The digital economy continues to reshape the global business landscape, and the European Union is no exception. According to the latest Eurostat report, “Digital Economy and Society Statistics – Enterprises”, the adoption of digital technologies across EU enterprises accelerated in 2023, driven by advancements in connectivity, e-commerce, and artificial intelligence (AI). Among the standout performers, Cyprus and Greece emerged as key players in the region, showcasing strong adoption rates in specific areas.
Digital Trends Across The EU
The Eurostat report provides a detailed overview of the digital transformation taking place across the European Union in 2023. While the EU-wide averages demonstrate overall progress, individual member states reveal significant disparities in the adoption of various digital technologies:
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Social Media Usage
Over 60.9% of enterprises leveraged social media for marketing, customer engagement, and recruitment:
- Malta leads the EU in social media adoption, with an impressive 87.1% of enterprises using platforms like Facebook and LinkedIn for business purposes.
- Cyprus, Denmark, Finland, and Sweden also recorded high usage rates, all surpassing 70%.
- By contrast, Bulgaria reported the lowest share of enterprises using social media, with only 38% adopting these platforms.
E-Commerce Adoption
Nearly 22.9% of enterprises engaged in e-sales, contributing to 18% of total turnover:
- The share of enterprises engaging in e-commerce sales varied widely:
- Malta and Denmark reported the highest levels of e-commerce integration, with over 50% of enterprises conducting web sales.
- In Bulgaria and Romania, less than 20% of enterprises engaged in e-commerce, highlighting a significant gap in digital readiness.
- Countries like Cyprus, Greece, and Ireland demonstrated a strong reliance on web-based sales channels, with turnovers from web sales surpassing those from EDI-type sales.
Cloud Computing
45.2 % of enterprises in the EU use cloud computing services:
- Finland leads in cloud computing adoption, with 78.3% of enterprises utilizing these services, followed by Sweden (71.6%) and Denmark (69.5%).
- At the opposite end of the spectrum, Bulgaria and Romania reported the lowest adoption rates, with only 17.5% and 18.4%, respectively.
AI Technologies
Despite growing interest, only 8% of enterprises reported using AI technologies:
- Denmark (15.2%) and Finland (15.1%) emerged as leaders in AI adoption, driven by significant investments in innovation and infrastructure.
- The uptake of AI in other member states remains limited, with Cyprus at 7.9% in 2024 and countries like Hungary and Romania trailing below 4%.
High-Speed Internet
12.8% of enterprises used internet connections of at least 1 Gb/s, enabling advanced digital applications:
- High-speed internet connections (≥ 1 Gb/s) were most prevalent in Denmark (25%) and Sweden (22%), enabling enterprises to adopt advanced digital tools.
- Small enterprises in Bulgaria and Romania were least likely to access high-speed connections, with rates below 10%.
- Cyprus outperformed the EU average, with 96.38% of enterprises connected via fixed broadband in 2023, increasing to 98.07% in 2024.
Website Ownership
Across the EU, 78.1% of enterprises had a website in 2023, with large enterprises showing higher adoption rates (94.7%) compared to small enterprises (75.6%).
- Estonia, Denmark, and Finland led the EU, with over 95% of enterprises maintaining an online presence.
- Interestingly, Cyprus saw a decline in website ownership, with the percentage dropping from 74.73% in 2016 to 68.83% in 2023.
Cyprus And Greece: Digital Transformation Leaders In The EU
Cyprus and Greece stand out in the latest Eurostat report for their progress in adopting digital technologies. While both countries face challenges in some areas, they excel in key aspects such as social media usage and e-commerce integration, positioning themselves as regional leaders within the EU.
Social Media And E-Commerce
Cyprus ranks among the top EU countries for social media adoption, with 79.94% of enterprises using platforms like Facebook and LinkedIn in 2023. This surpasses the EU average of 60.9% and places Cyprus alongside digital leaders like Denmark and Finland. Greece also shows strong performance, with a significant portion of businesses integrating social media into their operations.
E-commerce is another area of strength. In Cyprus, 52.9% of enterprises with web sales utilized e-commerce marketplaces, a figure mirrored by Greece at 50.2%. Both countries outpace the EU average of 42.9%, reflecting a strong preference for direct-to-consumer sales channels and a growing reliance on digital marketplaces.
Broadband Connectivity And AI Adoption
Cyprus demonstrates exceptional broadband penetration, with 96.38% of enterprises using fixed broadband in 2023, rising to 98.07% in 2024. Greece similarly reports high connectivity rates, ensuring a solid foundation for digital transformation. However, AI adoption remains relatively low in both countries, with Cyprus increasing its usage from 4.67% in 2023 to 7.9% in 2024, while Greece shows a comparable trajectory. Despite these modest figures, the upward trend signals growing interest in leveraging advanced technologies.
Challenges And Opportunities
While Cyprus and Greece excel in specific areas, challenges such as expanding AI implementation and improving website ownership persist. For instance, website ownership in Cyprus declined from 74.73% in 2016 to 68.83% in 2023, contrasting with the EU’s overall growth in this metric. Addressing these gaps will be crucial for both nations to maintain their competitive edge in the digital economy.