Digital transformation in Central and Eastern Europe (CEE) - statistics & facts
Central and Eastern European (CEE) countries are following suit in the global digital transformation (DX) trend, which refers to the changes in industrial processes, working environments, and other sectors due to the increasing usage of new technologies. These include connected devices, Artificial Intelligence (AI), robotics, 5G, blockchain, cloud technology, drones, and 3D printing, among others.
Another major pillar of digitalization in the region is automation. Czechia has witnessed a steady growth in robotization over the past two decades, especially before the COVID-19 pandemic. Together with Poland, Czechia is one of the highest-earning industrial robotics markets in CEE. At the same time, Slovenia has the highest robotization density and ranks first in Artificial Intelligence (AI) adoption in the region. In both countries, the automotive industry is the key sector employing industrial robotic automation.
From Estonia ranking high in the digital quality of life index to Poland being home to most digital champions, CEE is showcasing progress in various technological indices. As businesses across the region embrace advanced technologies, digital transformation is bringing modernization to work processes as well as the daily life of residents.
How much do CEE companies spend on digital transformation?
Digital transformation spending is rising gradually across CEE, even though it remains lower than in Western Europe. For example, most Polish companies expend only up to five percent of their annual revenue on digital transformation. Impacted by the Russia-Ukraine war, enterprises in CEE were more reluctant to allocate budget toward digital solutions than in other global regions in 2022, as could be seen from the decline in cloud infrastructure spending. However, the figures started to recover in the last quarter of 2023.Which technologies drive innovation in CEE?
One of the upcoming steps in CEE's digital transformation is the 5G rollout. The number of 5G subscriptions in CEE is forecast to grow by nearly 10 times from 2024 to 2029. Major telecommunications operators, such as A1 Slovenia, Magyar Telekom, Orange, and T-Mobile Poland, plan to switch off their 2G and 3G networks and upgrade them to 5G by 2025.Another major pillar of digitalization in the region is automation. Czechia has witnessed a steady growth in robotization over the past two decades, especially before the COVID-19 pandemic. Together with Poland, Czechia is one of the highest-earning industrial robotics markets in CEE. At the same time, Slovenia has the highest robotization density and ranks first in Artificial Intelligence (AI) adoption in the region. In both countries, the automotive industry is the key sector employing industrial robotic automation.
Country insights
Estonia has emerged as a major digital market in the CEE region, which is reflected in its high Digital Quality of Life index score of 0.72 on a scale from zero to one in 2023, placing it at the top of CEE countries alongside Lithuania. In terms of the number of digital champions, or tech companies whose revenue mostly comes from digital channels, Poland leads the region with over 40 companies, significantly outpacing its closest competitor, Czechia, which has 15 such companies.From Estonia ranking high in the digital quality of life index to Poland being home to most digital champions, CEE is showcasing progress in various technological indices. As businesses across the region embrace advanced technologies, digital transformation is bringing modernization to work processes as well as the daily life of residents.
