The digital industry defies the recession in 2025

Revenue drivers IT and AI The digital industry defies the recession in 2025

2025-01-17 Source: dpa 2 min Reading Time

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The digital economy in Germany is defying the economic downturn this year and is growing strongly. According to a forecast by the digital association Bitkom, the revenue in the ICT market is expected to rise by 4.6 percent to 232.8 billion euros (2.397.840.000.000 USD) in 2025 (previous year 3.3%).

Bitkom predicts revenue growth for the ICT market in 2025.(Image: Miha Creative - stock.adobe.com) — Bitkom predicts revenue growth for the ICT market in 2025.
(Image: Miha Creative - stock.adobe.com)

While many traditional industries are massively cutting jobs, the digital sector is still urgently seeking skilled workers. The number of employees in the ICT sector is expected to increase by around 20,000 to 1.371 million by 2025. According to a study, 9,000 new jobs were created last year. "The digital economy is a bright spot in difficult times, increasing sales and creating new jobs," summarizes Bitkom President Ralf Wintergerst. This makes the digital sector the largest industrial employer in Germany, ahead of the automotive industry, mechanical engineering, and the chemical and pharmaceutical industries.

Revenue decline in consumer electronics

Yet there are also ups and downs in the digital sector. While the IT business is booming, revenues from consumer electronics are shrinking for the fifth consecutive year. After a decline of 5.8 percent last year, Bitkom expects a further revenue decrease of 7.5 percent in this segment to 7.2 billion euros in 2025. "This business is particularly suffering from high inflation and economic uncertainty—many households are saving and refraining from making larger purchases," said Wintergerst.

IT and AI are booming

Classic information technology, on the other hand, is driving growth. For 2025, Bitkom expects revenues of 158.5 billion euros (1.632.708.500.000 USD) in IT (up 5.9%). The software business is growing strongly by 9.8 percent to 51.1 billion euros (52.633.000.000 USD). The hype around artificial intelligence is also reflected in the figures: the business with AI platforms, where AI applications are developed, trained, and operated, is rapidly growing by 43 percent to 2.3 billion euros (2.368.770.000 USD).

We need less regulation and instead more investment and more innovation.

Ralf Wintergerst, Bitkom-President

Looking ahead to the upcoming federal election, Wintergerst said it is important that the future federal government quickly focuses on digital policy. "We need less regulation and instead more investment and innovation." To stimulate the economy, more capital must be mobilized for companies and the IT skills shortage alleviated. The association president strongly advocated for the establishment of an independent digital ministry: "Real progress will only be achieved if there is a driver for digital issues within the next federal government."

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Date: 08.12.2025

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