FR-EU Industry 2040: A vision for French and European industry

The challenge of Industrial sovereignty

France has cutting-edge industrial sectors, but its productive base remains fragmented and overly dependent on foreign supplies for critical inputs, reducing its ability to secure its industrial sovereignty. More than 60% of industrial components come from abroad, with strong strategic dependencies on Asia for semiconductors, advanced materials and some pharmaceuticals, creating a high risk of disruption in value chains.

Compared to its main European neighbours, France is lagging behind in terms of emerging technologies and the integration of complete sectors, limiting its ability to relocate and manage its critical segments.

Global competition and the Industries of the future

The United States and China are deploying massive and targeted industrial plans to secure their supply chains and dominate the industries of the future, increasing the pressure on French competitiveness and its position in global markets.

France needs to act simultaneously on two fronts: reducing its dependence on today’s strategic segments and investing proactively in tomorrow’s industries, such as hydrogen, batteries, advanced materials and healthcare, in order to capture the value of global markets. The consolidation of skills, the development of integrated regional ecosystems and the modernization of industrial infrastructure will be key levers for creating sovereign and sustainable value chains.

Towards a France and European Industrial powerhouse

By securing critical segments and deploying its positions in strategic technologies, France can transform its vulnerabilities into levers of competitiveness and position itself as a key player in global industrial markets. Achieving this trajectory will generate growth, value and jobs while affirming French technological leadership by 2040, in a global context where the major powers are redefining their industrial and strategic standards.

The success of this trajectory also requires coordination at the European level to harmonise industrial policies, secure supply chains and build a European industrial powerhouse in the face of the ambitious plans of China and the United States. This means launching a few major targeted European industrial programs – for example in semiconductors, decarbonised energy, healthcare and sovereign technologies – in order to pool investment efforts, accelerate innovation and create European champions in strategic segments for decades to come.

15 strategic actions for 2040

The conclusions of our study lead to a proposal in 15 strategic actions, articulated around targeted relocation, the development of the industries of the future and the mobilization of skills and funding, in order to ensure the sovereignty and competitiveness of French industry by 2040.

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Meet our Industry and Services experts

Gilles Bonnenfant

Chairman, Eurogroup Company

Hugues Tourel

Partner

Chiheb Mahjoub

Senior Advisor

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