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Report 09 Sep 2026

Manufacturing - Market View - Austria

Austria’s manufacturing sector remains strategically important, but the operating environment in 2026 is increasingly challenging. High labor and energy costs, weak demand in key export markets, and intensifying international competition are pushing manufacturers to focus more on productivity, resilience, and the competitiveness of domestic production.

According to PAC, Austrian manufacturing IT expenditure is expected to grow by around 4.5% in 2026, from approximately €4.59 billion to €4.79 billion.

  • Modernization remains a core priority, with manufacturers investing in ERP, cloud, data platforms, MES, automation, and cybersecurity.
  • AI is moving closer to core operations, especially in process optimization, maintenance, planning, and connected manufacturing.
  • Provider strategies are shifting toward ecosystems and recurring services, favoring vendors that combine manufacturing expertise with platform, integration, and managed services capabilities.

 

Recommended advisory: PAC Leadership Session – Digital Business Models in the Manufacturing Industry

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Jennifer Jonat

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