Overview
Sweden has a strong and successful manufacturing/industrial engineering sector that accounts for roughly 20 percent of the country’s GDP at $120 billion. The sector accounts for over 80 percent of Swedish exports and creates over one million jobs. The most important sub-sectors are traditional industries, such as steel, automotive, chemical and forestry, followed by industrial machinery and equipment, automation and pharmaceuticals. The United States has approximately 8 percent share of the Swedish advanced manufacturing market, and the main competitors are other EU countries and Asia.
In May 2025, Swedish government launched Sweden’s Digitalization Strategy 2025-2030 that covers five societal areas: competence, industry, administration, prosperity and connectivity. The strategy aims to identify challenges and provide solutions within strategically relevant areas. National security, meaningful use of AI and data management are all key components of the strategy. The transformation is supported by ample public and private sector investment in both R&D and innovation. Currently the Swedish industries’ annual R&D investments amount to approximately $16 billion.
Leading Sub-Sectors
Digital Manufacturing: To remain globally competitive, Swedish manufacturers are in the process of digitalizing their production, their services, and in many cases their products. Use of the Industrial IoT solutions, system integration, digital thread, intelligent machining, CAD, and CAM modeling and advanced analytics still varies from industry to industry. Swedish Innovation Agency Vinnova, plays a key role in the digitalization of the Swedish manufacturing industry, and in January 2025, they launched, together with industrial partners such as Ericsson, Saab and Volvo, Advanced Digitalization program for research and innovation within advanced manufacturing. The agency will regularly publish calls for project proposals within four focus areas: applied AI & data flows, stable and secure electrification, strong digital infrastructure for industrial applications and cutting-edge expertise. The program will continue until 2030 and has an annual budget of approximately $100 million. Most of the projects are available for international participants, as long as the project is conducted in Sweden. The projects are funded as public-private partnerships (PPP) and, in some cases, with additional funding available through EU programs.
Additive Manufacturing: Swedish manufacturers were early adopters of 3D printing techniques. Both 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 Additive Manufacturing to develop and test technologies, materials, and knowledge. Current projects include developing a sustainable and resilient AM process and understanding stress corrosion cracking in stainless steel.
Advanced Materials
The Swedish Innovation Agency, Vinnova, has been chosen to coordinate the EU program RAMP – Raw Materials Partnership for the Green and Digital Transition. The program is a cooperation between 54 partner organizations from 32 countries and regions and has a budget of $470 starting in 2026. The program is directly connected to EU’s Critical Raw Materials Act and aims to create secure, resilient and sustainable critical mineral supply chains.
Sweden accounts for 93% of the iron ore production in the EU and is a world leader in mining technologies with companies like Epiroc and Sandvik. The demand for critical minerals and other raw materials is growing rapidly and the demand for e.g. lithium is expected to grow by 2100% by 2050. All of EU is relying heavily on imports and has realized the risks with supply chain vulnerabilities.
In 2023, the Swedish mining company LKAB also identified significant deposits of rare earth elements (REEs) in the Kiruna area. The deposit contains 17 REEs, including neodymium and praseodymium that are essential for, among other applications, the manufacture of permanent magnets for electric vehicles and wind turbines.
Resources
Government Office of Sweden (www.government.se)
Swedish Engineering Companies (www.teknikforetagen.se)
Swedish Innovation Agency Vinnova (www.vinnova.se)
Trade Events
Scanautomatic & Process Technology, Oct 20 – 22, 2026, Gothenburg
Two parallel trade shows on new industrial automation technologies, business models, and knowledge transfer
Euro Mine Expo, May 26-28, 2026, Skellefteå
Trade show and conference for the mining industry
Local Commercial Specialist: Tuula Ahlstrom, Tuula.Ahlstrom@trade.gov
Advanced Nuclear Energy Technologies
Overview
Sweden’s energy mix is one of the cleanest and most decarbonized in the world. Nearly 99% of electricity is accounted for by hydro, nuclear, renewables (wind and solar, bioenergy) and some CHP. This energy mix has provided impressive results: Sweden has both lowest CO2 emission rates and the lowest electricity prices (2024) of all the EU countries.
Electricity production in Sweden by fossil free source in 2024:
• Hydropower 41%
• Nuclear power 29%
• Wind power 19%
• Combined heat & power (CHP) 9%
• Solar and bioelectricity 1%
Swedish government has estimated that electricity production needs to double by 2045 to enable the electrification of both the energy intensive manufacturing industry and the transportation sector. Against this background, the government presented a roadmap for new nuclear power in 2023, clarifying the goals and providing long-term conditions for new nuclear power development.
Opportunities
Currently Sweden operates six nuclear reactors across three power plants, with four boiling water reactors and two pressurized water ones. All of these were built in the 1970s and 1980s, and almost at the end of their lifespan. The state owned Vattenfall operates two of the plants and the third one is operated by Uniper and Fortum.
The roadmap will enable new nuclear power with a total output of at least 2,500 MW, equivalent to the capacity of two large-scale reactors, to be in place by 2035, and the building of additional nuclear reactors in 2045. The government has already taken several measures to remove obstacles and facilitate the establishment of new nuclear power, which is now being supplemented by more measures in the roadmap.
While the utilities have already started looking at different nuclear technology options – both SMRs and full-scale reactors -, some of the key concerns have been the financing and the lack of risk sharing models for such large investments. In May 2025, the Swedish government adopted a new model for financing and risk sharing in connection with nuclear power investments, to support the construction of new nuclear power plants. This model includes state aid in the form of government loans and two-way Contracts for Difference (CfDs), along with a risk and profit-sharing mechanisms to make nuclear investments more attractive to private investors.
State aid is limited and is planned to include investments of up to a total installed capacity of approximately 5 000 MW, which is equivalent to four large-scale reactors. Government loans are provided for the construction and testing of new nuclear reactors, and for planning and other preparatory measures, and an injection of share capital is also required. Government loans must be repaid in instalments once a nuclear reactor becomes operational.
Resources
Ministry of Climate & Enterprise report on expansion of nuclear power in Sweden
Trade Events:
Energi Expo – The Future of Energy, May 20-21, 2026, Stockholm
Sweden’s largest energy trade show and conference
Local Commercial Specialist: Tuula Ahlstrom, Tuula.Ahlstrom@trade.gov