Market Trends of Germany ICT Industry
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.
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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 Internet cafés are gradually becoming outdated due to the extensive mobile devices used for online activities outside of using a desktop computer at home and the expansion of free public Wi-Fi choices.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.
