0.3.1.
Key application areasEuropean industry has many strengths in several vertically integrated markets where ECS are the main driver of performance, such as transportation (automotive, railroad, aerospace), energy, health, urban services (from building construction to water provisioning) and industrial digitalisation.
Transport and smart mobility:
Automotive: The EU is among the world’s largest producers of motor vehicles and the sector represents its biggest private investor, providing jobs for 13.3 million people (including 3.4 million manufacturing jobs16) and accounting for 6.8% of the EU GDP.
Rail: The overall rail sector in the EU, including rail operators and infrastructure managers, employs approximately 1.8 million people with an estimated 817,000 dependent individuals. The European rail supply industry employs nearly 400,000 people and is a top exporter, accounting for nearly half of the world’s market for rail products and with a market share of 84% in Europe and a total production value of €40 billion (2010). The railway management systems market is expected to grow from €29.27 billion in 2016 to
€57.88 billion by 2021.
Aerospace: The European aerospace industry is a world leader in the production of civil and military aircraft, helicopters, drones, aero-engines and equipment, exporting them all over the world. Aerospace within the EU provides more than 500,000 jobs and generated a turnover of €140 billion in 2013.
The aircraft flight control systems market is projected to grow from $11.85 billion to $16.59 billion by 202.
Health and wellbeing
Healthcare spending as a percentage of gross domestic product (GDP) should rise slightly, from an estimated 10.4% in 2015 to 10.5% In 2020. Government healthcare expenditure as a percentage of GDP is projected to rise more quickly in low income countries than for other income groups. Global healthcare expenditure is projected to reach
€8.7 trillion by 2020, from €7 trillion in 2015, driven by improving treatments in therapeutic areas coupled with rising labour costs and increased life expectancy.
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16 https://www.acea.be/automobile-industry/facts-about-the-industry
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The healthcare sector accounts for 10% of all employment and is expected to grow by a further 1.8 million jobs by 2025. The healthcare IT market is projected to reach €200 billion by 2021 from €115 billion in 2016.
Energy
More than 9.8 million people were employed in the renewable energy sector in 2016, according to a recent report by the International Renewable Energy Agency (IRENA).[17] In 2015, Europe was employing close to 1.2 million people in this fast-growing sector.
In 2015, the worldwide renewable energy generation amounted to 5512TWh, of which Europe provided 1168TWh, or 21%.
Sustainable Production
The manufacturing sector accounts for 15% of GDP and provides around 33 million jobs in Europe. Europe is a frontrunner in manufacturing excellence, with its vision of smart and connected factories swiftly becoming a reality. The industrial control and factory automation market, comprising control system manufacturers, field components manufacturer, systems integrators and software manufacturers, is projected to reach $153.3 billion by 2022. By 2025, additive manufacturing is expected to create a €6.3 billion opportunity in the consumer electronics, automotive and aerospace industries.
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17 Source: IRENA International Renewable Energy Agency.
Renewable Energy and Jobs Annual Review 2016
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18 Source: IHS 2019
19 Source WSTS forecast, August 2017 F.10 Renewable energy employment in countries and regions 17
Chapter 0 - 141117 - clean Page 24/230 Figure 7 - Source: WSTS; IHS; Bryan, Garnier & Co ests.
Overall, the forecast of the annual growth rates for demand of ECS components in Europe is given as being higher than for other regions.
Figure 8 - Source WSTS forecast, August 2017
0.3.2. Essential capabilities
The development of these key application areas heavily relies on the availability of and further research in ECS essential capabilities:
Systems and components architecture, design and integration;
Connectivity and interoperability;
Safety, security and reliability;
Computing and storage;
ECS process technology, equipment, materials and manufacturing.
Europe displays valuable assets in many of those basic technologies and integration know-how:
Spring 2017 - Q2 Update Amounts in US€M Year on Year Growth in %
2016 2017 2018 2019 2016 2017 2018 2019
Americas 65,537 79,555 83,464 83,116 -4.7 21.1 4.9 -0.4
Europe 32,707 37,760 39,639 39,998 -4.5 15.4 5.0 0.9
Japan 32,292 36,005 37,331 37,358 3.8 11.5 3.7 0.1
Asia Pacifi c 208,395 243,328 253,087 250,621 3.6 16.8 4.0 -1.0
Total World - €M 338,931 396,649 413,522 411,094 1.1 17.0 4.3 -0.6
Discrete Semiconductors 19,418 21,299 22,168 22,744 4.3 9.7 4.1 2.6
Optoelectronics 31,994 33,403 34,574 35,405 -3.8 4.4 3.5 2.4
Sensors 10,821 12,336 13,135 13,899 22.7 14.0 6.5 5.8
Integrated Circuits 276,698 329,11 343,645 339,045 0.8 19.1 4.3 -1.3
Analog 47,848 51,663 54,284 56,129 5.8 8.0 5.1 3.4
Micro 60,585 62,829 65,173 66,907 -1.2 3.7 3.7 2.7
Logic 91,498 99,558 102,579 105,088 0.8 8.8 3.1 2.4
Memory 76,767 115,561 121,597 110,921 -0.6 50.5 5.2 -8.8
Total Products - €M 338,931 396,649 413,522 411,094 1.1 17.0 4.3 -0.6
Application domains, where Europe has a leadership position (as for automotive and industrial), have resulted in relatively high average growth for ECS components:
Overall, the annual growth rates in the demand for ECS components in Europe is expected to be higher than for other regions. Overall annual growth rate for ECS demand.18
F.12 Comparison of European growth rates to the rest of the world 19
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0.3.2.
Essential capabilitiesThe development of these key application areas relies heavily on the availability of, and further research into, ECS essential capabilities:
systems and hardware/software components for architecture, design and integration;
connectivity and interoperability;
safety, security and reliability;
computing and storage;
process technology, equipment, materials and manufacturing for ECS.
Europe displays valuable assets in many of those basic technologies and integration knowhow.
Process technology, equipment, materials and manufacturing for ECS
The semiconductor market is expected to grow from $469 billion in 2018 (source: WSTS20) to $548 billion in 2023 (source: Decision), driving up the global semiconductor equipment (SCE) market. In 2018, the SCE market reached a high of $65 billion (source: SEMI Equipment Market Data Subscription, September 2019, see Figure 13). After a slump in 2019 due to memory correction and market volatility, it is expected that growth will resume in 2020, with China overcoming Taiwan as the largest equipment market.