Automation in Luxembourg 2025: Trends Shaping the Greater Region

1.Introduction

The Greater Region Saar-Lor-Lux faces a dual transformation in 2025: the digital and ecological transition. What is globally known as the "Twin Transition" takes a unique form in our region – shaped by 231,290 cross-border commuters, an SME-dominated economy, and massive investments in automation.

The Luxembourg Chamber of Commerce quantifies the need clearly: 335,000 additional workers required by 2040. This shortage is the strongest driver for automation investments. At the same time, billions flow into concrete projects: IEE invests €30M in Manufacturing 4.0, Goodyear €71M in digital manufacturing, Amazon €1.8B in Luxembourg infrastructure.

As an automation engineer based in Stadtbredimus, I observe these developments daily. In this article, I share the six most important trends for 2025 – based on verified investments and concrete projects.

2.Trend 1: AI-Powered Automation Goes Mainstream

2025 is the year when Artificial Intelligence makes the leap from research labs to the production floor. In Luxembourg, three companies demonstrate what this looks like in practice.

2.1.Husky Technologies: FEDIL Innovation Award 2024

The injection molding system manufacturer in Dudelange was honored with the FEDIL Innovation Award 2024 in the "Process" category. The "Plate Line Automation" project demonstrates the convergence of robotics and digitalization:

• Automated Guided Vehicles (AGVs) with up to 5-ton capacity replace forklift traffic
• Robot-assisted deep-hole drilling automates previously error-prone manual processes
• Digital twins simulate the manufacturing process in real-time for predictive maintenance

Husky developed the "Next Generation Operating Model" (NGOM) together with Siemens and the Luxembourg government – a fully digitized end-to-end manufacturing execution system.

2.2.Cebi Luxembourg: 6-Second Cycle Time

Cebi has commissioned a fully automatic robot production line for motor temperature sensors. With a cycle of only six seconds per sensor, the company positions itself as a European market leader. The system was developed by Cebi subsidiary Bimatic – an example of the vertical integration that distinguishes Luxembourg companies.

2.3.Goodyear Dudelange: €71M for Mercury Process

The "Mercury" process uses additive manufacturing to produce tires four times faster than standard methods. The €71M investment includes:

• Digital manufacturing facility with approximately 500,000 tires annual capacity
• Five-year research project with LIST on sustainable materials
• Integration of "SightLine" technology – in-tire sensors that provide precise road condition data to the ABS

3.Trend 2: Edge Computing Conquers the Smart Factory

Data processing is shifting back to the network edge, directly at the machines. Luxembourg, with 16 data centers from eight operators, is a European data hub – and the SmartSpires project shows where the journey leads.

3.1.SmartSpires: €3.1M Edge Computing Pilot Project in Belval

Luxembourg's largest edge computing pilot project is emerging at Innovation Campus Belval. With funding from the EU Connecting Europe Facility, Gcore, 5SKYE, LIST, and Orange Luxembourg are developing intelligent towers with:

• Integrated 5G and edge computing
• IoT sensors for real-time data collection
• Four use cases: mobility services, crowd analytics, waste management, smart city living lab

3.2.Why Edge is Critical for Industry

In quality control or robot control, milliseconds make the difference. Edge devices reduce response time from 150-200ms (cloud) to under 20ms.

Data security is the second driver: Many production data cannot go to the cloud for legal or competitive reasons. Edge computing keeps sensitive data local while meeting GDPR requirements.

3.3.OPC UA: The Industry Standard for Interoperability

The Luxembourg Digital Innovation Hub (L-DIH) organized a webinar on "OPC UA: Interoperability from Sensor to IT" in 2024. The standard (IEC 62541) is the largest ecosystem for industrial interoperability:

• 42,000+ OPC products from 5,200+ vendors
• 52M+ applications worldwide
• 60+ VDMA working groups for industry-specific companion specifications

The umati initiative presents the first global Manufacturing-X solution with open standards at Hannover Messe 2025.

