Market Intelligence
3D Printing Computer-Aided Technologies Process Controls Sweden Digital Economy Export-Oriented Industrialization

Sweden Advanced Manufacturing Market

Sweden has a strong and successful manufacturing/industrial engineering sector that accounts for 20 percent of the country’s GDP or $110 billion, with advanced manufacturing bringing in approximately $38 billion. The sector accounts for 75 percent of Swedish exports and creates over 1 million jobs. The most important sub-sectors are traditional industries, such as steel, automotive, chemical, and forestry, but also metal products, industrial machinery and equipment, automation and food processing equipment. 

In 2017 the Swedish government launched phase two of the strategy for developing the manufacturing industry, Roadmap for Smart industrialization. The key focus areas are  digitalization, sustainable and resource-efficient production, creating industrial talent, and promoting innovation, and phase 2 includes 37 new measures, such as automation and robotics programs for SMEs; national test labs for electric vehicle production; zero emission programs and incentives for energy intensive industries. 

Sweden has strong ICT and industrial internet sectors, which combined with its high level of education and ability to cooperate effectively across industries, academia, and government, makes Sweden an attractive market for new technologies. U.S. market share of the Swedish advanced manufacturing market is about four percent and the main competitors are other EU countries and Asia. 

Leading Sub-Sectors 

Additive Manufacturing: Swedish component and tool manufacturers have been eager to test new manufacturing methods and materials alongside traditional tooling and machining. To advance the full potential of additive manufacturing, Swedish industrial research group RISE has established an Application Center for Advanced Manufacturing to develop and test technologies, materials, and knowledge. 

Agile Manufacturing: Ever since Toyota’s “just-in-time” philosophy in the 1970’s, Swedish manufacturers have been developing and testing more efficient production methods.  SMEs are particularly keen to turn their production facilities into factories of the future with quick response capabilities, flexibility, and augmented and virtual reality applications that reduce lead times.  

Digital Manufacturing: To remain globally competitive, Swedish manufacturers are in the process of digitalizing their production and services. Use of the Industrial Internet of Things solutions, system integration, digital thread, intelligent machining, CAD, and CAM modeling and advanced analytics varies from industry to industry. The Swedish bearings and seals manufacturer SKF did a digitalization survey in 2018 among their clients within traditional industries, such as pulp and paper, steel, mining, metal and automotive industries. Some 80% of the companies felt that digitalization and Industry 4.0 are important for the Swedish manufacturing industries, 56% had a strategy for digitalization and some 30% were actively modifying their manufacturing processes. The survey also showed that the automotive and mining industries had come further in digitalization than pulp & paper and steel industries. 

Opportunities for U.S. Companies

The Swedish Innovation Agency, Vinnova, invests over $360 million annually on fostering innovation by co-funding projects for companies, academia and organizations.  When it comes to advanced manufacturing, the projects range from connected industries and new materials, to 5G in manufacturing, machine learning, AI and industrial gamification.  A majority of the projects are available for international participants, as long as the project is conducted in Sweden.  The projects are funded as PPPs and in some cases additional funding is available through EU programs, such as Horizon 2020. 

The private sector opportunities follow the priorities of the Roadmap to Smart Industrialization and include: 

  •  Advanced 3D printers and CAD/CAM programs; advanced printing materials; large-scale production capabilities. 
  • Factory-of-Future models; augmented and virtual reality applications for lean production. 
  • IIOT solutions; data analytics models; PLM solutions; AI and advanced robotics; intelligent machining. 

For more information, contact us at office.stockholm@trade.gov