Germany Enterprise ICT Market Analysis and Future Outlook by Segments (Hardware, Software and IT Services)

Germany Enterprise ICT Country Intelligence Report Overview

The Germany Enterprise ICT Country Intelligence Report, a new Country Intelligence Report by GlobalData, summarizes key findings from GlobalData’s ICT Customer Insight Survey carried out in H1-2023 and GlobalData’s Market Opportunity Forecasts to 2027: Germany. It reveals an executive-level overview of how the overall ICT budgets and their allocations towards various segments have changed for enterprises in the country in 2023 compared to 2022 and ICT revenue opportunity with detailed forecasts of key indicators up to 2027. The report provides a detailed analysis of the overall Germany’s enterprise ICT market trends and growth drivers based on GlobalData’s ICT Customer Insight Survey and GlobalData’s Market Opportunity Forecasts.

Annual change in Enterprise ICT budget allocation in Germany (2021-22 vs. 2022-23)

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The report also discusses about the market growth inhibitors impacting Germany’s overall ICT market. It sheds focus on enterprise ICT budget allocations and ICT revenue opportunities covering 18 solution areas, segmental analysis, and vertical analysis, as well as a review of key macroeconomic and regulatory trends, and government initiatives. The report also includes a brief profile of some of the key ICT vendors within the country.

GlobalData’s ICT customer insight survey reveals a positive outlook for enterprise ICT spending in Germany, with a majority of respondents, more than 72% from the country, claiming that there has been an increase in the enterprise ICT budget in 2023 compared to 2022. This is over 29 percentage points (p.p.) higher than the percentage who claim that there was an increase in their ICT budget in 2022-23 compared to 2021-22. This upward trend is paving the way for a promising opportunity for optimistic growth in ICT revenue. The rise in investment signifies enterprises’ willingness to allocate a budget towards technological advancements.

Germany’s overall ICT market was pegged at over $169 billion in 2022 and is expected to grow at a CAGR of more than 12% during 2022-2027 to reach over $306 billion in 2027, driven by its robust digital infrastructure, strong 5G standalone coverage, digitally active population, strong affinity for technology and data consumption, and continued government initiatives for transforming into a digital economy.

Germany Total ICT Revenue Opportunity 2022-2027 ($Billion)

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Germany Enterprise ICT Market Regulatory Highlights

• Telecommunications Modernization Act (TKG) 2021
• Gigabit Strategy 2030
• National Strategy for AI
• German IT Security Act 2.0

Germany Enterprise ICT Revenue Opportunity – Segment Analysis

GlobalData’s survey findings suggest that the enterprise ICT budget allocations across all ‘services’ categories in Germany have increased in 2023 compared to 2022. More than 45% of respondents confirmed an increase in their enterprise ICT budget for overall ‘services’ in 2023 compared to 2022.

Annual Change in Distribution of Enterprise ICT Spending, By ICT Products/Services in 2023

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According to GlobalData, Germany’s ICT market would see the majority share of its revenue come from the IT services segment over the forecast period. The report also discusses the enterprise ICT revenue opportunity across IT software and IT hardware segments over the forecast period.

• IT Services
• IT Software
• IT Hardware

Germany Total ICT Revenue Opportunity, by segment 2022 (%)

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Germany Enterprise ICT Market Dynamics – Drivers, Trends and Challenges

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Germany Enterprise ICT Market by Infrastructure Segments – Services, Software, and Hardware

IT Services – Segment Outlook

GlobalData’s survey findings suggests that the enterprise ICT budget allocations across all ‘services’ categories in Germany have increased in 2023 compared to 2022. More than 49% respondents confirmed an increase in their enterprise ICT budget for overall ‘services’ in 2023 compared to 2022.

Annual Change in Germany Enterprise ICT Services Budget Allocations

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The ICT services market in Germany was pegged at over $101 billion in 2022 and is predicted to grow at a CAGR of more than 12% over 2022-2027 to reach over $185 billion in 2027. As businesses in Germany rely more on technology, there is a growing need for IT services particularly in cloud computing, cybersecurity, and data analytics. Further, stringent data protection regulations, cloud adoption, and increasing concerns about cybersecurity bolster the demand for ICT services.

