Trade Winds - Resources

Market Overviews & Best Practices

Learn about each of the Trade Winds markets by reading information compiled by our in-country Commercial specialists on best prospects and actionable opportunities for your products and services.

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Government: Constitutional Monarchy
Major Cities: Copenhagen (capital), Aarhus (second largest city), Herning (major convention center)
Population: 5.7 million
Currency: Danish Kroner (DKK)

Market Overview:
Denmark is a high-income society with state-of-the-art infrastructure and a highly skilled labor force. Its central location makes it an excellent distribution point for the Scandinavian, Northern European, and Baltic markets.

The country is a leader in the development and adoption of renewable energy and climate technologies, and it is home to a number of world-renowned companies in the field. Denmark has focused on green energy supply for more than 40 years and today, more than 75% of the energy in the Danish electricity grid is from renewable sources – one of the highest levels in the world. The Danish government is committed to reducing the CO2 emissions by 70% by 2030 and achieving net-zero emissions by 2050.

The Danish commitment to the clean energy transition offers a stable and predictable environment for innovative American businesses who aim to test their products and participate in one of the most advanced clean tech ecosystems in the world. Denmark will be a major player in the global green transition and has significant ambitions both within mature technologies, such as wind energy and biomass, as well as new innovative solutions, such as E-fuels and carbon capture and storage technologies. This makes Denmark a good place to test, commercialize and showcase climate technologies. Supplying renewable energy and climate tech that equips Denmark to reach its ambitious climate goals will position your firm to supply the broader European market as they pursue their own green transition.

Industry Best Prospects & Opportunities
Wind power
The wind power market in Denmark is one of the largest in the world. In 2022, wind power accounted for 53% of Denmark’s total electricity generation. U.S. suppliers of electricity equipment and transmission infrastructure will find growing opportunities in Denmark resulting the buildout of offshore wind projects and the reinforcement of the transmission grid to meet the needs of future offshore wind farms. The government plans to increase the country’s offshore wind capacity to 12.9 gigawatts by 2030. The tenders are open to international companies.

Carbon Capture Utilization and Storage (CCUS):
The Danish government has set a target of capturing 10 million tons of CO2 per year by 2030. In August 2023 the Danish government announced a $4 billion plan for major CCUS projects with a total economic size of the tenders to be approximately $4 billion, distributed over two bidding rounds, with approximately $1.5 billion and approximately $2.4 billion allocated over a 15-year period. The Danish government plans for the first of the two CCS tenders to be launched in June 2024, and a second tender in 2025 and is looking for innovative solutions within pre- and post-combustion capture, geological storage solutions, mineral carbonation, and specially designed ships and pipeline infrastructure

Green Hydrogen and E-Fuels:
Denmark aims to develop significant domestic green hydrogen production capacity, including large production facilities expected to be operational in 2025. This includes plans to build two energy islands, a project size of approximately $30 billion, to produce and transport hydrogen from green electricity generated by offshore wind. The Danish government has set a target of producing 4-6 gigawatts of green hydrogen by 2030 and is looking for innovative solutions and advanced technology within electrolyzers, catalysts and storage solutions.

Biomass:
Biomass accounts for more than 12% of the country’s total energy consumption and the biomass market in Denmark is expected to continue to grow in the coming years. The Danish government has set a target of increasing the share of biomass in the country’s energy mix to 20% by 2030. As a global leader, Denmark is always looking for state-of-the-art biomass technologies that are more efficient and produce less emission, such as conversion technologies as well as storage and transportation technologies. Innovative utilization technologies such as chemicals, materials, and biopolymer are in demand.

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Government: Parliamentary Republic
Major Cities: Rome (capital), Milan (commercial capital), Naples, Turin, Palermo
Population: 59 million
Currency: Euro

Market Overview:
The third-largest economy in the EU and eight-largest in the world, Italy’s GDP is $2.1 trillion and $35,700 per capita. Two-way trade in goods and services between the United States and Italy reached a record high of $117 billion in 2022. Italy is the 19th-largest market for U.S. exports (goods and services), while the United States is the largest non-EU market for Italian exports. U.S. direct investment in Italy equaled $28 billion in 2021, while Italian investment in the United States was $41 billion. Top industry sectors for Italian FDI in the USA are industrial equipment, renewable energy, food & beverage, software & IT services, electronic components, and metals.

