Is your sector digitally prepared for 2025?

Digitalization in Spain during 2024

The recent 2024 Digital Decade Report by the European Commission positions Spain as a leader in several key areas of digitalization. Our country excels in connectivity, with optical fiber coverage reaching 95.2% of the population, well above the European average of 64%. The 5G mobile coverage is also impressive, reaching 92%, providing a solid foundation for the digital economy.

SMEs, which account for 99% of the national business landscape, have made significant progress in their digital transformation. According to the report, 61% of SMEs achieved a basic level of digitalization in 2023, surpassing the European average of 58%. Programs like Kit Digital and Kit Consulting have been pivotal in facilitating this transition.

Spain also stands out in the adoption of advanced technologies such as Artificial Intelligence (AI), with its use in businesses increasing to 9.3% in 2023, compared to 8% in Europe. This growth reflects the country’s efforts to incorporate innovative technologies into business processes and its commitment to initiatives like the Next-Tech Fund to support startups and scale-ups.

Regarding digital skills, 66% of Spaniards possess basic digital competencies, higher than the European average of 56%. Spain aims to achieve 85% of the population with basic digital skills by 2030, reinforcing its commitment to digital education and training.

Sectors leading digitalization

Some sectors have taken the lead in digitalization, seizing opportunities to innovate and boost competitiveness:

• Telecommunications and Technology: with investments in optical fiber and 5G infrastructure, Spain leads in connectivity. Additionally, initiatives like the MareNostrum5 supercomputer and the 2024 AI strategy strengthen this sector’s position.

• Financial Services: banks and insurers have adopted technologies like Big Data, AI and blockchain to optimize processes, enhance customer experience, and ensure transaction security.

• Tourism: a key sector in Spain’s economy, tourism has embraced digital tools to personalize experiences, manage bookings, and optimize promotion in international markets.

• Energy and environment: digitalization is being used to optimize resource use, integrate renewable energies, and progress toward a sustainable energy transition.

Sectors Needing to Accelerate Their Transformation

While notable progress has been made, some sectors must redouble their efforts to avoid falling behind in the digital race:

• Agriculture and Livestock: the adoption of technologies like the Internet of Things (IoT), drones, and Big Data is still limited. Digital transformation in this sector is crucial for optimizing crops, improving sustainability, and increasing competitiveness.

• Manufacturing Industry: while some companies have adopted digital solutions, many are still using traditional processes. Automation and the use of technologies like 3D printing and data analytics are essential for modernizing this sector.

• Retail: although e-commerce has grown, many stores have yet to fully embrace digital tools for inventory management, marketing, and customer experience.

• Health and Social Services: while the sector has made strides in telemedicine and digital health records, there are still barriers to implementing comprehensive solutions, especially in rural areas.

Recommendations for 2025

Preparing digitally for 2025 offers SMEs and freelancers an opportunity to transform their businesses and position themselves as leaders in their sectors. Here are some actions that can make a difference:

• Training and skill development: invest in team training and advanced digital tools.

• Apply for support programs: make the most of initiatives like Kit Digital, Kit Consulting and other subsidies designed to facilitate digitalization for small businesses and freelancers.

• Adopt digital tools: integrate solutions like Enterprise Resource Planning (ERP) systems, e-commerce platforms, and data analytics software to optimize processes and improve decision-making.

• Strategic online presence: strengthen the use of websites, social media, and digital marketing strategies to attract new clients and build stronger relationships with existing ones.

• Automation and efficiency: implement technologies like process automation to reduce operational costs and free up time for strategic activities.

• Digital collaboration and networking: build alliances with other businesses or professionals to share resources, ideas, and technology, fostering mutual growth.

• Integrate sustainable technology practices: prioritize digital solutions that reduce energy consumption, minimize the use of physical resources, and promote circular business models, such as cloud technologies that reduce the need for local infrastructure.

In summary, Spain has made significant progress in digitalization during 2024, but future success depends on accelerating change in key sectors. Digital preparedness is not just a competitive advantage; it is a necessity to meet the challenges of tomorrow.