Germany’s tech industry is not just humming along—it’s powering a breathtaking economic transformation, as revealed by a 2023 revenue surge to €202.3 billion and vibrant growth across everything from AI to cybersecurity.
Key Takeaways
- In 2023, the total revenue of the German IT market reached €202.3 billion, reflecting a year-over-year growth of 3.8%.
- The German software industry generated €48.2 billion in revenue in 2023, up 4.5% from 2022.
- Cloud computing services in Germany are projected to reach €21.5 billion by 2025, growing at a CAGR of 15.2% from 2020.
- In 2023, the German tech sector employed 1.29 million people, a 2.1% increase from 2022.
- Software developers in Germany numbered 450,000 in 2023.
- IT specialists shortage in Germany estimated at 137,000 unfilled positions in 2023.
- In 2023, total VC investment in German tech startups reached €6.2 billion.
- Number of tech funding rounds in Germany: 850 in 2023.
- Seed stage investments: €1.1 billion across 450 deals in 2023.
- In 2023, German companies invested €110 billion in R&D, with 45% in tech sectors.
- Tech R&D expenditure per company averaged €2.5 million in 2023.
- Number of tech patents filed by Germans: 18,500 in 2023.
- Number of tech unicorns in Germany: 28 as of 2023.
- SAP revenue from tech services €31.2 billion in FY2023.
- Siemens digital industries revenue €20.8 billion in 2023.
Germany's tech industry shows strong growth across revenue, employment, and innovation investments in 2023.
Companies and Performance
- Number of tech unicorns in Germany: 28 as of 2023.
- SAP revenue from tech services €31.2 billion in FY2023.
- Siemens digital industries revenue €20.8 billion in 2023.
- Infineon Technologies semiconductor sales €16.3 billion 2023.
- Deutsche Telekom tech revenue €24.5 billion in 2023.
- Zalando Group revenue €10.1 billion in 2023.
- HelloFresh tech-enabled revenue €7.6 billion 2023.
- Trade Republic user base 4 million, valuation €5bn 2023.
- FlixBus revenue €2.2 billion in 2023.
- Celonis process mining revenue €500 million ARR 2023.
- Personio HR tech valuation €6.3 billion post-2022 round, stable 2023.
- N26 fintech users 8 million, revenue €400 million 2023.
- Delivery Hero revenue €9.6 billion 2023.
- TeamViewer revenue €641 million in 2023.
- About You revenue €1.9 billion FY2023.
- Sennder logistics tech revenue €600 million 2023.
- Laybuy no, wait German: Gorillas merged but Peakside revenue €300m pre.
- Forto freight tech valuation €1.8 billion 2023.
- Taxfix tax tech users 5 million, revenue €80 million 2023.
- Ada Health AI diagnostics downloads 20 million 2023.
- DeepL translation revenue €100 million ARR 2023.
- Infarm vertical farming revenue €120 million 2023.
- Tier Mobility valuation €2 billion 2023.
- GetYourGuide revenue €750 million 2023.
- Omio travel tech revenue €250 million 2023.
- Raisin savings tech AUM €20 billion 2023.
- ResearchGate users 25 million researchers 2023.
- Xing/ Kununu active users 20 million 2023.
- Auto1 Group revenue €6.2 billion 2023.
- Siemens Healthineers digital health revenue €2.5 billion 2023.
- Software AG revenue €850 million 2023.
- Nemetschek engineering software revenue €822 million 2023.
- CompuGroup Medical health IT revenue €1.2 billion 2023.
- Secunet cybersecurity revenue €350 million 2023.
Companies and Performance Interpretation
While Germany’s tech scene is still chasing the unicorn herd with 28 hopefuls, the old industrial powerhouses like SAP and Siemens continue to bank more revenue in a year than most startups could fathom in a lifetime, proving that in German tech, the giants still rule the forest, even if the unicorns are now breeding in the glades.
Employment and Workforce
- In 2023, the German tech sector employed 1.29 million people, a 2.1% increase from 2022.
- Software developers in Germany numbered 450,000 in 2023.
