The German ICT Industry: Data, Companies and Predictions

by Dan Irascu

The German ICT Industry: Data, Companies and Predictions

Germany is home to the single largest IT market in Europe - accounting for around a quarter of the European market by value. Innovation comes as standard in an industry-best characterized by a thriving of small and medium-sized enterprises. Increased business demand for smart data products and services in the cloud are driving domestic IT market growth, as Germany embarks on a far-reaching program of digitalization that promises to transform the economy.

According to Salary Explorer, the average salary of a web developer in Germany is estimated at around 3300 EUR/mo -  one of the highest in Europe, which defines the high demand on the market for digital services and products, but as well it reveals the high-quality services companies based in Germany provide. 

Why you should work with German IT companies? 

Needless to say that the presence of tech giants in Germany, and their continuous investment in the local IT environment is one of the basic indicators of a healthy IT industry. But, most importantly, the fundaments of the IT industry in Germany are small and medium businesses that face tough competition, which on its turn stimulates the growth and development of the entire IT ecosystem.  Based on a report from Statista, in 2017 the number of IT companies in Germany was above 90K, and Berlin only - the most developed digital hub was the house of 38K+ IT companies. According to the same report, it is expected that by 2025 the numbers will triple. 

However, the main reasons for working with German IT companies remain a good business culture, rich experience, and skilled professionals. 

What you should be aware of when working with a German IT company 

Despite the benefits of working with German companies, there are several factors that you should be aware of; First of all, the huge number of companies create difficulties when choosing only one. It is possible to experience psychological fatigue due to the wide variety of good offers you may receive from German, or, German-based agencies. 

Speaking of the differences between German or German-based IT companies, this is another challenge to make the difference in which type of company you contacted.  There is a performance difference between the two types of companies mentioned above, but not always in favor of the first one. 

Arre German Companies Reliable? 

German IT companies have probably the best reputation in Europe, especially due to the high number of projects they attract but also based on the country’s business reputation in general. Despite the fact that more foreign companies from countries with questionable reputation relocated or declare themselves as German, the overall rating didn’t go down, but on the contrary. This may be explained by the fact that foreign companies rather adapt to German rules, and improve their reputation as well. 

How the German IT industry relates to the neighboring countries

Having ¼ of European market value, the German IT industry is considered to be the most developed, with the UK and France on second and respectively third position far behind it. This is confirmed as well by official numbers that reveal that the Berlin IT industry worths 3 times more than Paris and 1,5 times more than the London IT industry.


Dan Irascu

Head of Marketing

Researching, analyzing, and writing insightful stuff is what I do for a long time now at Mobiteam. At TechBehemoths, I put all my experience and knowledge work for IT companies and businesses and help them reach each other.