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German software market grows by 5,6 percent in 2014

on Monday, 10 November 2014. Posted in Germany, Go-to-market

The latest numbers of the German IT market show a further growth of the industry with significant increases for IT hardware and software. Time for international companies to enter the market, experts suggest.

GermanSoftwareMarketGrowthHigh-tech association BITKOM has published the latest numbers of the German IT market at its press conference held on October 28th. BITKOM reaffirms its forecast of the spring but also points out significant deferments on the whole market in the last six months: the downward trend on the PC market has been stopped while at the same time the growth of smartphones and tablets has slowed down.

Considerable differences within the segments

The different sectors on the German IT market show quite diverse economic results. While the business with IT hardware and software increases by almost 6 percent in 2014, sales in consumer electronics, telecommunication services and for telecommunication terminals decline slightly.

The sales with software show substantial rise by 5,6 percent to 19.1 billion Euros. IT services on the other hand have a slightly smaller plus of 2,7 percent to 36,3 billion Euros. "This is mainly because of the general slowdown in economic activity which has an impact on the project business. When it isn't running that smoothly, IT projects are often deferred", says BITKOM president Prof. Dieter Kempf.

The trade with IT hardware has been developing surprisingly strong. Revenues have risen by 5.8 percent to 22,4 billion Euros. In contrast to prior years revenue drivers haven't been tablet computers but classic PCs. Desktop PCs will probably reach a plus of 12,2 percent to 2,6 billion Euros, notebooks are likely to have a similar rise with 11,2 percent to 3,5 billion Euros.

The trade with tablet computers is still growing on a high level though: sales are expected to increase by 3,3 percent to 2,5 billion Euros.

Concerning employment BITKOM expects a new record of 953.000 people working in the ICT branch until year-end. By the end of 2014, IT providers alone are expected to employ 743.000 people. That is an increase in this segment of 16.000 jobs in one year only.

Germany remains the most attractive IT market in Europe

The software market in Germany grows faster than the overall economy on an already high level. "Investments in IT products and services are still an important element for many companies in Germany to increase their competitiveness", says Bernd Hoeck, managing partner of the go-to-market think tank bloodsugarmagic. "Once again, the German speaking IT market in Germany, Austria and Switzerland proves as being the most interesting market in Europe." Hoeck recommends international IT companies not yet being active on the German market to tackle a market entry now.

With their insights into local trends and market dynamic the go-to-market specialists at bloodsugarmagic can help IT firms to enter the German IT market even with small investments. Proven techniques for seeding the market, smooth lead generation and team or channel building allows market entry with minimal risk and capital expense.

bloodsugarmagic offers a free workshop to craft an initial market entry plan to IT companies looking to expand to the biggest IT market in Europe.

German IT Market Research eBook to be published in 2015

This market insight is a pre-publication from the upcoming eBook „German IT Market Compendium 2015“ that will cover more market research information for the IT services, software and hardware market in Germany and practical advice on how to enter the IT market in Germany.


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