Based on information and communication technology (ICT), digital technology is the core force for effectively allocating production factors and reshaping industrial structure. This paper constructs an ICT driven industrial structure change model, uses genetic algorithm to calibrate the parameters of the model, and explores the internal mechanism of the digital economy promoting the optimization and upgrading of China’s industrial structure. It is found that since ICT contributes more to the total factor productivity (TFP) in the tertiary industry than in the secondary industry, the diffusion effect of ICT can drive the upgrading of industrial structure. As ICT has the smallest contribution to the TFP of the primary industry, the household consumption structure shows the characteristics that the consumption weight of industrial products and service products is higher than that of agricultural products, and the consumption weight of services is largest，the diffusion effect and substitution effect of ICT can jointly drive the optimization of industrial structure. Further study has found that ICT has a more significant driving effect on the optimization and upgrading of industrial structure in regions with “service-oriented” tendencies or characteristics, compared with regions with “industrialized” characteristics.