Germany’s IT market is projected to grow by $31.1 billion by 2028, with a growth rate of 4.07%. This growth is supported by increased IT solutions adoption in SMEs and big data in enterprises. However, a shortage of skilled IT professionals poses a challenge to recruitment. Germany’s focus on AI and the transition to Industry 5.0 also play critical roles in this transformation.
A recent report indicates the German IT market is projected to grow by $31.1 billion by 2028, translating to an annual growth rate of approximately 4.07%. This growth is fueled by the increasing adoption of IT solutions among small and medium enterprises (SMEs) and big data solutions among larger enterprises. However, challenges in recruitment and retention due to a shortage of qualified IT professionals persist, despite Germany’s ranking as the third most technically proficient nation in Europe.
The report highlights that inadequate professional qualifications hinder the candidate pool for IT positions. Consequently, skilled professionals command high salaries, complicating recruitment efforts for SMEs and the public sector. To mitigate these shortages, Germany’s emphasis on AI investment is crucial, with 57% of researchers incorporating AI into their work, surpassing the global average of 44%. This positions Germany among the top 10 global leaders in AI development.
The report identifies key factors driving growth in Germany’s IT market. Notably, the transition from Industry 4.0 to Industry 5.0 is expected to enhance the market. Germany’s National AI Strategy, established in 2018, has been pivotal in fostering the AI market, with major initiatives including the establishment of AI competence centers and an investment goal of €5 billion.
Moving forward, Germany aims to pivot towards Industry 5.0, which prioritizes worker well-being and sustainability in digitized manufacturing. With a long-standing presence in engineering and robotics, Germany seeks to leverage machine learning technology to improve productivity and environmental outcomes. Currently, Germany is fourth globally in industrial robotics adoption, averaging 429 robots for every 10,000 employees.
The report emphasizes the significance of big data and analytics in this transformation, as data collected from various sources optimizes production quality, minimizes costs, and enhances customer support. Additionally, autonomous robots that can perform multiple tasks contribute to Increased productivity and waste reduction efforts.
Moreover, German enterprises are investing in manufacturing execution systems, which provide real-time management of manufacturing processes. By employing manufacturing intelligence, industries can better anticipate and resolve mechanical challenges while advancing their data collection methods using various technologies like sensors and actuators.
The German IT market is on track for significant growth, driven by AI adoption and a shift towards Industry 5.0. Despite challenges related to workforce shortages, investment in new technologies such as big data analytics and automated systems positions Germany as a leader in the evolving digital landscape. Continued emphasis on worker well-being and sustainability will be integral to this transformation.
Original Source: www.techrepublic.com
