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

Report ID:

MAIND1E

|

Industry:

Summary of Manufacturing

Europe remains a major player in global manufacturing despite facing increased competition from lower-cost regions in recent decades. The manufacturing sector accounts for approximately 15% of European GDP and provides jobs for millions across the region. Countries like Germany, Italy, France and the UK have long histories of manufacturing excellence in industries such as automotive, machinery, chemicals and more. Based on our estimates, we can say that Europe’s regional manufacturing industry is forecasted to be a $3265.75 billion industry in 2029 from $3024 billion in 2023 with a CAGR of 2.30%.

This region contributes for approximately 18% of the global market revenue of the ‘Manufacturing’ industry.           

While wage increases have pushed some production to other parts of the world, Europe still leads in advanced manufacturing utilizing cutting edge technologies. Regional manufacturers are focusing on innovation, quality, customization and specialized production to maintain competitiveness. Industry 4.0 concepts around automation, robotics, 3D printing, IoT and data analytics are being rapidly adopted across European factories. This modernization is allowing manufacturers to boost productivity while reducing costs and environmental impact.

The COVID-19 pandemic significantly disrupted European supply chains in 2020 but the sector has since shown signs of recovery. Manufacturing output expanded in 2021 led by strong demand for goods during lockdowns. However– ongoing supply issues and high energy prices due to the war in Ukraine continue to pose challenges. Looking ahead – decarbonization efforts represent both a risk and opportunity for European manufacturing. Strategies around renewable energy, energy efficiency, electrification of transport and a circular economy are being implemented.

Recent Trends and Insights

European manufacturers are investing heavily in renewable energy and green technology. For example – many automakers are ramping up electric vehicle production to meet stricter emissions regulations. Steel producers are also experimenting with hydrogen and carbon capture to reduce carbon footprints.

Advanced technologies like robotics, 3D printing, AI and IoT are being implemented across European factories to boost competitiveness through productivity gains and product customization. Germany in particular leads on Industry 4.0 innovation.

Recent updates in this sector of manufacturing – production in the Eurozone expanded by 2.3% in December 2021 compared to the previous year, pointing to continued recovery from pandemic disruptions. Germany, Italy and France all saw output increases.

Like other regions, Europe is facing ongoing supply chain challenges including shortages of raw materials and components. The war in Ukraine has further exacerbated these issues– especially for German automakers dependent on Russian palladium and nickel supplies.

Product Insights

European automakers continue leading in electric vehicle development and production. Volkswagen plans to spend $40 billion on EVs by 2024. BMW and Mercedes are also investing heavily in new EV models. Technologies like self-driving systems and vehicle connectivity are other areas of focus.

Airbus and other European aerospace firms are ramping up production of fuel efficient aircraft like the A320neo to meet climate targets. Next-gen composite materials and automation are enhancing efficiency. Drones and small satellites are emerging growth areas as well.

Europe is a top producer of pharmaceuticals and medical devices. Digital health, personalized medicine, biologics and new therapies for cancer and other diseases are high priority areas attracting significant R&D investment.

European manufacturers supply wind turbines, solar panels and other green tech essential for the energy transition. On/offshore wind and battery storage are experiencing rapid capacity growth to meet climate goals.

Key Companies

Some major players within this vast domain of industry are

  • Volkswagen AG
  • Daimler
  • BMW
  • Airbus
  • Siemens
  • Philips
  • L’Oréal
  • Nestlé

Regional Analysis

As Europe’s largest economy – Germany is the dominant manufacturing powerhouse. Key industries are automotive, machinery, chemicals and electronics. The country leads on Industry 4.0 innovation and exports around 50% of its production. Italy – being renounced for fashion, furniture and food/beverages – also has strong manufacturing in machinery, metals and transport. The north is most industrialized while central/southern regions lag. Automation adoption is growing.

