- Global digital economy projected to reach USD 16.5 trillion by 2028.
- Expected to represent 17% of global GDP by 2028.
- Online retail and travel sectors are the primary growth drivers with a CAGR of 6.9% from 2023 to 2028.
- USA and China will account for nearly two-thirds of the global digital economy.
- South Korea leads in R&D investments focused on AI, 5G/6G networks, metaverse, and cybersecurity.
Boston, August 19 (FFN) – The global digital economy is projected to reach a staggering USD 16.5 trillion (EUR 15 trillion) by 2028, driven primarily by the growth in online retail and travel sectors. This was revealed in a study conducted by the research and consulting firm Forrester, as reported by BusinessTimes.
According to the Global Digital Economy Forecast report, the digital economy’s expansion will represent 17% of the global Gross Domestic Product (GDP) by 2028. The study examines the size and growth of the digital economy in areas such as technology spending, retail, and tourism. It forecasts a compound annual growth rate (CAGR) of 6.9% between 2023 and 2028.
Nearly two-thirds of the global digital economy will be driven by the United States and China. The key growth drivers, with a CAGR in the range of 7% to 9%, will be the online retail and tourism sectors.
Michael O’Grady, the Chief Analyst at Forrester, stated, “The World Economic Forum estimates that over two-thirds of new value creation in the next decade could come from digital platforms.” He further emphasized that countries must focus on digital businesses, public services, digital skills, increased R&D spending, and investments in technologies that influence non-digital activities to support the growth of the digital economy.
The United States accounts for 42% of global technology spending, while China has the largest share in the digital economy in e-commerce, with 39% of retail sales conducted online in 2024. This is expected to rise to 41% by 2028.
Additionally, the report highlights that South Korea allocates the most funds (relative to the size of its economy) to R&D focused on investments in areas such as artificial intelligence (AI), AI semiconductors, 5G and 6G networks, the metaverse, and cybersecurity.
On the other hand, digital investments in Europe are lagging, with projected average annual growth in technology spending between 2024 and 2027 expected to reach EUR 83 billion, significantly less than the EUR 125 billion required by the European Commission.
According to Forrester, the top six digital economies by size are the United States, China, the United Kingdom, Japan, Germany, and South Korea. (1 EUR = 1.0994 USD)
Key Data Points
| Metric | Value |
|---|---|
| Projected Global Digital Economy Value by 2028 | USD 16.5 trillion (EUR 15 trillion) |
| Percentage of Global GDP by 2028 | 17% |
| CAGR (2023-2028) | 6.9% |
| Share of Global Technology Spending – USA | 42% |
| Share of E-commerce in Global Retail – China (2024) | 39% |
| Expected Share of E-commerce in Global Retail – China (2028) | 41% |
| Average Annual Growth in European Technology Spending (2024-2027) | EUR 83 billion |
| Required Growth in European Technology Spending | EUR 125 billion |
