On March 4, 2026, the European Commission unveiled the Industrial Accelerator Act (IAA), a cornerstone of the “Clean Industrial Deal” aimed at reclaiming Europe’s manufacturing prowess. The Act sets a bold target to increase manufacturing’s share of EU GDP to 20% by 2035.

To achieve this, it introduces strict “Union origin” (Made in EU) and low-carbon requirements for public procurement and subsidy schemes. For the automotive and heavy machinery sectors, the Act is particularly transformative: starting in 2029, public tenders for electric vehicles (EVs) will require that at least 70% of the vehicle’s non-battery value originates from within the EU, with final assembly and significant battery production also taking place on European soil.

Additionally, the Act creates “Industrial Acceleration Areas” to provide a digital “one-stop-shop” for permitting, drastically reducing the bureaucratic delays that have historically hampered the expansion of European factory sites.

Source: EU Commission Report     Read The Report

Industry Implications. This legislation creates a “protected lead market” that directly shields listed companies—such as Volvo AB, Traton, and Iveco—from low-cost global competition. By tying public funds to European origin, the EU is effectively subsidizing demand for local manufacturers. However, this “Buy European” pivot forces a massive supply chain recalibration. Companies must now ensure that their tier-one and tier-two suppliers for steel, aluminum, and electronics are also EU-based to meet the 70% threshold.

For the agricultural and construction sectors, this could lead to higher equipment costs in the short term as manufacturers move away from cheaper global inputs. Long-term, however, it incentivizes a “Giga-factory” style scaling of the entire industrial value chain within Europe. The Act also places high bars on Foreign Direct Investment (FDI), ensuring that any non-EU entrants must provide genuine “value-add” through technology transfer and local employment.  PSR

Emiliano Marzoli is Manager of European Operations for Power Systems Research

Parallel to this commercial growth, MAN is finalizing the transition of the Lion’s Coach E into series production. Following its world premiere at Busworld Europe in late 2025 and the successful completion of rigorous winter trials in the Arctic Circle in March 2026, the Lion’s Coach E is the first battery-electric coach from a major European OEM to enter serial production at the Ankara facility, with first customer deliveries slated for later this year.

Source:  Traton Press Release  Read The Article

Industry Implications. The 30% year-on-year order increase (2025 vs. 2024) underscores a “decoupling” of European fleet demand from the broader global freight recession seen in North America and Brazil. For MAN, this growth is a critical endorsement of its “full-liner” strategy, proving that its diversified portfolio—particularly in urban buses and light vans—provides a necessary buffer when the heavy-duty truck market fluctuates.

The launch of the Lion’s Coach E represents a high-stakes strategic play to capture the “last frontier” of transport electrification: long-haul travel. By being the first major European manufacturer to move from prototypes to a dedicated serial production line in 2026, MAN is effectively setting the technical benchmark for the industry. This first-mover advantage is bolstered by the use of shared components from the MAN eTruck program, allowing for rapid scaling and providing a mature solution for tour operators facing imminent “Zero Emission Zone” restrictions across European capitals.   PSR

See Complete Show Report Here

Boot Düsseldorf 2026 welcomed more than 200,000 visitors over nine days (Jan. 17-25) and hosted about 1,500 exhibitors from 120 countries. The show was about the same size as that of the 2025 event, but last year’s show drew exhibitors from only about 67 countries.

Boot once again confirmed its position as the world’s leading indoor boat show. The event covered the entire spectrum of the marine industry, including motorboats, yachts and superyachts, catamarans, sailing boats, outboard and electric boats, engines, power generation systems, equipment and components, as well as touristic services, charter companies, and boating clubs.

Market Trends
Clear market trends emerged during the show. There is a strong shift toward outboard-powered boats, driven by increased usable space, lower maintenance requirements, ease of operation, and more competitive pricing. These boats are mainly used for day trips or short one- to two-day cruises, while long-distance boating currently appears less attractive to many buyers.

The luxury yacht sector continues to perform well. Interest in medium-sized boats with inboard engines remains stable, but sales are more challenging, reflecting ongoing economic and political uncertainty. Many manufacturers described 2025 as a difficult year marked by caution and observation.

