Beneath the steady hum of economic statistics lies a dramatic story of resilience and transformation, as Europe's industrial sector—a €1.2 trillion export powerhouse—charts a diverse path where surging pharmaceutical innovation and Dutch metal production contrast with energy-intensive struggles and a shifting employment landscape.
Key Takeaways
- In 2022, the European Union's industrial production index (2015=100) reached 102.4, marking a 1.2% increase from 2021, with manufacturing subsector contributing 92.5% of the total index value
- EU-27 industrial production in manufacturing of food products, beverages, and tobacco products grew by 2.8% year-on-year in December 2023, reaching an index of 108.7 (2015=100)
- In Q4 2023, Germany's industrial production volume decreased by 1.6% compared to Q4 2022, with the manufacturing sector at 97.3 index points (2015=100)
- In 2022, EU manufacturing sector employed 32.5 million people, representing 13.8% of total employment, down 0.5% from 2021
- Germany's industrial workforce stood at 7.8 million in 2023, with 2.1 million in automotive manufacturing
- EU chemicals industry employed 1.2 million directly in 2022, plus 2.5 million indirectly
- In 2022, EU industry final energy consumption was 2,300 TWh, 25% of total EU energy use, manufacturing 70% share
- Germany's industrial energy use 1,200 TWh in 2023, chemicals 30% of it
- EU steel industry energy intensity improved 2.1% to 18.5 GJ/tonne in 2022
- In 2022, EU industry R&D expenditure totaled €100 billion, 10% of total EU R&D, manufacturing 70% share
- Germany's industrial R&D investment €85 billion in 2023, automotive 25%
- EU chemicals R&D spending €12 billion in 2022, 2.5% of sales
- In 2022, EU industrial goods exports reached €1.2 trillion, 50% of total EU exports, machinery 20% share
- Germany's machinery exports €250 billion in 2023, US 12% destination
- EU chemicals exports €250 billion in 2022, Asia 25%
EU industrial production grew modestly with mixed regional and sector performance.
Employment and Workforce
- In 2022, EU manufacturing sector employed 32.5 million people, representing 13.8% of total employment, down 0.5% from 2021
- Germany's industrial workforce stood at 7.8 million in 2023, with 2.1 million in automotive manufacturing
- EU chemicals industry employed 1.2 million directly in 2022, plus 2.5 million indirectly
- France's manufacturing employment was 2.9 million in Q4 2023, stable from prior year
- Italy's industrial sector jobs totaled 4.1 million in 2022, machinery 650,000 workers
- EU steel sector employment 325,000 direct jobs in 2022, down 1.8% YoY
- Spain's manufacturing workforce 2.4 million in 2023, food industry 450,000
- Poland's industrial employment grew to 2.6 million in 2023, up 1.2%
- Netherlands chemicals employment 92,000 in 2022
- EU pharma industry direct jobs 820,000 in 2023, R&D roles 15%
- Belgium's manufacturing employment 650,000 in 2023, chemicals 120,000
- Sweden's industrial workforce 580,000 in 2022, metals 180,000
- Austria's manufacturing jobs 700,000 in 2023, machinery sector 150,000
- Czech Republic automotive employment 400,000 in 2022, 20% of industrial jobs
- EU electronics sector employed 2.1 million in 2022
- Hungary's manufacturing workforce 1.1 million in 2023, electronics 300,000
- Finland's industrial employment 300,000 in 2022, wood processing 50,000
- Denmark's manufacturing jobs 250,000 in 2023, pharma 25,000
- Slovakia's industrial employment 550,000 in 2022, automotive 250,000
- EU food and beverage manufacturing employed 4.8 million in 2022
- Portugal's textile employment 120,000 in 2023
- Romania's manufacturing workforce 1.5 million in 2022, up 2.1%
- Greece's industrial employment 200,000 in 2023, food sector 60,000
- Bulgaria's manufacturing jobs 350,000 in 2022, metals 80,000
- Ireland's pharma employment 55,000 in 2023, 50,000 indirect
- EU industrial employment share in total employment fell to 13.5% in 2023 from 14% in 2019
- Lithuania's manufacturing workforce 200,000 in 2022, furniture 40,000
- Latvia's industrial employment 110,000 in 2023, wood 30,000
- Estonia's manufacturing jobs 90,000 in 2022, electronics 25,000
Employment and Workforce Interpretation
While Europe's industrial heart still beats with over 30 million workers, its pulse is subtly shifting, as the steady decline in its overall employment share reveals an economy being quietly reshaped by automation, outsourcing, and the ascent of services, even as national champions like German autos and Czech machinery continue to flex their considerable muscle.
