Russia's Internet Economy Hit 17.1 Trillion Rubles in 2023, Up 40% Year on Year

Russia's internet economy reached 17.1 trillion rubles in 2023, a 40% increase over the previous year, according to the "White Book of Digital Economy 2023" presented by the ANO "Digital Economy" organisation.

The comprehensive annual study, prepared by the project office for the national programme "Digital Economy of the Russian Federation" with support from the government and the Ministry of Digital Development, shows the sector has grown more than 3.5 times over five years — from 4.7 trillion rubles in 2019 to 17.1 trillion in 2023. The Russian Association of Electronic Communications (RAEC) forecasts another 40% expansion in 2024, which would bring the total to 23.8 trillion rubles.

Digital services and government portal

In 2023, 100% of mass socially significant services in Russia were converted to electronic form, with more than 340 million services delivered. The daily audience of the Unified Portal of Government Services (EPGU) exceeds 11 million people, and 2,437 online government services are now available to citizens and businesses.

Investment in domestic IT solutions totalled 586.9 billion rubles, while the number of accredited IT companies surpassed 19,000 by the end of 2023. The country's internet audience stands at 103 million people, who spend an average of 4 hours and 43 minutes online each day.

Internet advertising and connectivity

The internet advertising and marketing segment grew 45% year on year to 564 billion rubles. Russia continues to rank among the countries with the lowest cost of internet access, both wired and mobile. However, data from the Ookla Speed Test Global Index shows a widening speed gap with leading nations: in 2023, Russia dropped six places in average mobile internet speed to 105th (as of February 2024) and two places in fixed broadband speed to 65th.

Artificial intelligence and emerging technologies

Between 2019 and 2023, 19.4 billion rubles were directed toward AI development. Some 35% of Russian companies have developed and implemented AI strategies, and 45% of small business representatives report using AI technologies in their operations. The generative AI market is projected to grow by an average of 25% annually through 2030.

• Internet of Things market volume: 34.4 billion rubles
• 116 companies were engaged in integrating robotic systems in 2023
• Unmanned transport market forecast by 2030: $9.5 billion, assuming commercial freight launches
• Unmanned aviation market forecast by 2030: 120 billion rubles

Workforce challenges and cybersecurity

Information security specialists remain among the most scarce professions on the Russian labour market. According to estimates by Positive Technologies and the CSR "North-West", the total additional need for cybersecurity employees will exceed 100,000 by 2027, but training programmes are expected to produce only 86,000 new specialists — leaving a deficit of around 60,000 workers.

The most significant cyber threats in 2023 included DDoS attacks, phishing, ransomware and spyware. Data from Kaspersky, F.A.C.C.T. and InfoWatch indicate that the number of data-breach incidents actually decreased in 2023, largely due to significantly higher cybersecurity spending by Russian organisations.

"The most critical situation today is the component base. If significant results have already been achieved in software by our developers, then in terms of hardware, even equipment listed in the Ministry of Industry and Trade register depends heavily on foreign components," said Karen Kazaryan, Director of Analytics at ANO "Digital Economy".