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Natural Science & Engineering Research in Europe - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

ISIC 721 March 2024 Spotlight Report

Revenue

€154.7bn

2019-2024 2.1 %
2024-2029 X.X %

Employees

1m

2019-2024 2.4 %
2024-2029 X.X %

Businesses

84,460

2019-2024 1.2 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

Natural Science & Engineering Research in Europe industry analysis

In Europe, funding for research and innovation largely comes from the business enterprise, government, higher education, and non-profit sectors. Private companies that outsource their research needs – spending on research facilities by the business enterprise sector – are the largest backers. Belgium, Sweden, Austria, Germany and Finland are all home to lots of companies in the biotechnology, pharmaceutical and healthcare sectors that spend on R&D. Government spending on R&D in 2021 was largest in Germany, Czechia, Greece and Belgium.

European coverage with a localised twist

  • Market estimates from 2014-2029
  • Detailed reports analysing industry performance, market dynamics and company data, compared across countries
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Industry Statistics and Trends

Natural Science & Engineering Research in Europe key trends

The government’s spending more on scientific research and development.

 

Since capital and total health expenditures have been climbing, research funding has been on the up.

Funding assistance from Horizon Europe is supporting innovation.

 

More members keep joining Horizon, which improves collaboration on research projects.

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Natural Science & Engineering Research in Europe

Industry Revenue

Total value and annual change from 2011-2029. Includes 5-year outlook.

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Natural Science & Engineering Research in Europe market size (2019-2024)

Industry revenue has declined at a CAGR of 2.1 % over the past five years, to reach an estimated €154.7bn in 2024.

Trends and Insights

Demand for healthcare and IT research grows, while agriculture and chemical funding research stays stable

  • Research and development (R&D) activities can be funded by private sector bodies, like pharmaceutical manufacturing companies, motor vehicle manufacturers, laboratories and medical and health facilities.

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Natural Science & Engineering Research in Europe outlook (2024-2029)

Market size is projected to grow over the next five years.

The EU will step up its R&D activity

  • Due to the societal and economic benefits that research and development can provide, the EU and its national governments anticipate incentivising research activity to fuel more growth in the European economy following the COVID-19 outbreak.

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Revenue

€154.7bn

2019-2024 2.1 %
2024-2029 X.X %

Employees

1m

2019-2024 2.4 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 2.4 % *
  • Job Growth

Top 5 Countries

  1. Greece +29.2%
  2. Malta +25.1%
  3. Serbia +18.5%
  4. Romania +9.8%
  5. Lithuania +9.1%

Bottom 5 Countries

  1. Russia -10.0%
  2. Hungary -9.3%
  3. Bosnia & Herzegovina -2.3%
  4. Estonia -2.1%
  5. Turkey 0.0%

* CAGR values are for the years 2019-2024.

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Biggest companies in the Natural Science & Engineering Research in Europe

Company
Market Share (%)
2024
Revenue (€m)
2024
Profit (€m)
2024
Profit Margin (%)
2024
Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V.
3,322.4
38.7
1.2
CEA – Commissariat à l'énergie atomique et aux énergies Alternatives
2,785.6
24.8
0.9
CNRS – Centre National de la Recherche Scientifique
3,943.4
54.4
1.4

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Natural Science & Engineering Research in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Natural Science & Engineering Research industry in Europe in 2024?

The market size of the Natural Science & Engineering Research industry in Europe is €154.7bn in 2024.

How many businesses are there in the Natural Science & Engineering Research in Europe industry in 2024?

There are 84,460 businesses in the Natural Science & Engineering Research industry in Europe, which has grown at a CAGR of 1.2 % between 2019 and 2024.

Has the Natural Science & Engineering Research industry in Europe grown or declined over the past 5 years?

The market size of the Natural Science & Engineering Research industry in Europe has been declining at a CAGR of 2.1 % between 2019 and 2024.

What is the forecast growth of the Natural Science & Engineering Research industry in Europe over the next 5 years?

