Global digitalization has accelerated significantly in the age of artificial intelligence. After all, services account for 71% of Germany’s GDP. This is reason enough to take a closer look at digital platforms and their impact on economic growth.
What are digital platforms?
Digital platforms are online services. This can include everything from social media and online courses to news platforms. Gambling also falls into the category of digital platforms. For example, online casinos in Germany generated a revenue of over 50 billion euros in 2024.
Digital platforms therefore also include companies like Google and Meta. Accordingly, these platforms have a significant impact on the economy, whether directly through tax revenue and job creation, or indirectly through the provision of services and communication channels.
A look at different sectors
Of course, some sectors contribute significantly more to a country’s economic output than others, but the total ensures that services and digital services make up the majority of GDP.
https://www.destatis.de/DE/Themen/Wirtschaft/Volkswirtschaftliche-Gesamtrechnungen-Inlandsprodukt/_inhalt.html#sprg229228
Let’s look at the e-commerce sector. In 2023, it generated a revenue of more than 85 billion euros . This figure continues to rise, underscoring the importance of online retail. Amazon, the world’s largest retailer, achieved a revenue of more than 16 billion euros in Germany alone.
The online advertising industry also continued to grow, reaching a value of €30.9 billion in 2024. This clearly demonstrates continued investment in marketing measures for online platforms. With more than 300,000 people employed in online marketing, it also quickly becomes apparent that, in addition to pure revenue, many people depend on this industry.
Across many sectors, be it online commerce, educational platforms or software companies, digital platforms create jobs and thus help the economy.
International competitiveness and Germany as a location factor
A look at the largest and highest-grossing digital platforms in Germany clearly shows that only a few of the companies are actually based in Germany. Amazon tops the list. Google with YouTube and Meta with Instagram are also among the highest-grossing digital platforms. SAP, the most valuable company in Germany and Europe, also secures a place among the top companies, although SAP is more of a software company than a digital platform. The online retailers of companies like Adidas and Puma can certainly be included in this list.
But what does it mean for Germany as a business location that only a few German companies appear on this list? The ifo research report on “ Expert Assessment of Global Location Competition ” states that more than half of the experts assume that Germany will continue to lose attractiveness as a business location within the next 10 years.
This particularly affects digital companies, as the regulations are too complicated and stimulate innovation. In the US, innovative companies are supported, while in Germany, bureaucracy tends to stifle them in their infancy.
