In the context of digitalization, the work aims to explore the strategies of digital technology in promoting the innovation of intangible cultural heritage Liangping New Year Painting products. Through the empowerment by digital technology, the intangible cultural heritage is closely integrated with market demand, enterprise demand, and consumer demand, achieving product innovation, promoting industrial transformation and upgrading, and activating new vitality of culture in the intangible cultural heritage. Through literature review and big data analysis, the issues in the market and products of Liangping New Year Painting were found out and discussed from the perspectives of intangible cultural heritage market trend, consumer analysis, analysis of consumer characteristics, and category analysis of the intangible cultural heritage industry. The overall consumption of intangible cultural heritage increased year by year, showing a trend of digitalization promoting innovative development of intangible cultural heritage and diversified channels for its dissemination. Exploring the deep involvement of digital technology in the selection, research and development, sales, and promotion of intangible cultural heritage products effectively supported the innovative development of intangible cultural heritage products and promoted the transformation and upgrading of the Liangping New Year Painting culture industry. The big data research and product selection, AI assisted product design innovation, precise digital marketing to reach target audiences, unique IP to strengthen brand image, and digital technology can promote the transformation and upgrading of the Liangping New Year Painting industry. A new model of innovative development for intangible cultural heritage Liangping New Year Painting products is formed, which is characterized by technology empowerment, design innovation, IP promotion, consumption assistance, wide dissemination and industrial iteration.