Electrification & Digitalisation: Powering Europe’s Industrial Comeback

Across Europe, industry stands at a pivotal moment. Ageing infrastructure, volatile energy markets, and rising climate ambitions demand a fundamental rethink of how we produce and compete. For Europe’s 23 million SMEs and mid-sized businesses (EC), this is not a crisis, it’s a generational opportunity to modernise through electrification and digitalisation.

Laying the Foundations of a Sustainable, Competitive Future

Electrification is transforming Europe’s industrial fabric, replacing fossil fuels with clean, renewable power and shielding businesses from global energy volatility. When combined with digital technologies, from automation and AI to data-driven energy management, it becomes more than an efficiency upgrade; it becomes a strategic advantage.

Smart, connected systems can already reduce energy use by up to 30%, unlocking cost savings, resilience, and operational flexibility (McKinsey). Efficiency today is not merely about cutting costs, it’s about securing independence and driving sustainable growth.

From Obstacles to Opportunities

Yes, barriers exist: capital intensity, regulatory complexity, and skills shortages. But these are spurring innovation. New “as-a-service” models lower the investment hurdle, while public–private partnerships and upskilling initiatives are accelerating the uptake of advanced technologies across Europe.

Proof in Action

In Spain, Schneider Electric’s Molins de Rei factory demonstrates the impact of smart electrification. Its integrated microgrid by EcoStruxure, powered by solar energy, storage systems, and AI-enabled energy management, supplies 10% of the site’s needs and cuts 2,250 tonnes of CO₂ annually. The result: a more sustainable and resilient operation.

In France, Rennes Métropole uses artificial intelligence by PurePilot to optimise wastewater treatment. The outcome: a 15% reduction in energy use and significantly lower nitrous oxide emissions - proof that even essential public services can be made smarter and cleaner through digitalisation.

Now is the Time to Scale

Electrification and digitalisation are not optional, they are the dual engines of Europe’s industrial renewal. With clear regulatory signals, targeted financing, and robust deployment support, Europe’s SMEs can lead the transition toward a digitally empowered, net-zero future.

Every connected device. Every optimised process. Every sustainable innovation brings Europe closer to an industrial ecosystem that is efficient by design and sustainable by default.

Explore the Path Forward

Discover how Europe’s SMEs and mid-caps can unlock their full potential in our new publication in cooperation with Schneider Electric: Electrification & Digitalisation: Unlocking SMEs & Mid-Caps Competitiveness in Europe.

Let’s turn ambition into action - and power a clean, digital, and competitive Europe.