GDP (Million $) – 1.731.469 (2024, IMF tahmini)
GDP Per Capita ($) – 35.789 (2024, IMF tahmini)
Growth Rate (%) – 2,91 (2024, IMF tahmini)
Population – 48.380.000 (2024, IMF tahmini)
Total Area (km²) – 504.782
Capital – Madrid
Source: IMF, 2024
With an area of 504,782 km2, Spain is located on the Iberian Peninsula in the southwest of the European continent, as the second largest country in the European Union and Western Europe after France. In Spain, which is the country with almost the largest territory and the least population density in Western Europe, the climate and geography exhibit a highly variable structure. 59.54% of the country's territory consists of natural areas and 36.47% of agricultural areas.
Spain is a country in the category of high-income and developed countries. The country is the fourth largest economy in the eurozone after Germany, France, and Italy. According to IMF data, Spain is the 15th largest economy in the world among 196 countries, with an estimated GDP of $1.73 trillion and a population of 48.4 million by 2024. Spain ranks 34th in the world with a per capita income of $35,789 at current prices in 2024.
The industrial sector, which accounts for approximately 22% of GDP, maintains its importance in the economy. Catalonia, Madrid, Andalusia, Valencia are the most industrialized regions.
The automotive sector is the locomotive sector. It is the second largest automotive manufacturer in Europe and the 8th largest in the world. Approximately 10% of GDP and approximately 18% of exports constitute the automotive main and sub-industry. Approximately 9% of total employment is provided by the automotive sector. There are 17 factories of 9 multinational companies in the country.
The aviation industry is another important sector. Half of the world's commercial aircraft use Spanish technology. The aviation industry accounts for about 1.3% of GDP. The sector, which had a turnover of 12.34 billion euros in 2022, employs 51,000 people. Spain is one of the few countries that can cover the entire design and production cycle of an aircraft due to the presence of large OEM (Airbus) and Tier-1 companies such as Aernnova, Aciturri, Héroux-Devtek and ITP.
FOREIGN TRADE
In 2023, the country's exports were $420 billion (down 1% year-on-year) and imports were $469 billion (down 6% year-on-year). Spain ranks 19th with a share of 1.8% in world exports and 15th with a share of 2% in world imports.
The most important product groups in the country's exports to the world are motor vehicles, machinery, mechanical devices and tools, mineral fuels, oils, electrical machinery and devices, pharmaceutical products, plastics and products, meats and edible offal, edible fruits and vegetables, fruits and nuts, iron or steel goods, respectively.
The most important product groups in the country's imports from the world are mineral fuels, oils, motor vehicles, electrical machinery and devices, machines, mechanical devices and tools, pharmaceutical products, plastics and products, organic chemicals, iron and steel, optics, photography, measurement, medical instruments and devices, non-knitted clothing and accessories, respectively.
INDUSTRY
In Spain, the industrial sector is the cornerstone of economic development. The sector contributes significantly to GDP, employment, and technological progress. The manufacturing industry continues to be a driver of economic growth and innovation, with various sectors fueling industrial activity across the country.
Spain's manufacturing environment is characterized by a wide range of sectors, each of which plays a distinct role in the economy. Among these, the agri-food sector stands out, which represents a significant part of manufacturing output and exports. The automotive sector also stands out due to the fact that Spain is a major player in automobile production in Europe. In addition, the pharmaceutical, chemical, textile and machinery sectors contribute significantly to industrial activities, encouraging innovation and supporting export growth.
Northern regions such as Navarra, La Rioja and Basque Country are especially important with their industrial structures in sectors such as automotive, machinery and metallurgy. Based in Barcelona, Catalonia serves as an industrial center that stands out for its diverse manufacturing bases and a strong tradition of innovation. Valencia, on the other hand, is a center for sectors such as textile, chemistry and agri-food with its strategic location and infrastructure.
The export orientation of the Spanish manufacturing sector is vital for maintaining competitiveness and supporting economic growth. Spain's integration into global value chains, especially the European Union, facilitates the export of manufactured goods to various international markets. Sectors such as automotive, pharmaceuticals, and electronics have benefited from export opportunities, contributing significantly to Spain's trade balance and overall economic resilience.
AUTOMOTIVE INDUSTRY
Spain is the 2nd largest automaker in Europe and the 8th largest in the world. Automotive industry is a strategic sector for the Spanish economy.
9 multinational brands with 17 plants are established in the country. Spanish plants manufactured 2.45 million vehicles in 2023. Spanish plants manufacture 40 models, including 22 electrified versions.
The Spanish automotive industry turnover represents 10% of Spain’s GDP and 18% of total exports (including vehicles and auto-parts). External trade surplus of vehicles reached €18.8bn in 2023.The industry generates 9% of total employment, nearly 2 million jobs are linked to this industry.
