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.

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.

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.