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State of Digital Sovereignty 2025

Digital sovereignty is a key issue for companies and public authorities in Germany in 2025. However, there is still a significant gap between strategic aspirations and operational implementation. The market is still clearly dominated by US providers in key areas.

84.4 percent of IT decision-makers favor European digital products for KRITIS.
7 out of 10 companies would switch to European providers if performance and security were comparable.
Companies are blinded by false IT sovereignty

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The most important insights at a glance

Risks of Digital Dependency

Loss of control: Data access by US authorities (CLOUD Act, FISA).
Economic pressure: Price increases are driving municipalities toward open source (e.g., Copenhagen, Lyon).
Legal uncertainty: GDPR conflicts jeopardize competitiveness.

IT Landscape Anchored by US Providers

Cloud dominance of hyperscalers: Around 40 percent of companies report strong dependence on cloud and IT security.
EU strong in classic solutions: European providers account for 30 to 40 percent of the market share for ERP and financial software.
Alternatives little known: Even with new technologies such as AI, there is often a lack of knowledge about European alternatives. Only one in five decision-makers is familiar with European AI software.

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To the Sovereignty Check

Government Funding as the Key to Digital Sovereignty

With its “Parcours de cybersécurité” program launched in 2021, France is demonstrating how targeted government funding can improve cybersecurity in public institutions in the long term.

Broad support: The national cybersecurity agency ANSSI provided a total of €176 million in support to 945 municipalities, hospitals, and other institutions.
Concrete measures: Over 3,000 security measures have been implemented, ranging from system hardening and network segmentation to backup strategies.
Measurable success: The cyber maturity level of participants rose significantly from “D+” to “B.” In addition, there is a stronger commitment to greater cybersecurity: the program for strong commitment significant increase in investment in cybersecurity: municipalities invested an average of 30 percent more than the amount of funding received

The French funding program and the survey results clearly show how financial incentives can drive the implementation of new solutions in a targeted manner. More than half of decision-makers would switch to European providers if funding programs were available. A corresponding “sovereignty check” for public IT procurement in Germany could strengthen the focus on European solutions and actively promote digital sovereignty.