Boating demand overall remains strong, particularly in the charter sector. Charter companies are performing very well, and catamaran manufacturers focused on charter fleets reported growth in their order books. Traditional sailing yachts, however, are under increasing pressure to evolve and adapt to the expectations of a new generation of boaters. As a result, many brands are revising their designs and introducing electric propulsion, appealing to environmentally conscious and slow-cruising sailors.  PSR

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research

In 2025, 470 superyachts were sold globally, marking a 19.8% increase compared to 2024. Around 250–300 newly built yachts were delivered, including 10 yachts over 100 meters, a record year. Approximately 45% of market demand comes from charter activity, highlighting the importance of commercial readiness and high-quality guest experiences.

The Global Order Book for 2026 lists 1,093 projects, a 3.9% increase compared to 2025, with leading manufacturers such as Azimut-Benetti and Sanlorenzo topping unit numbers. Italian manufacturers retain 54% of total global production, followed by the Netherlands, Turkey, and Germany, which focus on larger, ultra-luxury custom builds.

Demand remains strong, driven by rising global wealth and a generational shift in ownership. The average age of superyacht owners has fallen by around 10 years over the past two decades, with the 35–45 age group becoming increasingly influential. This new generation prioritizes flexibility, advanced technology, and meaningful travel experiences over overt displays of luxury.

Engines and power systems have become central to purchasing and charter decisions. Traditional yachts rely on twin high-horsepower diesel engines for propulsion and separate diesel generators for onboard power. Hybrid propulsion systems are now gaining ground, combining diesel engines with electric motors and battery banks. These systems allow silent low-speed operation, reducing fuel consumption by 20–30% in certain cruising conditions.

Advanced energy management systems optimize power distribution between propulsion, hotel loads, and battery storage. Some new builds also explore methanol-ready engines and hydrogen fuel-cell technology, particularly for environmentally sensitive cruising areas. Engine choice is increasingly a strategic decision that affects both resale value and charter appeal.

A notable example is Feadship’s Breakthrough, delivered in 2025 — a 118.8 m hybrid superyacht combining diesel-electric propulsion with a hydrogen fuel-cell system, representing one of the most advanced green propulsion approaches in the industry. Currently, hybrid yachts make up around 5% of the fleet, but this share is expected to grow by 10% annually in the coming years.

Sustainability has shifted from a desirable feature to an industry expectation. Hybrid propulsion, alternative fuels, and responsibly sourced materials are increasingly standard in new builds and refits. Yachts with strong environmental credentials attract more charter clients and retain long-term value. Technology is also central to market performance: smart automation systems, AI-driven efficiency tools, and high-speed satellite connectivity are now considered essential.

As the global fleet expands, identity and presentation matter more than ever. In a market shaped by quiet luxury, cohesive design, refined detailing, and strong vessel branding are key competitive differentiators.

Overall, 2026 is defined by steady growth, evolving client expectations, and a stronger emphasis on sustainability, technology, and experience-led value. Those who adapt strategically to these shifts — across both the 30 m+ superyacht segment and the broader 24 m+ charter-ready market — will be best positioned for success in the years ahead.   PSR

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research

Boot Düsseldorf 2026 welcomed more than 200,000 visitors over nine days (Jan. 17-25) and hosted about 1,500 exhibitors from 120 countries. The show was about the same size as that of the 2025 event, but last year’s show drew exhibitors from only about 67 countries.

Boot once again confirmed its position as the world’s leading indoor boat show. The event covered the entire spectrum of the marine industry, including motorboats, yachts and superyachts, catamarans, sailing boats, outboard and electric boats, engines, power generation systems, equipment and components, as well as touristic services, charter companies, and boating clubs.

Market Trends
Clear market trends emerged during the show. There is a strong shift toward outboard-powered boats, driven by increased usable space, lower maintenance requirements, ease of operation, and more competitive pricing. These boats are mainly used for day trips or short one- to two-day cruises, while long-distance boating currently appears less attractive to many buyers.

The luxury yacht sector continues to perform well. Interest in medium-sized boats with inboard engines remains stable, but sales are more challenging, reflecting ongoing economic and political uncertainty. Many manufacturers described 2025 as a difficult year marked by caution and observation.

Boating demand overall remains strong, particularly in the charter sector. Charter companies are performing very well, and catamaran manufacturers focused on charter fleets reported growth in their order books. Traditional sailing yachts, however, are under increasing pressure to evolve and adapt to the expectations of a new generation of boaters. As a result, many brands are revising their designs and introducing electric propulsion, appealing to environmentally conscious and slow-cruising sailors.