Italy’s EU-finance post-COVID-19 recovery program, the National Recovery and Resilience Plan (NRRP), details reforms and investments required in 2021-2026 to obtain approximately $220 billion in EU pandemic-recovery grants and loans. The Plan’s investment projects aim to make Italy more green, digital, and inclusive while the reforms aim to improve the functioning and efficiency of public administration and the judicial system. The NRRP includes major new investment in green energy and regulatory reforms to boost efficiency and will enable Italy to invest more than $76 billion through 2026 in renewable energy, energy efficiency, and other carbon-reduction infrastructure and reforms. The NRRP aims to put Italy on a trajectory to achieve climate neutrality by 2050.

Industry Best Prospects
Advanced Manufacturing:
Italian companies invest heavily in advanced manufacturing solution backed by government financing. In 2022 the market for machine tools, robots and automation grew by over 14% over the previous year, reaching a value of approximately $7.5 billion.

Aerospace and Marine/Ports:
Investments include $115 million by the air traffic control agency for innovative services, data management and remote piloting via drones, urban air mobility, reducing environmental impact in aeronautics. $800 million for electrification/cold ironing in ports and $300 million for “Green Ports.”

Digital/IT:
Approximately $40 billion is earmarked for digitalization of the public administration, the national cloud, ultra-fast broadband, and 5G. Other investments include cloud computing, mobility, big data, analytics, AI, virtual and augmented reality, robotics, IoT and blockchain.

Environmental Technologies:
Italy has designated $6.2 billion for the circular economy (including waste management and recycling) and sustainable agriculture and $17.7 billion to protect land and water resources, improve resiliency against climate change, and protect biodiversity.

Renewable Energy and Natural Gas:
Italy allocated $66 billion to incentivize renewables (which cover 36.4% of electricity demand). To diversify the Italian natural gas import mix there is demand for U.S. LNG and technologies that can improve LNG plan functioning and sustainability.

Transportation and automotive:
Italy will fund $4 billion for the purchase of low-emission buses, electric- and hydrogen-powered trains and further monies to research and test hydrogen infrastructure for public transportation and electric charging stations.

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Government: Parliamentary Republic
Major Cities: Warsaw (capital), Krakow, Poznan, Wroclaw, Tricity (Gdansk, Sopot, Gdynia)
Population: 38 million
Currency: Polish Zloty PLN

Market Overview:
The largest single market among the “new” European Union (EU) states and 5th among all EU member states, Poland’s GDP in 2022 reached $688.18 billion and $18,280 per capita. Two-way trade in goods and services between the United States and Poland reached $1.91 billion in June, 2023. Poland ranked No. 33 among U.S. trade partners in June, 2023, while the United States is the second largest non-EU market for Polish exports. The flow of annual of U.S. investment in Poland was estimated at over $4.2 billion by the National Bank of Poland in 2021. Top industry sectors for American FDI in Poland are M&A’s, IT services, trade, transport and storing, insurance and finance and professional services.

Poland’s EU-finance post-COVID-19 recovery program, details reforms and investments required in 2021-2026 to obtain approximately $38.4 billion in EU pandemic-recovery grants and loans. The Plan’s investment projects aim to make Poland more green, digital, and inclusive while the reforms are targeted at decarbonising the Polish economy, accelerating the digital transition and reinforcing Poland’s economic and social resilience. The plan also intends to strengthen important aspects of the independence of judiciary. The plan will foster economic growth and create jobs. It will lift Poland’s gross domestic product by 1.1% to 1.8% by 2026. This boost to the economy will bring up to 105,000 citizens into jobs. Poland will benefit significantly from the Recovery and Resilience Plans of other Member States, for instance through exports. These spill-over effects account for0.2percentage points of gross domestic product in 2026.