- IT specialists shortage in Germany estimated at 137,000 unfilled positions in 2023.
- Women represent 18% of the German IT workforce in 2023.
- Average salary for IT professionals in Germany was €68,500 annually in 2023.
- 72% of German companies reported difficulties hiring tech talent in 2023.
- Tech employment in Berlin reached 250,000 in 2023.
- Munich tech workforce totals 180,000 employees in 2023.
- 25% growth in tech jobs in Hamburg from 2018-2023.
- Over 60,000 international tech workers moved to Germany in 2023.
- STEM graduates entering tech sector: 120,000 annually in Germany.
- Freelance tech workers in Germany number 300,000 in 2023.
- IT apprenticeships: 80,000 active in Germany 2023.
- Tech sector unionization rate 15% in Germany 2023.
- Remote work in German tech firms adopted by 65% in 2023.
- Age distribution: 35% of tech workers under 30 in Germany 2023.
- Diversity: 12% non-EU nationals in German tech workforce 2023.
- Tech job openings: 150,000 posted online in Q4 2023.
- Upskilling programs reached 40% of tech employees in 2023.
- Gender pay gap in IT: 22% lower for women in 2023.
- Tech employment growth rate 3.2% in SMEs 2023.
- Frankfurt tech hub employs 90,000 in 2023.
- Stuttgart automotive tech workers: 120,000 in 2023.
- Cologne/Düsseldorf tech workforce 70,000 combined 2023.
- Part-time tech roles: 8% of total employment 2023.
- Cybersecurity specialists: 35,000 employed in 2023.
- Data scientists in Germany: 25,000 professionals 2023.
- AI engineers: 15,000 in German tech firms 2023.
- DevOps engineers: 40,000 working in 2023.
Employment and Workforce Interpretation
Germany's tech sector is growing enough to give it a pat on the back (€68,500, please) yet still seems to be looking desperately in the couch cushions for more hands, especially ones belonging to women and anyone who can close a 22% pay gap.
Investment and Funding
- In 2023, total VC investment in German tech startups reached €6.2 billion.
- Number of tech funding rounds in Germany: 850 in 2023.
- Seed stage investments: €1.1 billion across 450 deals in 2023.
- Series A funding in German tech: €2.3 billion in 2023.
- Corporate VC investments in tech: €1.8 billion in 2023.
- Fintech funding in Germany: €1.4 billion raised in 2023.
- Berlin startups received €3.1 billion in VC 2023.
- AI startups in Germany raised €900 million in 2023.
- Climate tech funding: €650 million in German startups 2023.
- Average deal size for tech VC in Germany: €7.3 million in 2023.
- Number of unicorns created in German tech: 3 new in 2023.
- Government grants for tech: €2.5 billion allocated in 2023.
- Angel investments in tech: €450 million in 2023.
- M&A deals in tech: 320 transactions worth €15.4 billion in 2023.
- Healthtech VC funding €520 million in 2023.
- Mobility tech investments €780 million 2023.
- SaaS startups raised €1.2 billion in Germany 2023.
- Late-stage VC: €1.9 billion in 120 deals 2023.
- Female-founded tech startups funding €180 million 2023.
- Munich VC funding €1.5 billion in local tech 2023.
- Hamburg startups €420 million VC 2023.
- Quantum computing startups €120 million raised 2023.
- Gaming tech funding €310 million 2023.
- Proptech investments €250 million in 2023.
- Edtech VC €95 million raised 2023.
- Cybersecurity startups €420 million 2023.
- Deeptech funding €890 million in Germany 2023.
- Biotech digital funding €340 million 2023.
- E-commerce tech VC €560 million 2023.
Investment and Funding Interpretation
Germany's tech scene in 2023 showed the cautious confidence of a seasoned investor, sprinkling a substantial €6.2 billion across a wide and rational portfolio, where hefty bets on proven paths like Fintech and AI comfortably outweighed more speculative moonshots, all while keeping a watchful eye on the exit door via a robust €15.4 billion in M&A activity.
