European data economy continues upward trend despite GDPR concerns
The European data economy is significantly large, at more than €115 billion in 2025 and expected to grow to €148 billion by 2030, according to a study by the European Commission. This broader ‘data economy’ was already worth €325 billion in 2019, equivalent to 2.6% of the EU’s GDP, and was worth an estimated €500 billion in 2025.
Data-driven businesses in Europe, however, face substantial obstacles to scaling up and competing globally. The broad definition of personal data under the GDPR leads to confusion, and divergent interpretations in EU member states create uncertainty for businesses. While large companies may have the resources to navigate this complexity, smaller firms are struggling.
Even minor changes to the GDPR meet with resistance from privacy advocates and data protection authorities (DPAs). Geopolitical tensions between the EU and the US, combined with concerns about European data leaving the EU, further complicate reform efforts.
The European Commission has been working on initiatives to streamline European data rules, including the Data Union Strategy and two Digital Omnibus packages. These are intended to clarify when data is sufficiently pseudonymised and therefore exempt from strict GDPR requirements. These proposals have reportedly been rejected by the Council, which instead prefers to rely on non-binding guidance from the European Data Protection Board (EDPB).
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