Eindhoven takes on challenges amid fast growth
Stijn Steenbakkers, deputy mayor, City of Eindhoven, explains how the Brainport Eindhoven region is managing growth and the challenges it brings by working with public and private sectors.
Eindhoven has achieved significant success in attracting direct foreign investments, especially in the technology sector, in the past few years. Has this momentum continued in 2024?
Yes, this trend certainly continues. Innovation and technology are embedded in the DNA of the Brainport Eindhoven region. For two decades, we have seen that this focus, combined with a powerful and unique high-tech ecosystem, has brought tremendous benefits to the region.
The city’s economy is active in areas such as sustainability, mobility, healthcare, and digitalisation. Key technologies are developed here every day that make a difference in these areas. What is remarkable is that these technologies are not only conceived here, but manufactured. This economic cluster is vital for the future and attracts investors and this is recognised in the Netherlands and also in Europe and worldwide.
The Brainport region is home to several large original equipment manufacturers (OEMs), including VDL, ASML, Philips, DAF, NXP, and SIGNIFY. Surrounding these is a network of more than 7,000 SMEs, startups, knowledge institutions, and research institutes.
This ecosystem has filed approximately 7,893 patent applications in the past five years. The startup network, with branches in Brainport Eindhoven, has secured more than €2.7 billion in funding and from 2020 to 2024, is valued at €9 billion. In 2024, the funding has already reached €350 million. This investment sum is likely to be much higher as we do not have a complete overview yet.
To further strengthen the strategic autonomy of Brainport Eindhoven, we are investing together with national, provincial, and regional governments and the business community in the region’s growth.
This resulted in a significant investment of €2.51 billion this spring for areas such as housing, infrastructure, talent attraction, and facilities. Including previous financial inputs, the total amounts to an investment of more than €4.5 billion.
What are the key investment opportunities or projects that Eindhoven will promote at EXPO Real? What kind of discussions do you hope to have at the fair?
The Brainport Eindhoven region is growing rapidly, but faces significant challenges. To manage this growth, substantial investments are needed in housing, infrastructure, and facilities (healthcare, sports, education, etc) in the coming years.
The main development area for this growth is Eindhoven KnoopXL. This 55ha inner-city area around Eindhoven Central Station will change substantially over the next 20-25 years.
It will transform from a grey, stony area with mainly roads, offices, and transit locations into a vibrant, green district. With over 9,000 new homes, inspiring workplaces and meeting places, KnoopXL will become the new gateway to Brainport Eindhoven.
“We see the population composition changing, and the pressure on the housing market and roads is increasing. Our main priority now is to manage the expected growth properly.”
Stijn Steenbakkers, Deputy mayor, City of Eindhoven
Along the entire railway zone in Eindhoven, new high-quality transport lines are being constructed, and tens of thousands of homes are being built in various development areas throughout the Brainport region. This is necessary as the growth of the Brainport region requires around 62,000 homes to be built in the Eindhoven area.
With this growth comes an influx of people who will live, work, and/or study in the Brainport region. To facilitate this growth, we are expanding Eindhoven Central Station and constructing an underground bus station.
The Brainport Eindhoven transport hub will be a meeting point for buses, trains, taxis, shared transport, and bicycles, with space for international connections. Additionally, investments are being made in the infrastructure around the city, with the construction of public transport lines (HOV), fast cycling routes, road network expansion, and mobility hubs. Brainport Eindhoven, with its future perspective, powerful ecosystem and, despite challenges, is an interesting region to invest in.
There are many opportunities and possibilities for both national and international parties. EXPO Real is an excellent platform to present these opportunities, projects and development locations, share the future perspective and developments, and engage in discussions with various parties in Europe. We look forward to new collaborations.
Eindhoven is facing a housing shortage and is working on solutions. Is there progress or any new developments in this area?
The (economic) development of the Brainport Eindhoven region never stands still. Projections for 2024 show that the area is growing economically 2.5 times faster than the Netherlands as a whole. This trend continues and growth is faster than we anticipated.
Another significant development is the signing earlier this year of a letter of intent with ASML, a supplier of machines to the semiconductor industry, for the large-scale expansion of the company
at the Brainport Industries Campus. This development is of great importance to the Brainport region, the Netherlands, and Europe.
Rapid growth brings opportunities for the Brainport region and its residents, entrepreneurs, developers, and investors, but also challenges. For example, the pressure on the tight housing market is increasing. Initially, we anticipated an expansion of 72,000 jobs and about 62,000 homes by 2040, but this is now moving towards 2030. This requires an acceleration in housing construction, infrastructure development, and other facilities in education, sports, and healthcare in the coming years.
We are not working on these challenges alone, but in partnership with the national government and the business community. The multi-billion-euro investment mentioned earlier is an example. The unique aspect of this is the use of public-private partnerships. Besides the local and national government, the regional business community is also taking responsibility. It is investing heavily through four private funds, focusing on accessibility, affordable housing, talent, and social programmes.
What are the other key priorities of the city council? What is your vision for the city in the short to long term?
Economically, the city and the region are doing well, and this trend will continue in the coming years. Economic growth is positive and offers many opportunities, but a city is also about the people who live, work, and live there. It is crucial to keep an eye on the wellbeing and prosperity of our residents.
Ensuring that they can benefit from the success and that public facilities grow accordingly. Eindhoven should not become ‘San Francisco on the Dommel’. We want to be a connected, sustainable city where everyone can work and live affordably. With appropriate education and healthcare, plenty of green spaces, and recreational and sports facilities within reach.
A growing city and region also bring challenges. We see the population composition changing, and the pressure on the housing market and roads is increasing. Our main priority now is to manage the expected growth properly.
This means implementation and rolling up our sleeves. Ensuring that thousands of new homes are built, the new transport hub is realised, that there are enough schools, and residents have sufficient facilities for sports, recreation, and healthcare. These are tasks that we cannot achieve alone as a city and region: we will do this together with the government, the business community, and social partners.
Besides implementation, the second priority is to continue the conversation with national and international parties about the opportunities and challenges in Brainport Eindhoven, now and in the future.