Technology

The German technology sector plays a significant role in the digital era. The industry is not only an important economic sector with an annual turnover of over EUR 280 bn, over one million jobs and a share of almost 7% of total economic output, but also a key driver of innovation that influences and promotes other sectors.

  • Last update

    07/02/2023

  • Type

    Executive Summary

  • Contributors

    Marian Gerster

sector.name

Current Developments

Software as the driver of the industry

The technology sector in Germany finds itself in a thoroughly ambivalent market environment. The segments are developing differently, while software and services are important growth drivers, sales in the hardware sector are stagnating.

Growth Rates

Trends

Analytics and Artificial Intelligence

The interplay of connectivity and new network infrastructures is generating huge, additional volumes of data. Analytics and AI assist in leveraging data effectively.

Transactions

Our Sector Transactions
0
Highlight Transaction
x
Number of M&A transactions - DACH region, 2021 (as of August)
1055
Significant Transactions
  • SAP SE x Signavio GmbH
  • AppLovin Corporation x adjust GmbH

Future Trends

The Internet of Things and 5G enable innovative business models such as autonomous driving, telemedicine and the control of networked machines. There are already about 750 million network-enabled devices in Germany. As-a-service and cloud-based models offer new revenue streams while reducing costs.

People & Voices

Zumera has in-depth technical and industry knowledge and can leverage a broad network of industry experts who have gained many years of transaction experience.

" M&A activity in the tech sector continues to boom. The clear growth driver is the high demand for further investments and the large amount of dry powder, especially on the private equity side. The German market is also increasingly becoming the focus of international investors, which further increases demand and thus expands multiples."

COO & FounderMarian Gerster

Our View

The technology sector in Germany has a significant role as an innovation driver and many other industries benefit from its technological achievements and business models. The software segment has great growth potential and the high-margin special hardware sector also offers attractive prospects. The technology sector is an important factor for Germany's success and economic development.

Our View

Sector Update

Zumera professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.

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