In this article, we will discuss the 20 Most Valuable European Tech Companies In The World. You can skip our industry overview and go directly to the 5 Most Valuable European Tech Companies In The World.
According to a Deloitte Report published in 2022, the technology industry in Europe recorded sales of €1.5 trillion, accounting for more than 8% of the region’s economic output. However, it is a commonly acknowledged fact that the tech sector in Europe lags behind its American and even Chinese counterparts in terms of competitiveness. McKinsey‘s research into this “technology gap” identifies ten different types of technologies and reveals that Europe leads on only two of the ten. Additionally, the consulting firm’s report indicates that although Europe has several high-performing companies, the region, as a whole, underperforms in the tech sector relative to its counterparts in other major regions. Specifically, European companies exhibit slower growth rates, lower returns, and lower levels of investment in R&D when compared to their US counterparts. According to Atomico‘s 2022 report, the combined value of all public and private European tech firms was $2.7 trillion. However, in the same year, a single US-based company, Apple Inc. (NYSE:AAPL), exceeded $2 trillion in market capitalization, highlighting the considerable dominance between the US and European tech sectors in terms of market value.
EU recently moved to pass the Chips Act to overcome the problem of semiconductor shortage. Semiconductors are a crucial component of modern technology; however, the majority of suppliers to European companies in the semiconductor industry are based outside of the EU, which poses a risk for the region in times of semiconductor shortage. The European Chips Act aims to mobilize over €43 billion in public and private investments for the sector, with the ultimate goal of achieving a production capacity that caters to 20% of the global market by 2030. The leading European semiconductor manufacturers, including STMicroelectronics NV (EPA:STM), Infineon Technologies AG (ETR:IFX), and NXP Semiconductors N.V. (NASDAQ:NXPI), as well as ASML Holding NV (ASML.AS), a major producer of semiconductor manufacturing equipment. These companies will benefit significantly from increased investment if the EU continues with its proposed plans to establish a local semiconductor supply chain.
The year 2022 was a disappointing year for the European tech industry as it lost $400 billion in value owing to the war in Ukraine, supply chain disruptions, and the resulting tighter monetary policies. Funding for tech startups is also estimated to have fallen by 15%, with at least 45 startups losing their unicorn status. However, this challenge is not unique to Europe, as similar trends have been observed for the US tech sector, given the higher interest rates. Forrester projects European tech spending to grow by 3.6% in 2023, while US tech spending is forecasted to experience a higher growth rate of 5.4% during the same period. The market researcher further predicts that by 2027, 31% of tech spending will come from software and services, driven, in part, by higher spending on cloud services.
To come up with the 20 most valuable European tech companies in the world, we used stock screeners available at Yahoo Finance and other websites to identify biggest European tech companies in terms of market capitalization. We then proceeded to rank these companies in ascending order of market capitalization.
20 Most Valuable European Tech Companies In The World
20. Globant S.A. (NYSE:GLOB)
Market Cap as of March 6, 2023: $7.26 billion
Globant S.A. (NYSE:GLOB) is a software solution company in Argentina that offers design, engineering, and innovation services. The company’s services include industry reinvention studios, digital studios, enterprise platforms studios, and globant X. Globant S.A. (NYSE:GLOB) offers its services to various well-known companies, including American Express Company (NYSE:AXP), Nissan Motor Co., Ltd. (OTC:NSANY), The Coca-Cola Company (NYSE:KO), Unilever PLC (NYSE:UL), and Ubisoft Entertainment SA (UBI.PA).
On February 16, 2023, the company announced its fourth quarter 2022 results. The revenue was reported to be $490.72 million, surpassing market estimates by $825.62 thousand. The Normalized EPS stood at $1.40, exceeding market estimates by $0.02.
Baron FinTech Fund made the following comment about Globant S.A. (NYSE:GLOB) in its Q4 2022 investor letter:
Globant S.A. (NYSE:GLOB) provides outsourced software development, design, and digital marketing services for business customers. Shares fell despite strong business momentum, with 34% revenue growth and 30% EPS growth in the recent quarter and slightly higher full-year guidance. The share price decline likely reflected slower guidance for next quarter and concern about macroeconomic uncertainty weighing on client demand. We continue to own the stock because we believe Globant has a long runway for growth in a large global market for IT services.
