Market Trends of Europe Safety Connection Devices Industry
This section covers the major market trends shaping the Europe Safety Connection Devices Market according to our research experts:
Increasing Automation to Drive the Market
- The demand for automation is rapidly growing in Europe due to the increased high product quality requirements, coupled with expectations of high reliability and large volume production.
- Additionally, automation of manufacturing processes has contributed to numerous benefits, such as smooth and accurate monitoring, reduction of waste, consistent production speed. This technology offers customers standardized and superior products within time and at a lower cost.
- The Industrial Strategy of the UK government fundamentally outlined a plan to invest GBP 2 billion per year by 2020 for new research and development in the technology sector. Smart manufacturing and the Industrial Internet of Things (IoT) would be built upon the work that automation has already forged over these years.
- Further, according to the International Federation of Robotics (IFS), as for automation in manufacturing, the European Union is currently one of the global frontrunners: 65 percent of countries with an above-average number of industrial robots per 10,000 employees are located in the EU.
- With automation becoming prevalent in every industry in Europe, the demand for safety connection devices to communicate data safely and securely is also increasing. For instance, in May 2020, Honeywell expedited the development and production of vaccines and medical therapies through fast-track automation.
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Automotive segment is Expected to Hold a Major Share
- The automotive industry is essential to Europe's economic development. According to the European Commission, the automobile industry employs 13.8 million Europeans directly and indirectly, accounting for 6.1 percent of overall employment in the EU. Direct production of automobiles employs 2.6 million people, accounting for 8.5 percent of all manufacturing jobs in the EU. The European Union is one of the major makers of automobiles globally.
- Additionally, the EU's automotive industry is one of the largest private investors in R&D. (R&D). The European Commission encourages worldwide technology harmonization and provides money for R&D to boost the competitiveness of the EU automobile industry and maintain its global technological leadership.
- Resultantly, many automotive manufacturers in Europe are creating new manufacturing infrastructures or transitioning their manufacturing processes away from manual labor towards robotic machinery. For instance, BMW plans to open a new factory in Hungary by 2023, with a capacity of 150,000 vehicles per year.
- However, the COVID-19 pandemic has shaken Europe's automotive industry to its core, with a combination of travel bans, factory shutdowns, and limited consumer spending power spelling disaster for the new vehicle market.
- The European Automobile Manufacturers' Association (ACEA) estimated a 25% drop in passenger car registrations in the European Union to just 9.6 million units in 2020. Recent figures from Germany's federal motor transport authority in 2020 revealed that new car registrations had fallen 61% in April and 50% in May.
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