Europe Smart Manufacturing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 54.67 Billion |
| Market Size (2029) | USD 68.42 Billion |
| CAGR (2024 - 2029) | 4.59 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Smart Manufacturing Market Analysis
The Europe Smart Manufacturing Market size is estimated at USD 54.67 billion in 2024, and is expected to reach USD 68.42 billion by 2029, growing at a CAGR of 4.59% during the forecast period (2024-2029).
According to the European Commission's report, the manufacturing sector is a strong asset of the European economy, accounting for over 2 million enterprises and nearly 33 million jobs. The region's competitiveness is highly dependent on the ability of the manufacturing sector to provide high-quality, innovative products through the latest advancements in ICT. However, currently, there is a skill gap within professionals with knowledge of smart manufacturing processes and digital transformation technologies, which is expected to impede the growth of the European smart manufacturing market.
- The European Union's research and innovation (R&I) programs have firmly supported the development of smart technologies and solutions that enable the European manufacturing industry to take full advantage of digital opportunities.
- Many projects are financed by the 'Factories of the Future Public-Private Partnership,' which aims to help EU manufacturing companies and SMEs face worldwide competition by developing the required key enabling technologies across a broad range of end-user industries.
- The backbone of Germany's industrial base is the mid-sized manufacturers. Reportedly, the country hosts many mid-size manufacturers, 90% of which operate in the business-to-business markets. To encourage this, the Government of Germany has created the Mittelstand-Digital Initiative, in part in recognition, which creates networks between stakeholders, through which SMEs and entrepreneurs can learn from each other. This has helped develop trust, acceptance, and buy-ins among SMEs regarding Industry 4.0 adoption.
- One of the major benefits of integrating smart manufacturing technologies such as IoT and robotics is that robots can work without having any errors or glitches. As a result, it is expected to positively impact market growth over the forecast period. Moreover, these robots help the co-worker by doing repetitive tasks and thus drive for the use of a more skilled workforce to improve the quality of work and productivity.
- For instance, Europe-based Geesinknorba, through smart technologies in manufacturing, achieved decreased lead-time, increased production efficiency by 45%, and increased the production output by 40%. With a set of other measures, it took the team only eight months to achieve these remarkable results.
- However, the impact of the COVID-19 crisis on the European automobile sector is severe. Factory shutdowns because of the crisis have resulted in lost production amounting to 1465,415 motor vehicles, as stated by the European Automobile Manufacturers' Association (ACEA) in April 2020. In November 2021, the region saw the lowest passenger car registration since 1993, and double-digit losses were recorded across Europe. However, sales recovery was expected by late 2021.
Europe Smart Manufacturing Market Trends
This section covers the major market trends shaping the Europe Smart Manufacturing Market according to our research experts:
Industrial Robotics Technology is Expected to Experience a Healthy Growth over the Forecast Period
- With a trend like Industry 4.0, Manufacturing robots automate repetitive tasks, reduce margins of error, and enable human workers to focus on productive areas of operation. Currently, robots are being deployed for machine tool tending, material removal, palletization and de-palletizing, material handling, welding, gas metal arc welding, and assembly, to name a few. This has created automotive and electronics in manufacturing activities.
- In France, firms like Groupe Roux-Jourfier are enabling companies to incorporate “collaborative robotics” into their plants to perform entirely automatic processes and to work collaboratively alongside human operators to perform more complex tasks. This is particularly essential for the aerospace industry, where OEMs are always under pressure to deliver products in time, and hence, transfer this pressure to suppliers.
- In the European industry ecosystem, country-level adoption of industrial robots is indicative of demand and supply destinations. According to IFR’s latest report on robot density in the manufacturing industry, Germany is expected to witness an automation surge over the forecast period. The country has 338 robots installed per 10,000 employees. Sweden, Denmark, and Italy also have more than 200 robots per 10,000 employees.
- With the growing demand for robotic solutions in the region and global markets, various major global vendors are looking to expand their product portfolio to cater to the expected growth in demand from the post-COVID-19 effects in the market. For instance, in February 2021, ABB launched its next generation of robots to unlock automation for new sectors and first-time users. Such developments are expected to increase over the forecast period.
The United Kingdom is Expected to Hold a Significant Share
- The rising requirement to reduce manufacturing costs and applications of the Internet of Things and machine-to-machine (M2M) technologies are fueling the growth of the market in the country.
- According to a government-commissioned review, the manufacturing sector in the country can unlock GBP 455 billion over the next decade and create a significant number of job opportunities if it cracks the fourth industrial revolution and carves out a successful post-Brexit future.
- Compared with other developed countries, the UK manufacturing sector has underinvested in robotics and other forms of automation. It invests around 1.7% of its GDP into manufacturing innovation, well behind the OECD average of 2.4%.
- Furthermore, the adoption of 5G to boost factory output is expected to be a significant advancement in the future of Industry 4.0. For instance, in February 2019, Bosch’s factory in Worcester, United Kingdom, was fitted with sensors and 5G-based technology for monitoring its operations. The factory has combined IoT smart sensors and 5G for preventative maintenance.
Europe Smart Manufacturing Industry Overview
The European smart manufacturing market is moderately fragmented, with a large number of small- and medium-sized manufacturers that account for a major part of the share. These players hold a significant share in the market and focus on expanding their customer base across European countries. These players are leveraging product development, strategic partnerships, and other growth strategies to increase their market shares during the forecast period.
- February 2021 - IBM announced that it signed a new digital transformation agreement with Vodafone Portugal. This builds on another regional momentum it recently announced with Telefonica to transform its enterprise offerings to take advantage of hybrid cloud and work with Bouygues Telecom to drive 5G innovation. Not only do these collaborations underscore the deep trust leading that telcos are continuing to place in IBM, but these also come at a crucial point in time for telcos across the EMEA region.
