Market evolution: Process instruments (CN 9026) — 2015–2025

Introduction

This report examines the evolution of European Union (EU) trade in process instruments (CN 9026) over the decade from 2015 to 2025. The analysis covers trade flows with non-EU countries, focusing on value, volume, and price trends, as well as shifts in trading partners, market structure, and the EU's position in global supply chains. Despite a period marked by economic disruptions, the EU has consolidated its role as a major net exporter in this high-value industrial segment, with trade dynamics increasingly characterized by rising unit values and evolving geographic partnerships.

1. Steady Value Growth Amidst Volumetric Stability and Price Inflation

The EU's external trade in process instruments (CN 9026) demonstrated robust growth in value terms over the 2015–2025 period, while traded quantities remained relatively stable, leading to a significant increase in unit values. This pattern suggests a market moving towards higher-value products and/or reflecting general price inflation in the sector.

1.1 EU Exports and Imports Increased in Value, Strengthening the Trade Surplus

Between 2015 and 2025, the total value of EU extra-EU exports grew by 41.1%, from €3.96 billion to €5.59 billion. Imports rose by 34.5%, from €2.60 billion to €3.50 billion. Consequently, the EU's trade surplus expanded by 53.8%, reaching €2.09 billion in 2025, confirming the bloc's strong competitive position as a net exporter of these instruments.

1.2 Traded Volumes Remained Flat While Unit Prices Surged

In contrast to the strong value growth, the net mass of both exports and imports saw a slight decline over the period. Export volumes decreased by 3.2%, and import volumes fell by 10.1%. However, this was more than offset by substantial increases in average prices. Export prices rose by 45.7%, and import prices surged by 49.6%. This indicates that the traded instruments became more expensive per unit of weight, pointing to a possible shift in product mix towards more sophisticated, higher-value-added goods or general cost inflation.

1.3 Pressure Measurement Dominates Trade Value

A breakdown by product sub-segment reveals that instruments for measuring pressure (902620) are the largest category by value for both EU imports and exports. In 2025, this sub-segment accounted for €1.68 billion in imports and €2.21 billion in exports. The "other instruments" category (902680) also showed strong growth in import value, rising from €464 million to €635 million.

2. Geographic Reorientation of Trade Partners

The EU's trade geography for process instruments has evolved, with a notable intensification of exchanges with certain key partners. The United States and China remain the primary extra-EU partners, but China's role as an import source has expanded dramatically.

2.1 The United States and China are the Cornerstone Markets

The United States is the EU's largest export destination (€1.06 billion in 2025, +56.4%) and the second-largest source of imports (€789 million, +10.9%). Conversely, China is the EU's second-largest export market (€908 million, +51.7%) and, more significantly, has become the largest source of imports, with its value soaring by 141.7% to €717 million. This rapid growth highlights China's increasing integration into the EU's supply chain for these instruments.

2.2 EU Imports Show Higher Concentration Than Exports

The Herfindahl-Hirschman Index (HHI), a measure of market concentration, indicates that EU imports are more concentrated among fewer partner countries than exports. In 2025, the import HHI was 1,445, while the export HHI was 833. This structural difference implies that the EU sources its imports from a narrower set of countries, making its import side potentially more vulnerable to disruptions from those specific partners.

2.3 EU Member States Drive Export Performance

Within the EU, Germany is the undisputed leader, responsible for over half of all extra-EU exports in 2025 (€2.87 billion, +43.0%). Other significant exporters include France (€537 million), the Netherlands (€490 million), and Italy (€410 million). On the import side, Germany is also the largest importer (€1.56 billion), followed by France (€511 million) and Italy (€192 million).

3. Robust EU Production Capacity and Specialization

Behind the trade figures lies a strong and growing EU production base for process instruments. The data reveals significant expansion in production output and a clear pattern of national specialization within the bloc.

3.1 EU Production Has More Than Doubled in Volume and Value

EU production of instruments under CN 9026 has grown massively. Between the first and last available years, production volume (measured in number of items) increased by 127.9%, from 132 million to 301 million units. Production value grew by 108.7%, from €5.17 billion to €10.80 billion. This expansion in domestic manufacturing underpins the EU's ability to maintain a strong export position.

3.2 Strong Specialization in Central and Western European Member States

An analysis of revealed comparative advantage (RSCA) shows that several EU member states have a high degree of specialization in this sector. Bulgaria (RSCA: 0.43), Romania (0.38), and Germany (0.36) are the most specialized. Germany's position is particularly significant given its dominant share of production (45.3%) and exports. Denmark, France, and Sweden also show notable specialization.

3.3 Market Stability is Higher for Key Export Partners

While the sector experienced some volatility, trade with major partners proved relatively stable. The coefficient of variation for export values was lowest with China (8.3%) and the United States (11.8%), indicating consistent trade flows. In contrast, trade with some partners, like Thailand on the import side, was highly volatile. A few significant price shocks were detected, notably a 179% spike in export prices to Serbia in 2021 and a 38% jump to Mexico in 2022, likely linked to specific large-scale contracts or supply chain reconfigurations.

Conclusion

From 2015 to 2025, the EU's trade in process instruments (CN 9026) has been characterized by resilience and positive structural evolution. The bloc has successfully grown its trade value and surplus, achieving this not through volume expansion but through a pronounced shift towards higher-value-added segments, as seen in the steep rise in unit prices. Geographically, while the core partnerships with the United States and the United Kingdom remain vital, the most dynamic change has been the sharp increase in imports from China, altering the EU's supply chain dependencies.

Underpinning these trade flows is a doubling of EU domestic production, led by highly specialized and competitive member states like Germany. This robust production base provides a foundation for the EU's continued role as a major global exporter. Key challenges and points to monitor moving forward include the rising reliance on Chinese imports, the concentration of the import portfolio, and the sector's exposure to the occasional significant price shocks observed in certain markets. Overall, the EU has maintained a strong and increasingly sophisticated position in the global market for process instruments.