2024 was the year in which many German companies realised that the difficult economic situation in this country is not just a short period of weakness. Even in the coming months, there are no signs of any significant economic recovery. Nevertheless, companies must ensure that they do not lose their focus on the complex digital transformation processes, even under the ongoing uncertain conditions. Hendrik Kahmann, Head of Innovation at Axians Germany, sees the following five trends that will shape the market for information and communication solutions in 20

1. Fresh ideas to counter the shortage of skilled workers in IT and telecommunications infrastructure
   The figures speak for themselves: Bitkom currently expects there to be a shortage of around 663,000 IT specialists across all sectors of the economy by 2040, and the situation is quite similar in the TI sector. The shortage of skilled workers is therefore becoming a critical challenge for companies, in addition to the existing challenges caused by global economic and geopolitical upheavals and supply chain problems. The consequences are a backlog of innovations, rising wage costs due to an older workforce, and bottlenecks in services and growth initiatives. Despite these uncertainties, forward-thinking companies will know how to seize this opportunity in 2025: they will step up their efforts to mitigate the effects of the skills shortage by particularly among their top performers – investing more in training and professional development, promoting a healthy work-life balance, attracting girls and women to the ICT sector as early as possible, and creating attractive programmes for career changers. In particular, investment in digital technologies will continue to increase: by automating routine tasks using artificial intelligence and machine learning, companies will increase their efficiency while improving working conditions for their employees. In addition, the use of digital tools enables better collaboration and more effective knowledge management. The advantages are faster familiarisation of new employees and a reduction in the loss of knowledge due to fluctuation. In the coming year, companies will also step up their efforts to better protect themselves against the negative effects of the ‘leaving experts’. The consistent transfer of knowledge from older employees, who often have critical company knowledge, to the younger generation, as well as special mentoring programmes, will be used more frequently.
2. The demand for more speed in broadband expansion is growing louder
   The expansion of the networks is part of Germany’s digital strategy and a national joint task. It requires the interaction of the federal states, the Federal Network Agency and other federal departments, as well as the expanding companies, which, as telecommunications service providers, contribute the necessary know-how. Just a few months ago, the federal government presented the draft for the new network expansion law. The aim is to provide fibre-optic connections and the latest mobile communications standard throughout Germany by 2030. 2025 will be a crucial year for evaluating the progress of this strategy and finding solutions to advance it. Companies and associations will increase the pressure on those in charge and demand that the law be implemented. At the same time, they will be much more vocal in their criticism of excessive bureaucracy, inconsistent standards, slow implementation of the gigabit strategy, a lack of coordination between the federal and state governments, and hurdles to the expansion of alternative installation methods, particularly in rural areas.
3. sustainable technologies (green IT) and resource-saving installation methods in passive broadband expansion (TI)
   The European ESG Regulation (Environment, Social, Government), which, as part of the Corporate Sustainability Reporting Directive (CSRD), will also require small and medium-sized companies to report on sustainability from 2025, is increasingly drawing attention to aspects of sustainable technologies and green IT. By 2025, companies will increasingly see these as an integral part of holistic environmental management. The pioneers among them will use green IT as a lever for better climate neutrality by making data processing and the provision of the IT infrastructure as environmentally friendly as possible over the entire lifecycle of managed services (development, production, operation and maintenance). In the context of broadband expansion, this specifically means that resource-saving, passive laying methods will increasingly be used. New techniques such as ploughing, milling and drilling (HDD), shallow cable laying, the use of trenching methods with suction excavators and flush drilling, as well as soil and concrete recycling, are becoming increasingly important in the implementation of projects for fibre-optic expansion. The advantages are clear: increased efficiency and reduced costs, a construction phase that is less disruptive for residents and urban infrastructure, up to three times faster, and lower material requirements. All of this will gradually bring companies closer to their goal of climate-neutral operations.
4. IT and OT on the way to a symbiosis with a future
   2025 will be the year of the increasingly close integration of IT (Information Technology) and OT (Operational Technology). While OT was responsible for controlling and monitoring physical processes in manufacturing, energy supply and logistics in the past, IT took over the processing and management of digital data and information. Industry 4.0 and the increased networking of devices (IoT) are bringing these areas ever closer together. The use of data analysis and artificial intelligence is opening up new possibilities for automation and thus for increasing efficiency, reducing costs and developing new business models: data from production (OT) is integrated into IT systems, analysed there in real time and used for data-based decision-making. At the same time, this enables more precise predictive maintenance, which minimises downtime and makes optimal use of resources. However, the closer integration of the two areas also increases the security risk: since the once isolated OT systems are now integrated into IT systems, they are also more vulnerable to cyber attacks. In 2025, companies will therefore be forced to rethink their cyber security strategies and align them specifically with the hybrid IT/OT environment in order to strengthen their digital resilience. Support is also coming from the EU: with the European NIS2 Directive (Network and Information Security Directive), which has been in force since October 2024, the group of companies required to implement stricter cyber security regulations has been significantly expanded. These include operators of critical infrastructures (KRITIS) in the IT and telecommunications sectors, as well as gas, water and energy supply, transport and traffic, finance, health, nutrition, etc. Based on this new directive, it will be easier to ensure the protection of critical infrastructures, harmonise the level of security and strengthen resilience.
5. Cybersecurity will be a top priority
   In 2025, the IT world will continue to upgrade, because in the coming year, companies will have to adapt even more quickly to the dynamic threat situation posed by cybercriminals. Bitkom is predicting record losses of 267 billion euros for German companies alone in 2024 – an increase of 29% over the previous year. A cyber attack can quickly become a life-threatening situation for companies, which is why the issue will finally become a top management priority in the coming year. The focus is on holistic solutions for a more resilient IT infrastructure. In this context, the topic of Security Operation Centres (SOC) will also come more to the fore. Cybersecurity experts, processes and special tools work together in real time to protect IT infrastructures and data. In order to conserve resources in the company, services related to SOC will increasingly be outsourced to specialised service providers as outsourcing projects in 2025.
   The same applies to telecommunications: in the coming year, companies will be forced to think about cybersecurity in the digital rail sector in particular, because the risk of cyber attacks is increasing. The reason for this is the ongoing digitalisation of rail infrastructure, which is leading to ever more complex system architecture: IoT devices continuously collect data that is monitored and evaluated in real time, train control and driving control systems are automated, a wide range of systems and locations are networked with each other, and new technologies such as AI (artificial intelligence), ML (machine learning) and sensor technology are introduced. To meet these requirements, companies in 2025 will not only make technological investments, but will also train their employees to use these technologies. Holistic security solutions that cover the entire lifecycle of digital assets are in demand.
   A look ahead to 2025 shows that challenges for the economy in Germany and specifically for the ICT sector will remain. However, forward-thinking companies will know how to take advantage of the opportunities offered by digitalisation, which, despite all the prophecies of doom, is picking up speed. The necessary structural change can gain momentum through existing technologies and the adaptation of new ones, making companies more innovative and successful again. Digitalisation is an essential element for Germany as a business location – this is not a new insight, but its urgency will be particularly evident in 2025.

Hendrik Kahmann is Head of Innovation at Axians Germany. Hendrik Kahmann has been working in telecommunications since 2004. He spent ten years with a regional telecommunications provider and carrier in technical and commercial product management and also gained five years of experience in digitalisation in retail before joining Axians in 2019. Here, he was initially responsible for cross-segment business development. His responsibilities also included the development of innovative business models and partnerships around his core topic of 5G. Since July 2023, he has been responsible for organising innovation processes within the business units at Axians Germany, particularly in the areas of business development and green offerings, in his role as Head of Innovation at Axians Germany.