Market evolution: Other electrical machines (CN 85437090) — 2015–2025

Introduction

This report analyses the EU's trade performance for the residual product category "Electrical machines and apparatus, having individual functions, n.e.s. in chap. 85" (CN 85437090) over the decade 2015–2025. Over this period, the EU underwent a profound structural transformation in this market segment. Initially a significant net importer, the EU has decisively reversed this position, evolving into a strong net exporter by 2025. This shift was driven by a substantial increase in the value of exports, coupled with a significant decline in import volumes. Key dynamics include a clear reorientation of trade partners, with EU exports becoming more diversified and high-value, while import dependence has notably decreased.

1. A Decade of Reversal: From Net Importer to Net Exporter

The most striking development in the EU's trade of CN 85437090 products is the complete reversal of its trade balance. The EU transformed from a deficit of €1.55 billion in 2015 to a surplus of €738 million in 2025, representing a 147.5% improvement.

1.1 Export Growth Outpaced Import Contraction

This reversal was the result of two simultaneous, powerful trends: robust growth in export value and a drastic reduction in import volume.

Export value grew by 80.1%, significantly outpacing the 21% growth in volume, indicating a move towards higher-value-added products. Meanwhile, import volume collapsed by 48.1%, far outstripping the 17.1% decline in value.

1.2 The Price Dynamics Tell the Story

The divergence between value and volume trends is clarified by unit price evolution. The EU's export price per tonne surged by 48.8% to reach €138,485 in 2025. Conversely, the import price increased by 59.5% but started from a much lower base, ending at €58,399 per tonne. This suggests the EU has successfully specialized in higher-value, more sophisticated electrical apparatus within this product code.

2. Shifting Geographies: The Reconfiguration of Trade Partnerships

The EU's trade geography for CN 85437090 products has been fundamentally reshaped. The structure of both import and export partnerships has changed, reflecting broader trends in global supply chains and the EU's competitive position.

2.1 China's Diminishing Role in EU Imports

China remains the largest source of EU imports but its dominance has eroded significantly. Import value from China fell from €2.06 billion in 2015 to €1.12 billion in 2025, a 45.9% decline. This reduction in dependency is a primary driver of the improved trade balance.

2.2 Export Destinations Diversify and Grow

EU exports have become more geographically diversified and have seen explosive growth in certain markets. The most dramatic increase was exports to Türkiye, which grew by 350.4% to reach €303 million. Exports to the United States also nearly doubled to €802 million, making it the top non-EU export destination by value.

2.3 A More Diversified Import Base, but Concentration Persists in Exports

The Herfindahl-Hirschman Index (HHI) for import concentration by value plummeted from 3,433 to 1,828, indicating a significant deconcentration of the EU's import sourcing. In contrast, the HHI for exports remained relatively stable at a lower level (~980), suggesting a persistent but not overly concentrated export structure.

3. Specialisation, Concentration, and Increased Autonomy

The trade data reveals a clear trend towards greater EU specialisation and productive autonomy in this sector, moving beyond simple trade metrics to structural economic indicators.

3.1 Growing Specialisation and Export Propensity

The EU's export propensity (exports as a share of domestic production) increased from 144.3% to 157.3% between 2015 and 2025, indicating that an increasing share of EU production is destined for global markets. Concurrently, the net import reliance turned from a positive 2.0% (slight net importer) to a strong negative -17.4% (net exporter), confirming the sector's improved competitive stance.

3.2 Internal EU Specialisation Varies Widely

Within the EU, specialisation in CN 85437090 production is highly uneven. In 2025, the most specialised Member States based on Revealed Symmetric Comparative Advantage (RSCA) are:

• Poland (RSCA: 0.376)
• Sweden (RSCA: 0.286)
• Germany (RSCA: 0.161)

Conversely, economies like Greece (RSCA: -0.826) and Ireland (RSCA: -0.808) show strong comparative disadvantage, indicating they are net importers of these products.

3.3 Supply Chain Resilience: Reduced Volatility and Reacting to Shocks

The volatility of import flows from major partners like China (CV: 0.44) and the UK (CV: 0.44) remains high, but the EU's reduced exposure mitigates risk. Notable price shocks were detected, such as a +124.7% price spike for exports to Israel in 2017 and a +79.8% increase for UK-bound exports in 2021, the latter linked to significant trade disruption and likely stockpiling.

Conclusion

The decade 2015–2025 marks a period of profound success for the EU in the market for other electrical machines (CN 85437090). The Union has not only corrected its trade deficit but has built a position of strength as a net exporter. This was achieved through a dual strategy: reducing volume-intensive, lower-value imports, particularly from China, while simultaneously scaling up exports of higher-value products to a wider array of global partners. The data points to a sector with increasing specialisation, higher integration into global export markets, and improved resilience against import-side shocks. Moving forward, key challenges and opportunities will involve maintaining this competitive edge, managing the volatility of remaining import sources, and capitalising on growth in dynamic export markets like Türkiye and the United States.