Your company is already operating in Germany and you would now like to export worldwide?

High angle view of technicians working in server room. High angle view of technicians working in server room. | © Erik Isakson/Getty Images

Internet Economy

Germany is the leading country in Europe’s digital landscape. With 90 percent of its population using the internet on a regular basis, Germany boasts the most internet users in Europe.

With 90 percent of the German population using the internet on a regular basis, Germany boasts the most internet users in Europe. This significant digital economy customer base is also coupled with the highest total purchasing power in Europe (EUR 2,050 billion), making Germany a crucial player in the global digital economy. In line with the rest of Germany’s stable economy, the internet economy has faced no downturn from the European economic crisis.

Covid-19 - Increased Demand for Digital Learning Solutions

The corona crisis is making itself felt in the classroom, with schools closed. Digital learning providers are offering innovative solutions to meet changing education requirements.

Video Conferencing for Pre-School Children

It is half past nine in the morning in Germany. The first video conference has just begun. The 12 participants can see the other participant faces and they start talking. Their parents are present, in some cases both mothers and fathers. They sing children's songs, do children's yoga and read a story about the fireman together. This is the kindergarten group of a Berlin daycare center where the educators are making virtual appointments using the same video conferencing tools normally reserved for adult use. 

Starting in the last week of March,  the virtual meetings have already established themselves. And just like the parents and children in this Berlin day nursery, many in Germany are trying out new digital learning and communication tools as a result of the restrictions on movement put in place to combat the coronavirus disease. 

Digital Apps Bringing Children Together

A number of web- and video conferencing tools have become household names overnight as working from home has become the new norm for many millions of people around the world.  Similar tools are being used to bring children together during the lockdown – one prominent example being the NemBørn tool that digitally connects children, parents and daycare centers, thereby ensuring that everybody know what is happening and what the little ones and grown-ups are learning with and from each other. 

Emergency Digital Pact for Schools Funding

Germany’s Federal Government has approved the release of EUR 100 million for primary and secondary schools as part of its existing “Digital Pact for Schools” program (Digitalpakt Schule in German only) in order to combat the immediate effects of the Covid-19 crisis. The EUR 5 billion initiative, put in place to help schools upgrade their digital infrastructure, is part of the country’s broader digital transformation objectives. The emergency funding has been made available to ease the transition to “home learning” using cloud platforms and solutions. 

The Hasso Plattner Institute (HPI) School Cloud, a learning platform developed exclusively for schools, has also received extra federal funding as part of the new measures. The HPI school cloud will be made available to all schools which cannot use a comparable platform solution provided by the state or school authorities. Working in partnership with Alliance for Free Education members Wikimedia Deutschland e. V. and e. V., HPI will oversee the integration of learning content in the learning cloud of the school cloud. 

Growing Demand for School Digital Learning Solutions

Demand for school digital learning platforms and solutions is growing. The current situation has only thrown a spotlight on the very real need for a radical overhaul of digital infrastructure in Germany’s school education system. The individual federal states are reacting at different speeds to make digital teaching services easily available to all schools. Some states are ahead of the curve in this respect, while others are effectively playing catch-up in terms of digital learning provision.  

Remote Learning Solutions Opportunities

Digital learning in schools was a major presence at this year’s LEARNTEC trade fair for digital learning in January. Germany’s Bitkom digital association has repeatedly highlighted shortcomings in Germany’s digital progress to date, hampered in part by the country’s federal system which sees educational competences decided on an individual state basis. Nordic countries, as part of a project initiated by education start-ups and “Education Nation” (Estonia), have made a number of remote learning solutions freely available across Europe to support teachers and parents in the current difficult situation. Digital learning solutions providers who make their apps and solutions freely available to schools and educational establishments in Germany may well be permanently integrated into the country’s education landscape after successful test phase completion. Similar opportunities also exist for international companies in the college, university and further education environment, as they too address the current situation and the country’s changing digital learning requirements.

Internet Economy in Numbers

Steady growth is allowing the German internet economy to establish itself as a major force in Europe’s strongest economy. 