Looking ahead, 2026 is expected to remain a relatively flat year, with no significant growth compared to 2025. Boat manufacturers are therefore concentrating on developing new models, implementing innovative technologies, advancing electric and hybrid solutions, and strengthening strategic partnerships, positioning themselves to respond quickly when market demand strengthens again.  

Wide Range of Products
A wide range of leading international brands were present, including Azimut-Benetti, Ferretti Group, Princess, Sunseeker, Sanlorenzo, Cranchi, Galeon, Sirena Marine, Delphia, Cobra Yachts, Solaris Yachts, Grand Banks, Frauscher, Saxdor, Axopar, Elling, Santa Severa, Williams Tenders, Pure Yachts, Catana Group, Beneteau, Bavaria Yachts, Hanse Yachts, Saffier, and many others.

Several important new models were launched at the show. The largest new boat on display was the Bluegame BGX83, measuring 25.3 meters. Other key premieres included the Azimut Fly 82 with hybrid technology, the Ferretti Yachts 720, the Pardo 43, the Greenline 42 equipped with the H-Drive 6G hybrid system, the Finnish Saxdor 14.4 meter 460 GTC model, the Turkish AIATA Sunfinder 50 and 38, the Beneteau Gran Turismo 50, and the SACS TecnoRib Pirelli X460.

On the sailing side, several notable world and show premieres were presented, including the Beneteau First 60, Pure 42, Wauquiez 55 Hybrid, Jeanneau Sun Odyssey 455, and Contest 56 CS, Hanse 360 available in electric version, new Dufour 48 and Dufour 54.

The show also highlighted a growing number of electric and hybrid specialists. These included the Spanish boat manufacturer Lasai launching its 32 KS solar-electric overnight model, Stickl Yachts 100% electric days boats, Milikan solar-electric catamarans, Nyx solar-electric catamarans from Shanghai using ePropulsion solutions.

Sailboat manufacturer from the Netherlands Saffier launched its SE 28 Leopard model powered with the new electric sail drive solutions developed by MITEK. A notable innovation came from Wia (Hungary), which introduced a 16.1-metre luxury overnight electric boat Wia 520.

Another highlight was the world premiere of the Frauscher x Porche Spectra 790, a fully electric sport boat powered with 800 V battery and 400 kW electric motor.  Bavaria Yachts also announced new electric and hybrid models developed in collaboration with EPTechnologies, scheduled for launch in February.

On the equipment and technology side, highlights included Nanni’s new Toyota-based engine T4 series, MITEK’s electric rotating sail drive solutions, hybrid system innovations from Fischer Panda and Molabo implemented on Malizia Seaexplorer, Molabo’s new serial hybrid system Aries, and Torqeedo’s latest Travel XS, Cruise 3.0 and Cruise 6.0 electric outboard motors.   PSR

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe at Power Systems Research

The data is in for Tesla’s full year 2025 in Europe, and frankly, it’s a bloodbath across most major markets. Every market in Europe showed a substantial decline (ranging from -4.1% to -66.9%). There’s a single exception, Norway, and Tesla can’t even count on this market in 2026 because the growth in Norway was caused by changing regulations for 2026, that brought forward car purchases into the last two month of 2025.

According to registration data compiled from major European markets, Tesla saw its total volume drop from roughly 326,000 units in 2024 to just over 235,000 in 2025. That is a staggering 27.8% year-over-year decline

The truth is that this is an impressive demand cliff by any standard that points to significant brand problems, which are due to a mix of Elon Musk, Tesla’s CEO, becoming highly toxic, and Tesla’s EV lineup becoming stale amid tougher competition.

Source: Electrek: Read The Article

PSR Analysis: Tesla needs to understand that Europe doesn’t need a cheaper Model 3, Europe needs a smaller car.  The Model 3 is simply too big for our roads and cities but even this wouldn’t address the other huge problem that is afflicting Tesla in Europe — the toxic image of the CEO.   PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

The EU-US trade agreement is facing intense criticism from European policymakers and industry leaders who deem it unbalanced, unfair, and a “significant policy mistake.” The persistence of high US tariffs and mounting non-tariff barriers are severely hurting Europe’s export-oriented industrial sector. Experts warn the deal has cornered the EU, increasing its dependency on critical raw materials and semiconductors.