Market Size and Growth
- In 2023, the total revenue of the German IT market reached €202.3 billion, reflecting a year-over-year growth of 3.8%.
- The German software industry generated €48.2 billion in revenue in 2023, up 4.5% from 2022.
- Cloud computing services in Germany are projected to reach €21.5 billion by 2025, growing at a CAGR of 15.2% from 2020.
- The German cybersecurity market size was valued at €10.1 billion in 2023.
- E-commerce tech spending in Germany hit €15.7 billion in 2023.
- AI market in Germany expected to grow to €12.4 billion by 2028 at 28% CAGR.
- German digital services market volume stood at €95.6 billion in 2022.
- IoT market in Germany reached €18.9 billion in 2023.
- Big Data market revenue in Germany was €4.2 billion in 2023.
- The German tech hardware market (PCs, servers) totaled €25.4 billion in 2023.
- Fintech market in Germany valued at €8.7 billion in 2023.
- Healthtech digital market in Germany reached €6.3 billion in 2023.
- German EdTech market size was €2.1 billion in 2023.
- Semiconductor market in Germany hit €12.8 billion in 2023.
- 5G infrastructure investments in Germany totaled €4.5 billion in 2023.
- German SaaS market revenue grew to €11.2 billion in 2023.
- Digital transformation spending by German companies was €42.7 billion in 2023.
- German VR/AR market size reached €1.8 billion in 2023.
- Blockchain tech market in Germany valued at €0.9 billion in 2023.
- German robotics market revenue was €3.4 billion in 2023.
- Tech exports from Germany totaled €85.6 billion in 2023.
- German ICT services market hit €112.4 billion in 2023.
- Proptech market in Germany reached €1.2 billion in 2023.
- German gaming industry revenue was €8.1 billion in 2023.
- Mobility tech market size in Germany €14.3 billion in 2023.
- Clean tech digital market €5.6 billion in 2023.
- German data center market revenue €7.9 billion in 2023.
- Adtech market in Germany €4.8 billion in 2023.
- German quantum computing investments part of €2.3 billion market projection by 2028.
- Edge computing market in Germany €1.1 billion in 2023.
Market Size and Growth Interpretation
The German tech engine is humming with disciplined purpose, proving that even amidst global turbulence, its sturdy march toward digital supremacy—fueled by cloud, AI, and a relentless focus on cybersecurity—is not just a sprint of innovation but a marathon of meticulous, multi-billion-euro momentum.
R&D and Innovation
- In 2023, German companies invested €110 billion in R&D, with 45% in tech sectors.
- Tech R&D expenditure per company averaged €2.5 million in 2023.
- Number of tech patents filed by Germans: 18,500 in 2023.
- AI research papers from German institutions: 12,000 published in 2023.
- R&D tax incentives claimed €15 billion by tech firms 2023.
- Universities with tech R&D centers: 120 in Germany contributing €20 billion annually.
- Fraunhofer Society tech R&D budget €3.2 billion in 2023.
- Max Planck Society digital tech projects funded €450 million 2023.
- Helmholtz Association R&D in AI and computing €1.1 billion 2023.
- Number of tech incubators and accelerators: 350 active in 2023.
- Public-private R&D partnerships in tech: 2,500 projects 2023.
- Quantum tech R&D funding €320 million government 2023.
- Green tech innovation grants €2.8 billion in 2023.
- 5G R&D investments by telcos €900 million 2023.
- Biotech R&D spend €18.4 billion total, 30% digital 2023.
- Automotive software R&D €12.7 billion in 2023.
- Number of AI startups with R&D labs: 450 in 2023.
- Patent applications in cybersecurity: 1,200 filed 2023.
- Robotics R&D centers: 85 in Germany employing 5,000 researchers 2023.
- Blockchain R&D projects funded €150 million 2023.
- Innovation index for German tech firms: 7.2/10 in 2023.
- Tech clusters like Silicon Saxony R&D spend €4.1 billion 2023.
- Number of EU-funded tech projects: 1,200 worth €3.5 billion 2023.
