achieving sustainable digitalization. Last year, the National Digital Strategy and the Gigabit Strategy for Germany aimed for a universal supply of fiber optic and cutting-edge mobile communications technology by 2030.
- Noticeably, Germany is ranked 13th out of 27 EU Member States per the Digital Economy and Society Index of last year. Germany achieved good progress in the previous five years. Germany's success with digital transformation in the upcoming years would be essential in enabling the EU to meet its 2030 Digital Decade ambitions.
Robust Internet Coverage Across the Country
- In Germany, using the internet is a part of daily life. Many people find it impossible to imagine a world without the internet. Consuming media, watching videos, shopping, keeping in touch, working, scheduling appointments, travels, and tickets, taking online courses and degrees, and using social media are just a handful of the many ways that the internet impacted their daily life.
- Germans are becoming more and more frequent online users. While 98% of web users did it at home, 81% did so elsewhere. Internet cafés are gradually becoming outdated due to the extensive mobile devices used for online activities outside of using a desktop computer at home and the expansion of free public Wi-Fi choices. Passengers on urban transportation networks may have access to their Wi-Fi network.
- Internet connectivity in Germany significantly increased recently, just like in any other major global economy. Social media gained popularity nationwide, and its platforms are frequently utilized to promote goods and services. The German railroad business Deutsche Bahn is a beautiful illustration of this, as it offers customer support through the Twitter platform. Free public Wi-Fi grew in popularity, broadening the Internet user base at coffee shops, bookstores, and libraries.
- The broadband internet cost in the nation decreased recently. Due to this, German telecom firms are now more competitive, which is good news for Internet addicts. Internet and telephone access are frequently provided in Germany at varied monthly costs. The service provider often determines the prices and the Internet speed.
- Since last year, Germany is one of the EU's top-performing nations in increasing internet access. The general public in Germany was curious about the internet and using online services. 96% of German households had an internet connection in 2020. According to ARD/ZDF, the number of internet users in Germany grew to 67 million by the end of the previous year. It indicates that the demand for the ICT market is expected to grow significantly.
Germany ICT Industry Overview
The Germany ICT Market is highly competitive, owing to the presence of many small and large players. The market is moderately concentrated, with major players such as ZTE Corporation, Ciena Corporation, Cisco Systems Inc., CommScope, Inc., and Fortinet Inc. They are adopting strategies like product innovation, service innovation, mergers, and acquisitions to stay ahead of the competition and increase their reach. The current advancement in the market:
- February 2022 - CommScope announced that Vodafone Germany would deploy its Touchstone TG6442 DOCSIS 3.1 cable gateways to deliver Wi-Fi 6 performance to millions of subscribers.
- January 2022 - Ericsson and Deutsche Telekom have collaborated to launch a new 5G Standalone (5G SA) private campus network service for on-site corporate communications infrastructure. The new campus network service is built on a local 5G infrastructure dedicated to the customer's digital applications. The 5G SA technology operates without LTE anchors (as in 5G NSA). It provides all of the technological benefits of 5G, including rapid data transfer speeds, maximum network capacity, and highly robust connectivity with minimum latency.
Germany ICT Market Leaders
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ZTE Corporation
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Ciena Corporation
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Cisco Systems Inc.
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CommScope, Inc.
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Fortinet Inc.
*Disclaimer: Major Players sorted in no particular order
Germany ICT Market News
- September 2022 - Keysight Technologies signed a memorandum of understanding (MoU) with IBM to pursue accelerating open radio access network (RAN) deployments in Europe.
- August 2022 - MKS Instruments, Inc., a global technology supplier that allows enhanced processes and increases productivity, completed its acquisition of Atotech Limited for about USD 4.4 billion in cash and MKS common stock.
- May 2022 - Alibaba Cloud, Alibaba Group's digital technology and innovation backbone, announced the establishment of its data center in Germany. This initiative addresses customers rising need for digital transformation throughout Europe. This offers a comprehensive range of cloud computing products, including storage, networking, and databases.
Germany ICT Market Report - Table of Contents
1. INTRODUCTION
1.1 Market Definition and Scope
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Rise in Digitalization and Scalable IT Infrastructure
5.1.2 Deployment of 5G network in the Country
5.2 Market Restraint
5.2.1 Chip shortage and Inflationary Pressures
5.3 Impact of COVID-19 on the IT Spending
6. KEY TECHNOLOGY INVESTMENTS
6.1 Cloud Technology
6.2 Artificial Intelligence
6.3 Cyber Security
6.4 Digital Services
7. MARKET SEGMENTATION
7.1 By Type
7.1.1 Hardware
7.1.2 Software
7.1.3 IT Services
7.1.4 Telecommunication Services
7.2 By Size of Enterprise
7.2.1 Small and Medium Enterprises
7.2.2 Large Enterprises
7.3 By Industry Vertical
7.3.1 BFSI
7.3.2 IT and Telecom
7.3.3 Government
7.3.4 Retail and E-commerce
7.3.5 Manufacturing
7.3.6 Energy and Utilities
7.3.7 Other Industry Verticals
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 ZTE Corporation
8.1.2 Ciena Corporation
8.1.3 Cisco Systems Inc.
8.1.4 CommScope, Inc.
8.1.5 Fortinet Inc.
8.1.6 Fujitsu
8.1.7 Huawei Technologies
8.1.8 Juniper Networks Inc.
8.1.9 Vodafone
8.1.10 BT
8.1.11 Nokia
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
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 |
Germany ICT Market Research FAQs
What is the current Germany ICT Market size?
The Germany ICT Market is projected to register a CAGR of 9.70% during the forecast period (2024-2029)
Who are the key players in Germany ICT Market?
ZTE Corporation, Ciena Corporation, Cisco Systems Inc., CommScope, Inc. and Fortinet Inc. are the major companies operating in the Germany ICT Market.
What years does this Germany ICT Market cover?
The report covers the Germany ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Germany ICT Industry Report
Statistics for the 2024 Germany ICT market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany ICT analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Germany ICT Report Snapshots
