Europe Industrial Machinery Market Size - By Operation (Automated Machinery, Semi-Automated Machinery, Manual Machinery, Robotic Machinery), By Distribution Channel (Direct, Indirect), By End Use, Country Outlook & Forecast, 2024 – 2032

Europe Industrial Machinery Market Size - By Operation (Automated Machinery, Semi-Automated Machinery, Manual Machinery, Robotic Machinery), By Distribution Channel (Direct, Indirect), By End Use, Country Outlook & Forecast, 2024 – 2032

Europe Industrial Machinery Market Size

Europe Industrial Machinery Market was valued at USD 102.8 billion in 2023 and is anticipated to register a CAGR of 4% between 2024 and 2032, driven by the expansion in automotive sector, expanding technological advancements and integration of industry 4.0, increasing investment in renewable energy projects.  

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As automakers invest in upgrading their production lines and building new facilities, the demand for sophisticated industrial machinery continues to rise, contributing to the market's expansion. Additionally, Industry 4.0, which includes the Internet of Things (IoT), artificial intelligence (AI), and robotics, is transforming manufacturing processes and increasing productivity.

According to the European Association of the Machine Tool Industries (CECIMO), the adoption of digital manufacturing technologies has been accelerating, with projections indicating that the market for IoT in manufacturing in Europe will grow from USD 14.2 billion in 2021 to USD 27.4 billion by 2026, with CAGR of 14%. These advancements enable manufacturers to optimize operations, reduce downtime, and enhance product quality, thereby driving the demand for innovative industrial machinery.
 

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The European Semiconductor Industry Association (ESIA) forecasts that the constraints on semiconductor supply could persist until 2024, which poses an ongoing challenge for machinery manufacturers. This shortage affects the production schedules, costs, and overall availability of industrial machinery, thus hindering to meet customer demands and maintain competitive advantage in a rapidly evolving market. Manufacturers can tackle this situation by diversifying their supply chains. This involves sourcing the components and raw materials from multiple suppliers across different geographical regions thereby reducing dependence on a single supplier or region.

Europe Industrial Machinery Market Trends

One prominent trend is the growth of being sustainable and usage of energy efficient materials even in the industrial machinery industry as sustainability and energy efficiency are becoming increasingly important in the European industrial machinery market. The European Union has set goals of achieving carbon neutrality by 2050. In response, manufacturers are investing in machinery development that consumes less energy and reduces environmental impact. This shift towards sustainability is also reflected in the increasing adoption of electric and hybrid machines, which are less polluting as compared to traditional diesel-powered equipment.

Also, there is a surge of adoption of automation and robotics in the market as companies seek to improve productivity and address labor shortages. Robotics and automated systems are becoming more prevalent in manufacturing plants, enabling higher precision, faster production cycles, and reduced human error. As automation becomes more advanced and accessible, the demand for industrial machinery that incorporates robotics and automated systems is anticipated to rise.  

Europe Industrial Machinery Market Analysis

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Based on operation, the automated industrial machinery segment was worth over USD 45.5 billion 2023 and is expected to reach USD 66.3 billion by 2032, attributed to a compelling blend of precision and reduced labor costs by automated machines. Automated machines can perform tasks with higher precision and consistency compared to humans, leading to fewer defects and higher product quality. According to a study by the International Federation of Robotics (IFR) it was found that automation can reduce product defect rates by up to 30%. Automation can significantly reduce reliance on human labor, leading to lower production costs. This is particularly relevant in Europe, where rising labor costs are a key concern for manufacturers.

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Based on end use, the construction segment was reached USD 43 billion in 2023 and is likely to exceed USD 63.4 billion by 2032. This dominance can be attributed to a confluence of factors such as increasing demand for infrastructure development, growing urbanization and housing development. Governments across Europe are investing heavily in infrastructure projects to stimulate economic growth and improve public services. According to Eurostat, the EU's statistical office, the urban population in Europe is expected to grow by 7% by 2050, implies extensive residential and commercial construction. To manage this growth, there is a continuous need for construction machinery to build housing, office spaces, and related infrastructure thereby propelling the market growth.

