Fragile return to growth for EU tech industry
Europe’s technology industries are looking at a fragile return to growth in 2026, as early indicators suggest aggregate turnover could grow by up to +0.9%.
This follows a turnover drop in Europe’s technology industries amounts to a staggering -7.8% over the past three years collectively: more severe than the one experienced during the financial crisis in 2009 or the Covid crisis in 2020.
The duration of the downturn points to structural decline rather than a natural business cycle. In addition it is far from certain.
Economic uncertainty continues to weigh down on investment decisions, resulting in a slow pace of new project initiation even in sectors where long-term demand potential is strong. Weak demand in key downstream customer industries is further limiting order volumes, while companies report a growing loss of cost competitiveness, particularly in relation to Chinese producers, who are increasingly active in both European and global markets.
Our industries are resilient and it is good to see a return to growth, yet it is far from certain and will not make up for the massive losses of the past years. Europe’s technology industries still urgently need better recognition and support from policymakers. A recovery of 0.9% does not make up for a 7.8% loss.
To support a sustainable recovery, Europe must take decisive steps to improve the business environment for its technology industries. This includes simplifying regulation and reducing administrative burden, which currently absorbs resources that could otherwise be directed toward growth and innovation. At the same time, increasing both public and private investment in research, innovation and industrial transformation will be essential to ensure competitiveness in future technologies. In addition, the EU should continue to take steps to secure trade agreements with new markets.
Orgalim’s ask from policymakers is to decrease the overall regulatory burden being placed on companies in the EU that stifles innovation.
The Orgalim Economic and Statistics Report was compiled by our Economic and Statistics Working Group, Chaired by Petteri Rautapporas, Chief Economist at Technology Industries Finland.
To discuss any of the findings in the report, please contact Sarah Kempe, Director of Communications: sarah.kempe@orgalim.eu