19. AutoStore Holdings Ltd. (AUTO.OL)
Market Cap as of March 6, 2023: $7.50 billion
AutoStore Holdings Ltd. (AUTO.OL) is a Norway-based technology company that offers order fulfillment solutions. The company provides robot workers, grid structures, bins, workstations, controllers, and warehouse management software. AutoStore Holdings Ltd. (AUTO.OL) serves grocery, retail, third-party logistics (3PL), industrial, and healthcare industries. The client list of the company includes some of the most well-known brands, including PUMA SE (PUM.DE), Gucci, Johnson & Johnson (NYSE:JNJ), Koninklijke Ahold Delhaize N.V. (AD.AS), and DHL.
18. Logitech International S.A. (NASDAQ:LOGI)
Market Cap as of March 6, 2023: $8.62 billion
Logitech International S.A. (NASDAQ:LOGI) is a Swiss-American multinational company that designs and manufactures computer peripherals and mobile accessories. The company offers keyboards, connectivity products, sound systems, video conferencing products, and video accessories. These products are offered under several brands, including Logitech, Logitech G, ASTRO Gaming, Streamlabs, Ultimate Ears, Jaybird, and Blue Microphones.
17. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)
Market Cap as of March 6, 2023: $19.32 billion
Headquartered in Stockholm, Sweden, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is a multinational telecommunication corporation. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) offers telecommunication services, equipment, and software solutions for business and network operations. The company’s portfolio includes 5G technologies, network solutions and services, cloud software and services, a digital business support system (BSS), and new businesses.
16. Spotify Technology S.A. (NYSE:SPOT)
Market Cap as of March 6, 2023: $24.50 billion
Spotify Technology S.A. (NYSE:SPOT) is a Swedish company that offers audio streaming services such as music, podcasts, audiobooks, etc. The company’s operating segments comprise a paid subscription-based premium service and an ad support service. In 2022, the premium service segment amounted to the majority of the company’s revenue.
On March 1, 2023, Nick Delfas, an analyst at Redburn, upgraded his rating on Spotify Technology S.A. (NYSE:SPOT) to Buy from Neutral with a price target of $140 on the company’s share.
Baron Funds, an investment management company, mentioned Spotify Technology S.A. (NYSE:SPOT) in its fourth-quarter 2022 investor letter. Here’s what the firm said:
Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares of Spotify were down on weakness in the company’s fourth quarter gross margin guide. We still view Spotify as a long-term winner in music streaming with potential to reach more than one billion active monthly users. Subscriber additions remain strong, price increases seem likely, and cost discipline has become a bigger focus.
15. Nokia Oyj (NYSE:NOK)
Market Cap as of March 6, 2023: $27.19 billion
Nokia Oyj (NYSE:NOK) is a multinational telecommunication corporation based in Finland. The company offers services and products for radio access networks (RAN), microwave radio links, solutions for network management, and other network-related services.
On February 14, 2023, Adithya Metuku, an analyst at Credit Suisse, reduced his price target on Nokia Oyj (NYSE:NOK) to €5.61 from €6.05 while keeping an Outperform rating on the company’s shares.
Here is what Horos Asset Management has to say about Nokia Oyj (NYSE:NOK) in its Q3 2022 investor letter:
Two clear examples of value traps that I remember with particular anger includes Nokia (NYSE:NOK). Two companies that suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period of time, players such as Apple and Samsung wiped the Finnish giant off the map.
14. Amadeus IT Group, S.A. (AMS.MC)
Market Cap as of March 6, 2023: $29.61 billion
Amadeus IT Group, S.A. (AMS.MC) is an information technology company based in Spain. The company’s operating segment includes air IT solutions, air IT distributions, and hospitality & other solutions. Amadeus IT Group, S.A. (AMS.MC) provides services such as transaction processing solutions, real-time search, booking, pricing, and ticketing services to the tourism and travel industry worldwide. Further, the company offers a portfolio of technological solutions to automate major business operations.
13. Hexagon AB (publ) (HEXA-B.ST)
Market Cap as of March 6, 2023: $29.92 billion
Hexagon AB (publ) (HEXA-B.ST) is a Swedish corporation that provides information technology solutions for industrial and geospatial applications. The company offers visualization, design, and measurement technologies to several industries, including energy, resources, government services, and construction. Hexagon AB (publ) (HEXA-B.ST) provides more than 750 products and services.
