The digital economy is a cornerstone of today’s world. It shapes how societies function, how governments operate and how businesses across all industries create value.
Rapidly expanding and continually evolving, the digital economy is projected to grow at 9.5 percent in 2026, reaching an estimated value of $28 trillion. That is three times faster than the global economy, according to a recent report by the Digital Cooperation Organization.
With this acceleration, stakeholders need a current and comprehensive insight into the digital economy trends that are driving opportunities for innovation, economic growth and social and environmental progress. They must also understand new risks that require both long-term vision and near-term action to ensure the digital economy remains inclusive, resilient and sustainable.
Technology is redefining possibilities
The report identifies 18 trends for 2026, grouped under three themes: Sustainable Intelligent Ecosystems, Empowered Communities and Trust and Security. They include 12 current trends, which are expected to accelerate in the next 12-18 months, and six emerging trends, with the potential to be disruptive in the next 3-5 years.
Reflecting the rapid pace of change, only three trends are a continuation from last year’s report. Eleven are evolutions of earlier trends. One has materialized — emerging last year, current this year. The remaining three are new.
“The digital economy continues to accelerate at a remarkable speed, reshaping how we live, work and connect. Driven by breakthroughs in artificial intelligence (AI), data-powered services and increasingly integrated digital platforms, technology is redefining our possibilities. As the pace of change quickens, the need for clarity, evidence and actionable guidance becomes even more urgent,” says DCO Secretary-General Deemah AlYahya.
AlYahya explains that this year’s findings point to a defining moment in the evolution of AI. Vertical AI is reshaping specialized industries, agentic AI is redefining autonomy and interaction and ambient AI is weaving intelligence seamlessly into daily life. Together, these shifts reveal a profound truth: the next wave of digital innovation will only be as inclusive as the infrastructure that enables it.
Cybersecurity and ambient intelligence are set to drive near-term impact
The report highlights that strengthening end-to-end cybersecurity and the emergence of ambient intelligence are poised to generate the most significant socio-economic benefits in 2026.
Cyber-resilience has become a top priority in the face of increasingly sophisticated cyberattacks, widening skill gaps and new risks linked to generative AI and future quantum technologies. Meanwhile, improvements in connectivity and localized AI are powering ambient intelligent systems that integrate seamlessly into everyday life, enhancing experiences and efficiencies while emphasizing the need for strong safeguards and responsible deployment.
Looking three to five years ahead, the report identifies the convergence of frontier technologies as the key driver transforming the digital economy. Rapid AI advancements are accelerating progress in robotics, spatial computing, biotechnology and other sectors, fostering experimentation but also introducing challenges around workforce transitions, digital governance, infrastructure resilience and safety standards.
Digital transformation unlocks trillions in global economic value
The report also highlights the immense economic potential arising from digital transformation as technologies mature and achieve global scale. The report identifies key areas of value creation, including up to $4.14 trillion from immersive hybrid technologies, nearly $4.91 trillion from AI-driven workforce transformation and roughly $3.63 trillion from the comprehensive modernization of digital trade.
In addition, strengthening end-to-end cybersecurity and investing in resilient digital infrastructure could generate around $3.13 trillion in potential value, underscoring the critical role of cyber preparedness as digital systems become increasingly integral to economies worldwide.
Stronger public-private collaboration to close capability gaps
Although the growth of the digital economy is evident, the report highlights significant variation in readiness across regions and sectors. Survey respondents indicate that the private sector is generally best positioned to respond to the digital trends shaping 2026, emphasizing the need for stronger public-private collaboration to close capability gaps and promote inclusive outcomes.
As decision-makers work to harness the opportunities of the digital economy, four cross-cutting priorities stand out. First, strengthening governance and trust is essential, with governments and international organizations reducing legal fragmentation, enhancing regulatory alignment, and fostering interoperable standards for technologies such as AI, cloud services, cybersecurity, and quantum computing.
Second, expanding inclusive access ensures all countries can participate fully in digital value chains, through secure data flows, interoperable systems, digital-trade frameworks, and recognition of skills and talent mobility.
Third, building innovation ecosystems requires supporting cross-border capital, regional accelerators, research hubs, and SMEs—especially in underserved communities—to translate technological advances into broad-based gains.
Finally, promoting a sustainable digital economy involves embedding resilience, energy efficiency, and robust cyber protections to mitigate systemic risks.
Coordinated national and multilateral action across these areas can help create a secure, inclusive, and people-centered digital economy grounded in shared prosperity.