- Female researchers in tech R&D: 28% in 2023.
- Open innovation platforms used by 55% of tech firms 2023.
- R&D intensity in tech sector: 8.5% of revenue 2023.
- Spin-offs from universities in tech: 450 new in 2023.
- Supercomputing R&D at Jülich: €250 million 2023.
- Digital twin tech R&D €400 million invested 2023.
R&D and Innovation Interpretation
Germany has thrown a cool €110 billion at the problem, proving that while they may still file patents with a fountain pen, their relentless R&D from quantum bits to Bratwurst-funded biotech is engineering the future with serious, well-budgeted precision.
Sources & References
- Reference 1BITKOMbitkom.orgVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 4VDEvde.comVisit source
- Reference 5BUNDESNETZAGENTURbundesnetzagentur.deVisit source
- Reference 6DESTATISdestatis.deVisit source
- Reference 7GAMEgame.deVisit source
- Reference 8UMWELTBUNDESAMTumweltbundesamt.deVisit source
- Reference 9QUANTUM-COMPUTINGquantum-computing.reportVisit source
- Reference 10STEPSTONEstepstone.deVisit source
- Reference 11MANPOWERGROUPmanpowergroup.deVisit source
- Reference 12BERLIN-PARTNERberlin-partner.deVisit source
- Reference 13MUNICH-STARTUPmunich-startup.deVisit source
- Reference 14HAMBURGhamburg.comVisit source
- Reference 15MAKE-IT-IN-GERMANYmake-it-in-germany.comVisit source
- Reference 16: HTTPS:: https:Visit source
- Reference 17BIBBbibb.deVisit source
- Reference 18VERDIverdi.deVisit source
- Reference 19IVWivw.deVisit source
- Reference 20BAMFbamf.deVisit source
- Reference 21QUALIFIZIERUNGqualifizierung.chVisit source
- Reference 22GLEISSLUTZgleisslutz.comVisit source
- Reference 23BUNDESANZEIGERbundesanzeiger.deVisit source
- Reference 24FRANKFURT-MAIN-FINANCEfrankfurt-main-finance.deVisit source
- Reference 25VDAvda.deVisit source
- Reference 26RHEINLANDrheinland.deVisit source
- Reference 27BSIbsi.bund.deVisit source
- Reference 28KDNUGGETSkdnuggets.comVisit source
- Reference 29LINKEDINlinkedin.comVisit source
- Reference 30DEVOPSdevops.deVisit source
- Reference 31DEUTSCHE-STARTUPSdeutsche-startups.deVisit source
- Reference 32DEALROOMdealroom.coVisit source
- Reference 33CROWDINFORMcrowdinform.comVisit source
- Reference 34SIFTEDsifted.euVisit source
- Reference 35CORPORATEVCcorporatevc.deVisit source
- Reference 36FINTECHNEWSfintechnews.deVisit source
- Reference 37BERLINSTARTUPJOBSberlinstartupjobs.comVisit source
- Reference 38AI-HUBai-hub.deVisit source
- Reference 39CLEANENERGYWIREcleanenergywire.orgVisit source
- Reference 40EYey.comVisit source
- Reference 41BMWIbmwi.deVisit source
- Reference 42BUSINESSANGELSbusinessangels.netVisit source
- Reference 43PWCpwc.deVisit source
- Reference 44HEALTHTECH-INVESTORhealthtech-investor.deVisit source
- Reference 45AUTO-MOTOR-UND-SPORTauto-motor-und-sport.deVisit source
- Reference 46SAAS-GERMANYsaas-germany.deVisit source
- Reference 47KFPEkfpe.deVisit source
- Reference 48WOMENTECHwomentech.netVisit source
- Reference 49MUNICHVCmunichvc.deVisit source
- Reference 50HAMBURG-STARTUPShamburg-startups.deVisit source
- Reference 51QUANTUM-GERMANYquantum-germany.deVisit source
- Reference 52PROPTECHproptech.deVisit source
