The European Union's high-tech manufacturing sector generated €414 billion in sales in 2024, according to fresh data from Eurostat. That marks a 52 percent increase from €273 billion in 2014, translating to an average annual growth rate of 4.3 percent. The figures underscore the growing economic weight of advanced industries as Brussels pushes for greater technological self-reliance.
Pharmaceuticals Lead, Armaments Lag
Pharmaceuticals accounted for the largest share of high-tech production at 29 percent, followed by electronics and telecommunications equipment at 23 percent, and scientific instruments at roughly 21 percent. Armaments made up just 1.1 percent of the total, the smallest category tracked by Eurostat.
The data highlights a sector that is both diverse and strategically important. The European Commission's recent tech sovereignty package aims to bolster domestic capabilities across the value chain, from chips and cloud infrastructure to artificial intelligence and open-source software. The draft law includes provisions that would effectively bar non-European companies from public contracts in sensitive areas such as defence and healthcare.
Trade Imbalances with China, Surpluses with the US and UK
In 2024, more than half of the EU's high-tech imports from outside the bloc came from China and the United States combined. On the export side, nearly a third of EU high-tech sales abroad went to the US (31 percent), with China and the United Kingdom each taking 10 percent.
The resulting trade deficit with China stood at €92 billion, the largest by far. Other significant deficits included Vietnam (€20 billion) and Taiwan (€19 billion). In contrast, the EU posted trade surpluses exceeding €10 billion with Turkey (€11 billion), the UK (€27 billion), and the US (€46 billion).
These figures reflect the bloc's continued reliance on Asian manufacturing hubs for components and finished electronics, even as it seeks to reshore production. The push for AI sovereignty, championed by France and Germany, is part of a broader effort to reduce vulnerabilities in critical supply chains.
Concentration in a Few Member States
In 2023, the EU counted more than 42,000 companies in the high-tech manufacturing sector, representing just 0.1 percent of all businesses in the bloc. The highest concentration of such firms relative to the total business population was found in Czechia, Slovakia, and Germany.
Germany's industrial base, particularly in Bavaria and Baden-Württemberg, has long been a powerhouse for advanced engineering and electronics. Czechia and Slovakia have carved out niches in electronics assembly and automotive components, benefiting from proximity to German supply chains and investment.
The relatively small number of high-tech manufacturers underscores the sector's capital-intensive nature and high barriers to entry. Yet the Commission's new initiatives could spur growth, especially in areas like digital education and workforce training, which are critical for building a skilled labour pool.
Strategic Implications
The EU's tech sovereignty agenda is not just about economics—it is also about security and geopolitical positioning. By reducing dependence on the US and China for critical technologies, the bloc aims to safeguard its strategic autonomy. The new procurement rules for defence and healthcare are a clear signal that Europe is willing to use regulatory tools to protect its industrial base.
However, the trade data suggests that closing the gap with China will take time. The €92 billion deficit is a reminder of how deeply integrated Asian supply chains are in European manufacturing. Similarly, the surplus with the US indicates that transatlantic trade remains robust, but also that Europe still relies on American markets for a significant share of its high-tech exports.
As the Commission's tech sovereignty package moves through the legislative process, the coming years will test whether Europe can translate political ambition into industrial reality. The 2024 sales figures provide a baseline—and a challenge.
