EU’s 2026 State of the Digital Decade report highlights progress and remaining challenges
The new Digital Decade findings show stronger AI adoption across the EU.
The European Commission’s 2026 State of the Digital Decade report shows that the EU continues to make progress towards its digital transformation goals, although significant structural challenges remain on the path to its 2030 targets.
The report highlights progress in digital infrastructure, business digitalisation and public services. Basic 5G coverage now reaches 96.8% of households, while nearly one in five businesses uses AI.
AI adoption accelerated significantly during 2025, increasing by 48% compared with the previous year. More than 60% of Europeans now possess at least basic digital skills.
Despite the progress, the Commission identified several areas requiring urgent attention. However, the EU currently accounts for only 9% of the global semiconductor market, well below its target of reaching 20% by 2030.
Europe also remains heavily dependent on non-EU cybersecurity suppliers and continues to face shortages of ICT specialists, particularly women in digital professions.
The report also revealed strong public support for digital sovereignty and technological self-reliance. According to a new Eurobarometer survey, most citizens support greater investment in local digital infrastructure, reduced dependence on foreign technologies and stronger regulation of AI.
Citizens also identified digital health, green technologies, connectivity and AI as areas likely to deliver the greatest benefits over the next decade.
Why does it matter?
The report provides one of the most comprehensive assessments of Europe’s progress towards its 2030 Digital Decade objectives and offers insight into the EU’s broader competitiveness agenda. Strong growth in AI adoption, connectivity and digital public services suggests that digital transformation is accelerating across the Union.
At the same time, the findings highlight persistent challenges related to technological sovereignty. Europe’s limited share of the global semiconductor market, continued dependence on foreign technology suppliers, and ongoing digital skills shortages could constrain its long-term competitiveness. As the EU increasingly links economic resilience, security and digital policy, addressing these gaps will be critical to achieving its 2030 ambitions and strengthening strategic autonomy in key technologies.
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