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Internet Economy

Germany is the leading country in Europe’s digital landscape. With 94 percent of its population using the internet on a regular basis, Germany boasts the most internet users in Europe.

With 94 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 of EUR 24,400 per capita (EUR 2,050 billion in total), 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.

Content of this page

Internet Economy in Numbers
Investment Opportunities in Germany’s Internet Economy
Market Opportunities within the Digital Economy
Germany: European Home of the Start-Up Scene
International Workforce
Testimonials for Germany

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

“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.”