€92.0bn
€X.Xbn
523k
48,772
€XX.Xbn
The programming activities sector has been on a growth trajectory for five years. Industry turnover increased by an average of 2.9% per year between 2019 and 2024. This is primarily due to the ongoing digitalisation of the economy, with companies increasingly making use of both standard software and customised software solutions. Due to the coronavirus pandemic, demand for the various products and services offered by industry players has varied in recent years. In view of the uncertain economic situation, companies have focused primarily on implementing software solutions that enable their employees to work from home, while in-house projects that would have had little impact on operations in the short term have been postponed.In 2024, sales are expected to increase by 0.3% year-on-year to €92 billion. This is likely to be primarily due to the rising demand for cloud solutions, apps and solutions in the field of artificial intelligence. The major players in the industry are changing their sales model and are increasingly focussing on cloud solutions where the respective software can be used on demand instead of licensed software that has to be paid for annually or once. Cloud solutions also save on the investment and maintenance costs of an in-house IT infrastructure, allowing companies to focus more on their core business. While major industry players are currently focussing on cloud and system solutions, start-ups are focusing on niche products such as the development of apps and games.The sector's turnover is expected to grow between 2024 and 2029. Turnover is expected to increase by an average of 2.1% per year to 101.9 billion euros by 2029. Demand for products and services in the area of cloud and security solutions is likely to remain high in the coming years. The industry has been suffering from a chronic shortage of skilled labour for years, which means that companies are unable to fill their vacancies. In view of the digitalisation needs of many companies and public institutions and the growing number of market participants, the shortage of skilled workers is likely to worsen accordingly.
Industry revenue has grown at a CAGR of 2.9 % over the past five years, to reach an estimated €92.0bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue (€m)
2024 |
---|---|---|
SAP SE | 4,044.0 | |
Microsoft Deutschland GmbH | 1,318.0 | |
Datev eG | 1,102.4 |
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Industry revenue is measured across several distinct product and services lines, including Business management software, Entertainment, multimedia and Internet software and Software components. Business management software is the largest segment of the Software Development in Germany.
The demand for business management software is increasing
The programming sector deals with the development and customisation of software for Internet presences. The writing of software documentation also falls within its field of activity. This does not include consultancy services in the field of information technology or the operation of data processing facilities for third parties.
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WZ 62.01 - Software Development in Germany
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The industry is suffering from a chronic shortage of skilled labour, which means that companies are unable to fill their vacancies. In view of the increasing level of digital...
Learn about an industry's products and services, markets and trends in international trade.
The share of sales generated with technical software is growing steadily due to the increasing need for digitalisation among companies and public institutions.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
The two southern German states of Bavaria and Baden-Württemberg are home to most of the companies in the industry. The programming service providers in the Süd region benefit...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Programmers are facing strong competition from companies abroad. Many international corporations are withdrawing development offices from countries with higher labour costs a...
Learn about the performance of the top companies in the industry.
SAP is actively working on expanding its training programmes and developing low-code and no-code platforms. This is intended to support companies in the training of IT specia...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The turnover of software publishers is falling due to competition from cloud solutions, which are increasingly replacing the traditional licence model of software publishers. ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Wages in the industry are expected to rise in the coming years due to increasing competition for skilled labour. This is likely to lead to an increase in personnel costs for ...
Including values and annual change:
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Key data sources in Germany include:
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The market size of the Software Development industry in Germany is €92.0bn in 2024.
There are 48,772 businesses in the Software Development industry in Germany, which has grown at a CAGR of 2.9 % between 2019 and 2024.
The market size of the Software Development industry in Germany has been growing at a CAGR of 2.9 % between 2019 and 2024.
Over the next five years, the Software Development industry in Germany is expected to grow.
The biggest companies operating in the Software Development market in Germany are SAP SE, Microsoft Deutschland GmbH and Datev eG
Business management software and Entertainment, multimedia and Internet software are part of the Software Development industry.
The company holding the most market share in Germany is SAP SE.
The level of competition is high and increasing in the Software Development industry in Germany.