Energy Consumption and Sustainability
- In 2022, EU industry final energy consumption was 2,300 TWh, 25% of total EU energy use, manufacturing 70% share
- Germany's industrial energy use 1,200 TWh in 2023, chemicals 30% of it
- EU steel industry energy intensity improved 2.1% to 18.5 GJ/tonne in 2022
- France's industrial electricity consumption 150 TWh in 2022, down 3% YoY
- EU chemicals sector energy consumption 650 TWh in 2022, 28% renewable share
- Italy's manufacturing energy use 250 TWh in 2023, natural gas 45%
- EU cement industry CO2 emissions 211 million tonnes in 2022, 5% reduction via efficiency
- Spain's industrial energy intensity 5.2 toe per €1,000 value added in 2022
- Poland's heavy industry energy consumption 180 TWh in 2023, coal 40% share
- Netherlands refineries processed 70 million tonnes oil in 2022, energy use 25 TWh
- EU pulp and paper energy use 400 TWh in 2022, 50% self-generated biomass
- Belgium's chemical plants energy efficiency up 1.8% in 2023, consumption 120 TWh
- Sweden's steel industry renewable energy share 40% in 2022, total use 50 TWh
- Austria's industrial GHG emissions 25 million tonnes CO2eq in 2022, down 4%
- Czech Republic manufacturing energy 60 TWh in 2023, electricity 55%
- EU glass sector energy consumption 120 TWh in 2022, recycled content 75%
- Finland's energy-intensive industries used 100 TWh electricity in 2022
- Denmark's industrial energy consumption 35 TWh in 2023, renewables 60%
- Slovakia's automotive energy use 20 TWh in 2022
- EU textile industry water use 20 billion m³ in 2022, energy 80 TWh
- Hungary's manufacturing CO2 emissions 40 million tonnes in 2023
- Portugal's pulp energy self-sufficiency 120% in 2022, total 15 TWh
- Romania's industrial energy 70 TWh in 2022, efficiency up 2.5%
- Greece's manufacturing energy consumption 25 TWh in 2023
- Ireland's pharma energy use 10 TWh in 2022, low-carbon 30%
- EU industry renewable energy share reached 23% in 2022, up from 20% in 2019
- Lithuania's industrial energy intensity down 3.1% to 0.25 toe/€1,000 GVA in 2023
- Latvia's manufacturing energy 12 TWh in 2022, wood biomass 35%
- Estonia's oil shale industry energy 15 TWh in 2023
- Bulgaria's industrial energy consumption 30 TWh in 2022
Energy Consumption and Sustainability Interpretation
Europe's industrial engine is a voracious beast consuming a quarter of the bloc's energy, yet it's on a grudging diet of efficiency gains and renewable sips, with Germany's chemical appetite and Poland's coal habit showing just how messy this green transition feast really is.
Production and Output
- In 2022, the European Union's industrial production index (2015=100) reached 102.4, marking a 1.2% increase from 2021, with manufacturing subsector contributing 92.5% of the total index value
- EU-27 industrial production in manufacturing of food products, beverages, and tobacco products grew by 2.8% year-on-year in December 2023, reaching an index of 108.7 (2015=100)
- In Q4 2023, Germany's industrial production volume decreased by 1.6% compared to Q4 2022, with the manufacturing sector at 97.3 index points (2015=100)
- EU chemical industry production index stood at 104.5 (2020=100) in 2023, reflecting a 3.1% growth driven by basic chemicals up 4.2%
- France's industrial production in mechanical and electrical equipment rose 1.9% in 2022, achieving 106.2 index (2015=100)
- EU steel production totaled 126.3 million tonnes in 2022, down 6.5% from 2021, with Italy leading at 21.8 million tonnes
- Netherlands' industrial output in basic metals increased by 5.4% in 2023 to index 112.1 (2015=100)
- EU pharmaceutical production value reached €300 billion in 2022, with 70% from biologics and generics
- Spain's manufacturing production index for textiles, wearing apparel grew 3.2% YoY in Jan 2024 to 105.8
- EU cement production was 169.5 million tonnes in 2022, a 4.1% decline, led by Germany's 32.4 million tonnes
- Italy's machinery production index hit 110.3 (2015=100) in 2023, up 2.7% from prior year
- EU electronics production value €250 billion in 2022, with semiconductors at 15% share declining due to shortages
- Poland's industrial production grew 4.1% YoY in 2023, metals sector up 6.2% to index 115.4
- EU glass production reached 39.5 million tonnes in 2022, flat glass up 1.2%
- Belgium's chemical production index 107.8 (2015=100) in 2023, growth of 2.9%
- EU rubber and plastics production 52 million tonnes in 2022, up 1.8%
- Sweden's metal products manufacturing output index 103.2 in Q1 2024, down 0.8% YoY
- EU paper and pulp production 78 million tonnes in 2022, down 2.3%
- Austria's industrial production in electrical equipment up 3.5% to 109.1 index in 2023
- EU leather and footwear production value €12 billion in 2022, decline of 5.6%
- Denmark's food processing industry output grew 2.1% in 2023 to €25 billion value added
- EU furniture production 120 million tonnes turnover in 2022, Italy 50% share
- Finland's wood processing production index 98.7 in 2023, down 4.2% due to exports
- EU non-metallic minerals production index 101.5 (2015=100) in 2022
- Czech Republic's automotive parts production up 7.3% YoY in 2023 to 112.6 index
- EU textile production value €170 billion in 2022, down 3.8%
- Hungary's electronics manufacturing output index 118.4 in 2023, growth 5.9%
- EU aerospace production 1,200 commercial aircraft deliveries in 2023, value €100 billion
- Slovakia's metalworking production up 4.5% to €15 billion in 2022
- EU printing and recording media production turnover €80 billion in 2022, decline 2.1%
Production and Output Interpretation
Even as Europe's factories hum along with overall growth, the continent's industrial landscape reveals a patchwork of resilience and strain, where powerhouse sectors like German manufacturing show worrying fatigue while nations like Poland and the Netherlands forge ahead, painting a picture of an uneven recovery grappling with energy shocks and shifting global demand.
