More than 11,000 municipalities in Germany are facing major challenges. Internal administrative digitization, a shortage of specialists and dealing with global crises require efficient administrations. Municipal IT service providers support the municipalities to fulfill these tasks. In recent years, there has been an increase in mergers and cooperation between municipal IT service providers.
In this context, this study provides a market overview of municipal IT service providers. It is based on an empirical analysis of 59 municipal IT service providers. Their revenues have grown at an average rate of around 13% over the past five years and the market volume is around 4 to 5 billion euros. The study also sheds light on the situation in the individual German states and examines the legal forms of municipal IT service providers, their cooperation with municipalities and their service portfolio. The aim of the study is to contribute to a better understanding of the general conditions for the digital transformation of municipalities.
