In May 2015, the European Commission adopted a Digital Single Market Strategy (2015), which identifies Europe as a potential leader in the global digital economy. If EU fragmentation and barriers are removed, Digital Single Market (DSM) could contribute an additional €415 billion to European GDP. Further, the Digital Single Market could create opportunities for new start-ups, and business can develop and create value for the 500 million consumers.

The European Digital Single Market (DSM) has three policy areas: (1) access to digital goods and services, (2) conditions for digital networks and innovative services, and (3) digital as a driver for growth (https://ec.europa.eu/digital-single-market/en/digital-single-market). In all these areas, data-driven services are an essential part of DSM.

This research focuses on political, economic, social, technological, legal, and environmental (PESTEL) factors. Consider: To do this, a quantitative approach was used to analyze the data collected from four different data sources to understand major factors having impact on DSM:Digital Economy and Society Index (Desi), EU barometer, Digital Agenda key indicators, and public consultation. Based on our data analysis, we have found several data-based challenges in creating a digital single market as below:

1. (a) Inequality within EU 
2. (b) Legislative gap with respect to digital content and data 
3. (c) Trust in a digital single market (in regard to data) 
4. (d) Privacy and security of digital software and systems

Defining and understanding these challenges are vital to overcome obstacles hindering Digital Single Market goals.