Major sectors include aerospace/defense, pharmaceuticals, cosmetics and luxury goods. Auto production is centered around Renault-Nissan. Manufacturing makes up around 10% of the economy and is concentrated in major cities. Manufacturing output declined after 1980s but industries like aerospace/defense, pharmaceuticals and automotive still thrive. The UK leads on offshore wind technology. Brexit impacts remain a challenge.

These southern nations have developed automotive, machinery, chemicals and consumer goods sectors. Renewable energy investment is high given climate goals. SMEs dominate the industrial landscape. Countries like Poland, Czechia and Hungary have attracted foreign investment in autos and electronics due to lower costs. Automation is helping close productivity gaps with Western Europe.

While Germany remains the manufacturing powerhouse– all European nations are innovating and investing in new technologies to strengthen their industrial competitiveness globally. Sustainability initiatives also provide opportunities going forward.

Market Segmentation

By Production Processes:

  • 3D printing
  • Rapid prototyping
  • Assembly Line manufacturing
  • Continuous process manufacturing
  • Build-to-order
  • Engineer-to-order

By End User:

  • Supply chain and industrial equipment
  • Components for other industries
  • Consumer goods production
  • Personal electronics manufacturing

By Industry Verticals:

  • Passenger Vehicles
  • Commercial vehicles
  • Electric vehicles
  • Aircraft manufacturing
  • Defense equipment
  • Space exploration
  • Consumer electronics
  • Semiconductor manufacturing
  • Industrial automation

By Country:

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

Our Methodology

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

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Europe Size of the Manufacturing Industry is USD 3024 Billion in 2023 and is expected to grow to USD 3393.95 Billion by 2029

The CAGR of the Manufacturing Industry Market in Europe is 1.94%

The Germany region accounts for 25% of the total market share of the Manufacturing Industry Market

The key players in the Manufacturing Industry Market in Europe are Volkswagen, Daimler, BMW, Rolls-Royce and Airbus. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Manufacturing Industry Market in Europe are High labor productivity, Strong manufacturing base, Government initiatives to promote innovation, Growth in automotive and aerospace industries and Skilled workforce. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

Summary of Manufacturing

Europe remains a major player in global manufacturing despite facing increased competition from lower-cost regions in recent decades. The manufacturing sector accounts for approximately 15% of European GDP and provides jobs for millions across the region. Countries like Germany, Italy, France and the UK have long histories of manufacturing excellence in industries such as automotive, machinery, chemicals and more. Based on our estimates, we can say that Europe’s regional manufacturing industry is forecasted to be a $3265.75 billion industry in 2029 from $3024 billion in 2023 with a CAGR of 2.30%.

This region contributes for approximately 18% of the global market revenue of the ‘Manufacturing’ industry.           

While wage increases have pushed some production to other parts of the world, Europe still leads in advanced manufacturing utilizing cutting edge technologies. Regional manufacturers are focusing on innovation, quality, customization and specialized production to maintain competitiveness. Industry 4.0 concepts around automation, robotics, 3D printing, IoT and data analytics are being rapidly adopted across European factories. This modernization is allowing manufacturers to boost productivity while reducing costs and environmental impact.

The COVID-19 pandemic significantly disrupted European supply chains in 2020 but the sector has since shown signs of recovery. Manufacturing output expanded in 2021 led by strong demand for goods during lockdowns. However– ongoing supply issues and high energy prices due to the war in Ukraine continue to pose challenges. Looking ahead – decarbonization efforts represent both a risk and opportunity for European manufacturing. Strategies around renewable energy, energy efficiency, electrification of transport and a circular economy are being implemented.

Recent Trends and Insights

European manufacturers are investing heavily in renewable energy and green technology. For example – many automakers are ramping up electric vehicle production to meet stricter emissions regulations. Steel producers are also experimenting with hydrogen and carbon capture to reduce carbon footprints.

Advanced technologies like robotics, 3D printing, AI and IoT are being implemented across European factories to boost competitiveness through productivity gains and product customization. Germany in particular leads on Industry 4.0 innovation.

