Bitkom, an industry association, says 2025 holds bright futures for Germany’s digital economy. It is anticipated that the market for IT and telecoms will see a 4.6% increase in turnover, reaching 232.8 billion euros.
In contrast to the 9,000 new employees created in the previous year, Bitkom estimates that the number of workers in the ICT sector will increase by almost 20,000 to 1.371 million by the end of 2025.
Ralf Wintergerst, President of Bitkom, described the ICT industry as a “ray of hope in difficult times” and underlined that it is currently Germany’s largest industrial employment. It is estimated that 87% of jobs are in the software industry.
When broken down into its component industries, Bitkom observes notable expansion in the software business, which is predicted to rise robustly once more, rising 9.8% to 51.1 billion euros. In particular, the still-small market for AI systems is predicted to grow rapidly, rising 43% to reach EUR 2.3 billion. Double-digit growth is also anticipated for security software (+11% to EUR 5.1 billion) and collaboration tools (+12% to EUR 1.4 billion). Bitkom is projecting a rise in revenue for cloud services from EUR 17 billion to EUR 20 billion. It is anticipated that the overall IT services segment will increase at a slower rate of 5%, achieving a turnover of 53.8 billion euros.
Consumer electronics are struggling while infrastructure as a service is flourishing, BrandSpur telecom and IT news desk reports.
According to Bitkom, practically every section of the IT hardware market is growing by at least single digits. Hardware sales are predicted to reach 53.7 billion euros in 2025, a 3.3% increase. Infrastructure-as-Service (i.e., rental servers, network, and storage capacities) will continue to be the largest growth driver. It is anticipated to rise by a robust 24.4 percent to 6.2 billion euros. The only industry where a 7.5% decline to EUR 7.2 billion is anticipated is consumer electronics, as individual families are reluctant to make purchases during uncertain economic times.
Bitkom predicts a 1.8% increase in turnover to EUR 74.3 billion in 2025, indicating a calmer telecommunications market. With an estimated 53.5 billion euros (+1.4%), the telecommunications services sector is predicted to contribute the largest portion of this. It is anticipated that investments in telecommunications infrastructure will rise by 3.5% to EUR 8.0 billion.
According to Bitkom, the vast majority (59%) of investments in the ICT sector will continue at their current level. Nearly a fifth (23%) wanted to reduce spending, while 17% wanted to raise it.
Also read: https://brandspurng.com/2025/01/12/un-predicts-global-economic-growth-to-remain-at-2-8-in-2025/
Research and development, as well as software, will be the main areas of investment. However, there are some disadvantages to the estimate. Bitkom notes that not all businesses would profit from the anticipated market expansion. Particularly small and medium-sized businesses could not receive as much of the cake.
Globally speaking, the optimistic outlook appears to be a touch shaky; Germany’s ICT market is trailing behind with a growth rate of 4.6%. With 8%, India is in the lead, followed by the USA (7.3%) and the EU (without Germany) (7.1%). With 38.8% of the market volume, the USA is by far the largest ICT market. With 4.1%, Germany is comparable to the UK.
By 2025, it is anticipated that the ICT sector’s global revenue will have grown by 6.6% to 5.2 trillion euros. However, Bitkom asserts that favourable political framework conditions are also necessary for the German ICT sector to succeed.
According to Bitkom’s President: “Politicians should do everything possible to increase the pace of growth.”
Following the Bundestag elections, Germany requires a “re-start.” He demanded, among other things, more investment, a digital ministry with actual authority, and less bureaucracy, such as the repeal of the Supply Chain Obligations Act.
