Strategic Insights into the EU’s Advanced Manufacturing Industry

The advanced manufacturing industry is critical to enhancing European competitiveness. Advanced technologies integrated into manufacturing activities bolster industrial productivity, and are vital for boosting economic resilience, technological sovereignty and long-term growth. 

This advanced manufacturing report dives into the industry, providing an overview of geographical distribution, growth, innovation, private funding, and European funding. This approach allows for an empirical evaluation of the EU’s strengths, weaknesses, opportunities, and threats, further aiding discussions on competitiveness. 

The European advanced manufacturing industry is dynamic, innovative, and growing, yet faces increasing pressure from international competitors, such as the US and China. The report reveals several key strategic insights into the EU’s advanced manufacturing industry.

Global presence

The EU is home to 10% of the world’s advanced manufacturing firms, while the US holds 17%, and China leads with 45%. Together, these regions account for 72% of the global firms in advanced manufacturing. 

Impressive growth

The number of advanced manufacturing firms in the EU more than doubled between 2009 and 2023, outpacing growth in other major regions. However, China still maintains a significant lead in overall numbers. 

Strong innovation ecosystem

Europe has an innovative advanced manufacturing ecosystem. Between 2009 and 2023, EU firms applied for 18 000 patents in advanced technologies for manufacturing, reflecting the EU's contribution to global tech advancements. 

Start-ups and scale-ups

The EU boasts a strong base of high-growth potential start-ups and scale-ups, with success in particular industrial ecosystems and technology areas, such as additive manufacturing (or 3D printing). This highlights Europe’s ability to nurture disruptive innovators within the sector. 

Venture capital challenges

Despite Europe’s innovation strength, European venture capital is struggling to connect with home-grown innovators. Globally, only 1 out of every €10 invested into the industry reached European firms, highlighting the significant gap to be filled by financial markets. 

Geographical distribution

Germany, France, Spain, and Italy host over 60% of the EU’s advanced manufacturing firms, with Germany alone capturing 6 out of every €10 of venture capital invested in Europe. 

EU funding support

EU funds are crucial in fostering the development of the advanced manufacturing industry. 1 in 4 firms in the sector received EU funding, underscoring the importance of public support in driving industry growth and innovation. 

To further explore the data underpinning the report, a dedicated online tool has been created to support policymakers, industrial stakeholders, academics, and other interested parties. It allows you to gain further insights into regional comparisons, technology diffusion, and take an in-depth look at specific manufacturing ecosystems. 

Download the report