KfW: German SMEs' digitalization momentum slows significantly
Digitalization activities among German small and medium-sized enterprises (SMEs) are losing momentum significantly, according to KfW's latest report. The proportion of companies undertaking digitalization projects has decreased.
The pace of digitalization among German small and medium-sized enterprises (SMEs) has slowed considerably, according to the new "KfW-Digitalisierungsbericht Mittelstand 2025" report from KfW. Only 30 percent of companies have recently carried out digitalization projects, a figure that returns to pre-pandemic levels.
The report also indicates a decline in digitalization expenditures. This suggests a reduction in investment in digital technologies within this business segment.
A persistent challenge highlighted in the report is the significant digital divide between larger and smaller SMEs. Larger companies typically possess more resources to invest in and implement digital solutions, while smaller businesses may struggle to keep pace with technological advancements.
The findings are based on extensive research into German SMEs and provide crucial insights into the current state and challenges of digital transformation within the country's business landscape. KfW continues to monitor these trends.