Market Size of Europe Smart Manufacturing Industry
|2019 - 2029
|Base Year For Estimation
|Market Size (2024)
|USD 54.67 Billion
|Market Size (2029)
|USD 68.42 Billion
|CAGR (2024 - 2029)
*Disclaimer: Major Players sorted in no particular order
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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.