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Why Germany is the #1 market for SaaS businesses to start in Europe

Updated: Aug 3, 2021

If you are considering to expand your business to or within Europe, you probably want to know which country is the most attractive market for you and your business development.

Well, there is a number of good reasons, why many multinational companies choose Germany to start their European rollout in Germany.

Located right in the heart of Europe, Germany is a modern and cosmopolitan business location with many business hotspots and leading industry clusters like IT, pharma, automotive, media and mechanical and plant engineering. Germany is characterized by its highly qualified workforce and innovative strength. Furthermore, Germany offers a stable political and economic environment, enabling the government to protect and develop its businesses and facilitate business innovations – especially in the IT industry.


Gross domestic product of selected European countries in 2019 (in billion euros, copyright:

The DACH region – vital, fast growing SaaS markets

According to leading German statistical data provider Statista the revenue in the SaaS segment is projected to reach approx. 9,300m USD in Germany, which accounts for around 20% of total SaaS sales in Europe. The revenue is expected to show an annual growth rate (CAGR) of 10.5%, resulting in a market volume of approx. 13,800m USD by 2025. Looking at the entire German-speaking market, annual revenue from software as a service in the DACH region (Germany, Austria, Switzerland) is growing by around USD 3 billion (Switzerland) and USD 1 billion (Austria) to a total annual volume of over USD 13 billion -a share of over 27% of European sales in the SaaS segment. Growth in Austria and Switzerland is even expected to reach a CAGR of 20% in the coming years.

Most frequent outsourced activities in Germany

In its current study "Marketing measures and budgets 2020" in the ICT environment, Germany´s digital association Bitkom e.V. - which represents more than 2,700 companies of the digital economy – takes stock of which marketing and communications activities are most frequently outsourced.

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