State of the Digital Decade 2024

The European Commission’s “State of the Digital Decade 2024” report provides an insightful overview of the EU’s progress towards its ambitious digital transformation targets for 2030. This comprehensive assessment outlines significant achievements, ongoing challenges, and key areas requiring attention to ensure the EU remains at the forefront of the global digital landscape.

What is the Digital Decade?

The EU’s Digital Decade policy programme 2030, established by Decision (EU) 2022/2481, sets forth a range of targets designed to foster a robust digital ecosystem. These targets include comprehensive 5G coverage, advancements in semiconductor production, the proliferation of quantum computing, and the enhancement of digital public services. The overarching aim is to create a digital environment that benefits people, businesses, and the environment while enhancing the EU’s competitiveness and resilience.

‍Progress and Achievements

The report highlights several areas of noteworthy progress:

• 5G Coverage: The EU has made substantial strides in expanding 5G coverage, laying the groundwork for enhanced connectivity and the digital transformation of various sectors.
• Digital Public Services: Significant improvements have been made in the provision of digital public services, making government interactions more efficient and accessible for citizens.
• Digital Skills: There has been a concerted effort to improve digital skills among the workforce, essential for driving innovation and competitiveness in the digital economy.

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Challenges and Areas for Focus

Despite these achievements, the report identifies critical challenges that need urgent attention:

• Fragmentation Across Member States: Progress is uneven across the EU, with some member states lagging significantly behind. This fragmentation threatens the collective achievement of the Digital Decade targets.
• Semiconductor Production: The EU faces significant hurdles in ramping up semiconductor production, a critical component for the digital and technological industries.
• Digital Transformation of SMEs: Small and medium-sized enterprises (SMEs) are not progressing as rapidly as larger corporations in their digital transformation journeys, which could impact overall economic resilience and growth.

Semiconductor Production: Challenges and Future Prospects
(Annex 2 ‘Update of the EU-level projected trajectories for the digital targets’)

The European Union has set a bold target for its semiconductor industry as part of its Digital Decade initiative. By 2030, the EU aims to produce at least 20% of the world's semiconductors, focusing on cutting-edge technologies. This target is crucial for ensuring secure, resilient, high-performance, and sustainable digital infrastructures across Europe.

To measure progress, the EU has defined a key performance indicator (KPI) for semiconductor activities. This KPI tracks the value generated within the semiconductor value chain in the Union, comparing it to the global market value. This comprehensive metric encompasses revenue from all stages of the semiconductor production process.

As of 2023, the EU's semiconductor market share stands at approximately 11% of the global value. Between 2019 and 2022, the EU's semiconductor value chain revenue grew, reaching EUR 90 billion in 2022, representing 9.8% of the global market. Despite a slight decline in revenue to EUR 87 billion in 2023, the EU demonstrated resilience in comparison to a 14% global revenue drop, underscoring the robustness of its semiconductor sector.

Looking ahead, IDC estimates suggest that the EU's share of the semiconductor market could grow to 11.7% by 2030, driven by policy interventions and significant investments such as the European Chips Act. However, these projections are contingent upon navigating geopolitical and market uncertainties. Currently, the EU's semiconductor market lacks the cutting-edge technologies defined by the Digital Decade targets. However, planned investments are expected to significantly enhance the EU's manufacturing capabilities in the coming years.

 By 2030, global demand for semiconductors is projected to exceed USD 1 trillion, doubling over the decade. To meet its 20% market share target, the EU's semiconductor revenues need to quadruple by 2030. Achieving this ambitious goal will depend heavily on strategic investments and initiatives, including the European Chips Act and Important Projects of Common European Interest.

These efforts are critical to ensuring that the EU not only meets its Digital Decade targets but also establishes itself as a leader in the global semiconductor market. The path forward requires concerted effort and collaboration across member states, public and private sectors, and international partners to build a resilient and innovative semiconductor industry that can support Europe's digital transformation goals.

Conclusion

The “State of the Digital Decade 2024” report is both a progress assessment and a call to action. It highlights the significant achievements made so far while clearly outlining the areas needing focused efforts. By aligning national and EU-wide strategies, fostering public-private partnerships, and ensuring comprehensive stakeholder engagement, the EU aims to secure its leadership in the digital age. The insights from this report will guide ongoing discussions and future policy adjustments, with the next assessment slated for the State of the Digital Decade 2025 report.

Savantech and the Digital Decade

As a provider of innovative technology solutions, Savantech is keenly aware of the findings outlined in the State of the Digital Decade report. We recognize the EU's ambition to build a robust digital ecosystem and actively support initiatives that promote advancements in areas like 5G infrastructure and digital skills development.

The report's emphasis on closing the digital gap between member states resonates with Savantech's commitment to providing accessible and scalable technology solutions for businesses of all sizes. We believe that a thriving digital Europe requires a collaborative effort from both public and private sectors. Savantech is actively involved in industry discussions and initiatives that contribute to achieving the EU's Digital Decade goals.

Visit our website to learn more about how Savantech empowers businesses with cutting-edge technology solutions.

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