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Germany is often referred to as a “car country”—at least for now. But a look at current economic value creation shows that the balance of power has long since shifted. The digital economy is now significantly larger than the automotive industry and has become one of Germany’s most important economic drivers.
According to a recent study by the German Digital Economy Association (BVDW) and the Mannheim-based research institute ISTARI.AI, the German digital economy generates approximately 481.5 billion euros in gross value added annually. This corresponds to 11.91 percent of Germany’s total economic output. As a result, nearly one in every eight euros of Germany’s gross value added now comes from the digital economy.
By comparison, the automotive industry accounts for about 4.5 to 5 percent of Germany’s gross value added. The digital economy is thus more than twice as large as the traditional automotive industry.
This trend becomes particularly interesting when digitalization is not limited to traditional technology companies. After all, digital value creation now occurs in virtually every industry. Companies in manufacturing, retail, finance, and services are using digital technologies and have adapted their business models accordingly.
When the study therefore includes companies from traditional sectors whose value creation is already heavily influenced by digitalization, it arrives at an impressive figure of more than one trillion euros. Specifically, digitally driven value creation amounts to over 1.01 trillion euros. This means that more than a quarter of Germany’s total gross value added is already digitally driven.
Above all, the figures show one thing: digitalization is no longer a niche segment of the economy. It permeates nearly all industries and is transforming where and how value is created in Germany. A company therefore does not have to be a traditional software or technology firm to be part of the digital economy.
This is precisely what makes the new study unique. Traditional statistics categorize companies into fixed industries. As a result, a digitally oriented company may, for example, still be classified as an industrial, retail, or financial firm, even though a large portion of its value creation is now based on digital business models, data, and technologies. The study therefore seeks to focus more closely on the actual business activities of these companies.
The results shift our perspective on the German economy. While the importance of the automotive industry is often discussed, the study shows that digitalization has long played an even greater economic role. And this isn’t just about large technology conglomerates or startups. Digitalization has become a cross-cutting issue that encompasses nearly the entire economy.
This is an important development for Germany. In the future, the strength of the German economy will not depend solely on how many cars, machines, or other industrial goods are produced. Equally crucial will be how successfully companies utilize data, software, artificial intelligence, and other digital technologies.
The traditional image of “Germany as a car-making nation” is thus being expanded: Germany has long since become a digital economic powerhouse as well. The latest figures clearly show just how large this sector has become—and how profoundly digitalization is transforming the entire German economy.
17.09.2026, by Waltraud Ritzer