In this article, we will discuss the 15 Biggest European Tech Companies. You can skip our detailed industry analysis and go directly to the 5 Biggest European Tech Companies.
Even though Europe boasts the world's third-largest economy, the tech sector in the region has had its fair share of challenges. The R&D spending in the region has continued to decline, which has been a major reason for the stagnation of the region's tech sector. For the period of 2014-2019, a report by McKinsey reveals that the tech sector of Europe was 20% less profitable, with revenue growing 40% slower when measured against the return on invested capital. Apart from the lack of R&D investments, there are some other reasons as well that have contributed to the slowdown in Europe's tech sector. The continent is not only densely populated but also has a diverse language pool and different payment methods. The fragmentation across EU member states also poses a significant challenge for companies to take on.
Despite the aforementioned challenges, Europe can be considered an ideal breeding ground for unicorns. Europe has an average of 323 startups per 1 million population. Recent data from Dealroom suggests that in 2021, Europe produced 72 unicorns which is three times more compared to China, with the majority of these unicorns belonging to the tech sector.
In 2021, Europe witnessed a record $100 billion capital investment and 70+ new unicorns. Despite the coronavirus causing headwinds for businesses around the world, some companies have been able to take advantage of the challenges created by the pandemic. A digital healthcare company from Lithuania called KiloHealth, the OCI Group, which is a supply chain specialist from the UK, and a Finnish sustainability company called Swappie topped the charts of Europe's fastest-growing companies in 2022. Moreover, London is considered the second-best tech startup hub after Silicon Valley, as it is home to 76,660 tech companies.
We picked some of the most notable European tech companies operating in software and hardware segments of the industry. For each company we have mentioned its market cap.
15. Telefonaktiebolaget LM Ericsson (STO:ERIC-B)
Market Cap as of December 08, 2022: 225 billion kr
Telefonaktiebolaget LM Ericsson (STO:ERIC-B) is a global leader in mobile connectivity solutions for telecom operators and enterprise customers across several industries. Telefonaktiebolaget LM Ericsson (STO:ERIC-B)’s principal offering includes mobile and stationary network infrastructure such as 2G, 3G, and 4G radio networks and IP core and transport networks. The company's four segments are Networks, Digital Services, Managed Services, Emerging Business, and Others.
Telefonaktiebolaget LM Ericsson (STO:ERIC-B) dominance in the technology sector is reflected by its over 57,000 granted patents and operations in more than 180 countries. In addition, the company is credited with being the inventor of Bluetooth technology.
14. Amadeus IT Group SA (BME:AMS)
Market Cap as of December 08, 2022: €22 billion
Amadeus IT Group SA (BME:AMS) is a Spanish information technology provider for the global travel and tourist industry. The company follows a transaction-based business strategy and offers a diverse portfolio of technology-oriented products and services. Amadeus IT Group SA (BME:AMS) offers travel suppliers and travel agents solutions for searching, pricing, tickets, bookings, reservations, etc.
Amadeus IT Group SA (BME:AMS) has continued to acquire several small companies over the years in an effort to spur organic growth. In a $1.52 billion deal, the company acquired TravelClick in 2018, which provides the hotel industry with cloud-based services. Similarly, in 2022, the company acquired Kambr, which provides revenue management services to airlines. Amadeus IT Group SA (BME:AMS)'s sales in 2021 stood at $3.03 billion.
13. Nokia Oyj (NYSE:NOK)
Market Cap as of December 08, 2022: $26 billion
Founded in 1865, Nokia Oyj (NYSE:NOK) is a Finnish multinational telecommunication, information technology, and consumer electronics company. Nokia Oyj (NYSE:NOK) provides fixed networks, mobile phones, WiFi systems, IP routing, subscriber data management, network implementation, network modernization, IoT, and 5G services to its customers.
Nokia Oyj (NYSE:NOK) remained a market leader as a mobile phone and smartphone vendor throughout the 1990s and 2000s. However, the company later faded into the background as its competitors started gaining market-share and Nokia Oyj (HEL:NOKIA) suffered from management issues. However, Nokia Oyj (NYSE:NOK) is still a globally recognized brand and currently employs over 92,000 people across 100 countries.
12. Vodafone Group plc (LON:VOD)
Market Cap as of December 08, 2022: $30 billion
Vodafone Group plc (LON:VOD) is a multinational telecommunications business based in the United Kingdom. The firm provides phone, message, and data services across fixed and mobile networks. Vodafone Group plc (LON:VOD) also provides cloud and hosting services, television offerings, unified communications, payment, cybersecurity, and internet-of-things (IoT) solutions. The company had approximately 323 million mobile customers, 28 million fixed internet consumers, and 22 million TV customers as of March 31, 2022. Vodafone Group plc (LON:VOD) revenue in 2021 was reported at €43.81 billion.
