Digital Europe: Realizing Potential
29 June 2017
Europe is operating below its digital potential. Accelerating digitization could add trillions of euros to economic growth in less than a decade.
Using the Industry Digitization Index (which provides a snapshot of digital assets, usages, and workers), the McKinsey Global Institute estimates that Europe operates at only 12 percent of its digital potential, compared with the United States’ 18 percent. In addition, there is enormous variation between Europe’s countries: while France operates at 12 percent of its digital potential, Germany is at 10 percent, and the United Kingdom is at 17 percent.
These figures leave much room for expansion and improvement. By doubling ‘digital intensity’ (the degree to which digitization drives sectors and firms), Europe could add €2.5 trillion to GDP in 2025, boosting GDP growth by 1 percent a year over the next decade.