Recent updates in this sector of manufacturing – production in the Eurozone expanded by 2.3% in December 2021 compared to the previous year, pointing to continued recovery from pandemic disruptions. Germany, Italy and France all saw output increases.

Like other regions, Europe is facing ongoing supply chain challenges including shortages of raw materials and components. The war in Ukraine has further exacerbated these issues– especially for German automakers dependent on Russian palladium and nickel supplies.

Product Insights

European automakers continue leading in electric vehicle development and production. Volkswagen plans to spend $40 billion on EVs by 2024. BMW and Mercedes are also investing heavily in new EV models. Technologies like self-driving systems and vehicle connectivity are other areas of focus.

Airbus and other European aerospace firms are ramping up production of fuel efficient aircraft like the A320neo to meet climate targets. Next-gen composite materials and automation are enhancing efficiency. Drones and small satellites are emerging growth areas as well.

Europe is a top producer of pharmaceuticals and medical devices. Digital health, personalized medicine, biologics and new therapies for cancer and other diseases are high priority areas attracting significant R&D investment.

European manufacturers supply wind turbines, solar panels and other green tech essential for the energy transition. On/offshore wind and battery storage are experiencing rapid capacity growth to meet climate goals.

Key Companies

Some major players within this vast domain of industry are

  • Volkswagen AG
  • Daimler
  • BMW
  • Airbus
  • Siemens
  • Philips
  • L’Oréal
  • Nestlé

Regional Analysis

As Europe’s largest economy – Germany is the dominant manufacturing powerhouse. Key industries are automotive, machinery, chemicals and electronics. The country leads on Industry 4.0 innovation and exports around 50% of its production. Italy – being renounced for fashion, furniture and food/beverages – also has strong manufacturing in machinery, metals and transport. The north is most industrialized while central/southern regions lag. Automation adoption is growing.

Major sectors include aerospace/defense, pharmaceuticals, cosmetics and luxury goods. Auto production is centered around Renault-Nissan. Manufacturing makes up around 10% of the economy and is concentrated in major cities. Manufacturing output declined after 1980s but industries like aerospace/defense, pharmaceuticals and automotive still thrive. The UK leads on offshore wind technology. Brexit impacts remain a challenge.

These southern nations have developed automotive, machinery, chemicals and consumer goods sectors. Renewable energy investment is high given climate goals. SMEs dominate the industrial landscape. Countries like Poland, Czechia and Hungary have attracted foreign investment in autos and electronics due to lower costs. Automation is helping close productivity gaps with Western Europe.

While Germany remains the manufacturing powerhouse– all European nations are innovating and investing in new technologies to strengthen their industrial competitiveness globally. Sustainability initiatives also provide opportunities going forward.

Market Segmentation

By Production Processes:

  • 3D printing
  • Rapid prototyping
  • Assembly Line manufacturing
  • Continuous process manufacturing
  • Build-to-order
  • Engineer-to-order

By End User:

  • Supply chain and industrial equipment
  • Components for other industries
  • Consumer goods production
  • Personal electronics manufacturing

By Industry Verticals:

  • Passenger Vehicles
  • Commercial vehicles
  • Electric vehicles
  • Aircraft manufacturing
  • Defense equipment
  • Space exploration
  • Consumer electronics
  • Semiconductor manufacturing
  • Industrial automation

By Country:

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

Our Methodology

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

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Europe Size of the Manufacturing Industry is USD 3024 Billion in 2023 and is expected to grow to USD 3393.95 Billion by 2029

The CAGR of the Manufacturing Industry Market in Europe is 1.94%

The Germany region accounts for 25% of the total market share of the Manufacturing Industry Market

The key players in the Manufacturing Industry Market in Europe are Volkswagen, Daimler, BMW, Rolls-Royce and Airbus. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Manufacturing Industry Market in Europe are High labor productivity, Strong manufacturing base, Government initiatives to promote innovation, Growth in automotive and aerospace industries and Skilled workforce. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

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Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.