Oct 29, 2022
Developer insights: where are the software developers in Germany?
Urban centers dominate, but Germany is more decentralized than you might think.
Overall number
Every year, the Federal Agency for Employment assesses the numbers of all professions in Germany based on certain categories and subcategories. At the end of 2021, the institution found that we have 281,380 employed software developers (category 434) in this country.
From previous research I know that the number of self-employed technical experts veers between 10% and 20% of the overall numbers. It is safe to assume that we have 310,000 to 330,000 software developers in Germany.
This number has been rising steadily in the last years. In 2017, we counted 205,070 employed developers. That is a rise of over 75,000 in just 4 years!
Regional spread of developers on Germany
In most other European countries like the UK, France or Portugal the vast majority of software developers is located in the largest urban center, which also happens to be the capital.
This couldn’t be further from the truth in Germany. Historically, German-speaking countries have seen a decentralized organization. This system persists until today, and has been additionally impacted by the separation of West and East up until 1990.
Software engineers mirror that. There are a range of urban centers that channel digital economies and communities. These are:
- Hamburg — 4.6% — 13,120
- Berlin & Potsdam — 8.8% — 24,920
- Bremen — 1.5% — 4,260
- Hanover — 1.5% — 4,290
- Ruhrgebiet & Düsseldorf — 5.4% — 15,300
- Cologne & Bonn — 4.0% — 15,300
- Leipzig & Halle — 1.4% — 3,980
- Dresden — 1.5% — 4,280
- Frankfurt am Main, Wiesbaden & Mainz & surrounding cities — 7.0% — 19,740
- Mannheim & Heidelberg — 1.4% — 4,180
- Nuremberg, Fürth & Erlangen — 4.9% — 13,930
- Karlsruhe — 3.0% — 8,570
- Stuttgart — 6.4% — 18,130
- Freiburg — 0.7%— 2,140
- Munich & Augsburg — 10.5% — 29,750
Taken together, these centers comprise about 177,930 developers or about 63% of all developers in Germany. Considering that many of these centers have quite a large catchment area we can safely say that over 70% of engineers are concentrated in or around them. That sounds like a lot.
Software development in the countryside?
However, when we consider that Germany is THE champion of SME development within Europe it is evident that urban centers only paint one part of the picture. Smaller cities, towns and satellite settlements offer opportunities that are not found in capital-oriented countries.
Where we find the most software developers
Looking at the map, we immediately see why companies hire in the usual “suspect” cities like Munich, Berlin, Hamburg and Frankfurt. Most open positions can be found there. All four cities have a strong startup scene, with Frankfurt having a decided focus on Fintech, and Munich being known for the more “solid” startups.
It is highly surprising, nevertheless, that we don’t see more emphasis on the centers in Northern-Rhine Westphalia. Ruhrgebiet, Düsseldorf and the Cologne/Bonn areas have a combined might of 9.4% of all software developers — not even counting the “off centers” Wuppertal, Solingen and Bielefeld. There, we traditionally find increasing demand due to the digitization of long-history companies.
Why is it that companies gravitate more towards the “trendy” cities? Is it because they attract expats more easily? Now that we go more and more remote will we see an increase in developers in the North-West? Or will they percentage stay the same?
For an analysis on non-citizen software engineers in Germany see this article.
The Rhein-Main and Rhein-Neckar regions are equal surprises. Surely, the software giant SAP has its seat close to Heidelberg (full disclosure: my employer). But Munich, for instance, is home to the whole range of the giants Microsoft, Google and Amazon. In numbers, those two centers are roundabout close in weight.
This is complimented by the tech focus areas Karlsruhe and Stuttgart. Baden-Württemberg — also known as the “Ländle” — is often cast the the “boring” and “burgeoisie” federal state. It is undeniable, though, that there is digital power hidden there.
The overall distribution
While we could increase the level of granularity, even with the current selection we become aware that medium-sized cities host a significant share of developers.
Leipzig and Dresden have been up and coming for the last years. Hanover and the surrounding areas show the increasing digitization of the car builders. Freiburg and Bremen have always held their position in the further reaches of the South-West and North-West, respectively.
My home, Franconia, scores with almost 5% of developers located in the Nuremberg Metropolitan area. This is not even counting the adjacent centers and mini-powerhouses such as Ingolstadt or Würzburg. Together with Munich, they make Bavaria one of the most digitally-driven federal states — despite the government’s lack of efforts.
The growth in percent from 2017 to 2021
- Hamburg — +35% — +3,460
- Berlin & Potsdam — +50% — +9,180
- Bremen — +35% — +1,110
- Hanover — +36% — +1,140
- Ruhrgebiet & Düsseldorf — +50% — +5,110
- Cologne & Bonn — +34% — +2,910
- Leipzig & Halle — +38% — +1,110
- Dresden — +37% — +1,160
- Frankfurt am Main, Wiesbaden & Mainz & surrounding cities — +45% — +6,180
- Mannheim & Heidelberg — +31% — +1,010
- Nuremberg, Fürth & Erlangen — +38% — +3,890
- Karlsruhe — +22% — +1,570
- Stuttgart — +30% — +4,240
- Freiburg — +41% — +630
- Munich & Augsburg — +44% — +9,160
434 versus overall 43
434 is the software programming subcategory in the Federal Agency’s roster. When we look at the larger IT/ICT category 43 the percentages remain almost similar.
That being said, the absolute numbers are impressive: Germany reached 941,030 IT specialists in 2021. Together with the freelancers that means we have somewhere between 1 million and 1.1 million information technology experts!
- Hamburg — 4.9% — 46,150
- Berlin & Potsdam — 6.9% — 65,580
- Bremen — 1.1% — 10,570
- Hanover — 1.9% — 18,330
- Ruhrgebiet & Düsseldorf — 5.9% — 56,180
- Cologne & Bonn — 4.8% — 45,330
- Leipzig & Halle — 1.2% — 11,370
- Dresden — 1.2% — 11,550
- Frankfurt am Main, Wiesbaden & Mainz & surrounding cities — 8.3% — 78,590
- Mannheim & Heidelberg — 3.9% — 4,180
- Nuremberg, Fürth & Erlangen — 4.9% — 37,150
- Karlsruhe — 2.3% — 21,940
- Stuttgart — 5.3% — 50,570
- Freiburg — 0.6% — 6,510
- Munich & Augsburg — 10.1% — 95,290
The German Society for Personnel Management estimates much higher numbers for Berlin, but is mostly on par with the Federal Agency for Employment numbers everywhere else:
Now, these were the most prominent digital centers. If we combine our overview with the hidden champions and visually represent the employment agency districts a bit better (meaning: more broadly), we are able to capture 72.81% of all software developers in Germany:
Studying the market numbers can help significantly with hiring, DevRel and DevEx strategy.
Which numbers have you studied? What helped you identify where to set up your business, hire and/or foster local developer communities?
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