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Data Processing & Hosting Services in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: August 2024 WZ J63.11DE

Revenue

€14.1bn

2024

€14.1bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

50,085

Businesses

1,705

Wages

€X.Xbn

Data Processing & Hosting Services in Germany industry analysis

The data processing and data hosting sector has developed extremely positively in recent years. The industry's total turnover has increased by an average of 4.2% per year since 2019. For the current year, IBISWorld expects an increase in industry turnover of 1.7% to 14.1 billion euros. The main driver of growth is the increasing demand for cloud computing and data processing services based on artificial intelligence. In recent years, the larger companies in the sector in particular have grown rapidly, both organically and through the acquisition of competitors and other companies specialising in artificial intelligence. The expertise gained through acquisitions has helped industry players to improve the functionality of their core products.Companies are trying to gain insights from the growing amount of data that is generated every day. This enables them to improve their processes, better understand the needs of their customers and adapt their product portfolio accordingly. However, only a few companies are able to process the collected data in a useful way given the volume of data. In many cases, the expertise of industry representatives is essential to carry out detailed analyses. In addition, many companies are opting to switch to cloud solutions instead of operating their own IT infrastructure, which is often associated with cost savings. Companies can also organise their business processes more efficiently by using cloud-based applications. When using cloud solutions, customers attach great importance to data protection and the security of their sensitive data. In this context, surveys show that it is very important to them that data processing takes place within Germany.The industry is expected to continue its growth trajectory in the coming years. IBISWorld expects turnover to rise to 16.1 billion euros by 2029. This corresponds to average annual growth of 2.7%. The increasing demand for cloud solutions and streaming services as well as the use of artificial intelligence in data analysis are likely to have a significant impact on the industry in the coming years. In particular, self-learning programmes will help to better evaluate data and create analyses in the shortest possible time. In the coming years, companies are likely to continue to have difficulties recruiting IT specialists due to the shortage of skilled labour.

Trends and Insights

  • Cost benefits and easier internal company networking are making cloud solutions increasingly popular in the world of work. However, customers are often concerned about the security of their data, which is why providers are taking strict measures to protect their cloud infrastructures.
  • The ever-increasing volume of data is leading to an increase in demand for data processing services. Technologies from the field of artificial intelligence and big data analysis are enabling increasingly efficient data processing.
  • The Central region accounts for the largest share of industry companies. Of particular importance is the Frankfurt am Main location as an important hub for the Internet infrastructure in Europe and the financial centre of Germany.
  • Some companies prefer to operate their IT infrastructure themselves on site instead of migrating to the cloud. The main reasons for this are concerns about performance and the lack of integration of legacy systems, as well as fears that sensitive data could fall into the hands of third parties.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.2 % over the past five years, to reach an estimated €14.1bn in 2024.

Trends and Insights

The industry is benefiting from the growing demand for cloud solutions

  • Cloud solutions, which have become increasingly important in the world of work in recent years, involve the on-demand provision of computer system resources such as storage capacity, computing power and applications for companies by cloud providers.
  • Additional trends and insights available with purchase
Data Processing & Hosting Services in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Services based on artificial intelligence will be used more and more frequently in the future

  • The amount of data generated by commercial customers such as retail companies, banks, industrial and logistics companies has increased rapidly in recent years and will continue to grow in the coming years.

Biggest companies in the Data Processing & Hosting Services in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Microsoft Deutschland GmbH
3,030.7
SAP SE
2,226.6
Salesforce.com Germany GmbH
1,057.8

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Data Processing & Hosting Services in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Cloud computing, Data processing and Webhosting. Cloud computing is the largest segment of the Data Processing & Hosting Services in Germany.

Trends and Insights

Cloud computing facilitates companies' business activities and is therefore increasingly in demand

  • Cloud computing is the provision of computer system resources such as storage capacity, computing power and applications for companies by cloud providers on demand.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The data processing and data hosting sector includes activities such as web hosting, the provision of streaming services and the external provision of applications. This includes the marketing of computing time on mainframes and various data processing activities such as the analysis of customer data. The sector does not include activities in which data processing systems are only used as an aid.

What's included in this industry?

Cloud computingData processingWebhostingStreaming

Companies

Microsoft Deutschland GmbHSAP SESalesforce.com Germany GmbH

Purchase this report to view all 7 major companies in this industry.

Related Terms

BLOCKCHAINCLOUD COMPUTINGENTERPRISE RESOURCE PLANNING (ERP) SYSTEMHOSTINGSEARCH ENGINE OPTIMISATION (SEO)

Industry Code

WZ 2008

WZ 63.11 - Data Processing & Hosting Services in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Cost benefits and easier internal company networking are making cloud solutions increasingly popular in the world of work. However, customers are often concerned about the se...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The ever-increasing volume of data is leading to an increase in demand for data processing services. Technologies from the field of artificial intelligence and big data analy...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The Central region accounts for the largest share of industry companies. Of particular importance is the Frankfurt am Main location as an important hub for the Internet infra...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Some companies prefer to operate their IT infrastructure themselves on site instead of migrating to the cloud. The main reasons for this are concerns about performance and th...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Microsoft Azure enables customers to completely outsource their IT infrastructure to the cloud. Azure impresses with its great flexibility, as the cloud infrastructure can be...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Microsoft Deutschland GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of SAP SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Salesforce.com Germany GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Microsoft Deutschland GmbH, and factors influencing its performance in the industry
  • Description and key data for SAP SE, and factors influencing its performance in the industry
  • Description and key data for Salesforce.com Germany GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

A deterioration in the business climate affects the sales development of the data processing and hosting industry. A deterioration in the business climate is usually accompan...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The need for qualified employees results in high personnel costs. Due to the rapid growth of the technology sector, the required IT specialists are among the most sought-afte...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Data Processing & Hosting Services industry in Germany in 2024?

The market size of the Data Processing & Hosting Services industry in Germany is €14.1bn in 2024.

How many businesses are there in the Data Processing & Hosting Services in Germany industry in 2024?

There are 1,705 businesses in the Data Processing & Hosting Services industry in Germany, which has declined at a CAGR of 0.6 % between 2019 and 2024.

Has the Data Processing & Hosting Services industry in Germany grown or declined over the past 5 years?

The market size of the Data Processing & Hosting Services industry in Germany has been growing at a CAGR of 4.2 % between 2019 and 2024.

What is the forecast growth of the Data Processing & Hosting Services industry in Germany over the next 5 years?

Over the next five years, the Data Processing & Hosting Services industry in Germany is expected to grow.

What are the biggest companies in the Data Processing & Hosting Services market in Germany?

The biggest companies operating in the Data Processing & Hosting Services market in Germany are Microsoft Deutschland GmbH, SAP SE and Salesforce.com Germany GmbH

What does the Data Processing & Hosting Services in Germany include?

Cloud computing and Data processing are part of the Data Processing & Hosting Services industry.

Which companies have the highest market share in the Data Processing & Hosting Services in Germany?

The company holding the most market share in Germany is Microsoft Deutschland GmbH.

How competitive is the Data Processing & Hosting Services industry in Germany?

The level of competition is moderate and increasing in the Data Processing & Hosting Services industry in Germany.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.