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, including the UK and Switzerland, are 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 2012-2030. Includes 5-year outlook.
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Natural Science & Engineering Research in Europe market size (2020-2025)
Industry revenue has grown at a CAGR of 3.4 % over the past five years, to reach an estimated €184.7bn in 2025.
Trends and Insights
Private sector R&D investment boosts industry growth in Europe
- Europe's natural science and engineering research industry is experiencing robust growth, driven by rising private sector R&D investment and targeted funding towards sectors such as health, IT, renewable energy and the environment. The 2024 EU Industrial R&D Investment Scoreboard reports that the top 800 EU-headquartered companies invested €247.7 billion in R&D in 2023, representing an increase of 8.7% over the previous year.
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Natural Science & Engineering Research in Europe outlook (2025-2030)
Market size is projected to grow over the next five years.
New Horizon Europe structure promises simpler access and targeted innovation
- The European Commission’s proposed Horizon Europe 2028–2034 programme, unveiled in July 2025, aims to double the R&D funding budget to €175 billion, reflecting elevated EU ambitions for science and engineering research over the decade.
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Revenue
€184.7bn
Employees
1m
Wages
€XX.Xbn
European Leaders & Laggards
Top 5 Countries
- Switzerland +20.7%
- Poland +18.3%
- Estonia +10.2%
- Ireland +9.8%
- Lithuania +9.3%
Bottom 5 Countries
- Russia -10.2%
- Greece -5.0%
- Spain -4.5%
- Slovakia -2.3%
- Bosnia & Herzegovina -1.2%
* CAGR values are for the years 2020-2025.
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Biggest companies in the Natural Science & Engineering Research in Europe
| Company | Market Share (%)
2025 | Revenue (€m)
2025 | Profit (€m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V. | 3,487.5 | 36.7 | 1.1 | |
CEA – Commissariat à l'énergie atomique et aux énergies Alternatives | 2,956.4 | 25.9 | 0.9 | |
CNRS – Centre National de la Recherche Scientifique | 4,342.5 | 86.9 | 2.0 |
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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 2025?
The market size of the Natural Science & Engineering Research industry in Europe is €184.7bn in 2025.
How many businesses are there in the Natural Science & Engineering Research industry in Europe in 2025?
There are 88,464 businesses in the Natural Science & Engineering Research industry in Europe, which has grown at a CAGR of 2.1 % between 2020 and 2025.
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 growing at a CAGR of 3.4 % between 2020 and 2025.
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 industry in Europe include?
Life sciences and Pharmaceuticals, biotech and medical and health sciences are part of the Natural Science & Engineering Research industry in Europe.
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
- Natural Science & Engineering Research in Russia
- Natural Science & Engineering Research in France
- Natural Science & Engineering Research in Romania
- Natural Science & Engineering Research in the UK
- Natural Science & Engineering Research in Poland
- Natural Science & Engineering Research in Portugal
- Natural Science & Engineering Research in Finland
- Natural Science & Engineering Research in Slovenia
- Natural Science & Engineering Research in Iceland
- Biotechnology in the UK
- Biotechnology Research & Development in Germany
- Natural Science & Engineering Research in Greece
- Natural Science & Engineering Research in Spain
- Natural Science & Engineering Research in Switzerland
- Natural Science & Engineering Research in Denmark
- Natural Science & Engineering Research in Germany
- Natural Science & Engineering Research in Luxembourg
- Natural Science & Engineering Research in Estonia
- Natural Science & Engineering Research in Bosnia & Herzegovina
- Natural Science & Engineering Research in Serbia
- Natural Science & Engineering Research in the Netherlands
- Natural Science & Engineering Research in Hungary
- Natural Science & Engineering Research in Czechia
- Natural Science & Engineering Research in Sweden
- Natural Science & Engineering Research in Turkey
- Natural Science & Engineering Research in Ireland
- Natural Science & Engineering Research in Latvia
- Natural Science & Engineering Research in North Macedonia
- Natural Science & Engineering Research in Europe
- Natural Science & Engineering Research in Belgium
- Natural Science & Engineering Research in Italy
- Natural Science & Engineering Research in Austria
- Natural Science & Engineering Research in Norway
- Natural Science & Engineering Research in Slovakia
- Natural Science & Engineering Research in Malta
- Natural Science & Engineering Research in Croatia
- Natural Science & Engineering Research in Bulgaria
- Natural Science & Engineering Research in Lithuania
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 SciencesWhat'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 coursesCompanies
Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V.CEA – Commissariat à l'énergie atomique et aux énergies AlternativesCNRS – Centre National de la Recherche ScientifiqueIndustry Code
721 - Research and experimental development on natural sciences and engineering in Europe
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Performance
Key Takeaways
Private sector R&D investment boosts industry growth in Europe
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Revenue Highlights
Trends
- Revenue
- 2025 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 (2012 -2030)
- Employees in the Natural Science & Engineering Research in Europe industry (2012 -2030)
- Business in the Natural Science & Engineering Research in Europe industry (2012 -2030)
- Profit in the Natural Science & Engineering Research in Europe industry (2012 -2030)
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.
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 (2025)
Geographic Breakdown
Business Locations
Heat maps
- Share of Total Industry Revenue by Region (2025)
- Share of Total Industry Enterprises by Region (2025)
- Share of Total Industry Employment by Region (2025)
- Share of Total Industry Wages by Region (2025)
Industry Geographic Breakdown
Data Tables
Values and annual change provided for 37 European countries:
- Revenue (2025)
- IVA (2025)
- Enterprises (2025)
- Employment (2025)
- Exports (2025)
- Imports (2025)
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.
Supply Chain
Charts
Buyer and supply industries
Companies
Market Share
Charts
- Industry Market Share by Company (2020-2025)
Companies
Data Tables
Top 10 companies by market share:
- Market share (2025)
- Revenue (2025)
- Profit (2025)
- Profit Margin (2025)
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 Max-Planck-Gesellschaft zur Förderung der Wissenschaften e. V.
- Countries of operation for Capgemini Service SAS
- 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 University of Copenhagen
- 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.
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.
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 (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
- Revenue per Employee (2015-2030)
- Wages/Revenue (2015-2030)
- Employees per Establishment (2015-2030)
- Average Wage (2015-2030)
Country Benchmarks
European Leaders & Laggards
Data Tables
Top and bottom five countries listed for each:
- Revenue Growth (2025)
- Business Growth (2025)
- Job Growth (2025)
European Country Performance
Data Tables
Rankings available for 37 countries. Statistics ranked include:
- IVA/Revenue (2025)
- Imports/Demand (2025)
- Exports/Revenue (2025)
- Revenue per Employee (2025)
- Wages/Revenue (2025)
- Employees per Establishment (2025)
- Average Wage (2025)
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 (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
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.
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