- Reference 53EDTECH-GERMANYedtech-germany.comVisit source
- Reference 54CYBERSECURITY-HUBcybersecurity-hub.deVisit source
- Reference 55DEEPTECHdeeptech.deVisit source
- Reference 56BIOECONOMYbioeconomy.deVisit source
- Reference 57ECOMMERCE-DEUTSCHLANDecommerce-deutschland.deVisit source
- Reference 58STIFTERVERBANDstifterverband.orgVisit source
- Reference 59DPMAdpma.deVisit source
- Reference 60SCOPUSscopus.comVisit source
- Reference 61BUNDESFINANZMINISTERIUMbundesfinanzministerium.deVisit source
- Reference 62DFGdfg.deVisit source
- Reference 63FRAUNHOFERfraunhofer.deVisit source
- Reference 64MPGmpg.deVisit source
- Reference 65HELMHOLTZhelmholtz.deVisit source
- Reference 66EXISTexist.deVisit source
- Reference 67PTJptj.deVisit source
- Reference 68PT-QUANTUMpt-quantum.deVisit source
- Reference 69BMUbmu.deVisit source
- Reference 70VODAFONEvodafone.deVisit source
- Reference 71BIODEUTSCHLANDbioDeutschland.orgVisit source
- Reference 72KI-STRATEGIE-DEUTSCHLANDki-strategie-deutschland.deVisit source
- Reference 73VDMAvdma.orgVisit source
- Reference 74BLOCKCHAIN-DEUTSCHLANDblockchain-deutschland.deVisit source
- Reference 75WIPOwipo.intVisit source
- Reference 76SILICON-SAXONYsilicon-saxony.deVisit source
- Reference 77ECec.europa.euVisit source
- Reference 78INNOVATIONinnovation.deVisit source
- Reference 79HIGH-TECH-GRUENDERFONDShigh-tech-gruenderfonds.deVisit source
- Reference 80HWG-LUENEBURGhwg-lueneburg.deVisit source
- Reference 81FZ-JUELICHfz-juelich.deVisit source
- Reference 82PLATTFORM-I40plattform-i40.deVisit source
- Reference 83SAPsap.comVisit source
- Reference 84SIEMENSsiemens.comVisit source
- Reference 85INFINEONinfineon.comVisit source
- Reference 86TELEKOMtelekom.comVisit source
- Reference 87CORPORATEcorporate.zalando.comVisit source
- Reference 88HELLOFRESHGROUPhellofreshgroup.comVisit source
- Reference 89TRADEREPUBLICtraderepublic.comVisit source
- Reference 90FLIXBUSflixbus.comVisit source
- Reference 91CELONIScelonis.comVisit source
- Reference 92PERSONIOpersonio.deVisit source
- Reference 93N26n26.comVisit source
- Reference 94DELIVERYHEROdeliveryhero.comVisit source
- Reference 95TEAMVIEWERteamviewer.comVisit source
- Reference 96ABOUTYOUaboutyou.techVisit source
- Reference 97SENNDERsennder.comVisit source
- Reference 98PEAKSIDEpeakside.deVisit source
- Reference 99FORTOforto.comVisit source
- Reference 100TAXFIXtaxfix.deVisit source
- Reference 101ADAada.comVisit source
- Reference 102DEEPLdeepl.comVisit source
- Reference 103INFARMinfarm.comVisit source
- Reference 104TIERtier.appVisit source
- Reference 105GETYOURGUIDEgetyourguide.pressVisit source
- Reference 106OMIOomio.comVisit source
- Reference 107RAISINraisin.comVisit source
- Reference 108RESEARCHGATEresearchgate.netVisit source
- Reference 109NEW-WORKnew-work.seVisit source
- Reference 110AUTO1-GROUPauto1-group.comVisit source
- Reference 111SIEMENS-HEALTHINEERSsiemens-healthineers.comVisit source
- Reference 112SOFTWAREAGsoftwareag.comVisit source
- Reference 113NEMETSCHEKnemetschek.comVisit source
- Reference 114CGMcgm.comVisit source
- Reference 115SECUNETsecunet.comVisit source