4.Trend 3: Labor Shortage Forces Cross-Border Solutions

The elephant in the room: 47% of all employees in Luxembourg are cross-border commuters – 125,000 from France, plus more from Belgium and Germany. This unique interconnection makes the Greater Region an integrated automation ecosystem.

4.1.Cross-Border Research: Robotix-Academy and TERMINAL Project

The Robotix-Academy unites as a permanent research cluster for industrial robotics:

• ZeMA Saarbrücken
• University of Luxembourg (SnT)
• Université de Liège
• Université de Lorraine
• Environmental Campus Birkenfeld

Focus: Human-robot collaboration and technology transfer for SMEs.

The TERMINAL Project (Interreg VA, €3M) tests cross-border automated minibuses in regular public transport as the world's first practical pilot project. The route connects Überherrn (DE) with Creutzwald (FR).

4.2.ZeMA Saarbrücken: The Region's Research Center

The Center for Mechatronics and Automation Technology is the leading research center with over 90 employees and a 4,000 m² test field. Industry partners: Airbus, BMW, Bosch, Daimler, Festo, Ford, Miele, Porsche, VW, and ZF.

The joint center Power4Production (P4P) with DFKI focuses on human-robot cooperation and cyber-physical production systems. The RICAIP Testbed offers over 25 robots of various types for testing and development in the MRK4.0 lab.

4.3.Multilingualism as Competitive Advantage

Nearly half of all job postings in Luxembourg require knowledge of all three official languages. French dominates daily work in industry, while German is present in technical documentation. For automation engineers, this means: Multilingual HMI interfaces are mandatory, not optional.

5.Trend 4: Retrofit Before New Investment

With 88.6% micro-enterprises in Luxembourg, scalable, cost-effective retrofit approaches are more relevant than greenfield investments. Fraunhofer Institute and ZeMA show how this works in practice.

5.1.Fraunhofer IOSB-INA: Scalable Retrofit Solutions

The Fraunhofer Institute in Lemgo develops mobile data acquisition systems for Industry 4.0 retrofit:

• INArice: Modular IoT gateways for older controllers
• INAsense: Plug-and-play sensor kits
• INAcarry: Mobile data acquisition

The approach: Upgrade existing machines with sensors to cyber-physical systems without costly new investments. The free "Digitalization Toolkit" from Fraunhofer IPA provides methodology, physical elements, and software components.

5.2.Why Retrofit Dominates in 2025

The reasons are economic and ecological:

• High interest rates make financing major projects difficult
• 12-18 month delivery times from machine builders
• Retrofit ROI: 18-24 months vs. 4-6 years for new systems
• 80% less CO₂ emissions compared to new production
• EU Taxonomy compliant for sustainable investments

5.3.Concrete Retrofit Technologies

Modern retrofitting solutions enable Industry 4.0 standards without production downtime:

• Plug-and-play IoT gateways for older Siemens S5/S7-300 controllers
• Retrofit kits for robots: New controllers for ABB, KUKA legacy devices
• Edge devices for machine connectivity without PLC modification

6.Trend 5: NIS2 and OT Security – Act, but Don't Panic

The NIS2 directive expands scope to manufacturing, food production, and logistics. But: In Luxembourg, the law has not yet been implemented.

6.1.NIS2 Status Quo in Luxembourg

• Law 8364 was submitted to Parliament on March 13, 2024
• Currently in committee deliberations
• Implementation expected: End of Q2 2025
• EU Commission sent a letter of formal notice on November 28, 2024 for missing the deadline

The scope expands from approximately 1,000 to 6,000-8,000 organizations, including medium-sized manufacturers.

6.2.What Specifically Changes

1. Security by Design: Controllers must support secure communication (TLS 1.3) from the factory
2. Access Controls: Role-Based Access Control (RBAC) becomes minimum standard
3. Reporting Requirements: 24-hour initial notification to the competent authority
4. Sanctions: Up to €10M or 2% of worldwide turnover

6.3.Practical Implementation

The competent authorities in Luxembourg:

Authority	NIS2 Role
ILR	Primary NIS2 supervisory authority
CSSF	Financial sector entities
GOVCERT.LU	CSIRT for government and critical infrastructure
CIRCL	CSIRT for private sector, municipalities, NGOs

The SERIMA platform from ILR enables self-registration and incident reporting. The MONARC methodology from NC3 provides standardized risk analysis – a good starting point for preparation.

