consumption
German digital industry grows despite slump in television sales
LEDs light up a server cabinet in a data center. According to a forecast by the Digital Association, the digital economy in Germany will grow by 4.3 percent this year (symbolic image). Photo
© Sebastian Gollnow/dpa
In the past, major sporting events have generally boosted sales of television sets. This year, the European Football Championship and the Olympic Games are hardly providing any impetus.
The digital economy in Germany will grow this year despite a Despite the slump in consumer electronics, the market for information technology (IT), telecommunications and consumer electronics will grow significantly again. According to an economic forecast by the digital association Bitkom for 2024, the market for information technology (IT), telecommunications and consumer electronics will grow by 4.3 percent to almost 225 billion euros. For 2025, the association expects growth at a similar level of 4.7 percent to 235.4 billion euros.
The figures in the consumer electronics segment are disappointing: As in the previous year, sales are falling here. Bitkom expects a decline of 7.5 percent to 7.6 billion euros. “Despite the European Championship and Olympic year, there is no profound recovery in classic consumer electronics,” said Bitkom President Ralf Wintergerst. However, many households are still supplied with current TV sets or speakers that were newly purchased during the Corona pandemic. In addition, the durability of the hardware has improved.
Biggest growth in information technology
Other segments of the Bitkom industry are doing much better than consumer electronics. As in previous years, information technology is recording the greatest growth. According to current forecasts, the IT sector will achieve sales of 151.2 billion euros in 2024, which corresponds to an increase of 5.4 percent.
Sales of software are growing particularly strongly, increasing by 9.8 percent to 46.6 billion euros. Platforms for the development, testing and provision of software are growing by 12.8 percent to 12.6 billion euros. Within this segment, the area of artificial intelligence is growing by 39.2 percent to 1.5 billion euros.
Wintergerst said that the digital industry will develop stably overall in 2024 in a difficult environment. However, he expressed concerns about strong political interventions in the market, crises and unresolved issues in the traffic light coalition, which are causing uncertainty. The Bitkom president called on the federal government to avoid additional uncertainty through market interventions and disproportionate regulation.
29,000 new jobs expected
Despite difficult conditions, according to Bitkom calculations, new jobs are continuing to be created in the industry. 29,000 new jobs are expected to be created this year, and almost 47,000 are expected to be added next year. By the end of 2025, 1.41 million people will be employed in the Bitkom industry, compared to 810,000 in 2005.
Wintergerst pointed out that the digital sector is Germany’s strongest job engine, even if individual companies have recently had to cut jobs. Employment could be even higher if there were enough skilled workers, as many companies are unable to fill vacancies.