Specifically, US Section 232 tariffs on steel and aluminium derivatives are crippling the machinery sector with complex compliance rules. Failure to comply can trigger punitive tariffs up to 200%, prompting some firms to halt US exports entirely and leading to a sharp drop in sales (e.g., German machinery exports have fallen 18.5%). EU lawmakers are now pushing for amendments, including sunset clauses and safeguards, amid concerns that the current framework is unsustainable.

Source: Euractiv     Read The Article

PSR Analysis: These mounting export barriers are projected to negatively impact European vehicle production volumes, both on-road and off-road, in 2026. For on-road vehicles (passenger cars), while a modest production recovery of approximately 1.9% is possible in 2026, volumes are forecast to remain significantly below pre-pandemic levels due to new, escalating US tariffs (up to 15-50% on EU-made cars) and intense competition from global rivals.

To bypass these tariffs and preserve market share, European automakers are incentivized to shift new production and investment to the US, which risks the long-term contraction or “hollowing out” of EU manufacturing capacity.

For off-road vehicles (construction, agriculture, etc.), which are steel-intensive and rely on general machinery, the production outlook is severely depressed. Punitive tariffs, high compliance costs, and restricted access to the US market for components ensure that the sector will face reduced volumes, margin erosion, and sustained challenges to global competitiveness in 2026.    PSR

Emiliano Marzoli is Manager of European Operations for Power Systems Research

The Agritechnica 2025 trade show, held under the guiding theme “Touch Smart Efficiency,” cemented the industry’s focus on integrating digital intelligence with advanced hardware to achieve higher yields while ensuring environmental and economic sustainability. The primary trend was the transition of alternative power and robotics from concepts into commercially available, high-performance machinery.

The 2025 show was bigger than the previous show in 2023–there were more attendees (476,000 vs. 470,000) and exhibitors (2849 vs 2812) and more countries represented (171 vs. 149). The total space for the two shows was the same–394,000 sq in 24 halls at the Hanover Exhibition Center in Hanover, Germany. The bi-annual show ran Nov. 9-15.

Key New Models and Technology Unveiled
Manufacturers focused heavily on hybridization, automation, and engine efficiency:

• Hybrid and Next-Gen Power Systems:
  • Zoomlion DV3504 Hybrid Tractor: A flagship hybrid tractor (350hp class) featuring a distributed intelligent electric drive system (MIDD) for high traction and fuel efficiency, showcased performing autonomous harrowing operations.
  • Zoomlion H7-600E Hybrid Harvester: The world’s first hybrid large-capacity intelligent combine harvester, pairing a 480hp engine with an 11.55 kWh battery to achieve a peak output of over 600hp, offering improved efficiency and reduced energy consumption.
  • Fendt 800 Vario Gen5: Powered by the new AGCO Power CORE80 engine (8-liter, 252 kW), this release highlights a focus on highly efficient, low-emission diesel technology with enhanced torque (1680 Nm).
  • AGCO Power Future Battery Concept (150 kWh): A key component of the electrification push, demonstrating a dedicated, in-house developed battery for agricultural machinery.
• Automation and Robotics:
  • XAG P150 Max Agricultural Drone & R Series Rover: The P150 Max drone offers an 80kg payload for autonomous spraying and spreading, while the R Series Rovers (R100, R200) are designed for precision crop protection in controlled environments like orchards and greenhouses, emphasizing robotic task automation.
  • DEUTZ-FAHR Tractor Assisted Guidance System (TAGS) (Silver Award): An advanced AI-based stereo vision and real-time 3D mapping solution specifically designed for improved safety and automation in the variable terrains of agricultural operations.
• Specialized Machinery and Components
  • Merlo HyperCompact Telehandler Concept: A debut concept focused on high maneuverability and performance in confined spaces, like traditional farm buildings.
  • BKT AGRIMAX PROHARVEST VF 1020/55 R38 CFO Tire: A massive tire designed to reduce soil compaction on high-capacity combines through a large, evenly distributed footprint.

