Based on panel data from 30 provinces (autonomous regions, municipalities) in China between 2013 and 2022, this paper constructs an evaluation index system for the digital business environment and employs fixed-effects models and mediation effect models to examine and analyze the mechanism through which the digital business environment facilitates industrial structure upgrading. The research finds that the development of the digital business environment promotes both the overall industrial structure and internal transformation and upgrading. This effect is primarily realized through optimizing resource allocation, enhancing innovation capacity, and fostering mass entrepreneurship. The impact of the digital business environment on industrial structure upgrading exhibits significant heterogeneity due to differences in locational conditions, economic development levels, and internal dimensions of the digital business environment. In the future, government departments should increase investment in and construction of digital infrastructure to fully unleash the potential of the digital business environment in promoting industrial structure upgrading. Additionally, they should continuously adjust the focus of industrial structure upgrading based on differences in locational conditions and economic development levels, thereby providing solid support for high-quality economic development.