The German economy is facing tough times: Recession and structural crisis threaten economic strength and prosperity. This is especially evident in the industrial sector. Companies like Volkswagen and Thyssenkrupp have recently made headlines with large layoffs. Suppliers are also worried about their businesses.
However, some sectors are defying the crisis. The Digital Association Bitkom expects growth in the IT and telecommunications market in Germany. By 2025, revenue is expected to increase by 4.6% to 232.8 billion euros. Last year, IT and telecommunications revenues grew by 3.3% to 222.6 billion euros.
Job growth in the IT sector continues to rise. According to Bitkom, the number of employees is expected to grow by around 20,000 to 1.371 million by 2025. In 2024 alone, 9,000 new jobs were created. The market is currently short of about 149,000 specialists. IT positions remain vacant for an average of 7.7 months.
Bitkom President Ralf Wintergerst states, “The digital economy offers a silver lining in tough times, boosting revenue and creating new jobs.” The IT and telecommunications sector is now Germany’s largest industrial employer. Most companies in this sector are expected to perform positively in 2025.
Information technology is the main growth driver for the German IT sector. In 2025, IT revenue in Germany is expected to reach 158.5 billion euros, an increase of over 5.9%. Software business is also expected to grow significantly by 9.8% to 51.1 billion euros.
Certain IT segments are experiencing significant growth. The market for AI platforms, where AI applications are developed, trained, and operated, is growing rapidly by 43% to 2.3 billion euros. Cloud services are also expected to see double-digit growth, increasing by 17% to 20 billion euros.
Wintergerst emphasizes, “The next government must seize the momentum and make Germany a leader in AI. We need less regulation and more investment and innovation.” He also advocates for a digital ministry to streamline responsibilities and effectively advance digital policies.
Addressing the shortage of IT specialists is crucial. Bitkom is focusing on attracting skilled foreign IT talents. By 2040, there will be 1.92 million positions to fill, but only 1.26 million domestic specialists are available for these roles.
The shortage of skilled workers is a major challenge for employers. Companies can take control of securing skilled workers through upskilling and reskilling strategies.
For those interested in exploring the new world of work, there are several German-language podcasts to follow.
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