2026.01.15. – 4 min read
Europe is accelerating its transformation towards smarter, greener, more resilient industry, and manufacturing SMEs are uniquely positioned to benefit. 2025 initiatives at EU level reveal the scope of support and opportunity. In this edition, we reflect on these EU developments and highlight future opportunites for SMEs growth and innovation.
EU boost for critical technologies and digital innovation
In 2025, the EU announced a major investment of €1.3 billion* to support critical technologies including Artificial Intelligence (AI), cybersecurity and digital skills. This injection reaffirms the commitment totechnological sovereignty and digital resilience; factors that directly impact Europe’s industrial base and manufacturing sector.
What this means for SMEs: there is increasing financial and policy support for adopting AI-driven systems, secure digital tools and reskilling for digital readiness. Manufacturers looking to digitize processes, improveautomation or integrate AI-based quality control and predictive maintenance can tap into this wave of funding and support.
R️aw materials, circularity and green transition: new chances for industry
The Commission has approved a set of 47 Strategic Projects* aimed at expanding Europe’s own capacity for critical raw materials. These projects will reinforce the EU’s raw materials value chain and help diversifyits supply sources. These Strategic Projects advance the CRMA’s (Critical Raw Materials Act) 2030 goals for EU extraction, processing and recycling of critical raw materials, strengthening Europe’s green, digital, defence and aerospace industries.
This creates new opportunities for manufacturing SMEs to adopt sustainable practices, use recycled materials or build circular-economy models, particularly for those offering advanced material-processing, waste-to-resource or sustainable production technologies.
Strengthening Europe’s Industrial Resilience
Building on the EU’s updated Industrial Strategy, the Commission continues to prioritise industrial resilience by encouraging SMEs to adopt advanced manufacturing technologies, improve energy efficiency and participate in cross-border innovation ecosystems. These measures are central to strengthening Europe’s competitiveness and preparing manufacturers for the next wave of digital and green transformation.
What this means for manufacturing SMEs — and how innomine DIH can help
The convergence of EU policy, funding and regulation shows a clear signal: manufacturing in Europe is evolving: towards digital, sustainable, innovative. For SMEs, this means more than incremental upgrades. Itmeans opportunities for transformation: smarter factories, circular production cycles, AI-enabled quality control, connected products, and more resilient supply chains.
Innomine DIH supports SMEs in this transformation. Our experience with EU research and innovation funding, digital adoption projects, and cross-border collaborations allows us to offer support to turn potentialinto reality.
Sources and useful links
*EC Press release, 28 March, 2025: Commission to invest €1,3 billion in artificial intelligence, cybersecurity and digital skills. Download here.
*EU Monitoring press release, 25 March, 2025: Raw materials in Europe: EU Commission selects 47 strategic projects to diversify access. Download here.
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