The European Commission’s latest analytical report on the textiles industrial ecosystem highlights the progress and challenges of the sector’s green and digital transitions. The 2024 edition, prepared under the European Monitor of Industrial Ecosystems (EMI) project, assesses efforts by businesses, public institutions and startups to drive sustainability and innovation across the textiles value chain.

The report identifies clear yet uneven advancements in environmental practices. While energy saving technologies and waste reduction measures are widely adopted, broader climate neutral strategies and circular economy models remain limited. Digital innovation is expanding, particularly through smart textiles and cloud computing, but advanced technology uptake still lags global competitors.

Key takeaways

Green Transition

• 65% of textile companies implemented waste reduction; 58% improved energy savings in 2024.
• Recycling startups have grown, but only 18% of businesses adopted climate-neutral strategies.
• Horizon Europe has significantly boosted funding for green projects: 73% of textiles related EU R&I funds support the green transition.
• Skills gaps remain stark: only 2.9% of LinkedIn-registered professionals in textiles held green skills in 2024.

Digital Transition

• Innovations in robotics, AI, and smart textiles are increasing, yet the adoption of digital transformation strategies remains limited.
• 26% of companies reported having a digital strategy in 2024; 25% adopted AI solutions.
• Only 4% of professionals in textiles held advanced digital skills; most companies still invest less than 1% of their revenue in AI.

Environmental Impact

• The sector’s material use for production is falling, but overall consumption based material use continues to rise.
• Land use and water consumption have stabilised, showing modest progress on sustainability targets.

The report underscores the importance of targeted investments, regulatory support, and skills development to ensure that the textiles industry meets its sustainability and competitiveness goals.

Read the full 2024 textiles ecosystem report by the European Commission here.