6 trends shaping Europe’s industrial midmarket

Industrial businesses entered 2025 under pressure, and little about the environment has eased. 

Supply chain volatility, tighter regulation, rising cyber threats and widening skills gaps are creating a more demanding landscape for manufacturers and wholesalers across Europe.

2026 won’t remove these challenges, but it will change how organisations respond. Leaders are becoming more focused, more realistic and more deliberate about where digital investment should go.

These are the 6 shifts most likely to influence competitiveness in the coming year.

1. Cloud adoption becomes the default path forward

Many midmarket firms now recognise that legacy systems are restricting their ability to scale and modernise. The research shows that almost half believe their low cloud adoption is already limiting their ability to benefit from tools like AI.

As customer expectations rise and supply chains become more connected, cloud will increasingly be seen as basic operational infrastructure, not a modernisation project or optional upgrade. Expect a steady rise in hybrid transitions and ERP replacement activity driven by practical needs: visibility, integration, stability and improved security.

2. AI adoption becomes targeted and operational

The conversation around AI has matured. Manufacturers are prioritising improvements that solve real operational problems, earlier warnings on equipment issues, better analysis of production data and stronger cybersecurity.

These are the areas leaders expect to deliver the clearest value, and they align with the emerging principles of Industry 5.0: using technology to support people rather than replace judgement.

In 2026, AI is likely to be adopted in small, specific increments that improve reliability and decision-making rather than transform entire operations at once.

3. Product data moves up the agenda as DPP deadlines approach

Digital Product Passport requirements are prompting companies to reassess how they handle product data. Readiness varies, and only around half of midmarket businesses feel confident they’re prepared, but expectations from customers and regulators are rising quickly.

In 2026, more firms will invest in structured, reliable product information, not only to manage compliance, but to improve traceability, reporting and overall supply chain responsiveness. Strong product data will quietly become a competitive advantage.

4. Skills shortages continue to limit progress

Digital skills gaps are becoming a material constraint. Cybersecurity, ERP expertise and AI literacy remain the three areas where businesses struggle most, and many leaders say these shortages have already slowed or delayed important projects.

The response in 2026 is likely to be more intentional. Companies will focus on targeted upskilling, developing internal digital champions and leaning more heavily on vendors for capability support. Recruitment alone won’t be enough to close the gap.

5. Resilience becomes a central investment 

Investment priorities are shifting. Cybersecurity, ERP modernisation, compliance readiness and data quality are topping roadmaps in a way that reflects the uncertainty manufacturers are operating within.

Companies are placing greater emphasis on predictable processes, secure systems and stronger governance. The aim is to reduce disruption, improve confidence in reporting and strengthen day-to-day decision-making.

6. Digital maturity planning becomes more structured

A notable trend heading into 2026 is the level of dissatisfaction leaders feel about their recent digital progress. More than 60% describe their digital transformation as “adequate” or “poor,” signalling that activity hasn’t always translated into meaningful outcomes.

In response, more organisations are beginning to formalise their digital maturity plans. This includes clearer prioritisation, better data foundations, stronger internal governance and more realistic sequencing of projects. It’s a shift toward planning that is measurable, achievable and aligned to long-term operational needs.

A more deliberate year ahead

2026 is unlikely to bring dramatic shifts in technology, but it will bring more deliberate approaches to adopting it. The businesses that make progress will be those that clarify their priorities, strengthen their foundations and invest in the skills and systems that support stable, connected operations.