Overview

Source of data: U.S. Department of Commerce, Bureau of Census (Defined as HS-2 Codes: 85, 95) 

Germany has one of the largest ICT markets in the world and remains the single largest software market in Europe with nearly 100,000 IT companies employing approximately 1.189 million people. In 2024, the German ICT market had a turnover of USD 240.9 billion (EUR 222.6 billion), and this figure is projected to reach USD 252 billion (EUR 232.8 billion) in 2025. There is significant, unquenched demand for U.S. products and services across all segments with major players such as Adobe, Apple, IBM, Microsoft, NVIDIA and Oracle enjoying a large market share.  

The United States is one of Germany’s leading non-European foreign direct investors (FDI), having invested USD 8.71 billion in the country’s IT sector in 2022. Recent substantial U.S. investments included a USD 3.4 billion Microsoft investment in AI infrastructure and a USD 1.1 billion investment by Apple in a chip design center. Despite these developments, total American investment in Germany has decreased by 27% in 2024, likely due to steep taxes, labyrinthine bureaucracy, a stagnating economy, and high electricity costs.

In 2024, the German ICT sector generated USD 253.2 billion (EUR 224.8 billion) in revenue. Of this, the IT segment accounted for USD 168.6 billion (EUR 149.7 billion), while telecommunications contributed USD 82.2 billion (EUR 73 billion). The German ICT industry grew by 3.3 percent, an increase of USD 10.2 billion (EUR 9.2 billion) in revenue. Looking ahead, the sector is expected to continue its upward trajectory, with total revenues projected to reach USD 265.1 billion (EUR 235.4 billion) in 2025.

Germany hosts several key ICT trade shows, making it a premier marketplace for U.S. companies to reach global partners and buyers. U.S. exhibitors have frequently found buyers from Europe, Middle East, Africa, Asia and Latin America at the Hannover Messe, IFA Berlin, Tech Show Frankfurt, Gamescom, it-sa, GITEX EUROPE or even at newer AI conferences and digital summits.  

Policy Objectives and Challenges

ICT is a priority sector for the German government. Germany’s policies, including economic and innovation strategies, have been outlined in the coalition agreement in early 2025. The second chapter “Effective relief, stable finances, efficient state” dedicates an entire section to addressing digitalization. Core focuses are emerging, particularly in digital infrastructure, the digital economy, digital workplaces, innovative governance, and digital environments within society, education, research, science, media, and security.

Following the establishment of a new Federal Ministry for Digital and State Modernization, the German government has reiterated its proactive approach to generating technological innovation and ensuring digital literacy. The Ministry aims to publish important digital resources, delegate clear responsibilities within government and oversee the federal government’s IT and has already distinguished itself as a reliable industry partner. Nonetheless, some companies have voiced frustration about the timelines and aggressive renewable requirements imposed by the German Energy Efficiency Act.  

Over the past few years, Artificial Intelligence (AI) has established and continually reaffirmed its importance in virtually all domains. Such groundbreaking innovation and convenience come at a cost, though. In Germany, two theories compete in explaining the country’s stance: on the one hand, Germany has a rich history of championing technological progress, on the other hand, strict regulations and consumer wariness mean the country only lethargically adapts to change. For example, Germany ranks 9th worldwide for most newly funded AI startups from 2013 to 2023 and 66% of Germans claim they consult AI for work, school and leisure matters. However, 39% of Germans maintain associated drawbacks outweigh the benefits of AI and only 45% feel able to evaluate AI applications appropriately or use them correctly. In an attempt to close the AI regulatory gap, the European Commission proposed the EU AI Act in April 2021, the first portion of which went into effect on August 1, 2024. Although the AI Act will be implemented gradually through August 2026, early challenges have already emerged following the initial rollout. Concerns about inconsistent requirements and a lack of uniformity are reportedly disadvantaging certain industries (Bertelsmann Stiftung). Nonetheless, the European Commission maintains that the AI Act “aims to foster responsible artificial intelligence development and deployment in the EU.” As the first comprehensive legislation of its kind, the Act is a revolutionary step in terms of global AI governance.

The U.S. Commercial Service continues to monitor policy developments and works with associations and multipliers such as the Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK), Bitkom (Association for Information Technology), BDI (Federation of German Industries), GTAI (Germany Trade and Investment) and AmCham (American Chamber of Commerce) to unearth opportunities and flag policy concerns. 

Leading Sub-Sectors

Key segments and topics of interest include cybersecurity, quantum computing, internet of things (IoT), big data, health IT, cloud computing, business IT: ERP, data centers, smart social business platforms, integrated systems, virtual & augmented reality, and digital factory. Specific national focus has been given to AI research and adoption, guided by Germany’s National AI Strategy (updated 2022).  

Opportunities

• The cybersecurity market is the 2nd largest in Europe and has had strong market growth.  
• 89% of Germans support healthcare digitization. Developments include e-prescriptions, video consultations, and electronic patient records (ePA) from January 2025.
• 46% of German companies are currently using cloud computing technology for their business processes, while an additional 11% are planning to.
• Germany’s cybersecurity spending reached more than USD 10 billion in 2024 for the first time. The cybersecurity market in Germany is growing faster than in the rest of Europe and the rest of the world.
• 53% of German companies want to increase investments in AI in 2025, 55% of them by 40% or more
• Big Data, such as hardware, infrastructure, services, database and analytics technologies, are all key drivers for a fast digitalization of the German economy.
• Enterprise Resource Planning (industry-specific ERP solutions)  
• Smart Social Business Platforms                   

Resources

Trade events 

• it-sa – Europe’s biggest IT security exhibition, Nuremberg, October 7-9, 2025
• Hannover Messe – Industrial: “Largest industrial trade show in the world. Of interest for U.S. producers of industrial IT solutions”, Hannover, April 20-24, 2026
• Rise of AI Conference – Artificial Intelligence, Berlin and Virtual, May 5-6, 2026
• European AI and Cloud Summit – Artificial Intelligence, OpenAI, Microsoft Azure and Cloud Computing, Düsseldorf, May 5-7, 2026
• Tech Show Frankfurt – Cloud Expo Europe, Cloud & Cyber Security Expo, Big Data & AI World and Data Center World, Frankfurt, May 6-7, 2026
• GITEX EUROPE – Europe’s #1 tech and startup event, Berlin June 24-25, 2026  
• Gamescom – Interactive games and entertainment, Cologne, August TBD, 2026
• IFA Berlin – Consumer electronics and home appliances, Berlin, September TBD, 2026 

Trade Associations

Bitkom, Federal Association for Information Technology, Telecommunication and New Media 

Bitmi, Federal Association for Medium-Sized IT Businesses

Teletrust, IT Security Association Germany

ECO, Association of the Internet Industry

NIFIS, National Initiative for Information- and Internet-Security

German Games Industry Association, Organization that represents the German computer and video games industry

VATM, Association of Telecommunication and Value-Added Service Providers

Government Entities

Federal Office for Information Security, National cyber security authority in Germany

Federal Network Agency, Ensures compliance with the Telecommunications Act (TKG), Postal Act (PostG) and Energy Act (EnWG) and their respective ordinances.