Digital economy set to hit USD $28 trillion in 2026
The global digital economy is forecast to grow 9.5% in 2026 and reach an estimated USD $28 trillion, according to a new outlook from the Digital Cooperation Organisation.
The projection suggests the digital economy will expand around three times faster than overall global economic output. The report estimates that digital activity will account for about 22% of global GDP next year.
The Digital Economy Trends 2026 report draws on survey responses from more than 400 policymakers, economists and technology leaders across 26 countries. The analysis identifies 18 trends that respondents expect will shape industries, societies and governments.
"The digital economy is reshaping our world with unprecedented speed, and the true test of this new era will be whether its benefits reach everyone. The next wave of AI-driven innovation will only be as inclusive as the foundations we build today. With the Digital Economy Trends 2026 report, we call on the global community to act decisively - so that technology becomes not a divider, but a bridge to opportunity, resilience, and shared prosperity for all. The future of the digital economy will be defined not by the speed of innovation, but by how inclusively it is built. This report is a call to strengthen the foundations that make AI accessible, safe, and empowering for all and to act together before the gap becomes irreversible," said DCO Secretary-General Deemah AlYahya.
The survey respondents ranked three themes as especially significant for near-term and medium-term impact. These are strengthening end-to-end cybersecurity, the emergence of ambient intelligence and the convergence of a range of frontier technologies.
Cybersecurity focus
The report states that strengthening end-to-end cybersecurity is the top trend for 2026. Respondents highlighted rising cyberattacks, growing gaps in institutional capability and emerging risks linked to generative AI and prospective quantum computing.
The analysis links an estimated USD $3.13 trillion in potential value to improvements in cybersecurity and investment in more resilient digital infrastructure. This figure reflects the expected economic impact if organisations scale security practices alongside broader digital expansion.
Preparedness varies by region and sector. Respondents view the private sector as better prepared than governments and civil society to manage these risks in the coming year.
Ambient intelligence
The report identifies the "Dawn of Ambient Intelligence" as another major trend in 2026. It attributes this shift to widespread connectivity and more localised use of AI in devices and services.
Ambient intelligent systems embed computation and sensing more deeply into everyday environments. The report states that these systems are starting to merge into daily life and change how users experience services and interactions.
The authors link these developments with new commercial opportunities and new policy questions. They highlight a need for safeguards and clearer approaches to responsible use as AI-driven features spread in consumer and industrial contexts.
Converging technologies
Looking over a three to five year horizon, the report identifies "Converging Frontier Technologies" as the most transformative trend for the digital economy. This convergence spans AI, robotics, spatial computing and biotechnology, among other fields.
The report states that advances in AI are speeding up experimentation across these areas. It links this acceleration with questions about workforce transition, digital infrastructure resilience, governance frameworks and safety standards.
Respondents expect this convergence to alter how value is created in sectors including manufacturing, healthcare, logistics and creative industries. They also anticipate more complex regulatory debates over data use, automation and cross-border digital flows.
Economic potential
The report outlines several areas where digital trends could generate large increments of economic value if adoption and policy keep pace. It estimates up to USD $4.14 trillion in potential value from immersive hybrid technologies. This category includes virtual and augmented reality and related spatial computing applications.
AI-accelerated workforce transformation could account for nearly USD $4.91 trillion in additional value, according to the analysis. This figure covers productivity gains from automation, new forms of work and expanded digital labour markets.
The report estimates around USD $3.63 trillion in potential value from a more holistic transformation of digital trade. This includes broader use of digital channels in goods and services trade and the streamlining of cross-border processes.
Across these areas, the authors state that actual outcomes will depend on investment levels, regulatory clarity and institutional capacity in both advanced and emerging economies.
Measuring readiness
The DCO positions the new trends report alongside its Digital Economy Navigator tool. The Navigator measures the digital maturity of countries using a separate framework.
The organisation states that the two resources together give a picture of both direction and readiness. Policymakers and industry leaders can compare expected trend impacts with current levels of digital infrastructure, skills and regulation.
The DCO is an intergovernmental body that focuses on digital policy cooperation among its 16 member states. The bloc represents nearly USD $3.5 trillion in GDP and a combined population of more than 800 million people.
More than 70% of citizens across member states are under the age of 35. The organisation works with governments, the private sector, civil society and international institutions on digital inclusion, data flows, participation of women and youth, and support for entrepreneurs and small businesses.
AlYahya said the new trends analysis forms part of a wider effort to align digital growth with broader economic and social objectives. "This report is a call to strengthen the foundations that make AI accessible, safe, and empowering for all and to act together before the gap becomes irreversible," said AlYahya.