12. Vodafone Group Public Limited Company (NASDAQ:VOD)
Market Cap as of March 6, 2023: $32.25 billion
Vodafone Group Public Limited Company (NASDAQ:VOD) is a British multinational telecommunication corporation. The company’s products and solutions include communication services, cloud and security, the internet of things (IoT), wholesale services, and 5G technology for business. These services are offered to small, large, and multinational businesses as well as public sector organizations. Vodafone Group Public Limited Company (NASDAQ:VOD) operates in 21 countries and is partnered with local operators in 45 countries.
11. Capgemini SE (OTC:CGEMY)
Market Cap as of March 6, 2023: $33.28 billion
Headquartered in Paris, France, Capgemini SE (OTC:CGEMY) offers digital transformation, technology, consulting, and engineering services. These services include business transformation, enterprise management, cybersecurity, and data & artificial intelligence. Capgemini SE (OTC:CGEMY) serves many industries, including defense, aerospace, automotive, banking, consumer products, energy, telecommunication, media, and entertainment. Capgemini SE (OTC:CGEMY) operates in Europe, the Americas, Africa, Asia Pacific, and the Middle East.
10. TE Connectivity Ltd. (NYSE:TEL)
Market Cap as of March 6, 2023: $41.29 billion
Headquartered in Schaffhausen, Switzerland, TE Connectivity Ltd. (NYSE:TEL) designs, produces and sells sensor and connectivity solutions. The operating segments of the company consist of industrial solutions, transportation solutions, and communications solutions. TE Connectivity Ltd. (NYSE:TEL) offers products spanning several categories, including antennas, application tooling, cable assemblies, terminals and splices, heat shrink tubing, connectors, and sensors. The company serves customers in 140 countries with more than 100 global manufacturing and engineering centers and over 15,000 patents.
9. STMicroelectronics N.V. (NYSE:STM)
Market Cap as of March 6, 2023: $43.73 billion
STMicroelectronics N.V. (NYSE:STM) is a Dutch multinational technology company. The company designs and manufactures semiconductor circuits and discrete devices for various applications in automotive, communications equipment, industrial equipment, personal electronics, and internet of things applications. STMicroelectronics N.V. (NYSE:STM) also offers products and solutions for artificial intelligence, machine learning, connectivity, sensing, and power and energy management.
8. Adyen N.V. (OTC:ADYYF)
Market Cap as of March 6, 2023: $46.17 billion
Adyen N.V. (OTC:ADYYF) is a Dutch company that operates a payments platform in Europe, North America, Latin America, the Middle East, Africa, and the Asia Pacific. The company’s platform offers several services, such as online and in-person payments, risk management, revenue optimization, insights, and financial products. The clientele of Adyen N.V. (OTC:ADYYF) includes well-known companies, including Uber Technologies, Inc. (NYSE:UBER), Spotify Technology S.A. (NYSE:SPOT), and L’Oréal S.A. (Paris:OR.PA).
7. Infineon Technologies AG (OTC:IFNNY)
Market Cap as of March 6, 2023: $47.42 billion
Headquartered in Neubiberg, Germany, Infineon Technologies AG (OTC:IFNNY) is a semiconductor manufacturer. The company’s product line includes power semiconductors, security controllers, microcontrollers, sensors, and radio frequency products. Infineon Technologies AG (OTC:IFNNY) serves several industries, including automotive, communication, consumer electronics, security, and other electronic solutions.
6. NXP Semiconductors N.V. (NASDAQ:NXPI)
Market Cap as of March 6, 2023: $47.48 billion
NXP Semiconductors N.V. (NASDAQ:NXPI) is a semiconductor manufacturing company based in the Netherlands. The company’s product portfolio includes audio, interfaces, arm processors, microcontrollers, wireless connectivity, sensors, and power management. These products are utilized in various applications, including automotive, communication infrastructure, smart city, smart home, mobile, and enabling technologies. NXP Semiconductors N.V. (NASDAQ:NXPI) operates in more than 30 countries across the globe.
On February 1, 2023, Ross Seymore, an analyst at Deutsche Bank, increased his price target on NXP Semiconductors N.V. (NASDAQ:NXPI) to $200 from $185 while keeping a Buy rating on the company’s stock. The analyst believes that the company will steer through the difficult market environment to generate better-than-expected profitability.
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Disclosure: None. 20 Most Valuable European Tech Companies In The World is originally published on Insider Monkey.