The European Union is making progress toward its 2030 digital targets, but the bloc still faces structural weaknesses in technology production, computing capacity and specialized labor. The assessment appears in the European Commission’s 2026 State of the Digital Decade package, released during 2026.
The report presents a mixed picture of the EU’s digital transformation. Connectivity and the use of digital tools are expanding across households, governments and companies, while artificial intelligence adoption is accelerating. At the same time, Europe remains dependent on suppliers from outside the bloc for strategic infrastructure, including cloud services, cybersecurity technologies and semiconductors.
Cloud and AI adoption are accelerating
According to the European Commission, 46.7% of companies in the European Union use cloud computing services, while 39.9% apply data analytics. Nearly one in five companies uses artificial intelligence, and AI adoption increased by 48% in 2025 compared with the previous year.
These figures indicate that digital technologies are becoming more common in business operations, but adoption is not evenly distributed. Small and medium-sized enterprises continue to face obstacles involving technical skills, access to data, infrastructure and financial resources. Those limitations may prevent smaller companies from benefiting from the same productivity gains available to larger organizations.
The expansion of AI is also putting additional pressure on Europe’s computing capacity. As companies and public institutions deploy more advanced applications, demand grows for secure data infrastructure, processing power and reliable networks. The Commission therefore identifies investment in artificial intelligence, cloud computing, data infrastructure and cybersecurity as central to the bloc’s long-term digital competitiveness.
5G coverage is high, but fixed networks need to advance
Basic 5G coverage reached 96.8% of European households, showing substantial progress in mobile connectivity. However, the report warns that the rollout of higher-capacity networks remains slower than necessary. Fiber connections reaching users’ premises, in particular, need to expand more rapidly if the EU is to meet its 2030 objectives.
The distinction matters because widespread mobile coverage does not automatically provide the capacity required by data-intensive services. Cloud applications, industrial systems, artificial intelligence tools and connected public services all depend on fast and dependable networks. Improving fixed infrastructure is therefore part of the wider effort to make digitalization accessible beyond the largest companies and urban centers.
Europe remains behind in chips and technology talent
The report also highlights the EU’s limited position in the global semiconductor market. Europe accounts for 9% of worldwide semiconductor production, well below the bloc’s goal of reaching 20% by 2030. The gap underscores the challenge of building greater technological sovereignty while global demand for chips continues to support artificial intelligence, communications, vehicles and industrial equipment.
Beyond manufacturing, the EU faces a shortage of workers with advanced technology expertise. More than 60% of Europeans have basic digital skills, but information technology specialists represent only 5% of total employment. That share is half the level set as the target for 2030, according to the Commission’s assessment.
The shortage affects both public and private organizations. Without enough specialists, companies may struggle to implement AI systems, protect networks, manage cloud environments or develop advanced products. Governments face a similar challenge as they expand digital public services and seek to improve the security of critical infrastructure.
Funding and coordination will shape the next phase
Member states have committed €289.3 billion to measures connected to their national Digital Decade strategies. Of that amount, €205.9 billion comes from public budgets. The scale of the commitments shows that digital policy is being treated as a strategic economic priority rather than as a narrow technology program.
Still, the Commission warns that nearly half of the public funding planned in national roadmaps is expected to conclude by the end of 2026. That creates a risk for the continuity of projects if governments do not secure stable financing and coordinate implementation over the coming years.
For Europe, the central challenge is no longer simply expanding access to digital tools. The bloc must also strengthen its position in semiconductors, secure cloud services, quantum computing, artificial intelligence, cybersecurity and data infrastructure. The 2026 review suggests that progress toward the Digital Decade will depend on whether Europe can combine investment with skills development and greater control over technologies considered essential to its economy and security.
