The German economy is facing challenges with recession and structural crisis affecting its strength and prosperity. The industrial sector is particularly feeling the impact, with companies like Volkswagen and Thyssenkrupp announcing significant layoffs. Suppliers are also concerned about their business prospects.
However, some sectors are defying the crisis. Despite the difficult economic environment, the digital sector is experiencing growth. The IT and telecommunications market in Germany is expected to see a revenue increase of 4.6% by 2025, reaching 232.8 billion euros. Last year, revenues in this sector grew by 3.3% to 222.6 billion euros.
The IT industry continues to create jobs. According to the digital association Bitkom, the number of employees in the IT sector is expected to grow by around 20,000 to 1.371 million by 2025. In 2024 alone, 9,000 new jobs were created. However, there is a shortage of skilled workers, with approximately 149,000 positions currently unfilled. On average, IT job vacancies remain open for 7.7 months.
“The digital economy is a bright spot in challenging times, increasing revenue and creating new jobs,” says Bitkom President Ralf Wintergerst. The IT and telecommunications industry has become Germany’s largest industrial employer, with most companies in this sector expected to perform positively by 2025.
Information technology is the primary growth driver for the German IT sector. It is projected that 158.5 billion euros will be generated from IT in Germany by 2025, marking a 5.9% increase. The software market is also expected to grow significantly, with a 9.8% increase to 51.1 billion euros.
Some IT segments are experiencing significant growth. The market for AI platforms, which support the development, training, and operation of AI applications, is rapidly expanding by 43% to 2.3 billion euros. Cloud services are also expected to see double-digit growth rates, increasing by 17% to 20 billion euros.
Wintergerst emphasizes the importance of leveraging this momentum to transform Germany into a leading AI nation. He calls for less regulation and more investment and innovation. Additionally, he advocates for a digital ministry to consolidate responsibilities and effectively advance digital policy.
Addressing the IT skills shortage is crucial. Bitkom supports the immigration of qualified foreign IT talent to meet the demand for skilled workers. By 2040, there will be 1.92 million positions to fill, but only 1.26 million domestic skilled workers available.
The skills shortage presents a significant challenge for employers. Strategies like upskilling and reskilling can help secure the necessary workforce. Employers are encouraged to take proactive steps to address this issue and ensure they have the talent needed for the future.
The digital sector’s growth highlights the potential for technology to drive economic recovery and innovation. By investing in technology and talent, Germany can strengthen its position in the global digital economy.