Wintergerst: “In recent days, the federal government has demonstrated a clear commitment to reform and innovation and made it clear that it wants to give the economy a new boost. Now it is crucial to underpin this ambition with a smart digital policy program. Germany can only maintain its economic strength, prosperity, and security if it becomes faster, more efficient, and, above all, more digital.”
Within the digital economy, the large IT sub-sector in particular is growing at a dynamic pace. For 2026, Bitkom expects IT revenue to rise by 5.4 percent to 170.8 billion euros. The software business is once again growing particularly strongly: Revenue in this sector is projected to increase by 9.9 percent this year to 58.1 billion euros. A significant portion of this is attributable to software for operating public clouds. Cloud software alone is projected to generate 42.5 billion euros in revenue in 2026, an increase of 21.9 percent compared to the previous year. Software thus remains the key driver of growth in the digital economy. Artificial intelligence is also continuing to gain momentum, though it currently accounts for only a fraction of the software market. According to Bitkom’s calculations, revenue from AI platforms will rise by 75.8 percent to 3.1 billion euros in 2026, following a 50 percent increase in 2025. “Software, the cloud, and AI are the key growth drivers of the digital economy. They are increasingly determining how competitive companies are, how quickly Germany puts innovations into practice, and how efficiently public administrations operate,” says Wintergerst.
Infrastructure-as-a-Service with a strong increase of 22 percent
The other IT segments are also performing well. IT services are projected to grow by 3.1 percent in 2026, while IT hardware such as laptops, printers, and monitors is expected to grow by an average of 3.3 percent. Within the IT hardware sector, cloud-based IT infrastructure (Infrastructure-as-a-Service) is growing particularly strongly, with a 22.3 percent increase. Security devices, workstations, servers, and data storage are also recording growth. Wintergerst: “We’re seeing significant price effects on IT hardware growth. Higher prices for RAM and chips are driving up revenue, even though sales figures are declining in many segments.” By contrast, there are declines in areas such as desktop PCs, tablets, and AR/VR and smart home devices. “Companies are investing primarily in areas where digitalization directly enhances productivity, scalability, and security,” said Wintergerst.
The telecommunications market will continue to grow only moderately in 2026. Bitkom expects the telecommunications sector to grow by 1.4 percent to 75.6 billion euros. The largest share of this growth comes from the telecommunications services sector, which accounts for 53.9 billion euros and a slight increase of 0.9 percent. Revenue from telecommunications infrastructure will rise by 4.2 percent to 8.3 billion euros. This marks a recovery following the dip in 2023 and 2024. Revenue from end devices such as smartphones will grow by 1.6 percent, slightly exceeding the previous year’s level at 13.4 billion euros.
“High-performance networks are the foundation for digitalization, AI, and people’s digital participation. Telecommunications companies are investing heavily in the expansion of this infrastructure. For this to happen, the framework conditions must be right: investments in networks must be supported and must not be hindered,” says Wintergerst. “This includes prioritizing power connections for cell towers as well as consistently implementing the overriding public interest in network expansion at the local level.”
One in four companies plans to increase investments
The industry also shows stability when it comes to investments. Twenty-three percent of ICT companies plan to invest more in 2026 than in the previous year, 57 percent intend to maintain their current investment levels, and 20 percent plan to reduce their investments. Funding is primarily directed toward software, research and development, and equipment. “It is now crucial that policymakers create planning certainty and facilitate investments in digitalization by reducing regulation,” Wintergerst emphasizes.
After all, Germany is lagging behind in international comparisons. The global ICT market is projected to grow by 8.5 percent to 5.9 trillion euros in 2026. The U.S. dominates with a 41 percent share and 12.7 percent growth. Germany accounts for a 3.8 percent share and 4.1 percent growth. “The gap between the U.S. and China on the one hand, and Germany and its European neighbors on the other, is widening further. If the U.S. is growing three times as fast as Germany, this shows that other countries are adopting digital technologies more decisively and investing heavily in digital infrastructure such as data centers and innovations. Our goal must be to match, if not the revenue volumes, then at least the growth rates of the U.S.,” said Wintergerst. “Germany must view digitalization as a driver of growth. Those who accelerate now will strengthen the country’s competitiveness, resilience, and future viability.”
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