Industry Best Prospects and Opportunities

Defense:
The 2022 defense budget raised defense spending to about $14.0 billion (PLN 57.8 billion). In the view of recent Russian invasion on Ukraine, the Polish government implemented a new law which will increase the defense budget up to 3% GDP from the next year on and roughly double the size of the armed forces to 300,000 personnel (including 50,000 in the TDF). According to the latest announcements, defense spending will reach up to 4.2% of GDP in 2023, including 3% of budgetary and 1.2% non-budgetary funding.

Energy:
Electricity production in 2022 reached 178.8 terawatt hours (TWh). Electricity demand was at the level of 177.1 TWh. For the first time in 7 years, Poland was a net exporter of electricity. 70.7% was the share of coal in gross electricity generation in 2022 (1.7 p.p. less than in 2021). The share of RES capacity increased to 38.3% (from 32%). At the end of 2022, RES capacity exceeded that of coal-fired power plants.

Infrastructure:
Poland devotes sizeable resources to the development of road transportation, railway, airports, and port infrastructure. The biggest project that will be realized in the coming years is the Solidarity Transport Hub (STH) – a brand new international airport. STH is designed to handle 45 million passengers and will be able to support 100 million passengers. estimated cost of $9 billion – the most expensive single infrastructure project since 1989. Poland is a focal point for further connecting a rebuilt Ukraine with the West.

IT & Cybersecurity:
In 2023, total information technology (IT) expenditures in Poland are estimated to grow by 12,4% in local currency, reaching a value of $29.4 billion. Google, Amazon and Microsoft made major investments in local data centers in 2021. In 2023, Palo Alto Networks announced launch of their cloud in Poland.

Aviation industry:
In 2021, exports accounted for 1.4 percent of Poland’s goods exports. Aviation industry in Poland employs over 26,000 employees. Dominant role played by international corporations which have set up production facilities in Poland: Pratt & Whitney, Lockheed Martin, Leonardo Helicopters, Collins Aerospace, Airbus Defence and Space, Safran.

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Government: Semi-presidential with a Prime Minister and a President
Major Cities: Bucharest, Iasi, Cluj-Napoca, Timisoara
Population: 19 million
Currency: Lei (RON)

Market Overview
Romania is an excellent market for U.S. companies in Eastern Europe due to its growing economy, strategic location in the Black Sea region, and pro-American culture. Since 2010, Romania’s economic growth has been among the highest in the EU, steadily converging with the EU in GDP per capita. Its economy grew by 5.8 percent in 2021 and 4.9 percent in 2022, though growth has slowed in 2023. Romania is the U.S. 67th largest export market with a bilateral trade value of over $5.1 billion in goods and services, with the U.S. defense and armaments; computer and electronic products; machinery; transportation equipment; and energy products being the top U.S. exports to Romania.

As an EU member state and NATO member, Romania offers U.S. companies access to a large domestic market and a cost-effective gateway to the entire EU market. With its location in Southeast Europe, bordering the Black Sea, businesses can access markets in Turkey, the Balkans, the Middle East, Ukraine, and Moldova. Moreover, Romanians welcome Americans and have a strong preference for products and services from the United States.

Romania is the largest producer of electronics in Central and Eastern Europe and has grown into a major center for mobile technologies, information security, and related hardware research.

Industry Best Prospects & Opportunities

Agricultural Equipment:
Romania, a leading EU agricultural producer, exports wheat, corn, sunflowers, and soybeans. New tenders provide a prime opportunity for U.S. suppliers in irrigation technology, including clean energy pumps, smart water management, and digital irrigation.

Defense Industry:
Beginning in 2017, Romania committed to spending at least 2.0% of GDP annually on defense through 2027. The 2023 Defense Budget is $8.52 billion, of which 38%, or roughly $3 billion, is allocated toward equipment procurement such as C4ISR-Command, Control, Communications, Computers (C4) Intelligence, Surveillance and Reconnaissance (ISR) for brigade and battalion level, amphibious 8x8 armored vehicles, and LTAV-Light Tactical Armored Vehicles.

