2025 State of the Digital Decade report: Progress made, but gaps persist
The data shows persisting challenges, such as fragmented markets, overly complex regulations, security and strategic dependence.
The European Commission released its third State of the Digital Decade report 2025, assessing the EU’s trajectory toward achieving its 2030 digital objectives. The report examines progress in four key areas: digital infrastructure, business digitalisation, digital skills, and public service digitalisation. It reveals both improvements and persistent shortcomings that challenge the EU’s ambition to lead in the global digital economy.
Connectivity and infrastructure gaps
Despite some advancements, the expansion of essential infrastructure, particularly fibre-optic networks and 5G stand-alone systems, remains insufficient. Edge node deployment has improved, offering benefits such as reduced latency and lower energy use, but broader connectivity remains uneven. The report also flags ongoing vulnerabilities in underdeveloped submarine cables and satellite systems, which leave the EU reliant on non-European providers and exposed to strategic and security risks.
Slow uptake of advanced digital technologies in business
More European companies are incorporating AI, cloud computing, and big data into their operations, but the pace of adoption falls short of what is needed. The EU’s reliance on foreign technology providers persists, particularly in AI, cloud infrastructure, semiconductors, and quantum technologies, sectors that are increasingly vital for economic and strategic autonomy.
Digital skills lag behind societal needs
Basic digital literacy is held by just over half (55.6%) of EU citizens. While this marks a degree of progress, it is not sufficient to meet the challenges of a digital society. The shortage of highly skilled ICT professionals, especially in fields such as cybersecurity and AI, is compounded by a pronounced gender gap. These shortages constrain both innovation capacity and the resilience of digital ecosystems.
Public sector digitalisation advances but depends on external providers
The EU made steady progress in 2024 in making public services more digitally accessible. However, a significant portion of the government’s digital infrastructure continues to rely on foreign service providers. This dependence raises concerns about data security, interoperability, and the EU’s ability to safeguard critical digital functions.
Policy direction and recommendations
The report emphasises that fragmented markets and complex regulatory environments remain barriers to progress. To meet its 2030 targets, the EU must boost both public and private investment, expand access to venture capital, and promote structural reforms that deepen the integration of the Single Market.
Simplifying administrative procedures and involving regional and local governments more actively in digital strategies are also identified as key opportunities. The Commission estimates that such actions could increase the EU’s GDP by an additional 1.8% by the end of the decade.
Looking ahead, member states will consider the Commission’s findings and recommendations in national policy reviews. The Commission plans to reassess the targets of the Digital Decade Policy Programme (DDPP) in 2026 to ensure alignment with evolving priorities and technological developments.
