Digitization in Germany sets all the signs for growth

February, 1st, 2019, Author / Editor: Evernine/ Lenz Nölkel

According to the Bitkom forecast, revenues will increase this year by 2.5 percent to 92.2 billion euros. IT is the growth driver, while consumer electronics is again shrinking significantly. The strongest growth is in the software segment, which recorded an increase of 6.3 percent to 26.0 billion euros. Find out more!

In Germany, digitization is setting all the signs for growth. The Bitkom industry creates 40,000 additional jobs. More digital education is the key to digital success. The market for IT, telecommunications and consumer electronics is expected to grow this year by 1.5 percent to 168.5 billion euros.


“Digitalisation is driving the market and guaranteeing more jobs. The businesses of software houses and IT service providers are doing particularly well. By far the most jobs s are created in these areas,” says Bitkom President Achim Berg.


 

Bitkom industry creates 40,000 new jobs

Source: Bitkom.

 

Information technology is the most important growth driver

According to the Bitkom forecast, revenues will increase this year by 2.5 percent to 92.2 billion euros. The strongest growth was recorded in the software segment, which grew to 26.0 billion euros. The market for IT services, especially in terms of project business and IT consulting, is also growing at an above-average rate to 40.8 billion euros.

 

“Digitalization is not a nice-to-have in all industries, but an absolute must-do. The demand for IT consultants and software applications is correspondingly high in order to further develop products, value-added networks and corporate culture and align them to the digital age”, says Bitkom President Achim Berg. 

Telecommunications on an upward trend again

In 2019, the telecommunications market is expected to grow by 1.1 percent to 67.3 billion euros. Increasing revenues are expected both for services and for terminal equipment and infrastructure. “2019 The frequencies for the new 5G generation of mobile phones will be auctioned off. This is likely to deprive the market of billions that are lacking for investment in networks and even more dynamic growth,” said Berg.

 

German ICT market remains on growth course in 2019

Source: Bitkom.

 

Outlook for the year

Consumer electronics are coming under great price pressure. The figures are falling back this year. It is in the red for the second year in a row. “The market for consumer electronics is shrinking because sales figures are declining. Although average prices per set are rising in many categories, for example for televisions, this cannot compensate for the drop in sales.”, says Berg.

 

“We need an offensive for more digital literacy. To meet the digital challenge, we need many more digital experts. We must finally lead our schools into the digital age, inspire young people for the professions of the future, create incentives for digital further education and facilitate the immigration of foreign IT specialists”, Berg concluded.

More about MBF

MyBusinessFuture Editors
View Profile

Source Image: iStock/ retrorocket

CURRENT STORIES OF CORPORATE & FINANCE



    X