In 2021, Germany’s internet economy recorded revenue of more than EUR 178 billion. There are about 100,000 IT companies in Germany, employing more than 1.25 million IT professionals. This steady growth is allowing the German internet economy to establish itself as a major force in Europe’s strongest economy. 

A significant feature of the German economy is the importance of small and medium-sized enterprises (SMEs). These companies represent 99.9 percent of all German companies (around 3.67 million) and employ another 68 percent of the working population (29.1 million). These companies are best characterized by heavy investment and sustained technological and market innovation – features that have allowed them to become world leaders in a number of important industries and niche markets. 

These SMEs also trained more than 1.2 million young adults (89 percent of all trainees). A strong commitment to investment and innovation has also allowed these businesses to perform well in the internet economy, leading to a high level of diversification and a vibrant digital ecosystem where dominant industry giants are few. This leads to an environment with few barriers to entry, allowing new and innovative start-ups the opportunity to enter this ever-growing industry.

Investment Opportunities in Germany’s Internet Economy

The current market conditions in Germany are favorable, with the internet economy far from being saturated. This is creating new market opportunities for international investors.

Germany is a crucial market for the global internet economy; constituting the most internet users in Europe coupled with Europe’s highest total purchasing power.

Current market conditions in Germany are favorable, with the internet economy far from being saturated. The sector is dynamic, having experienced significant growth in the past years, with experts forecasting continued growth in the future.

With more than EUR 178 billion in turnover (coupled with Germany’s ideal location at the heart of Europe), the German internet economy presents a perfect opportunity for investors who want to expand operations not only in Germany, but also across Europe.

Market Opportunities within the Digital Economy

Find out more about market opportunities within the Digital Economy.

Germany: European Home of the Start-Up Scene

The German economy is largely shaped by SMEs and is home to a deep pool of entrepreneurial talent.

This well of talent has resulted in a broad and diversified economy that can be relied upon in times of economic tumult. Germany’s IT sector is also a thriving entrepreneurial environment with the majority of Europe’s Unicorns being based in Germany.

In 2021, there were 1,160 venture capital investments into German start-ups with a total volume of EUR 17.4 billion. This is an increase of 229% compared to the previous year’s investment levels. The majority of this new investment went to Berlin start-ups (EUR 10.5 billion), followed by Bavaria (EUR 4.4 billion) and Baden-Wurttemberg (EUR 599 million) respectively. 

International Workforce

Germany is located in the heart of Europe, and metropolitan areas such as Berlin and Munich attract young and highly educated people from across Europe. This multicultural mix not only provides a large, multilingual, highly skilled labor pool, but also makes Germany an excellent starting point for those companies wanted to expand operations in Europe.

Testimonials for Germany

Fraser Hopper, Head of Operations | Chattermill

Fraser Hopper, Head of Operations Fraser Hopper, Head of Operations | Chattermill | © Chattermill

“Our experience of setting up in Germany was very positive. We were able to utilise the extensive knowledge of Germany Trade and Invest to navigate a lot of the legal, tax and immigration issues which have been key in our successful launch. We have managed to attract both local and international talent to our office in Berlin which acts as an Research & Development hub and has given us an advantage over 1000s of other employers by being located in such an attractive location for highly sought after technical talent in the software development and Machine Learning industry.”

Mattias Hjelmstedt, CEO and Founder | Magine Germany GmbH

“We are extremely pleased to offer users in the German market, which is of particular importance to us, a new and flexible way of watching television.”

Mattias Hjelmstedt, CEO und Gründer | Magine Germany GmbH Mattias Hjelmstedt, CEO and Founder | Magine Germany GmbH | © Magine Germany GmbH/GTAI

Latest Publication

Fact Sheet Digital Economy in Germany Fact Sheet Digital Economy in Germany | © GTAI

Fact Sheet - The Digital Economy in Germany

Read more about the opportunities Germany's ICT market can offer your business and download our latest fact sheet on Germany's digital economy.

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