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AI Spending in Germany Hits 28.7 Billion Euros in 2026

IDC data compiled by industry group Bitkom puts Germany's 2026 AI market at 28.7 billion euros, up 48 percent, with software the biggest block.

AI Spending in Germany Hits 28.7 Billion Euros in 2026
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In short

Companies and public agencies in Germany will spend 28.7 billion euros on AI in 2026, 48 percent more than the 19.4 billion euros of 2025, according to IDC figures published by the industry group Bitkom.

At a glance

  • German AI market in 2026: 28.7 billion euros, up from 19.4 billion euros in 2025 — growth of 48 percent.
  • Software 16.0 billion euros (+65%), services 6.8 billion euros (+30%), hardware 5.8 billion euros (+32%).
  • Generative AI: 11.5 billion euros, about 40 percent of the market, roughly double the 5.7 billion euros of 2025.
  • 2027 projection: 40.3 billion euros, growth of 40 percent.
  • Data source: market figures from IDC, published by the digital association Bitkom on September 22, 2026.

Germany will spend 28.7 billion euros on artificial intelligence in 2026, 48 percent more than the 19.4 billion euros recorded for 2025. The numbers come from the market researcher IDC and were published on September 22, 2026 by Bitkom, the German digital industry association.

Where the money goes

Software is the largest line item at 16.0 billion euros, up 65 percent, and accounts for more than half of the market. Services follow at 6.8 billion euros, up 30 percent, and hardware at 5.8 billion euros, up 32 percent. Machines and compute capacity are therefore the smallest share of the total.

Those three items add up to 28.6 billion euros. The gap to the headline total of 28.7 billion euros comes from rounding the individual values.

Generative AI doubled in a year

Generative AI alone represents 11.5 billion euros, roughly 40 percent of the market, against 5.7 billion euros in 2025. Bitkom president Ralf Wintergerst described the shift as a move out of an experimentation phase and into broad productive use across industries and company sizes.

Why you may see 50 percent instead

Some German coverage puts the increase at 50 percent in its headline while quoting 48 percent in the text. Both refer to the same jump from 19.4 to 28.7 billion euros: the precise figure is just under 48 percent, rounded up for the headline. The lower number is the one to cite.

The 2027 projection

IDC expects the German AI market to reach 40.3 billion euros in 2027, growth of 40 percent. That is slower than 2026 in percentage terms, but it is measured against a much larger base. It is a forecast rather than recorded spending.

What the figures do not cover

Neither report explains how IDC draws the boundary of the market — whether internal staff costs, cloud billing or data-center energy are counted in. Neither breaks the spending down by industry or by company size. Both questions remain open based on the sources available here.

◈ AI-GENERATED REPORT · SOURCES LINKED

FAQ

How much is Germany spending on AI in 2026?

28.7 billion euros, up from 19.4 billion euros in 2025, which works out to growth of 48 percent.

Which part of Germany's AI budget is largest?

Software, at 16.0 billion euros or more than half the market. Services account for 6.8 billion euros and hardware for 5.8 billion euros.

What is the 2027 forecast for the German AI market?

IDC projects 40.3 billion euros, 40 percent above 2026. That is a projection, not measured spending.

Sources

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