As the largest economy in the European Union, Germany surprisingly ranks near the bottom in digital engagement among the 11 countries studied in PYMNTS Intelligence’s “How the World Does Digital” report, which analyzes the digital behaviors of over 817 million consumers across countries such as Brazil, Singapore, the United States, Spain and Italy.
The report goes beyond basic internet usage, delving into various aspects of digital life including banking, shopping, communication and entertainment. Germany’s low ranking comes even as it enjoys strong internet infrastructure (91.7% high-speed broadband access in 2022) and a high GDP. The report sheds light on a potential vulnerability for Germany’s future competitiveness in the digital age.
Germany’s robust economy may mask a vulnerability in the digital age, according to the report. The study highlights a potential disconnect between the country’s strong infrastructure and its digital habits, citing cultural preferences for cash payments and a generational gap in digital engagement.
Consider that 37% of Germans used cash for their last physical transaction, a figure significantly higher than other countries. Germany has near-universal access to 4G networks, high smartphone ownership (90% of adults), and growing 5G availability (40%).
Video streaming leads the pack as the most popular digital activity among German citizens, with 51.6% of the population engaging in it weekly. Messaging (49.3%), online banking (42.2%), music streaming (41.9%) and mobile banking (41.3%) complete the top five weekly digital activities.
Mobile gaming (39.9%), watching a livestream (36.1%), home office (41.4%), passive social media (35.5%) and computer gaming (35.3%) round out the top 10 most popular weekly digital activities among Germans.
Regarding monthly engagement, messaging tops the list with an average of 12.3 days per month. Video streaming (12.2 days), music streaming (10.3 days), mobile gaming (10.1 days), and online banking (9.4 days) make up the top five monthly digital activities.
Completing the top 10 monthly digital activities are watching a livestream (9.1 days), mobile banking (9 days), passive social media (8.7 days), home office (8.3 days), and shopping on a marketplace (7.9 days).
Generation Z leads the way in Germany for highest digital engagement (439 activity days), followed by millennials (346 days), Generation X (211 days) and baby boomers (118 days). High-income earners are the most digitally active (249 days), followed closely by middle-income (247 days), and low-income earners (213 days).
The European Commission’s 2024 Digital Decade Country Report for Germany paints a picture of progress alongside challenges. While Germany boasts advancements in certain areas, significant gaps remain when compared to the European Union average.
On the positive side, Germany is nearing full coverage for 5G networks and has shown improvement in basic digital skills, with more than half (52.2%) of the population now possessing them. In contrast, there are areas where Germany needs to catch up. Fiber optic infrastructure, crucial for high-speed Internet, lags far behind the EU average, with a current coverage of only 29.8%. Similarly, the share of high-speed broadband exceeding 1 Gbps falls short of the EU benchmark. Public service digitization also requires improvement, particularly for businesses.
Germany’s Digital Strategy 2025 outlines a bold vision for a digitally literate population by 2025. The plan focuses on education at all levels. Every school student will be equipped with foundational knowledge in information science, algorithms and programming. To achieve this, these subjects will be integrated into primary and secondary school curriculums, along with dedicated teacher training programs.
Beyond schools, Germany aspires to be a leader in educational digital infrastructure. The strategy also emphasizes the importance of lifelong learning, with workplaces becoming the primary platform for acquiring new IT skills. To support these initiatives, all publicly funded educational institutions will be required to make essential teaching materials readily available online. This comprehensive approach aims to ensure Germany maintains its competitive edge and technological leadership in the digital age.
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