The automotive industry invests on average an estimated €4 bn a year in expanding and modernizing plants, being one of the largest investors in R&D&I of the economy. Besides, Spanish automotive industry is one of the most attractive sectors for foreign investors. Spain was the second preferred destination in Europe for new greenfield projects of multinational companies in the last five years (by capital expenditure data fdi markets).
89% of the vehicles and 60% of the auto-parts manufactured in Spain were exported worldwide in 2023. A total of 2,201,802 Made in Spain vehicles were exported in 2023. EU was the main destination, but with increasing exports to markets outside EU. Africa, primarily Algeria, Morocco and South Africa, USA, Mexico and Chile, Japan and UAE are relevant markets for made in Spain vehicles.
Spain is a competitive location for new projects in the automotive and mobility industry. Among its competitive advantages: solid automotive industry ecosystem, productive and flexible plants, leading international position and market access, availability of highly qualified and competitive human resources, complete supply chain and high investment in innovation.
AEROSPACE INDUSTRY
Spain is one of the few countries that can manage all of an aircraft’s design and manufacturing processes (development, assembly, certification, support and maintenance), due to a major OEM (Airbus); top Tier-1 companies such as Aernnova, Aciturri, Héroux-Devtek and ITP; and an extensive supply chain.
The country is the 2nd country in the EU with the greatest number of flights: in 2023 registered an all-time record number of passengers (283,195,399), 16.2% more than in 2022 and 2.9% more than in 2019, before the pandemic, the previous record year. These facts make the country very attractive to the aeronautical services sub-sector (airport facilities and services, MRO, etc.).
Businesses in Spain are amongst the leading companies worldwide in several key areas of the industry: aerospace structure composites, air traffic management (ATM), military transport aircraft and, in the space industry, companies in Spain have propietary technology in all areas of activity.
The city of Seville is hosting the headquarters of the new Spanish Space Agency, which started operations in April 2023, with a budget of about €700 million. The Agency is promoting space research and technology developments, facilitate the dual use of space capabilities and strengthen the national space industry sector. It will also act as an intermediary between national and international public and private entities, such as the European Space Agency (ESA).
MACHINERY INDUSTRY
Spain's machinery industry is a vital component of its manufacturing sector, encompassing various segments such as machine tools, construction equipment, and agricultural machinery.
Machine Tools
In 2023, the Spanish machine tool sector achieved a record turnover exceeding €2 billion, marking a 17.1% increase from 2022. This growth was primarily driven by significant investments in the automotive sector, as well as contributions from the energy and aeronautics industries.
Construction Equipment
The construction equipment market in Spain was valued at 26,438 units in 2023 and is projected to reach 34,438 units by 2029, with a compound annual growth rate (CAGR) of 4.5%. Material handling equipment, particularly forklifts, held the largest market share in 2023, supported by investments in housing, port expansion, and public infrastructure projects.
Agricultural Machinery
The agricultural machinery market in Spain is experiencing growth, driven by technological advancements and increased demand for efficient farming equipment. The market is expected to continue its expansion, supported by government initiatives promoting modern agricultural practices.
CONSTRUCTION INDUSTRY
Spain's construction industry is a significant contributor to the national economy, accounting for approximately 10% of Gross Fixed Capital Formation (GFCF) and 5% of Gross Value Added (GVA) in 2023.
In 2023, the construction sector in Spain experienced modest growth, with output increasing by 1.8%. This subdued expansion is attributed to rising interest rates, which have impacted building projects across all subsectors. The residential construction segment, in particular, faced challenges as higher interest rates and reduced disposable household incomes made affordable mortgages less accessible.
The market size is expected to increase from $119.12 billion in 2023 to $176.45 billion by 2030, reflecting a compound annual growth rate (CAGR) of 5.9% from 2024 to 2030.
The construction workforce in Spain has remained relatively stable in recent years. As of late 2023, the sector employed approximately 1.41 million workers, indicating resilience despite economic fluctuations.
FASTENER INDUSTRY
In 2024, the Spanish industrial fasteners market generated a revenue of approximately USD 2,570.7 million. Projections indicate that this figure will reach USD 3,118.3 million by 2030, reflecting a compound annual growth rate (CAGR) of 3.3% from 2025 to 2030. This growth is driven by the expansion of key industries such as construction, automotive, and manufacturing, which are major consumers of fastener products.
The Basque Country is a notable hub for the fastener industry in Spain. The Fastener Excellence Center (FEX.), recently established in this region, clusters 18 of the most important companies within the fastener industry. FEX. aims to provide specialized support to companies interested in adding value to their supply chains through comprehensive product-technology-market orientation.
There are many important companies that stand out in the fastener sector in Spain and have gained recognition both nationally and internationally.
There are many important companies in the fastener sector in Spain that stand out and have gained both national and international recognition, such as CELO Fasteners, IPM Screws, Bolts, and Fasteners, Proton Fasteners, Fastenex, SNK System, HEROSLAM, Tornillería Deba, Estampaciones EBRO and EJOT Iberica.
