Digital transformation is no longer optional — it is a fundamental driver of growth, competitiveness, and resilience. For companies across Europe, adopting digital tools means improving products and services, streamlining operations, and expanding reach through channels such as online sales. As businesses navigate an increasingly competitive landscape, the ability to integrate digital technologies is becoming a clear indicator of long-term success.
The EU’s 2030 Digital Ambition
To support Europe’s technological advancement, the European Union has set two strategic goals for 2030:
- More than 90% of SMEs should reach at least a basic level of digital intensity.
- 75% of EU companies should be using advanced digital tools, including cloud computing, big data analytics, or artificial intelligence (AI).
These goals reflect the importance of adopting not only standard digital solutions but also more advanced technologies that can drive innovation and competitiveness.
Measuring Progress: The Digital Intensity Index (DII)
To track digital transformation, the Digital Intensity Index (DII) measures the use of 12 key digital technologies by businesses — ranging from AI and cloud computing to digital communication tools and e-commerce.
The index categorizes companies into four levels:
- 0–3: Very low digital intensity
- 4–6: Low digital intensity
- 7–9: High digital intensity
- 10–12: Very high digital intensity
A company scoring 4 or above is considered to have at least a basic level of digital intensity — meaning it uses a meaningful set of digital tools to support its operations.
EU Results 2024: SMEs Making Progress, But Gaps Remain
In 2024, 74% of EU businesses achieved a basic level of digital intensity — signaling solid progress toward the 2030 targets.
However, the picture changes when comparing SMEs with larger enterprises:
- 73% of SMEs reached basic digital intensity — still 20 percentage points below the EU’s 2030 goal.
- 98% of large businesses achieved at least a basic level, with many moving far beyond the minimum threshold.
Large companies significantly outperformed SMEs in advanced adoption:
- 41% of large enterprises reached very high digital intensity, compared to just 6% of SMEs.
- Nearly 27% of SMEs reached a high digital intensity level, while most remained in the low (40%) or very low (27%) categories.
This gap demonstrates that while SMEs are progressing, many still lack the resources, skills, or infrastructure to fully leverage digital technologies.
Where SMEs Stand Across the EU
The share of SMEs with a basic level of digital intensity varies widely across Europe:
- Finland (93%) and Denmark (90%) are leading the way, reflecting strong national support systems and a mature digital ecosystem.
- At the other end of the spectrum, only 50% of SMEs in Bulgaria and 53% in Greece reach basic digital intensity.
These differences highlight the need for targeted support, investment, and training to ensure a balanced digital transformation across the single market.
What This Means for NewCo and the Businesses We Support
At NewCo, we work with businesses undergoing digital transformation — and the insights from the DII reinforce the challenges many organisations face:
- SMEs often struggle with limited budgets, lack of digital skills, or fragmented digital strategies.
- Many have begun adopting basic tools but have not yet transitioned to advanced technologies like AI, cloud, or data analytics.
- Companies that invest early in digitalisation gain efficiency, flexibility, and a clear competitive advantage.
As digital tools continue to evolve, supporting SMEs in adopting the right technologies is essential — not only to meet EU benchmarks, but to thrive in an innovation-driven economy.
Driving Europe’s Digital Future
The EU’s 2030 goals set an ambitious vision for Europe’s digital transformation. Reaching them will require coordinated efforts — from policymakers, industry players, technology providers, and innovation-driven organisations like NewCo.
By helping businesses integrate digital tools, strengthen their capabilities, and adopt advanced technologies, we can accelerate progress and shape a future where European companies remain competitive on a global scale.
