How the Power of Data Can Drive the European Union Economy: European Data Market Study and Monitoring Tool - 24 April 2018 Webinar Highlights
Just one day before the European Commission presented it’s much-awaited digital single market proposal package on boosting the European Union data economy, the Lisbon Council and International Data Corporation (IDC) teamed up to host a webinar on How the Power of Data Can Drive the European Union Economy: European Data Market Study and Monitoring Tool. The webinar is the second in a series and part of a long-term European Union funded study on “Building a European Data Economy.” Bringing together more than 50 leading experts in the data economy, the webinar served as the launch pad for the First Report on Facts and Figures: Updating the European Data Market Monitoring Tool, a study that presents the latest updates about the state of play on European data markets.
David Osimo, director of research at the Lisbon Council, moderated the session and set the stage with the strong statement that “the data economy is here to stay and it is affecting not only the digital sector, but every sector of the economy.”
Later, Giorgio Micheletti, consulting director of IDC, presented the key findings of the First Report on Facts and Figures: Updating the European Data Market Monitoring Tool. In this update, the Monitoring Tool has been revised and extended to cover the years 2016-2017 with forecasts at 2025 under three alternative scenarios.
In 2017, IDC estimates that the value of the EU data market reached €50.4 billion and as a result, the pace of growth of the data economy accelerated reaching a total value of €335.5 billion – an increase of 11.8% compared to the previous year. To determine the size of the EU data market, researchers conducted a unique comprehensive mapping of the number of data professionals, data companies and their revenues as well as the number of data users in the EU 28 member states.
The results of this research are illustrated and summarized in the European Data Market Monitoring Tool, an interactive online tool for tracking the size and value of the EU data economy by country and by industry. To explore the European Data Market Monitoring Tool, visit http://datalandscape.eu/european-data-market-monitoring-tool-2018.
Most importantly, for data-driven organisations to leverage the power of data, they must 1) be more aware of the kind of data they possess – and prepare to analyse them, 2) break up the data silos within the organisation, 3) watch out for artificial intelligence and internet of things deluge, and 4) prepare for the general data protection regulation as an opportunity and not a burden.
Indeed, the data-driven revolution is a great opportunity for enterprises but also produces unprecedented benefits for the economy and society at large. However, there are many uncertainties on how the data markets and the data economy is going to evolve in the future. Gabriella Cattaneo, director of the expertise centre on competitiveness and innovation policies and strategies of IDC, presented forecasts on how the data economy will look in 2025 under three alternative growth scenarios developed by the project: the high-growth scenario, the baseline scenario, and the challenge scenario. All scenarios forecast that the data market will experience high growth and possibly double its size under the high-growth scenario to reach €110 billion in 2025 (up from €50.4 billion today). And the impact on the data economy is expected to be similar too. By 2025 the data economy is predicted to reach 5.4% of the total EU GDP under the high-growth scenario, 4.0% under the baseline scenario and 2.9% under the challenge scenario.
But what should policymakers do to lead the EU economy to the best possible scenario and exploit the full potential of data? Gabriella Cattaneo pointed out that in order to fully harness the potential of the data economy, policymakers must 1) fully implement the digital single market strategy, 2) make sure that the general data protection regulation succeeds in building an environment of trust and growth, 3) design and implement a regulatory framework that is conducive to effective data sharing practices between companies and 4) fully implement the European Commission’s plan on ICT standardisation.
Finally, Tjerk Timan, strategy and policy researcher, Netherlands Organisation for Applied Scientific Research (TNO), gave an interesting presentation on how startups and SMEs can benefit from the digital revolution and what are the emerging business models that will shape the future of the data economy.
The Lisbon Council and IDC will continue collaborating to provide new insights on the European data market. Please watch out for the next webinar, which will convene in the autumn of 2018. In the meantime, keep in touch by visiting datalandscape.eu and Twitter at @eudatalandscape.