At the end of October, the Madrid Region announced a 115% increase in its industrial budget allocation for 2026, raising the total to €38.8 million. The objective: to enhance the competitiveness of the regional industrial base and support strategic sectors, particularly biopharma, aerospace, logistics, and transport. According to the regional Ministry of Economy, “this budget increase will strengthen value chains, encourage innovation, and stimulate the internationalization of industrial SMEs and mid-sized firms”.
Madrid, Europe’s capital of mid-sized enterprises
At the same time, the region now stands out as the European area with the highest potential concentration of mid-cap companies (250 to 3,000 employees), according to a study published by the Madrid Region in October 2025. The density of this intermediate business fabric gives Madrid a unique multiplier effect on qualified employment, local subcontracting, and R&D. For foreign investors, this is a clear signal: the region combines industrial strength with entrepreneurial agility, two essential assets for companies seeking to expand into the Iberian market.
A dynamic first half of 2025
The Madrid Business Confederation’s latest sectoral barometer reveals that companies in the region outperformed expectations during the first half of 2025. Industrial production grew across most manufacturing sectors, driven by the recovery of exports and stable foreign investment. The report also highlights “the growth of industrial employment and the resilience of technological and manufacturing companies in the face of the broader economic slowdown observed across Europe”.
An ecosystem conducive to international collaboration
Madrid’s industrial momentum is underpinned by an exceptionally favorable environment:
- a first-class logistics infrastructure (radial motorway network, Adolfo Suárez Madrid–Barajas Airport, Iberian rail corridors),
- a dense innovation ecosystem, structured around technical universities and R&D centers (UPM, IMDEA, Madri+d cluster),
- and an agile institutional framework offering some of the most flexible investment support schemes in Spain.
The region also promotes transnational partnerships with European companies, particularly in aerospace, healthcare, and sustainable mobility — sectors where technological cooperation with Germany is already strong and expanding.
A growing opportunity for European industrial players
For international manufacturers, the Madrid region combines the advantages of a major capital with the efficiency of a growing industrial hub. Its strategic location, modern infrastructure, and dense network of mid-sized firms provide an ideal environment to develop industrial and technological operations aimed at Southern Europe. With this new budgetary momentum and the rise of its strategic industries, the Madrid Region confirms its position as a key industrial and technological engine at the heart of Southern Europe.