Research, Development, and Innovation
- In 2022, EU industry R&D expenditure totaled €100 billion, 10% of total EU R&D, manufacturing 70% share
- Germany's industrial R&D investment €85 billion in 2023, automotive 25%
- EU chemicals R&D spending €12 billion in 2022, 2.5% of sales
- France's manufacturing R&D €25 billion in 2023, aero 30%
- Italy's industry R&D €18 billion in 2022, machinery 20%
- EU pharma R&D €50 billion in 2023, 20% of sales
- Spain's industrial R&D intensity 1.8% of GDP in 2022, €12 billion
- Poland's manufacturing R&D up 15% to €3 billion in 2023
- Netherlands R&D in chemicals €4.5 billion in 2022
- Sweden's industrial R&D €15 billion in 2023, telecom 25%
- Belgium pharma R&D €6 billion in 2022
- Austria's manufacturing R&D €5.2 billion in 2023, 2.9% intensity
- Czech Republic automotive R&D €1.8 billion in 2022
- EU steel R&D €1.2 billion in 2023, low-carbon tech 40%
- Finland's forest industry R&D €500 million in 2022
- Denmark's green tech R&D in industry €2 billion in 2023
- Hungary's electronics R&D €800 million in 2022
- Portugal's textile R&D €200 million in 2023, sustainable 60%
- Romania industrial R&D €1 billion in 2022, up 10%
- Greece manufacturing R&D €900 million in 2023
- Ireland's industry R&D €12 billion in 2022, pharma 80%
- EU patents from industry 150,000 in 2022, 60% manufacturing
- Slovakia's R&D expenditure in industry €700 million in 2023
- Lithuania's manufacturing R&D €150 million in 2022
- Latvia industrial R&D €100 million in 2023, ICT 30%
- Estonia's R&D in manufacturing €250 million in 2022
- Bulgaria's industrial R&D €300 million in 2023, up 12%
- EU industry venture capital investment €15 billion in 2023, cleantech 25%
Research, Development, and Innovation Interpretation
While Europe's industrial engine is firing with €100 billion in R&D, its performance is strikingly uneven, revealing a continent powered by a few German automotive giants, hyper-specialized national champions in French aerospace or Belgian pharma, and a worrying overdependence on sectors like manufacturing that generate the bulk of patents but leave the bloc’s green and digital transitions perilously underfunded.
Trade, Exports, and Competitiveness
- In 2022, EU industrial goods exports reached €1.2 trillion, 50% of total EU exports, machinery 20% share
- Germany's machinery exports €250 billion in 2023, US 12% destination
- EU chemicals exports €250 billion in 2022, Asia 25%
- France's aerospace exports €40 billion in 2023
- Italy's mechanical engineering exports €100 billion in 2022, Germany 15%
- EU automotive exports 6.5 million vehicles in 2023, value €300 billion
- Spain's vehicle exports €30 billion in 2022
- Poland's machinery exports up 8% to €40 billion in 2023
- Netherlands chemicals exports €90 billion in 2022
- Sweden's telecom equipment exports €20 billion in 2023
- Belgium's pharma exports €60 billion in 2022, US 20%
- Austria's metal products exports €25 billion in 2023
- Czech Republic car exports 1.2 million units in 2022, €50 billion
- Finland's paper exports €12 billion in 2023
- Denmark's pharma exports €15 billion in 2022
- Hungary's electronics exports €35 billion in 2023
- Portugal's footwear exports €2 billion in 2022
- Romania's automotive exports €20 billion in 2023
- Greece's food exports €5 billion in 2022
- Ireland's chemical exports €100 billion in 2023, pharma 90%
- EU steel exports 40 million tonnes in 2022, Turkey 15%
- Slovakia's vehicle exports €25 billion in 2023
- Lithuania's furniture exports €1.5 billion in 2022
- Latvia's wood exports €4 billion in 2023
- Estonia's electronics exports €3 billion in 2022
- Bulgaria's metals exports €10 billion in 2023
- EU industry trade surplus €400 billion in 2022, machinery key driver
Trade, Exports, and Competitiveness Interpretation
The European Union’s industrial might is a finely-tuned export machine, where Germany’s mechanical muscle, France’s aerospace altitude, and an army of specialist nations from Czech carmakers to Irish pharmaceutical giants combine to generate a staggering €400 billion trade surplus.
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