Resilient Growth in Germany’s Digital Sector
Germany’s digital industry is on the rise, showing a robust growth rate despite a downturn in consumer electronics sales. According to a recent forecast by the digital association Bitkom, the sector is expected to grow by 4.3% in 2024, reaching nearly 225 billion euros.
Challenges in Consumer Electronics
While the digital sector at large is thriving, the consumer electronics segment has not fared as well. Sales in this area have continued to decline, with a projected drop of 7.5% to 7.6 billion euros. Bitkom President Ralf Wintergerst noted that even significant events like the European Championship and the Olympics have not reversed this trend. Despite this, many households still possess up-to-date technology such as the latest TV sets and speakers bought during the pandemic, benefiting from longer-lasting hardware.
Strong Performances in IT and Software
In contrast to consumer electronics, the information technology (IT) and software segments have seen significant growth. The IT sector alone is expected to increase its turnover to 151.2 billion euros in 2024, up by 5.4%. Software sales are particularly strong, expected to rise by 9.8% to 46.6 billion euros. The development, testing, and provisioning of software platforms are also up, with a noteworthy 12.8% increase to 12.6 billion euros. Within this segment, artificial intelligence has surged by 39.2%, reaching 1.5 billion euros.
Stable Development Amid Challenges
Despite external pressures such as political interference and market uncertainty, the digital sector is predicted to maintain stable growth. Wintergerst emphasized the need for the German government to minimize market disruptions and excessive regulation to foster a more certain environment for digital businesses.
Job Creation Continues
The digital sector remains a vital source of employment in Germany. Bitkom projects the creation of 29,000 new jobs this year, with an additional 47,000 expected next year. By the end of 2025, it’s estimated that 1.41 million people will be working in the sector, a significant increase from 810,000 in 2005. Even though some companies have had to reduce staff recently, the sector could potentially employ even more people if not for the shortage of skilled workers. Many vacancies remain unfilled due to the lack of qualified candidates.
For more insights into the developments within Germany’s digital market, explore detailed analyses and forecasts on Bitkom’s official website.
To understand broader trends in digital technology and employment, visit our Tech Trends page.
