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There is a positive core scenario for the IT market in Germany over the medium term, with growth expected to outpace GDP in each year of the forecast period to 2028. There is already a strong trend for investment in AI-optimised hardware and data centres in Germany, which will continue in the short-to-medium term as the ecosystem develops. Then as the forecast period progresses and AI advances the growth will shift towards AI solutions and services as adoption rates climb across a range of industries. AI also has the potential to broadly accelerate digital transformation in Germany by enabling more ambitious and lower-cost digital projects to replace or upgrade legacy systems, which could also have a positive impact on economic productivity. Economic and security risks are a source of potential downside, but the strategic value of AI means that IT demand growth should be relatively resilient to headwinds that arise.