Germany Information Technology Report Q1 2013
- ID: 2364071
- December 2012
- Region: Germany
- 63 pages
- Business Monitor International
BMI View: The German IT market is forecast to increase to US$63.7bn in 2013, up by around 4%, with positive growth despite the eurozone currency crisis. In H112, German businesses and consumers remained wary because of the risk of a new recession in the eurozone. The PC market reported modest single-digit growth in Q112, against a deteriorating economic backdrop. The market had contracted sharply in 2011 as a result of excess inventories and consumer and business caution, intensified by the eurozone currency crisis. Over the next five years, we forecast a more favourable outlook for the German IT market, with areas of opportunity including tablets and cloud computing.
Headline Expenditure Projections
Computer hardware sales: US$16.4bn in 2012 to US$16.7bn in 2013, +2% in US dollar terms. Forecast in US dollar terms unchanged but tablets will provide a growth area.
Software sales: US$19.7bn in 2012 to US$20.5bn in 2013, +4% in US dollar terms. Forecast in US dollar terms unchanged and political and economic uncertainty will weigh on investments.
IT services sales: US$25.2bn in 2012 to US$26.5bn in 2013, +5% in US dollar terms. Forecast in US dollar terms unchanged but growing demand for cloud computing services will provide a key opportunity.
Risk/Reward Rating: Germany's score was 80.0 out of 100.0. Germany ranked second in the Europe region in our latest business environment ratings table, behind only the UK, and ahead of France.
Key Trends & Developments
- The market's high level of exposure to the ongoing eurozone currency crisis suggests a challenging economic outlook for German IT spending. Businesses remain cautious, but BMI expects IT spending to outperform GDP growth, and, if business confidence improves, then there could be a boost from pent-up demand. Cloud computing, business intelligence, enterprise resource planning and customer relationship management systems are forecast to be among the main spending areas.
- Cloud services in Germany should receive a boost from a European Commission ruling in mid-
2012 that cloud services are compatible with the EU law on privacy. Concerns and legal ambiguities regarding the security of data stored in the cloud have been seen as factors contributing to the relatively slower uptake of public cloud services. However, German companies seem to be significantly more positive about private cloud offerings. According to BITKOM data, as many as 21% of German companies were reported to be planning to introduce a private cloud.
- Other key drivers of IT spending opportunity will include growing mobile and fixed broadband penetration, the proliferation of mobile devices such as smartphones, tablets and e-readers,
datacentre virtualisation, technology innovation such as GSP technology and services, and economic recovery. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Germany IT Sector SWOT 7
Germany Political SWOT 8
Germany Economic SWOT 8
Germany Business Environment SWOT 9
Europe Pacific IT Risk/Reward Ratings 10
Table: Europe Risk/Reward Ratings, Q113 12
Europe Pacific IT Markets Overview 13
IT Penetration 13
Market Growth And Drivers 15
Sectors And Verticals 17
Market Overview 21
Government Authority 21
Industry Developments 32
Industry Forecast 34
Table: Germany IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2010-2017 37
Industry Forecast Internet 38
Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2010-2017 38
Competitive Landscape 40
IT Services 45
Macroeconomic Forecast 48
Table: Germany - GDP By Expenditure, Real Growth %, 2009-2016 50
Company Profiles 51
Country Snapshot 55
Table: Germany's Population By Age Group, 1990-2020 ('000) 56
Table: Germany's Population By Age Group, 1990-2020 (% of total) 57
Table: Germany's Key Population Ratios, 1990-2020 58
Table: Germany's Rural And Urban Population, 1990-2020 58
BMI Methodology 59
How We Generate Our Industry Forecasts 59
IT Industry 59
IT Ratings - Methodology 60
Table: IT Business Environment Indicators 61
Table: Weighting Of Components 62