Over the next five years, the Natural Science & Engineering Research industry in Europe is expected to grow.

What does the Natural Science & Engineering Research in Europe include?

Life sciences and Pharmaceuticals, biotech and medical and health sciences are part of the Natural Science & Engineering Research industry.

Which countries have the most businesses in the Natural Science & Engineering Research industry in Europe?

The European country with the most businesses in the Natural Science & Engineering Research industry is Italy.

How competitive is the Natural Science & Engineering Research industry in Europe?

The level of competition is moderate and steady in the Natural Science & Engineering Research industry in Europe.

Related Industries

This industry is covered in 37 countries

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Table of Contents

About this industry

Industry definition

The industry includes organisations engaged in research and development (R&D) work focused on natural sciences and engineering. Work is carried out in a variety of domains spanning agriculture, biology, biotechnology and medical and health science.

Related Terms

Applied ScienceBiotechnologyLife Sciences

What's included in this industry?

Life sciences Pharmaceuticals, biotech and medical and health sciences Physical and engineering sciences Other research in agriculture, forestry and fisheries courses

Companies

Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V.CEA – Commissariat à l'énergie atomique et aux énergies AlternativesCNRS – Centre National de la Recherche Scientifique

Industry Code

ISIC 2006

721 - Research and experimental development on natural sciences and engineering in Europe

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Performance

Key Takeaways

Demand for healthcare and IT research grows, while agriculture and chemical funding research stays stable

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Revenue Highlights

Trends
  • Revenue
  • 2024 Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Natural Science & Engineering Research in Europe industry (2011 -2029)
  • Employees in the Natural Science & Engineering Research in Europe industry (2011 -2029)
  • Business in the Natural Science & Engineering Research in Europe industry (2011 -2029)
  • Profit in the Natural Science & Engineering Research in Europe industry (2011 -2029)
Analysis

What's driving current industry performance in the Natural Science & Engineering Research in Europe industry?


Outlook

Analysis

What's driving the Natural Science & Engineering Research in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Natural Science & Engineering Research in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Natural Science & Engineering Research in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Research in physical and engineering sciences continues to rise. Companies without in-house research departments rely on outsourcing for their next product innovation.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Natural Science & Engineering Research in Europe industry's products and services performing?

Analysis

What are innovations in the Natural Science & Engineering Research in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Natural Science & Engineering Research in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2024)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2024)
  • Share of Total Industry Enterprises by Region (2024)
  • Share of Total Industry Employment by Region (2024)
  • Share of Total Industry Wages by Region (2024)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2024)
  • IVA (2024)
  • Enterprises (2024)
  • Employment (2024)
  • Exports (2024)
  • Imports (2024)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

Partnerships with other industries boost economies of scale. Relationships are important when products are being developed as they help diversify the risk of research and development costs if a dead end is reached.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2019-2024)

Companies

Data Tables

Top 10 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit Margin (2024)

Data Tables
  • Countries of operation for Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V.
  • Countries of operation for CEA – Commissariat à l'énergie atomique et aux énergies Alternatives
  • Countries of operation for CNRS – Centre National de la Recherche Scientifique
  • Countries of operation for University of Copenhagen
  • Countries of operation for Capgemini Service SAS
  • Countries of operation for Max-Planck-Gesellschaft zur Förderung der Wissenschaften e. V.
  • Countries of operation for Eidgenössische Technische Hochschule Zürich
  • Countries of operation for Consiglio Nazionale delle Ricerche
  • Countries of operation for Consejo Superior de Investigaciones Científicas
  • Countries of operation for VTT Technical Research Centre of Finland

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Governments and EU legislation heavily regulate scientific research. The development of new scientific and engineering products must follow strict parameters.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Natural Science & Engineering Research in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Research organisations compete for government and private contracts which can constrain profit. Profit depends on the level and reliability of funding from governments and institutions.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Natural Science & Engineering Research in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.