The value of open data in 2025 — forecasts of the European Data Portal
EUR 334.20 billion — this is the value of the open data market in the European Union countries in 2025 according to the best scenario. Will this translate into the labor market and greater savings for individual countries?
For comparison, in 2019 the value of the open data market was EUR 184.45 billion. This means that thanks to the opening of new data by 2025, the value of the open data market may increase by at least 8% to EUR 199.5 billion (in the minimum scenario) or even by 81% (in the most favorable scenario).
Time will tell if these bold estimates will be reflected in reality. In the meantime, let’s check the remaining forecasts of the value of new open data, which will be available in a digital version and for free for the next few years — after all, it is known for a long time that everyone can use the released open data for their own needs. They guarantee the development of the economy and increase the transparency of government activities.
In the following sections of this article, you will find information about:
- open data values in Poland and their relationship with Polish GDP;
- the value of the open data market in the EU;
- the impact of open data on selected sectors;
- the potential of open data.
Before we look at numbers, let’s recall what open data is
Open data is digitally shared data that meets criteria such as non-discriminatory accessibility to all, machine readability, completeness, up-to-date, and compliance with standards and regulations. The overriding feature of open data is the ability to process and analyze it free of charge according to your needs.
In order for the volume of data and the value of the open data market to increase, it is necessary to encourage all those who have valuable data to make it available under a free license, so that technological entities, such as our Transparent Data, can build on it new products and solutions.
Open data in Poland vs. in the EU
The forecasts for the open data market in Poland look promising, as they forecast growth in terms of GDP from 1.2% to even 2%. The value of the open data market in Poland by 2025 is to oscillate between PLN 33.7 billion and PLN 51.2 billion.
Across Europe, the value of the open data market in 2019 was EUR 184.45 billion, but it is estimated that by 2025 may be worth up to EUR 334.20 billion. This is a huge increase of 81.2%.
What does it actually mean and will it be associated with noticeable changes? Given that open data has a large impact on the economic situation of a country, we can safely assume that more open data means more material (money) and intangible benefits (quality of life, health, time). This is of course a maximally simplified statement, because the open data itself is not directly related to the benefits mentioned above, but the solutions that can be proposed thanks to the access to open data are.
Employment, productivity, potential — the impact of the development of the open data market in the EU on selected sectors
According to the forecast of the European Data Portal, the number of employees whose positions are related to the subject of open data will increase from 1.09 million (data for 2019) to 1.12–1.97 million, i.e. by over 80%. 88 thousand people, thanks to open data, will get a new job — this is a very good result.
The sheer potential of open data in high-impact and high-potential sectors will increase by 15.7%:
a) High impact:
- public administration,
- professional scientific and technical sectors,
- information and communication technologies,
- transport and storage.
b) High Potential:
- finance and insurance,
- real estate activities.
However, the benefits that can be derived from open data are many more and they also apply to other sectors, although economic growth in the private sector and increasing social well-being are invariably among the most important. By 2020, 54–202 thousand human lives were saved thanks to a quick response in an emergency, and 27 million hours have been saved in public transport.
Thanks to open data, language services have been improved by increasing machine translation, which also saves society time and money that could have been invested in other activities and activities. Thanks to a well-developed plan for sharing open data, these numbers will continue to increase, and the activities will bring more and more benefits.
Agriculture, health and education — these industries could use the potential of open data to build their own brand and improve the quality of life of the society
It sounds impossible, but thanks to open public data you can actually build or develop your own business and have a positive impact on the life of society. How is it possible? In short, open data is data made available on the Internet under a free license, which can be viewed by anyone who only wants to get acquainted with it. The open data sources include information on business models, the number of nurseries in a given country, the number of identity cards and the number of people learning languages of ethnic minorities. All these data can be used to analyze the industry, which in turn can be used for the development of the company or its expansion into foreign markets.
In addition, open data includes information necessary for public institutions, non-governmental organizations (NGOs) and the private sector — it is estimated that 49% of the data used by the surveyed organizations is open data, and 77% of organizations plan to use more data. Open data accounts for 46% of an organization’s revenue, and 73% of organizations expect this impact to increase. In turn, 70% of the surveyed organizations create data internally, of which 58% publish some of them as open data.
It is no secret that open data is not yet shared in the best quality and most often requires a lot of own work to be properly used. Nevertheless, it is still an excellent source of data needed to start a project. Open data is most often a source of knowledge for business, but contrary to appearances, society gains as much, if not more, from open data. How it’s possible?
Thanks to the open data, by 2020 the public sector saved EUR 1.1 billion by lowering translation costs, labor costs saved EUR 13.7–20 billion by reducing time spent on the move, energy bills saved EUR 79.6 billion due to higher solar energy production. It would not be possible without the shared open data that helped entrepreneurs to offer their customers modern photovoltaic panels, which, apart from reducing the aforementioned costs of electricity production, do not contribute to further environmental pollution caused by the combustion of fuels.
The conclusion is that thanks to open data, we spend less money as individuals, which we do not have to give back to the fight against environmental pollution. This analogy has been simplified to cliché, but it is true — open data has great potential and, when properly used, has an impact even on matters that seem moderately related to the average citizen.