The German IT and telecommunications market is set to grow 1.4 percent to 141.6 billion euros this year, according to the industry association, BITKOM.

The projection marks a change from just six months ago, when the association expected sales for the year to remain flat.

"The high-tech market is picking up strongly," said BITKOM President August-Wilhelm Scheer.

Speaking at the IT & Business fair in Stuttgart this week, Scheer said the recovery will be underpinned by the availability in Germany of highly qualified specialists and the acceleration of many public-sector high-tech projects.

For 2011, BITKOM expects growth of 2 percent to 144.5 billion euros, he said

Sales of IT products and services ”“ excluding telecommunications - are set to rise 2.7 percent to 65.4 billion euros this year. BITKOM expects sales to increase 4.3 percent in 2011.

The market for software and IT services is expected to increase 1.7 percent to 46.7 billion euros this year, with strong impulses coming from the introduction of operating systems and Cloud Computing, Scheer said.

BITKOM expects the market for Cloud Computing to grow from 1.1 billion euros this year to 8.2 billion euros in 2015. Once that happens, about 10 percent of all German IT expenditures will go to Cloud-based solutions.