Europe Industrial Machinery Market Size - By Operation, By End Use, By Distribution Channel, Forecast 2025 - 2034

Europe Industrial Machinery Market Size

The Europe industrial machinery market was estimated at USD 106.4 billion in 2024. The market is expected to reach USD 151.7 billion in 2034, at a CAGR of 3.6%., due to the advancements in automotive sector, technological innovations, the introduction of industry 4.0, and the rising investment in renewable energy projects. 
 

The shift towards electric vehicles (EV) adoption is one of the biggest changes happening in the automotive industry in Europe. The electric and hybrid vehicle market share grew from 10% in 2019 to 24% in 2021, according to the European Automobile Manufacturers Association (ACEA). The tremendous growth in these sectors is creating a huge demand for advanced manufacturing facilities including electric drivetrains and battery plants. The rising need for complex industrial machinery is aiding the growth of the market as automobile manufacturers aim to modernize their production lines and new plants.  Moreover, productivity and manufacturing processes along with other factors are enhanced by Industry 4.0 instruments such as IoT, AI, and robotics.
 

The adoption of digital manufacturing technologies has been increasing, as stated by CECIMO, projecting Europe’s IoT manufacturing market was expected to go from 14.2 billion USD in 2021 to 27.4 billion USD in 2026 with a CAGR of 14%. These enhancements enable the manufacturers to improve operational efficiency, reduce downtime, and improve product quality, thereby increasing the need for innovation.
 

Moreover, the target to become carbon neutral by 2050 has motivated the EU to pour resources into renewable energy projects including the expansion of the industrial machinery market. According to the European Renewable Energy Council (EREC), investments in the infrastructure of renewables will rise above 1 trillion USD by 2030. The surge in wind and solar initiatives creates a need for specialized industrial machinery to facilitate construction, installation, and maintenance. Thus, there is a growing market for industrial machinery suppliers to the renewal energy industry.
 

Europe Industrial Machinery Market Trends

• The use of sustainable and energy efficient materials even in the industrial machinery is slowly shifting to becoming more sustainable. The European Union has set goals of achieving carbon neutrality by 2050. To meet these targets, European manufacturers are focused on developing machinery that is more energy-efficient and environmentally friendly. This trend towards environmentally friendly practices can also be seen in the rising use of electric and hybrid machines that are less polluting than traditional diesel-powered equipment.
   
• In addition, companies are trying to increase productivity and mitigate human resource challenges, thus there is a shift toward the increased use of robotics and automation in the industry.
   
• More manufacturing plants are adopting robotics and automation systems which aid in more precise and faster production, while minimizing human errors. As reported by International Federation of Robotics (IFR), since 2020, Europe has been leading the world in robot density with an average of 114 industrial robots for every 10,000 people working in the manufacturing industry. From 2021 to 2024, the IFR estimates there will be a 12% increase in new robotic installations in Europe. The use of collaborative robots or cobots is also rapidly growing because they provide effective tools for automating tasks and increasing productivity and efficiency of the workers. As technology and automation in industries becomes more affordable, it is projected that there will be an increase in the supply of industrial equipment with integrated robotics and automation systems.
   

Europe Industrial Machinery Market Analysis

• The Europe industrial machinery industry by operation type is segmented into automated machinery, semi-automated machinery, manual machinery, robotic machinery.
   
• Automated machinery segment was worth over USD 47.2 billion in 2024 and is expected to reach USD 69.1 billion by 2034.
   
• This supremacy stems from the appealing combination of accuracy and lowered wages to be paid because of automated machines. Automated equipment performs with greater accuracy and consistency than people, resulting in fewer errors and improved quality of the products.
   
• A report from the International Federation of Robotics (IFR) indicated that the defect rate of products caused by automation was decreased by up to 30%. The need for manpower is greatly reduced, thus lowering production costs. This is particularly true in Europe where manufacturers are worried about the increasing cost of labor, thereby propelling the market growth in Europe. 
   

• The Europe industrial machinery market by end use is segmented into agriculture, construction, packaging, food processing, mining, semiconductor manufacturing, and others.
   
• The construction segment accounted for a market share of around 42% in 2024 and is projected to grow by 2034.
   
• This is brought about by a combination of newer necessities like infrastructure improvement, elevation in the development of towns, and housing. For example, the European Union is reporting very positive progress in economic recovery after the COVID 19 pandemic due to massive infrastructure investments.
   
• The European Investment Bank (EIB) provides loan financing only for infrastructure and reported that infrastructure investment in the EU alone was more than 330 billion dollars in construction, transport, energy, and public works alone. This outlay supports the construction equipment industry which absolutely drives development in the countries.
   
• Other estimates suggest that investment spending also permits exceptional growth of the population signs of urbanization.
   
• Eurostat, estimates population in the EU will increase by 7% in 2050 which comes along with commercial and residential construction boom opportunities which will result in continued demand for construction equipment to aid in the growing housing, office and infrastructure construction which helps in driving the economy.
   

• Germany industrial machinery market is set to at a CAGR of over 4.6% till 2034 year. This increase is associated with Germany having a sturdy industrial base and remarkable engineering. Tradition and exceptional German precision equipped the country with advanced manufacturing and technology, making Germany an industrial machinery pioneer for decades. According to the German Engineering Federation (VDMA), Germany has by far the largest mechanical engineering sector in Europe, with over 6,600 companies operating in the sector and about 1.3 million people working in it. Such factual strong industrial base sustains high productivity coupled with innovation and advances to the German economy lading them to supremacy within the industry.
   
• The UK market has recorded 4.1% CAGR during the forecast period of 2025-2034. Investment in automation, digital manufacturing, and environmentally friendly technologies has led to growth in the industrial machinery market in the UK. The introduction of IoT, AI, and robotics has led to the emergence of Industry 4.0 which is improving production efficiency while simultaneously decreasing operational costs. Moreover, innovative and green policies of the government are incentivizing firms to modernize their old equipment with new energy-efficient and low-emission devices. The market is also broadening due to the increased demand for sophisticated equipment in the aerospace, automotive, and food processing sectors.
   
• The rest of the Europe countries, have recorded as 2.6% CAGR during the forecast period of 2025-2034. Europe’s robust exports related to innovation shows that high toughest quality machinery and infrastructure is being developed. Highly skilled labor, innovation that fulfills the demand and skilled resources further drives this region towards growth.
   

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%.
 

• In the market, Siemens AG has the largest share. This is because of its profound technological intelligence, extensive product portfolio, and focus on automation and digitization, Siemens AG has a significant share of the market in European industrial machinery.
   

Europe Industrial Machinery Market Companies

Major players operating in the Europe industrial machinery industry are:

• ABB Ltd.
• Alfa Laval AB
• Atlas Copco AB
• Bosch Rexroth AG
• CNH Industrial N.V.
• DMG Mori AG
• 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       
    

Europe Industrial Machinery Industry News

• On March 19, 2024, Atlas Copco announced another line of portable membrane generators for nitrogen which can operate in more strenuous conditions and are specially tailored to specific environments.
   
• In 2023, Siemens release its Industrial Edge 2.0, edge computing platform to the public with the goal of enabling manufacturers to easier apply AI and analytics to their systems.
   
• In 2022, ABB released its new delta robot, IRB 390, specially constructed for rapid assembly in the food and beverages sector, along with picking and packing processes.
   
• In 2021 Copco acquired Airflow Compressors & Pneumatics Ltd to increase their influence in the UK as a distributor for pneumatic air solutions.
   

This Europe industrial machinery market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Million) and volume (Thousand Units) from 2021 to 2034, 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:

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain