Eindhoven in the top 20 fastest growing European cities

Ranking among Europe's top 20 fastest-growing cities, Eindhoven confirms its role as a driver of innovation and technological progress. As the home base of global tech companies such as ASML and a breeding ground for high-quality ICT and high-tech industries, the city contributes to the Netherlands' rise as a leading technology hub. Eindhoven's growth is remarkable. The list is led by Dublin, Ireland, followed by Valletta, Malta, and Wrocław, Poland.

Growth in diversity: from ICT to tourism

The driving forces behind economic growth vary greatly among Europe's fastest-growing cities. In cities such as Dublin, Iasi, and Vilnius, productivity is the main driver, particularly in the case of Iasi and Vilnius, which are catching up with Western Europe. These cities are benefiting from a strong focus on the business services sector, including ICT, which represents a shift away from traditional manufacturing. On the other hand, Western European cities such as London, Amsterdam, and Luxembourg rely more on increasing employment. Spanish cities such as Mallorca, Malaga, and Tenerife are showing rapid growth, mainly due to a revival in tourism, with annual growth rates of more than 6% between 2020 and 2025, a threefold increase compared to the previous decade. This diversity in growth factors highlights the different economic structures and specializations within Europe.

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Brainport Eindhoven: Innovation and High-Tech

Eindhoven is a prime example of a city where technology and innovation drive economic growth. The city is known as a hub for high-tech and design, with a thriving ecosystem for startups. The presence of companies such as ASML, a key supplier of semiconductor manufacturing equipment, underscores Eindhoven's importance in the global technology chain. The High Tech Campus Eindhoven, with more than 160 companies and 11,000 researchers and entrepreneurs from over 80 countries, is considered ‘the smartest square kilometer in Europe’. The combination of multinational companies, an innovative ecosystem, and a focus on creativity makes Eindhoven an indispensable factor in the Netherlands' position as the new Silicon Valley.

The role of the ICT sector and AI

The ICT sector plays a crucial role in the economic growth of various cities, including Eindhoven. The rapid rise of AI and the ongoing labor market shortage are driving investment in digital technologies. In the Netherlands, the ICT sector is expected to grow by 2.9% this year, making a significant contribution to overall economic growth. This is due to the favorable starting position at the end of 2024, which will continue to impact growth figures in 2025. In addition to the ICT sector, the transport sector and industry are also showing above-average growth, partly thanks to international trade agreements. However, business investment is lagging behind due to uncertainty about network congestion, nitrogen policy, and political instability.

Eastern Europe's rise

A striking feature of the list of fastest-growing cities is the dominance of Central and Eastern European cities. Of the top 20, no fewer than eight are in the top 10 in this region, with Poland as a particularly strong player. Cities such as Wroclaw, Gdansk, and Krakow demonstrate how this region is catching up economically, partly thanks to a focus on improving productivity. The trend is clearly visible when you look at the list. It shows that, although Dublin is a notable exception in Western Europe, the center of gravity of economic growth is in the east of the continent. These cities benefit from lower labor costs, a growing middle class, and the influx of foreign investment.

© Oxford Economics