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Software Publishing in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: August 2024 WZ J58.29DE

Revenue

€7.2bn

2024

€7.2bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

20,326

Businesses

1,448

Wages

€X.Xbn

Software Publishing in Germany industry analysis

The software publishing industry is characterised by intense competition, constantly rising customer expectations, disruptive technological developments, frequent product launches and short product life cycles. Over the past five years, the industry has benefited from the increasing digitalisation of the economy, which has led to more and more companies integrating digital processes into their business activities and investing in the necessary programs. Business management programmes, data processing units and system software are increasingly being used to simplify and control internal processes and to efficiently evaluate external and internal data. However, more and more companies are turning to cloud solutions that do not belong to this sector instead of purchasing conventional software licences. As a result, industry turnover has fallen by an average of 1.1% per year since 2019 to €7.2 billion.In 2024, industry turnover is expected to fall by 0.6%. Increasing competition from cloud solutions is likely to be the main reason for this development. The development of the business climate in Germany plays an important role in companies' decisions to invest in new software. German companies still consider their situation to be poor in 2024 and have correspondingly pessimistic expectations for their business development. As a result, only a few companies are likely to be prepared to invest in new software programmes in 2024.By 2029, industry turnover is expected to fall by an average of 1.4% per year to 6.7 billion euros. In the next five years, a further increase in digitalisation in companies is expected, as its necessity has become particularly clear due to the pandemic-related contact restrictions. This will prompt companies to invest more in software solutions in the coming years. However, important major customers in the industry are increasingly focussing on cloud solutions. The larger industry players such as SAP, Microsoft and IBM have recognised this and are repositioning their products as cloud systems. As a result, they are developing fewer and fewer products for the traditional software market, while smaller companies are likely to continue to rely on traditional software licences in the coming years due to a lack of resources.

Trends and Insights

  • The market for security software offers growth opportunities for industry players. Smaller software providers can make a name for themselves in the field of security software, as there are still far fewer standard programmes than in other software areas.
  • Business software is the largest product group in the industry in terms of revenue. However, the revenue share of this segment has been falling for several years, as cloud solutions are increasingly being used instead of software.
  • The centre region is the most important region for software publishing. Many software publishers are located in North Rhine-Westphalia in particular, as this is where many customers and qualified employees are based.
  • Intra-industry competition is moderate. Due to rapid technological change, the larger industry players are under constant pressure to optimise their products and launch new products on the market in order to avoid being left behind by more innovative competitors.

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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 declined at a CAGR of 1.1 % over the past five years, to reach an estimated €7.2bn in 2024.

Trends and Insights

The players in the industry offer products that are indispensable in modern companies

  • The industry's products are broadly diversified and versatile. They range from system software, such as operating systems and network environments, to technical programmes, such as data analysis software, business software, such as enterprise resource planning (ERP) systems, and user software, such as word processing programmes.
  • Additional trends and insights available with purchase
Software Publishing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

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

Trends and Insights

Despite the increasing popularity of cloud offerings, traditional software licensing is likely to remain relevant in the future

  • In the coming years, large software companies in particular are likely to expand their cloud offerings. However, cloud solutions will not completely displace conventional software programmes from the market in the coming years.

Biggest companies in the Software Publishing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Microsoft Deutschland GmbH
766.1
IBM Deutschland GmbH
465.3
SAP SE
255.3

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Software Publishing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Business management software, Technical software and System software. Business management software is the largest segment of the Software Publishing in Germany.

Trends and Insights

Demand for business management software is declining in the face of competitive pressure from cloud solutions

  • The business software segment includes software for order processing and invoicing, for production planning and control, programmes for warehousing and ordering as well as for finance and accounting.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Software publishing deals with the publication of operating systems for computers and other technical devices as well as professional and other application software. The development of software as a service for other companies without the associated publishing company, the publishing of video game software and the operation of websites and cloud solutions are not part of the industry.

What's included in this industry?

Business management softwareTechnical softwareSystem software

Companies

Microsoft Deutschland GmbHIBM Deutschland GmbHSAP SE

Purchase this report to view all 6 major companies in this industry.

Related Terms

OPERATING SYSTEMBIG DATABLOCKCHAINCAD (COMPUTER-AIDED DESIGN)CLOUD COMPUTINGENTERPRISE RESOURCE PLANNING (ERP) SYSTEMSINTERNET OF THINGSARTIFICIAL INTELLIGENCE (KI)SMART CONTRACTS

Industry Code

WZ 2008

WZ 58.29 - Software Publishing 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

The market for security software offers growth opportunities for industry players. Smaller software providers can make a name for themselves in the field of security software...

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

Business software is the largest product group in the industry in terms of revenue. However, the revenue share of this segment has been falling for several years, as cloud so...

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 centre region is the most important region for software publishing. Many software publishers are located in North Rhine-Westphalia in particular, as this is where many cu...

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

Intra-industry competition is moderate. Due to rapid technological change, the larger industry players are under constant pressure to optimise their products and launch new p...

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 Deutschland GmbH has the highest market share in the software publishing industry. With the Microsoft Office software package, the company has achieved an outstandi...

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 IBM 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 revenue, market share and profit margin trend for 3 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 IBM 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, key data and performance trends for 3 additional companies

External Environment

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

Analyst insights

Industry players must comply with the General Data Protection Regulation. It requires companies to take measures to ensure the security of personal data.

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 industry's profit margin has recently fallen due to increasing competition. Companies with many customers can often benefit from economies of scale, which has a positive ...

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 Software Publishing industry in Germany in 2024?

The market size of the Software Publishing industry in Germany is €7.2bn in 2024.

How many businesses are there in the Software Publishing in Germany industry in 2024?

There are 1,448 businesses in the Software Publishing industry in Germany, which has declined at a CAGR of 0.3 % between 2019 and 2024.

Has the Software Publishing industry in Germany grown or declined over the past 5 years?

The market size of the Software Publishing industry in Germany has been declining at a CAGR of 1.1 % between 2019 and 2024.

What is the forecast growth of the Software Publishing industry in Germany over the next 5 years?

Over the next five years, the Software Publishing industry in Germany is expected to decline.

What are the biggest companies in the Software Publishing market in Germany?

The biggest companies operating in the Software Publishing market in Germany are Microsoft Deutschland GmbH, IBM Deutschland GmbH and SAP SE

What does the Software Publishing in Germany include?

Business management software and Technical software are part of the Software Publishing industry.

Which companies have the highest market share in the Software Publishing in Germany?

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

How competitive is the Software Publishing industry in Germany?

The level of competition is high and increasing in the Software Publishing industry in Germany.

Related Industries

Widen your competitive advantage with related industries

View all industries in Germany

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.