The digital economy in Germany has recovered from the negative consequences of the corona pandemic faster than the German economy as a whole. Sales of products and services from ICT companies 2020 only fell by 0.6 percent to just under 170 billion euros, while other industries sometimes suffered double-digit losses. For the current year, the industry association Bitkom is expecting “robust growth” of 3.7 percent. The number of jobs in this segment will be 2021 by 20. and thus exceed the threshold of 1.2 million for the first time , it said on Wednesday in a message from Bitkom.

“The corona crisis has affected digitization in in many areas. Business, government and consumers are investing in digital technologies, and investments that have been postponed in the meantime are now being made up for, “said Bitkom President Achim Berg. “The Bitkom industry has come through the crisis well so far. For 2020 the signs point to growth again.”

Sales driver The biggest sales driver in information technology is IT hardware, also because many companies have to upgrade their technical infrastructure for their employees’ home office. Sales with computers, servers and peripheral devices are expected to rise strongly by 8.6 percent to 31, 6 billion euros. Bitkom also expects growth in the software market, which is expected to increase by 4.1 percent to 27, 0 billion euros . IT consultants are also doing well: Sales of IT services are expected to 2021 by 1.1 percent to 40, growing 0 billion euros.

Bitkom forecasts the digital economy for 2021 a growth.

(Image: Bitkom)

When it comes to telecommunications, it is mainly the expansion of fiber optics and the introduction of the fifth generation of mobile communications (5G) business. However, tough competition in this area prevents huge leaps in sales. After two years of consolidation, the segment 2021 should increase by 1.0 percent to 67, add 4 billion euros. “Network operators are investing massively in the future of fixed-line and mobile communications,” said Berg. This is an important contribution to meeting the continuously increasing demands on the speed and availability of the networks. Refinancing remains a major challenge for companies in view of the low sales growth due to the high competitive pressure.

Consumer electronics continues to decline The only segment that 2021 is expected to shrink is consumer electronics. Here sales will probably fall for the fourth year in a row, albeit less strongly than last. This smallest ICT sub-market is expected to shrink by 2.0 percent to 8.3 billion euros. Berg: “Despite the corona-related boom in individual areas, consumer electronics are still under great pressure. The special Corona boom for game consoles, wearables and headsets cannot stop the downward trend. The good news is: the declines are slowing down.”

(olb)