Germany's Digital Economy Grows 2026 as AI and Cloud Drive ITK Market

The German digital sector is forecast to expand in 2026 despite a broader economic slowdown. Bitkom projects the information technology and telecommunications (ITK) market to grow 4.1% to €246.4 billion, with software leading at a 9.9% increase to €58.1 billion. Cloud software revenues are expected to reach €42.5 billion, up 21.9%, while AI platform sales should surge 75.8% to €3.1 billion. The IT hardware segment is predicted to rise 3.3%, driven mainly by higher prices for RAM and chips despite lower unit sales. Telecommunications will grow modestly by 1.4% to €75.6 billion, with infrastructure investment up 4.2%. Bitkom president Ralf Wintergerst warned that Germany’s global ITK share remains low at 3.8%, lagging behind the United States (41% share) and China, and urged accelerated network expansion and investment in AI and cybersecurity.

The report highlights a shift in corporate spending toward cloud‑based infrastructure and AI operations, emphasizing the need for robust governance and security as AI moves from prototype to production. While hardware sales decline in categories like desktops and tablets, demand for cloud‑driven resources continues to rise, underscoring a structural transition in the sector.