The German IT market is projected to grow by $31.1 billion by 2028, with a 4.07% annual growth rate. Despite being a technical leader in Europe, a shortage of skilled IT professionals may hinder progress. Germany is shifting its focus to Industry 5.0, emphasizing AI and worker wellbeing, backed by significant investments in technology and data analytics.
A report estimates that the IT market in Germany will expand by $31.1 billion USD, achieving an annual growth rate of around 4.07% by 2028, driven by greater IT solution utilization in SMEs and enterprises. However, businesses might struggle with hiring due to a scarcity of skilled IT professionals, despite Germany being the third most technically proficient country in Europe.
The authors of the report indicated that limitations in professional qualifications hinder the candidate pool for vacant roles. As a result, qualified professionals command high salaries, making it challenging for SMEs and public sectors to secure suitable applicants. Germany’s commitment to investing in AI may alleviate some of these shortages, as noted by Wiley, which reported that 57% of German researchers are integrating AI into their work, above the global average of 44%.
Several key elements are anticipated to drive growth in Germany’s IT sector. The Technavio research highlighted a move from Industry 4.0 to Industry 5.0, with Germany’s National AI Strategy actively promoting the AI market. Initiatives include creating national AI competence centers, boosting AI professorships, investing €5 billion, and aiming to enhance leadership in Industry 4.0.
Original Source: www.techrepublic.com
