The German IT market is expected to grow by $31.1 billion by 2028 at a 4.07% annual growth rate. Although growth is driven by IT adoption in SMEs and big data, recruitment challenges exist due to a shortage of skilled professionals. Germany’s focus on AI and a transition to Industry 5.0 highlight key strategies for overcoming these hurdles and enhancing productivity through technology.
The German IT market is projected to grow by $31.1 billion USD by 2028, reflecting an annual growth rate of approximately 4.07%. This expansion is primarily driven by increased adoption of IT solutions within small and medium enterprises (SMEs) as well as big data applications in larger organizations.
Despite this promising growth, recruitment and retention challenges persist due to a shortage of skilled IT professionals, as highlighted in a report by Technavio. Germany, while being the third most technically adept country in Europe, struggles to fill open IT positions due to insufficient qualifications among candidates.
The shortage is intensified by high salary demands for qualified professionals, making it difficult for SMEs and public sectors to attract suitable candidates. Nevertheless, Germany’s commitment to AI investment may help alleviate some of these workforce challenges. The integration of AI in research within Germany stands at 57%, surpassing the global average of 44%, positioning the country among the top 10 leaders in AI.
Key factors fueling growth in the IT market include a shift from Industry 4.0 to Industry 5.0, emphasizing worker wellbeing and sustainability. Germany’s National AI Strategy, established prior to ChatGPT in 2018, outlined initiatives to enhance AI research and investment, aiming to maintain its technological lead through digitization.
Further, leveraging big data and analytics is critical for enhancing production quality and operational efficiency. Data collected from various sources improves processes and customer support, while autonomous robots are being developed to increase productivity and reduce waste in manufacturing.
Additionally, substantial investments are being made in manufacturing execution systems, which manage real-time processes in manufacturing. These systems utilize advanced data collection strategies through sensors and actuators to enhance operational efficiency and address procedural challenges effectively.
Original Source: www.techrepublic.com
