Munich claims top spot

31. May 2024

Munich has the highest proportion of digitally fit companies in Bavaria and confirms its position as a technology hotspot in the study from vbw and IW Consult.

Leading the way in Bavaria

Munich has the highest proportion of digitally fit companies in Bavaria and confirms its position as a technology hotspot in the study from the Bavarian Industry Association (vbw) and IW Consult.

Munich has the highest proportion of digitally fit companies in Bavaria, is renowned as a technology hotspot, and has a particularly effective digital ecosystem. These are the clear findings of the Wirtschaft 4.0 Index, a study of digitalization in business from the Bavarian Industry Association (vbw) and IW Consult, published in May 2024.

City of Munich well above Bavarian and German national average

On average, 7.9 percent of companies in Bavaria are considered digitally fit. The German national average is 7.5 percent.

Munich leads the way in the Wirtschaft 4.0 Index. Its proportion of digitally fit companies is 12.4 percent.

Vorstellung Digitaler Zweilling mit VR-Brille © Wagner / CUT

Photo: Wagner / CUT

An example of digitalization with Munich’s Digital Twin

More on the results for Munich

Digital technologies such as big data, blockchain, IoT, AI, and robotics enjoy above-average representation in the Bavarian capital. As a technology hotspot, Munich boasts a particularly favorable digital ecosystem. High population density, the increasing number of employees in large companies, the rising number of companies in digitally relevant sectors, as well as renowned research institutions all contribute to the outstanding performance of this ecosystem.

The city’s robust and strong economy is rooted in its broad and balanced mix of industries. Munich has the largest number of DAX-listed companies of any German city. Some of these companies have established their own innovation initiatives in the city. Digital startups also play an important role.

The Wirtschaft 4.0 Index

The Wirtschaft 4.0 Index is a study from the Bavarian Industry Association (vbw), conducted by IW Consult, to measure digital transformation in Bavaria.

Companies that use digital technologies, processes, products, or business models are termed digitally fit. The study looked at a total of 440,000 companies, which represents 70 percent of all Bavarian companies. The results reveal major regional differences.