Advanced Manufacturing - Industry - Europe Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

To increase production output and quality, companies are increasingly turning to advanced manufacturing techniques. The term “advanced manufacturing” is used to describe a wide range of processes, such as robots, automation and additive manufacturing.

Businesses have placed a greater emphasis on advanced manufacturing in recent years as a means to boost productivity, save expenses and increase product quality. Based on our estimates – we can say that the European advanced manufacturing industry is forecasted to be a $ 93.92 billion industry in 2029 from $78 billion in 2023 with a CAGR of 4.67%.

Hence– rapid growth was driven by increasing automation across various industries as well as rising demand for customized and flexible manufacturing processes. Considering the growth pace of all other attributes within this wide topic of ‘Advanced Manufacturing’ causes the market to bloom exponentially.

Advanced manufacturing is being reshaped by several converging technological disruptions including automation, robotics, 3D printing, artificial intelligence and the Internet of Things. The ability to digitally model, simulate and optimize manufacturing processes before producing physical parts and products is enabling unprecedented levels of customization, efficiency and data-driven insights.

Emerging technologies like -additive manufacturing – allow for on-demand production of complex parts without traditional tooling or manufacturing setup costs.

Recent Trends and Insights

According to a report by the European commission, the manufacturing sector is still a major contributor to the economy accounting for about 2 million enterprises and 33 million jobs. The region has been able to hold an edge over other countries because of the highly skilled labor available in the region. This allowed the manufacturing unit in the region to provide high-quality and innovative products.

But with rapid advancement in the technology in the manufacturing sector, there is a substantial skill gap in current demographics of the region. Along with this lack of sufficient new age workers, the wage

Europe has historically been a major hub of industrial activity in the past but has lagged in recent years. But still as per the European Commission, the average hourly wage in the region is about $ 33.48 which is considerably higher than rapidly developing region like Asia pacific. Also the working hours have been reducing in recent years in Europe, hampering the overall productivity of European labor.

Apart from the productivity point of view, Europe is demonstrating great social responsibility in environmental consciousness through policy decisions and focused initiatives on circular economy. Countries increasingly see Europe as a benchmark; to hopefully aspire to in this respect.

Product Insights

Industry 4.0 adoption is being driven by the need for advanced technologies that enable flexible, customized mass production to address dynamic customer demands. Integrating IoT, AI, cloud and other digital technologies allows industry players to remotely monitor equipment– predict maintenance needs and optimize processes for higher efficiency.

According to our research, a large proportion of the corporate decision-makers in Europe see potential applications for IoT, AI and AR within the production of their own companies.

The pandemic further accelerated digital transformation efforts as manufacturers looked to leverage Industry 4.0 solutions to maintain operations amid disruptions. Major industry sectors like automotive, electronics, manufacturing are heavily investing in smart factories to gain competitive edge through superior quality, reduced downtime and waste.

While initial investments are high – Industry 4.0 enables long-term savings through automation, data-driven insights and enhanced collaboration across value chains.

Key Companies

Some major players within this vast domain of industry are

• BMW
• Volkswagen
• Anthropic
• Airbus
• Rolls Royce
• Toulouse
• Lyon
• Leonardo
• Piaggio Aerospace
• Airbus
• Siemens Gamesa
• ASML
• Philips

Regional Analysis

Germany adopted an advanced manufacturing strategy in 2022 focusing on sustainability, digitalization, and new technologies like 3D printing and robotics. Major automakers like BMW and Volkswagen are investing heavily in electric vehicles and smart factories. Startups in additive manufacturing, industrial IoT, and robotics are flourishing. Examples include SLM Solutions, Anthropic, and Auto1.

The UK published its Advanced Manufacturing Strategy in 2021 to invest in technologies like AI, robotics and clean energy. The country has a strong aerospace industry with companies like Airbus and Rolls Royce. The Manufacturing Technology Centre conducts R&D in areas like additive manufacturing and smart production. Cities like Sheffield and Coventry are hubs for advanced manufacturing.

France aims to be a leader in sustainable aviation and clean energy through investments in Airbus, EDF and other companies. It also focuses on additive manufacturing and industrial IoT through initiatives like Industrie du Futur. Major cities involved in advanced manufacturing include Toulouse, Lyon and Paris. The country attracts venture funding for robotics and AI startups. Italy has a large manufacturing sector, especially in machinery, automotive, aerospace and robotics. Regions like Lombardy, Piedmont and Emilia-Romagna are hubs for these industries. Additive manufacturing and smart factories are priorities under Italy’s Industry 4.0 plan. Companies like Leonardo, Piaggio Aerospace and Comau are leaders in aerospace and industrial automation. Russia aims to modernize its manufacturing base through initiatives supporting robotics, additive technologies and Industry 4.0 concepts. Sectors like aerospace, defense and energy are priorities for advanced production. Major companies leading this transition include Rostec, VSMPO-Avisma and Kamaz which work on new aircraft, titanium and truck production respectively.

Market Segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Country:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Spain
• Netherlands
• Switzerland

Our Methodology

We have offered a well-founded review of the smart manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.