Germany Total ICT Revenue Opportunity, by ICT services 2022-2027 ($Billion)

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The Germany enterprise ICT country intelligence report offers ICT revenue market indicators across the following IT services solution areas:

• Cloud computing services
• Consulting & integration services
• Business process outsourcing services
• Application development and management services
• Networking services
• Communications and collaboration services
• Internet of things (IoT) services
• Client computing services
• Data center and hosting services
• Security services
• Artificial intelligence (AI) services
• Storage services
• Servers services
• Mobility services
• Edge computing services

Germany Enterprise ICT Technology Revenue Opportunity and Spending Priorities – Key Solution Areas

Cloud computing is the most attractive market in Germany, driven by the government’s ongoing commitment for large scale cloud adoption. The revenue opportunity for cloud computing in Germany was pegged at over $27 billion in 2022 and is estimated to grow at a CAGR of more than 17.5%. The government has been actively promoting cloud adoption as a part of its nationwide digital initiative and encouraging agencies to leverage cloud services to enhance their capabilities and provide accessible services to citizens.

Germany Total ICT Revenue Opportunity, by Solution Areas 2022 (%)

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Germany Enterprise Cloud Computing Investment Priority – Now vs Next Two Years

Enterprises are increasingly utilizing cloud to transform their business operations and processes making them more efficient. This was validated by GlobalData’s survey, where over 56% confirmed that their budget allocation in cloud services increased in 2023 vs. 2022. More than 63% claimed that their enterprises have already invested in cloud, while a higher percentage around 61% indicated their enterprises would invest in cloud in the next two years.

Cloud Computing Technology Investment Priority – Current vs Next Two Years

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Germany Enterprise ICT Technology Revenue Opportunity – Key Verticals

The Manufacturing sector is the largest independent end-use vertical segment for the ICT market in Germany in terms of revenue contribution, through 2022 to 2027. ICT revenue from the Manufacturing sector reached over $27 billion in 2022 and is set to grow at a CAGR of over 7% between 2022-2027. The segment is set to account for a 14.4% share of the total cumulative revenue forecasted for the overall ICT market in Germany for 2022-2027.

Germany Total ICT Revenue Opportunity, by Verticals 2022 (%)

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Germany Enterprise ICT Revenue Opportunity by Enterprise Size Band

Large enterprises, comprising both large and very large companies, together accounted for over $108 billion in 2022 and is estimated to reach more than $190 billion by 2027. Due to their sound financial standing, large organizations are placing more emphasis on R&D efforts across a variety of ICT solution areas such as quantum technology, AI, 5G, cybersecurity, and cloud.

Germany Total ICT Revenue Opportunity ($billions) by Enterprise Size Band

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Scope

The country intelligence report provides an in-depth analysis of the following –

• The macroeconomic and regulatory context and government initiatives in Germany.
• Enterprise ICT market outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT segments, ICT solution areas, end-use verticals, and enterprise size bands.
• Enterprise ICT Budget Allocations – 2022 vs 2023: Overview of survey findings regarding changes in the overall enterprise ICT budget allocations in 2023 compared to the previous year and across ICT segments, ICT solution areas, and existing vs new IT projects.
• Enterprise ICT growth drivers, market trends and challenges
• IT hardware segment revenue and budget allocations outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT hardware solution areas and budget allocations by ICT hardware categories.
• IT software segment revenue and budget allocations outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT software solution areas and budget allocations by ICT software categories.
• IT services segment revenue and budget allocations outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT services solution areas and budget allocations by ICT services categories.
• Enterprise Technology Priorities: Overview of survey findings on enterprise investment priority for key solution areas in current vs next two years.
• Company landscape: analysis of the market position of leading ICT providers in the German market.
• Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
• The survey was conducted in H1 2023 via an online methodology, with respondents all having ICT decision-maker responsibility (typically CIOs and IT Managers). GlobalData plans to repeat the survey in H1 2024, to monitor ICT budget changes on an ongoing basis.

Reasons to Buy

• This Country Intelligence Report is based on GlobalData’s IT Customer Insight Survey carried out annually covering key ICT decision makers from enterprises across various industry verticals in Germany and GlobalData’s Market Opportunity Forecasts to 2027, to offer a thorough, forward-looking analysis of Germany’s enterprise ICT investment priorities and ICT revenue opportunity market.
• Accompanying GlobalData’s IT Customer Insight Survey and Market Opportunity Forecasts to 2027, the report examines the assumptions and drivers behind ongoing and upcoming trends in Germany’s enterprise ICT market.
• The report offers a thorough analysis of enterprise ICT investment trends and how it has changed this year compared to the previous year.
• The report also presents an analysis of enterprise ICT budget allocations by various spending areas, business functions, and product/service categories and how they have changed this year compared to previous years.
• The report also presents an analysis of enterprise ICT revenue opportunities by various solution areas, enterprise size bands, end-use verticals, and segments over the forecast period 2022-2027.
• With more than 50 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
• The report provides insights in a concise format to help executives build proactive and profitable growth strategies.
• The report provides an easily digestible market assessment for decision-makers built around research gathered from the local IT decision-makers, which enables executives to quickly get up to speed with the current and emerging trends in enterprise ICT investment priorities.