- February 2021 - Siemens and IBM extend alliance to IoT for manufacturing. The companies expanded an existing alliance to include deployments of MindSphere, a managed internet of things (IoT) service provided by Siemens, on an instance of the Red Hat OpenShift platform. The goal is to make it simpler to build edge computing applications that process and analyze data as it is being created. Manufacturers currently use MindSphere to collect and analyze real-time sensor data from products, plants, systems, and machines. Siemens now wants to feed that data into analytics applications that run locally versus in the cloud. This will eliminate latency that would otherwise be created when data is transferred over a wide area network (WAN).
Europe Smart Manufacturing Market Leaders
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ABB Ltd
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Honeywell UK Ltd.
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Siemens AG
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Rockwell Automation Inc.
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Robert Bosch GmbH
*Disclaimer: Major Players sorted in no particular order
Europe Smart Manufacturing Market News
- February 2021 - A remote, forested rise in northern Sweden, some 500 miles from Stockholm, is poised to become the largest single onshore wind farm in Europe. When completed, Önusberget wind farm will have the capacity to generate 753 megawatts, enough to supply the equivalent of more than 200,000 Swedish homes. Luxcara and GE Renewable Energy announced the farm would use 137 Cypress 5.5 MW wind turbines, the most powerful onshore turbines in GE's portfolio.
- March 2021 - FANUC and Rockwell Automation formed a coalition to address the manufacturing skills gap with robotics and automation apprenticeship programs designed to upskill current and future workers for advanced manufacturing, robotics, and automation jobs. The coalition has developed new apprenticeship programs offering people opportunities to gain credentials, including fundamental robotics (Robot Operator) and automation (PLC Operator). The program offers a second level of credentials for robot and PLC technicians.
Europe Smart Manufacturing Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Demand for Automation to Achieve Efficiency and Quality
- 5.1.2 Need for Compliance and Government Support for Digitization
- 5.1.3 Proliferation of Internet of Things
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5.2 Market Restraints
- 5.2.1 Concerns Regarding Data Security
- 5.2.2 High Initial Installation Costs and Lack of Skilled Workforce Restricting Enterprises from Full-scale Adoption
6. MARKET SEGMENTATION
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6.1 Technology
- 6.1.1 Programmable Logic Controller (PLC)
- 6.1.2 Supervisory Controller and Data Acquisition (SCADA)
- 6.1.3 Enterprise Resource and Planning (ERP)
- 6.1.4 Distributed Control System (DCS)
- 6.1.5 Human Machine Interface (HMI)
- 6.1.6 Product Lifecycle Management (PLM)
- 6.1.7 Manufacturing Execution System (MES)
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6.2 Component
- 6.2.1 Communication Segments
- 6.2.2 Control Devices
- 6.2.3 Machine Vision Systems
- 6.2.4 Robotics
- 6.2.5 Sensors
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6.3 End-user Industry
- 6.3.1 Automotive
- 6.3.2 Oil and Gas
- 6.3.3 Chemical and Petrochemical
- 6.3.4 Pharmaceutical
- 6.3.5 Food and Beverage
- 6.3.6 Metals and Mining
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6.4 Country
- 6.4.1 United Kingdom
- 6.4.2 France
- 6.4.3 Germany
- 6.4.4 Russia
- 6.4.5 Spain
- 6.4.6 Italy
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 ABB Ltd
- 7.1.2 Emerson Electric Co.
- 7.1.3 Fanuc Corporation
- 7.1.4 IBM Corporation
- 7.1.5 Schneider Electric SE
- 7.1.6 Siemens AG
- 7.1.7 Rockwell Automation Inc.
- 7.1.8 Honeywell International Inc.
- 7.1.9 General Electric Company
- 7.1.10 Robert Bosch GmbH
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityEurope Smart Manufacturing Industry Segmentation
Smart manufacturing (SM) is a technology-driven strategy that monitors the manufacturing process using Internet-connected gear. The purpose of SM is to find ways to automate activities and increase manufacturing performance through data analytics.
The European smart manufacturing market is segmented by technology (programmable logic controller (PLC), supervisory controller and data acquisition (SCADA), enterprise resource and planning (ERP), distributed control system (DCS), human machine interface (HMI), product lifecycle management (PLM), manufacturing execution system (MES)), component (communication segments, control devices, machine vision systems, robotics, sensors), end-user industry (automotive, oil and gas, chemical and petrochemical, pharmaceutical, food, and beverage, metals and mining), and country (United Kingdom, France, Germany, Russia, Spain, Italy).
Europe Smart Manufacturing Market Research FAQs
How big is the Europe Smart Manufacturing Market?
The Europe Smart Manufacturing Market size is expected to reach USD 54.67 billion in 2024 and grow at a CAGR of 4.59% to reach USD 68.42 billion by 2029.
What is the current Europe Smart Manufacturing Market size?
In 2024, the Europe Smart Manufacturing Market size is expected to reach USD 54.67 billion.
Who are the key players in Europe Smart Manufacturing Market?
ABB Ltd, Honeywell UK Ltd., Siemens AG, Rockwell Automation Inc. and Robert Bosch GmbH are the major companies operating in the Europe Smart Manufacturing Market.
What years does this Europe Smart Manufacturing Market cover, and what was the market size in 2023?
In 2023, the Europe Smart Manufacturing Market size was estimated at USD 52.27 billion. The report covers the Europe Smart Manufacturing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Smart Manufacturing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Smart Manufacturing Industry Report
Statistics for the 2024 Europe Smart Manufacturing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Smart Manufacturing analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