Energy:
Romania’s energy sector is pivotal for its economy and security policy. Its diverse energy mix includes hydroelectric, nuclear, coal, natural gas, solar, eolian, and biomass (mentioned in order of the contribution to the energy mix). Romania aims to complete Cernavodă Nuclear Power Plant’s Units 3 and 4 and extend Unit 1 lifetime, alongside deploying small modular reactors (projects valued at $8.5-9.5 billion).

Information and Communications Technology (IT&C):
The IT&C industry is one of the fastest emerging sectors in Romania. The digital economy could reach $57 billion by 2030 (10% of GDP), with priorities including public service digitalization, cloud adoption, secure infrastructure, and cybersecurity.

Healthcare:
Romania’s healthcare system needs modernization and requires investment in advanced medical technologies, telemedicine solutions, and pharmaceutical research. EU funds include over $2 billion for hospital infrastructure and over $550 million for digital healthcare to improve the quality and accessibility of healthcare services.

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Government: Presidential Republic
Major Cities: Istanbul, Ankara
Population: 85.3 million
Currency: Turkish Lira (TRY)

Market Overview:
Strategically positioned between East and West, Türkiye serves as a global trade hub and a springboard to markets throughout Europe, Asia, and the Middle East. Türkiye’s young, educated workforce, as well as its robust middle class, indicates the market is primed for continued economic growth.

Top Exports: Vehicles; machinery including computers; iron / steel; electrical machinery / equipment; gems / precious metals; textiles and accessories.
Top Imports: Mineral fuels including oil; machinery including computers; iron / steel; electrical machinery / equipment; plastics / plastic articles; and vehicles.

Türkiye’s economy supports a diverse array of sectors and industries, from construction to agriculture to machinery to textiles. As a leading global market, commercial trends in Türkiye often spread throughout the broader region, and decisions made in Ankara often influencing decision-making throughout Central Asia and Eastern Europe.

U.S.-Türkiye trade ties have grown approximately 60% since pre-COVID. In 2022, bilateral trade reached $34 billion.
Türkiye’s average annual GDP growth from 2002 to 2022 was 5.4%, eclipsing Eastern European countries like Poland and Romania.

Industry Best Prospects and Opportunities

Civilian Aerospace, Technology & Equipment:
Türkiye is a hub for Europe, Middle East, North Africa. Proximity to 50+ markets, financial prowess, expanding private airlines, increased flights, passenger surge, MRO growth.

Renewables, Smart Grid, Energy Storage, Civil Nuclear:
Türkiye is Europe’s 6th largest electricity market, nearly half of which comes from renewables. Major capacity in hydro, gas, coal, wind, solar, geothermal, biomass. Incentives, growth, net-zero commitment.

Information and Communication Technology:
Explore Türkiye’s ICT opportunities: Transitioning from DST, 5G expansion, strategic plans, cybersecurity needs. The $26.9B ICT market features strong 5G, e-commerce, smart city prospects, IoT growth, consumer electronics surge.

Medical Technologies and Health IT:
Seize the growing healthcare market in Turkey! With a population of 84 million, increasing healthcare expenditure in a $3 billion medical device market, universal health insurance coverage and nation-wide IT infrastructure, U.S. medical technologies have vast opportunities in this evolving landscape.

Transportation Technology and Equipment:
Unlock Türkiye’s booming transportation sector! A key hub for transit and freight, with a growing population of 84M, Türkiye seeks U.S. expertise in Intelligent Transportation Systems. Join this rising market with massive projects like the $3.5B Grand Istanbul Tunnel and $15B Canal Istanbul.

Oil and Gas Equipment – LNG and LNG Terminals, Upstream, Downstream and Midstream:
Dive into Türkiye’s energy revolution! With massive gas reserves in the Black Sea and Mediterranean, U.S. companies excel in drilling and production equipment. Be part of Türkiye’s energy future now.

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