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Industrial Automation and IoT in Europe

The complete Sesamers guide to European industrial automation and IoT: where the money went, who is building and funding it, the three questions the sector cannot agree on, and how to get in.

Pillar page · 13 sections · last reviewed 20 Sep 2026 · desks refresh weekly
179 Companies tracked
3 Active investors
187 Rounds tracked
3 Events assessed
7 Sub-verticals

What counts as industrial automation and IoT here

Any company building hardware, sensors or software that automates or connects industrial and manufacturing processes – warehouse and factory robotics, photonics and optical components, connected sensors, and manufacturing software. We include the physical component layer (photonics, semiconductors used in industrial systems) and exclude pure consumer IoT, which is filed elsewhere.

Family
Hardware
Coverage since
2019
Desks
4
Reviewed
20 Sep 2026

The four desks

Each one is a live page – this pillar is the way in

The 7 sub-verticals

Filter the startup desk by any of these

Where the companies are

Headquarters counted on the startup desk

Where the sector stands

Three eras, not a straight line

2019-21
IoT platform proliferation

Dozens of general-purpose IoT and connectivity platforms raised capital promising to connect any factory to the cloud; most struggled to differentiate.

2022-24
The reshoring push

European manufacturers, facing supply-chain fragility and rising labour costs, began investing seriously in automation to reshore production rather than offshore it further.

2025-26
Photonics and physical layer investment

The largest rounds now go to companies solving physical bottlenecks – optical switching, advanced sensors – rather than software layered on existing hardware, as seen in iPronics' Series B.

Three open questions

Where informed people in this sector genuinely disagree

Is reshoring a durable demand driver, or a temporary reaction to recent supply shocks?

Several large rounds on this desk are explicitly pitched around helping European manufacturers bring production back from Asia.

The case forLabour cost convergence, energy security concerns and geopolitical risk to long supply chains are structural, not cyclical, and European manufacturers are making multi-year capital commitments to automation that assume reshoring continues.
The case againstReshoring announcements have a track record of running ahead of actual factory openings, and if energy prices or geopolitical tension ease, the economic case for keeping production in Europe weakens considerably.
Where we land: The demand is real but the pace is slower than the pitch decks suggest. Automation vendors selling into reshoring should expect a longer sales cycle tied to genuine capital investment decisions, not a software-adoption curve.
Does optical switching actually solve the AI data centre bottleneck, or is it one component among many?

iPronics and other photonics companies are raising large rounds on the promise of solving network bottlenecks in AI infrastructure.

The case forEvery hyperscaler has publicly discussed the network as the binding constraint on GPU cluster efficiency, and optical switching genuinely removes a real conversion cost between electrical and optical signals.
The case againstThe AI infrastructure stack has many potential bottlenecks – power, cooling, chip supply, interconnect – and optical switching solves one of several, not the whole problem, which limits how much value a single vendor can capture.
Where we land: Optical switching is a real, necessary component, not a silver bullet. The companies that win will be the ones that integrate cleanly into the broader data centre stack, not the ones claiming to solve the bottleneck alone.
Can European industrial automation compete with cheaper offshore manufacturing of the automation hardware itself?

Many of the sensors and components inside a European automation product are themselves manufactured in Asia.

The case forEuropean companies increasingly own the high-value software, integration and systems-design layer, which is where the margin sits, even if individual components are sourced globally – this mirrors how European industrial giants have operated for decades.
The case againstIf the core value genuinely sits in manufacturing know-how and not just integration, sourcing critical components from Asia leaves European automation companies structurally dependent on the same supply chains they are meant to help customers escape.
Where we land: It depends entirely on where the IP sits. Companies that own genuine manufacturing process innovation (not just software) are less exposed than pure integrators, who are effectively reselling someone else's hardware with a European interface.

How to get in

Three audiences, three short lists

If you are building

  1. Name the specific industrial process or bottleneck you solve, not “IoT” or “automation” broadly.
  2. Get one manufacturing site running your product in production, not a pilot in a lab, before you pitch scale.
  3. Decide whether you are selling hardware, software, or a managed service – the capital intensity and sales cycle differ enormously.
  4. Pick two events: one industrial buyer trade show, one investor-facing deal room.

If you are investing

  1. Ask for the actual deployed-site count, not the pipeline – industrial sales cycles are long and pilots frequently stall before rollout.
  2. Underwrite the component supply chain explicitly if the product involves custom hardware manufacturing.
  3. Check whether the company owns real manufacturing process IP or is primarily an integrator of off-the-shelf components.
  4. Use the funding desk to see who actually led rounds in the last 24 months.

If you are buying or partnering

  1. Ask for a reference site in your specific industry and process, not an adjacent one.
  2. Understand the total integration cost and timeline, not just the unit price of the hardware.
  3. Check the vendor's supply-chain resilience if the product depends on components sourced outside Europe.
  4. Use the startup desk for a shortlist; use events for discovery, not for due diligence.

Who to know

Start on the desks – profiles update as we verify them

Glossary

Terms that keep coming up on this vertical

Digital twin
A virtual model of a physical asset or process, updated with real-time data, used to simulate and optimise industrial operations.
Predictive maintenance
Using sensor data and analytics to predict equipment failure before it happens, rather than servicing on a fixed schedule.
Optical switching
Rerouting network signals as light rather than converting to and from electrical signals, reducing latency and power use in data centres.
Edge compute
Processing data close to where it is generated (on a factory floor, in a sensor) rather than sending it to a distant cloud data centre.
Reshoring
Moving manufacturing production back to the country or region where the company is based, reversing an earlier decision to offshore.

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Frequently asked

About this vertical and how we cover it

Is this the same as robotics?
They overlap heavily – industrial and warehouse robotics are covered here, while the standalone robotics vertical covers general-purpose and humanoid robotics platforms.
Why does semiconductors appear in some of the same rounds?
Several component makers (photonics, sensors) serve both industrial automation and semiconductor customers, so their rounds are tagged to both verticals.
How often does this page change?
The numbers come from the four desks and move weekly. The written analysis is reviewed quarterly and the review date at the top is the honest one – if it is stale, the analysis is stale.
Can I suggest a company or fund for the desks?
Yes. Use the suggest links on each desk. We verify before publishing; paid placement does not get you onto a ranking or directory.
Counts are generated from the four desks and refresh weekly. The written analysis is editorial and reviewed quarterly. Corrections and additions: contact the desk · editorial standards

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