Emerging Technology - Industry - Europe Market, Share and Trends 2023-2028

Summary of Emerging Technology

Emerging technologies such as artificial intelligence, blockchain, augmented reality, and the Internet of Things are transforming industries and society at an unprecedented rate across Europe. The European emerging technology market is valued at US$495.6 billion in 2029 according to our estimates— representing around 15% of the global emerging tech market. This sector is projected to grow at a robust CAGR of 17.73% during the period of 2023-2029, reflecting rising investment and innovation activity in the region.

Key countries leading innovation and commercialization efforts of emerging technologies in Europe include— Germany, the United Kingdom, France, Sweden, Netherlands and others. Germany has a particularly strong ecosystem bolstered by government funding and a network of startups. The UK also has a large startup scene and some of the highest private investment levels into emerging tech on the continent.

Countries across Northern and Central Europe like Sweden, Netherlands and Austria also demonstrate high levels of entrepreneurial activity, research collaborations, and public-private partnerships that are advancing technologies. Southern European nations such as France and Spain are increasingly developing competitive emerging tech industries as well supported by the European Union.

Overall, Europe’s diverse mix of highly developed economies, talent pools, and policy support for R&D present sizable opportunities for companies operating in artificial intelligence, blockchain, IoT, augmented reality and other emerging technology spaces. Both domestic European firms and American/Asian tech giants are well positioned to capitalize on the region’s innovation and commercial potential over the coming decade.

Recent Trends and Insights

Europe has established itself as a global leader in pioneering new technologies that are positively transforming economies and societies.

AI and cloud infrastructure attracted over $25 billion and significant capital respectively in 2022—underscoring their importance. Major industries like automotive, healthcare, manufacturing are leveraging AI and cloud solutions to boost productivity, efficiency and data-driven decision making.

5G rollout across Europe is expected to gather pace over the next few years, with most countries targeting nationwide coverage by 2025. This fifth-generation cellular technology will power applications like augmented/virtual reality, IoT, autonomous systems and telemedicine.

While innovations offer growth opportunities, issues around digital skills gaps, job disruption, privacy and digital inclusion need addressing. Targeted policy measures and workforce training programs aim to maximize benefits and mitigate risks.

International cooperation will also be vital to ensure responsible development and implementation of emerging technologies considering associated economic and societal impacts.

Both public and private stakeholders are working diligently to ensure Europe navigates progress responsibly, sustainably and inclusively.

Product Insights

As one of the foremost developed nations, several European countries are considered to be in a race for becoming global leaders in AI research. And have implemented national AI strategies to encourage innovation and investment. Countries like — France, Germany and the UK have invested heavily in AI research at universities and private sector labs. The European Commission has also identified AI as a priority area and aims to make Europe a world-leading region for ethical and secure AI.

Across Europe– companies are actively applying AI in various industries. In transportation, autonomous vehicles are being tested on public roads in countries like — Germany, France and Sweden. Major automakers like — Volkswagen, BMW and Daimler are investing billions in self-driving car research. Healthcare is another major area where AI is growing rapidly. AI tools are helping diagnose diseases, optimize drug discovery and enable personalized treatment plans. Several European startups are applying AI to improve medical imaging analysis and develop virtual assistants for patients.

In manufacturing, industrial robots powered by AI are automating production lines across Europe. Industries like — automotive, aerospace and electronics are early adopters of AI for quality control, predictive maintenance and supply chain optimization. Retail and consumer industries are also leveraging AI extensively for personalized product recommendations, predictive analytics, computer vision for inventory management, and chatbots for customer service. Overall— Europe’s strong focus on research, regulation and ethics is well-positioned to drive responsible and trustworthy AI development globally in the coming years.

Key Companies

Some major players within this vast domain of industry are

• DeepMind
• BlaBlaCar
• UiPath
• Tessian
• CyberArk
• Avast
• Klarna
• N26
• TransferWise
• Bosch
• STMicroelectronics
• The Things Network
• Voi Technology
• Vertical Aerospace
• Blockchain.com

Regional Analysis

The Europe region is the second largest market for emerging technologies – with a projected market size of $1332.87 billion for 2029 and a CAGR of 17.73% for the period of 2023-2029.

Germany accounts for — 21% market share with a size of $104.08 billion and a CAGR of 17%. Germany is a major hub for automotive and manufacturing industries adopting emerging technologies. United Kingdom accounts for 20% market share with a size of $99.12 billion and a CAGR of 20%. The UK has a strong tech startup scene and financial sector investing in fintech solutions.

France accounts for— 15% market share with a size of $74.34 billion and a CAGR of 17%. France has a large pharmaceutical industry utilizing biotech and a thriving startup ecosystem. Italy accounts for 9% market share with a size of $44.60 billion and a CAGR of 20%. Italy has a robust manufacturing base adopting robotics and IoT solutions.

Russia accounts for 9% market share with a size of $44.60 billion and a CAGR of 22%. Russia is investing heavily in AI and blockchain to diversify its economy.

The strong growth in the Europe emerging technology market is driven by support and investment from the European Union and national governments towards digital transformation, green economy and social inclusion. Europe is also a major hub for research and innovation in emerging technologies.

Market Segmentation

By Type:

• Information Technology
• Biotechnology
• Robotics and Automation
• Internet of Things (IoT)
• Nanotechnology

By Industry/Application:

• Healthcare and Life Sciences
• Finance and Banking
• Manufacturing
• Energy and Environment
• Transportation

By Market Segment:

• Startups and Innovators
• Corporate Enterprises
• Government and Public Sector
• Research and Development
• Consumer Electronics

By Country:

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

Our Methodology

We have offered a well-founded review of the Europe’s regional Emerging Technology 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.