Main Topics and Discussions
The guiding theme, “Touch Smart Efficiency,” steered the main industry discussions:

1. Sustainable Productivity Growth: This was highlighted as the new overarching goal, shifting the focus from mere yield to yield balanced with ecological resource consumption. This requires measuring and evaluating performance in terms of climate protection and biodiversity alongside economic viability.
2. Digitalization and Automation Integration: The trade show emphasized software-driven processes and digitally integrated systems. The debut of the Digital Farm Center in Hall 21 showcased the importance of robotics, AI, cloud-based data platforms (like MerloMobility), and sensor technology for real-time decision support and optimized farming.
3. Alternative Fuels and Energy Transition: Discussions continued regarding the use of “drop-in” renewable fuels like RME and HVO in current diesel models, while the high-power sector saw advancements in hybridization (e.g., Zoomlion’s harvesters) and dedicated battery-electric solutions for smaller machines (e.g., AGCO Power’s battery concept).  The latter was also a testimony of the challenges in electrification of large tractors.  AGCO new battery will most likely in series production only after 2027, if not later.  PSR

Emiliano Marzoli is Manager-European Operations for Power Systems Research

No other boat has pushed the boundaries of green yachting as far as the MODX 70, winner of the 2025 Multihull of the Year award for its advanced, intelligent vision of zero-carbon sailing, announced at the Cannes Yachting Festival.

The concept was introduced in 2008 and finally brought to life in 2025 through the combined efforts of Ocean Development, VPLP Design, Aeroforce, MG Energy, Madden Tech, and many other visionary partners.

The project has earned recognition from the French government under the France 2030 Plan, receiving support through the i-Nov competition for sustainable and intelligent mobility in 2021, which helped fund the ambitious and costly development.

Read The Article

At Cannes, the final product was unveiled: a 21.33-meter, fully electric, high-performance trimaran offering 200 m² of living space.

Ocean Development, led by passionate sustainability and yachting advocates Marco Simeoni, Franck David, and Jean Guyon, developed the concept and oversaw construction of the vessel in Lorient, France. The design phase, managed by VPLP Design, took four years, while building the first unit required 18 months.

The MODX 70 is equipped with two retractable wings inspired by aeronautics and developed by Aeroforce. These inflatable wings rise 23 meters high, can be adjusted from 25% to 100% efficiency, and operate fully automatically. With no need for traditional rigging, navigation is simplified and comfortable.

Propulsion is powered by a 250 kWh MG Energy Systems LiFePo4 battery storage system, divided into two banks. These feed two ENGIRO electric motors of 40 kW each, supported by 70 m² of NME3 Next Generation solar panels and a hydrogeneration system.

An AI-driven autopilot system developed by Madden Tech oversees vessel operations, seamlessly integrating propulsion and wing management.

The first MODX 70 has already been acquired by Mr. Stan Shih, co-owner of Acer Group Taiwan, who will use it to champion clean, quiet, and intelligent yachting.  PSR

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research

In recent weeks, the US has expanded its 50% tariff on steel and aluminum to over 400 derivative products, creating a new, complex trade landscape with the EU. This goes beyond raw materials and now includes a wide array of manufactured goods. The EU has a new deal with the US, which introduces a 15% tariff ceiling on a large portion of European exports, including strategic sectors like vehicles. However, the 50% metal tariffs override this, a development that has caused alarm in Europe’s industrial sectors. The deal is a “first step,” with both sides still working out details, but the high metal tariffs remain a source of significant uncertainty and a point of contention.

Sources:     Read This Article       Read This Article

PSR Analysis: The expanded tariffs have severe consequences for agricultural, construction, and vehicle manufacturing. As stated by CECE (the Committee for European Construction Equipment) last week, the inclusion of machinery and equipment under the 50% tariff is a significant setback. For these industries, this means a steep increase in production costs, as key components like chassis and engine parts are now subject to the additional tariff on top of base 15%.

This puts European manufacturers at a competitive disadvantage, forcing them to either absorb the cost or pass it on to consumers, which could dampen demand. The complexity of calculating the metal content in each product creates a bureaucratic nightmare and adds to business uncertainty, making it difficult for companies to plan and invest in the US market. If an amendment is not agreed upon, the tariffs threaten to disrupt supply chains and could lead to reduced exports.  According to the CECE, the new duties cover 80% of that trade flow, putting approximately €2.8 billion of EU exports at risk.    PSR

Emiliano Marzoli is Manager-European Operations for Power Systems Research