11. Capgemini SE (CAP.PA)
Market Cap as of December 08, 2022: €29 billion
Capgemini SE (CAP.PA) is a global information technology services and consulting company headquartered in Paris, France. Capgemini SE (CAP.PA) primarily serves the Americas, Europe, Africa, the Middle East, and Asia-Pacific providing consulting, digital transformation, technology, and engineering services. Capgemini SE (CAP.PA)'s operations are divided into four business segments: application services, technology, engineering services, consulting services, and other managed services. The company's sales in 2021 amounted to €18.16 billion.
10. Hexagon AB (STO:HEXA-B)
Market Cap as of December 08, 2022: 325 billion kr
Headquarters in Stockholm, Sweden, Hexagon AB (STO:HEXA-B) is a global leader in combining sensor, software, autonomous technologies, and digital reality solutions. The company’s main offerings include sensor solutions, software solutions, and autonomous solutions, as well as sensor technology-equipped metrology systems and computer-aided design software. Hexagon's products are used in the construction, mining, agriculture, aerospace, automotive, defense, and manufacturing industries. Hexagon AB (STO:HEXA-B) revenue in 2021 stood at €4.3 billion.
9. STMicroelectronics NV (EPA:STM)
Market Cap as of December 08, 2022: $34 billion
STMicroelectronics NV (EPA:STM) is a Dutch multinational corporation that designs, manufactures, and sells a diverse range of products, including integrated circuits and standard commodity components. In addition, STMicroelectronics NV (EPA:STM) manufactures and sells silicon chips and smartcards.
STMicroelectronics NV (EPA:STM) manufacturing and R&D facilities are situated all over the world with major sites in France, Italy, and Singapore. STMicroelectronics NV (EPA:STM)'s sales in 2021 were reported at $12.7 billion.
8. Infineon Technologies AG (ETR:IFX)
Market Cap as of December 08, 2022: €40 billion
Infineon Technologies AG (ETR:IFX) is a semiconductor solution supplier. The company designs, develops, manufactures, and markets application-specific integrated circuits, diodes, evaluation boards, electrostatic discharge protection, and electromagnetic interference protection products through its subsidiaries. Infineon Technologies AG (ETR:IFX) sells semiconductors and systems to the automotive, industrial, and multimarket industries, chip cards, and security devices. Infineon Technologies AG (ETR:IFX)'s revenue in 2021 was reported at $13.2 billion.
7. NXP Semiconductors N.V. (NASDAQ:NXPI)
Market Cap as of December 08, 2022: $42 billion
NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch semiconductor company. The company's products include cryptography security, high-speed interface, radio frequency, power management, digital signal processing, and embedded system design. The company's product solutions are used in various end-market applications, including automotive, industrial & internet of things, mobile, and communication infrastructure. NXP Semiconductors N.V. (NASDAQ:NXPI)'s sales in the fiscal year 2022 were reported at $3.3 billion.
Investment management firm ClearBridge Investments mentioned NXP Semiconductors N.V. (NASDAQ:NXPI) in its second-quarter 2022 investor letter, stating:
Within information technology (IT), where we maintain an underweight compared to the benchmark, we took profits in NXP Semiconductors (NASDAQ:NXPI), a part of the pro-cyclical reflation basket built up in 2020. Despite strong current fundamentals, there is an ongoing risk of major supply increases in the semiconductor industry as capacity announcements are near records.
6. Adyen NV (AMS:ADYEN)
Market Cap as of December 08, 2022: €45 billion
Adyen NV (AMS:ADYEN) is a payment solution provider that allows merchants and businesses to process payments through online, mobile, and point-of-sale systems using payment methods such as card schemes, mobile wallets, and other local ways. The platform includes technological, contractual, reconciliation, and settlement processes.
Adyen NV (AMS:ADYEN) charges its client on a per-transaction basis, with a fixed processing fee + a fee determined by the client's payment method. The fixed processing fee charged to its client is €0.10. Adyen NV (AMS:ADYEN) received a banking license in 2017 to facilitate merchant account settlement. The company's revenue in 2021 was reported at €1.0 billion. Moreover, Adyen NV (AMS:ADYEN)'s net revenue in the first half of 2022 stood at €608.5 million, and the company processed a volume of €345.8 billion during the period.
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Disclosure: None. 15 Biggest European Tech Companies is originally published on Insider Monkey.