6.4.Solution Approach for Existing Systems

Many older PLC systems don't meet the new requirements. A phased approach:

1. Network segmentation (VLANs)
2. Firewall rules for OT networks
3. VPN access instead of open port forwarding
4. Security monitoring with IDS/IPS systems

7.Trend 6: Logistics Automation as Lighthouse Sector

Luxembourg is Europe's fifth-largest cargo hub. The logistics sector demonstrates what's possible in automation – with concrete investments exceeding €1B by 2032.

7.1.Luxcargo Handling: Europe's Most Modern Freight Handling

The 58,000 m² cargo center at Findel – Europe's eighth largest – sets standards:

• 1,640 automated Unit Load Devices (ULDs)
• Automated ULD stacking, retrieval, and loading
• Average transit time: 8 hours
• B747 turnaround in 2 hours

2025 sees implementation of the new "iCargo" freight handling system from IBS Software – real-time data capture, paperless documentation, and direct interfaces to customers and customs authorities.

7.2.CFL Terminal Bettembourg-Dudelange

The intermodal terminal is among Europe's most modern:

• 33 hectares area
• 3 remote-controlled gantry cranes
• 4 tracks at 700 meters each
• Capacity: 600,000 intermodal transport units annually

Automation technology from Camco Technologies includes:

• OCR camera portal at entrances for automatic identification
• Rail OCR portal for automated train inspection
• Automated gate lanes with driver kiosks and LPR technology

On average, 325 trucks are processed daily, up to 600 during peak times.

7.3.Warehouse Automation: Transalliance and Kuehne+Nagel

Transalliance Dudelange implemented a Scallog goods-to-person solution in September 2024:

• 950 m² with 283 mobile shelving units
• 14 robots, 2 pick/replenishment stations
• Result: Triple warehouse productivity

Kuehne+Nagel Luxembourg operates 100,000 m² of warehouse space. The fulfillment center in Contern (34,000 m²) features Luxembourg's largest photovoltaic installation and three-story high-speed sorting.

8.Conclusion: Opportunities for Local Expertise

The Greater Region Saar-Lor-Lux offers a unique automation ecosystem in 2025: high investment willingness among leading companies, strong research infrastructure through ZeMA, DFKI, and LIST, acute labor shortage as a driver, and comprehensive funding programs.

8.1.Recommendations for Decision-Makers

1. Use L-DIH: 100% subsidized Digital Maturity Assessments as entry point
2. Check SME Packages: Up to €25,000 with 70% state funding for AI and Cybersecurity
3. Retrofit before new investment: 18-24 month ROI instead of 4-6 years
4. Prepare for NIS2: OT security audit by Q2 2025
5. Leverage cross-border resources: ZeMA, Robotix-Academy, Fraunhofer offer test environments

8.2.Key Contact Points

• Luxembourg Digital Innovation Hub (L-DIH): Free assessments and test-before-invest
• Luxinnovation: National innovation agency, EU programs
• FEDIL: 750+ members, 95% of industrial production
• Chamber of Commerce: House of Entrepreneurship, 95,000+ companies

The particularities – SME dominance, multilingualism, cross-border commuter structure – require specialized approaches that differ from standardized German solutions. For automation engineers with regional know-how, there's an opportunity to position themselves as a bridge between international technology and local requirements.

9.Further Resources

• Luxembourg Digital Innovation Hub: www.dih.lu
• Luxinnovation – Funding Programs: www.luxinnovation.lu
• Guichet.lu – SME Packages: guichet.public.lu
• ZeMA Saarbrücken: www.zema.de
• FEDIL: www.fedil.lu
• NIS2 Luxembourg – ILR: www.ilr.lu

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About the Author: David Prybisch is an automation engineer based in Stadtbredimus, Luxembourg. He supports companies in the Greater Region Saar-Lor-Lux with PLC programming, HMI development, and worldwide commissioning.