Despite the crisis, the digital industry remains on a growth course

Despite the crisis, the digital industry remains on a growth course

The war of Russia against Ukraine, inflation, as well as the tense situation on the energy and commodity markets do not pass by the Internet economy without a trace either. Nevertheless, according to a study, there are clear growth trends. […]

The Internet economy in Germany remains on a growth course despite a possible recession of the German economy. This is the central result of an economic study by the economic consultancy Arthur D. Little on behalf of the Association of the Internet Economy Eco, which was presented on Tuesday. By 2025, analysts expect an average annual growth of 12.2 percent. This would increase the industry’s sales to 258 billion euros per year.

Growth trends

However, growth does not necessarily lead to increasing profits. Although the companies of the Internet industry can increase their prices, but at the same time they have to calculate even with rising costs. In particular, rising interest rates as well as energy and production costs are also putting the Internet industry under increasing pressure and could lead to falling profit margins in some areas, said Eco CEO Oliver Süme.

“Nevertheless, we still see growth trends in all segments that show that digitization is not a short-term trend, but that we must continue to invest in the sustainable digital transformation of the economy and society.

“With an increase of 18.4 percent annually, the predicted growth in the “Services &Applications Service” sector is particularly strong. More and more companies are forced to invest more money in cybersecurity. This increase is probably due to the increased requirements and the increase in cyber attacks on Western targets.

Reduce uncertainties

A survey by the Eco association on IT security showed that 94 percent of companies in the technology, media and telecommunications sectors believed that the risk of IT threats had increased this year. A year earlier, this figure was 77 percent. At the moment, 71 percent believe that existing cybersecurity systems are inadequate. In the previous year, only 57 percent saw it that way.

Süme demanded a series of measures from politicians so that his industry could continue to act as a strong engine for Germany as a business location. “Policymakers must focus on activities that help to reduce uncertainties and thus support investment and business development.” Examples are a fast and reliable design of the transatlantic Data protection Agreement as well as measures to strengthen digital sovereignty and energy independence.

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