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Germany industrial machinery market size surpassed USD 20.3 billion in 2023 and is projected to hit USD 31.9 billion by 2032. This growth is attributed to the Germany’s strong industrial base and quality of engineering. The country has a long tradition of precision engineering, advanced manufacturing, and technological innovation, which has made it a global leader in industrial machinery. According to the German Engineering Federation (VDMA), the mechanical engineering sector in Germany is the largest in Europe, with over 6,600 companies and around 1.3 million employees. This strong industrial foundation supports a high level of productivity and innovation, contributing significantly to the country's leadership in the market.

Also, the Federal Statistical Office of Germany reported that in 2020, Germany's expenditure on R&D was approximately more than USD 105 billion, representing more than 3.2% of its GDP. Therefore, this investment supports the development of cutting-edge technologies and high-quality machinery, ensuring that German companies remain at the forefront of the industry. The emphasis on R&D allows German manufacturers to produce machinery that is efficient, reliable, and tailored to meet the specific needs of various industries. Companies such as, Caterpillar Inc., Siemens AG are known for their quality products and are based in Germany thereby, giving it an edge over other countries.

Country-Level Analysis

Germany led the Europe industrial machinery market with revenue of around USD 20.3 billion in 2023 and is expected to reach around USD 31.9 billion by 2032 and is growing at a CAGR of 5.2%. This growth is attributed to the Germany’s strong industrial base and quality of engineering. The country has a long tradition of precision engineering, advanced manufacturing, and technological innovation, which has made it a global leader in industrial machinery. According to the German Engineering Federation (VDMA), the mechanical engineering sector in Germany is the largest in Europe, with over 6,600 companies and around 1.3 million employees. This strong industrial foundation supports a high level of productivity and innovation, contributing significantly to the country's leadership in the market.

Apart from Germany, the rest of the European countries have also shown notable growth in the market with revenue exceedingly over USD 23.5 billion in 2023 and is expected to reach USD 30.2 billion in the year 2032 as manufacturers prioritize innovation and quality, resulting in high-performance and technologically advanced machinery. Additionally, Europe boasts a strong export presence, with data from CECOMAF showing machinery exports exceedingly more than USD 700 billion in 2022. This combination of skilled labor, innovation, and huge reach propels the market.

Europe Industrial Machinery Market Share

The Europe industrial machinery industry is fragmented, with prominent players, such as Siemens AG, ABB Ltd., Atlas Copco AB, KUKA AG, Bosch Rexroth AG holding a market share of 25-30%. To meet the growing consumer demand, manufacturers are adopting steps such as wide availability of products and machineries outside the Europe, continuous ongoing R & D and technological advancements which gives these companies the competitive advantage.

Europe Industrial Machinery Market Companies

Major players operating in the Europe industrial machinery industry include

• ABB Ltd.
• Alfa Laval AB
• Atlas Copco AB
• Bosch Rexroth AG
• CNH Industrial N.V.
• Festo SE & Co. KG
• GEA Group AG
• Komatsu Europe International N.V.
• KUKA AG
• Liebherr Group
• Sandvik AB
• Schindler Group
• Siemens AG
• Trumpf GmbH + Co. KG
• Voith GmbH & Co. KGaA

Europe Industrial Machinery Industry News

• In June 2023, Siemens launched its new industrial edge computing platform, Industrial Edge 2.0, designed to help manufacturers implement AI and advanced analytics in their operations more easily.
   
• In September 2022, ABB introduced its IRB 390 FlexPacker delta robot in 2022, specifically designed for high-speed picking and packing applications in the food and beverage industry.
   
• In March 2021, Atlas Copco acquired Airflow Compressors & Pneumatics Ltd, a British distributor of compressed air solutions, to strengthen its presence in the UK market.
   
• In October 2020, KUKA introduced its new KR SCARA robot series, which was aimed at assembly, material handling, and testing applications in electronics and other industries requiring fast, precise automation.

This Europe industrial machinery market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (Thousand Units) from 2018 to 2032, for the following segments

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Market, By Operation

• Automated Machinery
• Semi-Automated Machinery
• Manual Machinery
• Robotic Machinery

Market, By End Use

• Agriculture
• Construction
• Packaging
• Food processing
• Mining
• Semiconductor manufacturing
• Others

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following countries

• Germany
• UK
• France
• Italy
• Spain
• Rest of Europe