Introduction
The Netherlands has become one of the world’s most attractive locations for business growth, offering a unique blend of innovation, sustainability, and strategic market access. As a central hub in Europe, the Netherlands provides companies with cutting-edge infrastructure, efficient logistics networks, and pro-business policies that foster success across various industries.
Sectors like life sciences, agri-food, tech, and renewable energy are thriving, supported by world-class research facilities and a skilled workforce. Additionally, the Dutch government is actively investing in sustainable and digital solutions, making the Netherlands a forward-thinking choice for businesses looking to expand in Europe.
This article delves into the exciting growth opportunities in the Netherlands, exploring the key sectors where businesses in the Netherlands can thrive in a collaborative, innovative environment.
1. Life Sciences and Health
Ranked eighth in the world for Life sciences and health patents, the Netherlands has more than 2,500 health, research, and life science organizations operating here. With the move of the EMA to Amsterdam in 2019, Amsterdam is one of the most densely populated life science markets anywhere in the world.
The Netherlands offers world-class resources for R&D of Intellectual Property (IP) with the Dutch Government keen to boost further opportunities through public-private partnerships.
2. Agri-food
The Netherlands is the largest exporter in the EU, and second largest globally, with the highest concentration of cold storage in Europe, totalling nearly Euro 101 billion in 2017, including milking robots or machinery. The Dutch scored the best overall performer in trade facilitation by UNESCAP due to the pro-business attitude of customs, resulting in speedy transshipment of products.
Agri exports are dominated by domestically produced goods, contributing more than 10% to the Dutch national GDP. Dutch consumer values are impacting the sector showing opportunities in sustainability and eco-friendliness focus future like packaging solutions.
3. Logistics
The Dutch logistics sector generated €55 billion in 2017 with over 8,13,000 employees. With two significant European cargo main ports, Schiphol Airport and the Port of Rotterdam, the Netherlands is a key logistics hub for the through-transportation of goods into Continental Europe, ranking sixth in the Global Rankings 2018, and was the only country to receive a perfect score in 2018.
Housing more European distribution centers than all of its neighbors combined, the Netherlands remains the model for European logistics excellence, with favorable policies that attract heavy foreign investment.
4. Financial Tech
The Netherlands is a major player in the fintech sector, with more than 850 fintech companies, financial institutions, and tech enterprises based there. As the EU’s second-largest fintech hub, the country is a magnet for innovation in financial technology and attracts significant venture capital, ranking third in VC funding across Europe. With over 475 companies active in the Netherlands ranging from start-ups to well-established companies like Ayden, Flow Traders, and Optiver, the financial services value chain is a diverse landscape of collaborative opportunities.
Additionally, the Netherlands boasts Europe’s third-largest startup community and the fifth-largest scaleup ecosystem, making it an ideal location for emerging and growing fintech businesses. With a collaborative environment and strong support for tech-driven solutions, the Netherlands is an attractive base for fintech ventures aiming to scale and innovate in Europe.
If you are looking to set up a fintech business in the Netherlands, you can speak with our company formation experts right now.
5. High-tech Systems and Materials
The high-tech ecosystem is the fastest-growing sector in the Netherlands which offers opportunities, particularly in semiconductors, sensor technology, and high-tech systems. Efforts are being made to digitize the sector to reduce waste in the chain and grow services. Nanotechnology in the smart city project is a keen focus due to the lower capital investment required. The Medtech market is valued at Euro 4.7 billion with 700 suppliers, 97% of which are SMEs.
Industrial machinery, electronic equipment, and construction machinery make up the majority of the deals in the sector. The Dutch photonics ecosystem is the seventh biggest producer of photonic components globally. Future growth prospects lie in medical diagnostics, Information and Communications Technology (ICT), energy and climate, and agri-food.
6. Construction
The Operational Program 2014-2020 and National Reform Program 2016 showcase the Dutch Government’s focus on developing the country’s infrastructure. This will see growth in the construction and will be supported by the Government and private sector investments in infrastructure construction, healthcare, the manufacturing industry, and educational facilities continuing to drive growth.
Having built the world’s first habitable 3D-printed houses and bridges, the Netherlands is a country bringing innovative ideas to life. Several companies now focus on supply chain integration and mass customization.
7. Energy
The Netherlands is the first country whose energy transition plans look to phase out natural gas, with a 49% carbon reduction by 2030, with CCS being a crucial factor in achieving this. Continued investment in wind power and other renewable sources is also top of the Netherlands list.
With world-class R&D facilities and incentive programs to support energy innovation, there is heavy investment in smart grid innovations and solutions – and plans to build the world’s largest wind farm.
8. Aerospace
The largest European Space Research and Technology Centre (ESA/ESTEC) R&D facility in Europe is located in the west of the Netherlands, which hosts the complete chain from R&D through OEMs, suppliers to end users. This cluster houses over 300 direct suppliers in the manufacturing process in world-class space business facilities.
9. Information Technology (IT)
One of the most wired countries in the world, with one-third of all European data centres located in the Amsterdam area, the Netherlands is home to the world’s largest internet exchange, AMS-IX. A further two million square feet of data centres are expected to be added in the coming years, along with Google announcing a Euro 500 million data centre expansion.
Ranked fourth globally in app invention and development, 60% of all Forbes 2000 companies active in Information Technology (IT) have established an office in the Netherlands, a country with over 570 international tech companies in the sector.
Want to set up an IT business in the Netherlands? Speak with our experts right now.
Conclusion
As a global leader in sectors like technology, agri-food, logistics, and green energy, the Netherlands continues to create abundant growth opportunities for companies looking to establish or expand their European presence. With its pro-business policies, advanced infrastructure, and dedication to sustainability, the Netherlands remains a top choice for entrepreneurs worldwide.
OnDemand International provides seamless support for those interested in establishing a presence in the Netherlands, simplifying company formation and ensuring all requirements are met for a successful launch in this thriving market.
FAQ’s
Key growth industries in the Netherlands include life sciences, agri-food, logistics, financial tech, high-tech systems, energy, aerospace, and IT. These sectors benefit from strong government support, and global collaborations.
The Netherlands offers strategic access to European markets, a skilled workforce, advanced digital infrastructure, and pro-business policies, making it a prime location for companies seeking growth and sustainability.
The Dutch government provides incentives such as tax reliefs, grants for research and development, and support for green initiatives, especially in sectors like energy, high-tech systems, and logistics.
You can begin by choosing a business structure, such as a Dutch BV, and follow the steps for registration, which include appointing a local notary and meeting regulatory requirements.
For complete guidance, OnDemand International experts can assist you with the entire process.