D2XCEL's primary goal is to create and implement a sustainable scaling programme, enhancing the European deep-tech startup ecosystem's effectiveness and efficiency. The programme will support 100 deep tech and digital ventures in developing market-ready applications, advancing significant growth and impact by attracting companies from 10 market opportunities through two open calls covering the key sectors of Sustainable Transport, Logistics, Trade, and Smart Cities. 

The first open call started on April 2nd through to June 14th and we would like to shed more light on the first five key market opportunities (MOs), defined by the D2XCEL team, that could help address the challenges of Europe’s sustainability, efficiency, and livability.

1. Logistics (Freight, Warehouse, Last Mile Delivery) (MO1)

Logistics lies at the heart of global supply chains, serving as a critical link between producers and consumers. However, the logistics industry faces numerous challenges, including inefficiencies, bottlenecks, and environmental impacts. By simplifying and streamlining logistics activities, startups can enhance the efficiency and resilience of supply chains while reducing emissions and resource consumption. From optimizing freight routes to digitizing warehouse operations, innovative solutions have the potential to revolutionize the way goods are transported and distributed across Europe. 

What’s the market potential?

Implementation of Electronic Freight Transport Information (eFTI) not only promises significant administrative cost savings and efficiency gains but also substantial reductions in CO2 emissions, leading to a potential cost relief of €100 – 300 billion for the European industry. while the global digital logistics market is expected to grow at a compound annual growth rate (CAGR) of 20.4% from 2023 to 2032.

For a comprehensive description and non-exhaustive list of technologies under MO1, please click here.

2. Sustainable Freight Transportation (MO2)

As concerns about climate change escalate, the transportation sector faces increasing pressure to reduce emissions and transition to more sustainable modes of transport. This includes freight transportation, which accounts for a significant portion of global emissions. By developing innovative solutions such as hydrogen and battery-electric vehicles, ventures can help enable the necessary transition to sustainable freight transportation. From green ports to autonomous vehicles and efficient logistics systems, startups have the potential to transform the way goods are transported, contributing to a greener, more sustainable future for Europe and beyond. 

What’s the market potential?

Opportunities involve innovative solutions to reduce GHG emissions, health risks, and fuel dependency, crucial for achieving Europe's decarbonization goals. The European transport sector contributes. Up to $28 billion annually is required for ships' decarbonization by 2050,  in addition to up to $90 billion to build the infrastructure to store, deliver and transfer zero-carbon fuels.

For a comprehensive description and non-exhaustive list of technologies under MO2, please click here.

3. AI-Powered Digital Services for Smart Cities (MO3)

In the face of rapid urbanization, cities across Europe are confronted with an array of sustainability, efficiency, and livability challenges. From managing energy consumption to optimizing transportation networks and enhancing public services, the complexities of urban environments require sophisticated solutions. By harnessing the power of artificial intelligence (AI) and digital technologies, ventures have the opportunity to develop innovative services that can transform cities into more sustainable, efficient, and inclusive spaces for residents. 

What’s the market potential?

The European market for AI-powered digital services in sustainable and smart cities shows promising growth, with a projected CAGR indicating strong demand; the EU boasted around 5,776 players in the AI industry in 2020, and global private investment in AI reached EUR 16.5 billion in Q1 2023. The European AI investment is expected to exceed $70 billion in 2026 and generative AI is estimated to create a business value of EUR 2.4-4.0 trillion annually.

For a comprehensive description and non-exhaustive list of technologies under MO3, please click here.

4. Large-scale Stationary Energy Storage (MO4)

The transition to renewable energy sources presents a monumental challenge: the intermittency of solar and wind power, aggravated by seasonal supply and demand fluctuations. Addressing this challenge requires large-scale stationary energy storage solutions that can store surplus energy during periods of high production and release it when demand exceeds supply. 

From advanced battery technologies to innovative storage systems, startups have a vital role to play in ensuring the stability and reliability of Europe's renewable energy infrastructure. 

What’s the market potential?

The European market for stationary energy storage solutions is poised for significant growth, with forecasts predicting a capacity of 200 GW by 2030 and 600 GW by 2050. Estimates vary, with one projection suggesting a global market size of $335 billion by 2032 with a CAGR of 25%. In Germany alone, the energy storage sector generated 5 billion euros in revenue in 2018, with projections indicating a demand of 100 GWh by 2030 and 180 GWh by 2045.

For a comprehensive description and non-exhaustive list of technologies under MO4, please click here.

5. Sustainable and Circular Construction (MO5)

The construction industry significantly contributes to global carbon emissions and resource consumption, making it a key target for sustainability efforts. Addressing this challenge requires innovative materials, processes, and tools to make the built environment more sustainable and resilient. From low-carbon building materials to digital design technologies and circular construction practices, startups have the opportunity to drive meaningful change in the construction industry, creating buildings and infrastructure that are not only environmentally friendly but also economically viable and socially equitable. 

What’s the market potential?

The European construction products market is valued at $100 billion in 2023 and is projected to grow at a CAGR of 2.3% until 2032. Alongside segments like the European Precast Concrete Market at $134 billion in 2021 and the Cement market at $30 billion in 2023 (with Green Cement at $8 billion), significant potential exists for industry transition, especially with the expectation of European VC investment in sustainable construction reaching €1 billion by 2030.

For a comprehensive description and non-exhaustive list of technologies under MO5, please click here.

In conclusion, the first five market opportunities identified by D2XCEL offer deep tech and digital ventures in Europe a chance to tackle some of the most pressing challenges facing society today. The top 10 ventures in each Market Opportunity will be selected and will benefit free of charge from holistic mentoring, access to investors, customers, and partners as well as international awareness and visibility. By empowering ventures to develop innovative solutions and technologies, D2XCEL aims to accelerate progress towards a smarter, more sustainable economy for Europe and beyond. 

Now is the time to seize the opportunity and join the D2XCEL scaling programme!

Apply here and join one of our live webinars for interested companies, where you can get all the information you need!

This project has received funding from the European Union under grant agreement Nº101121100. Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them. 

Research sources:

The Alliance for Logistics Innovation Through Collaboration in Europe
Allied Market Research
UNCTAD Review of Maritime Transport 2023
Citcom AI Market Report Mapping
Tortoise media: Global AI Index
McKinsey: The economic potential of generative AI
EASE, Energy Storage Targets 2030 and 2050 - Ensuring Europe’s Energy Security in a Renewable Energy System, 2022
Acumen Research and Consulting
Team Consult and BVES
ISE Fraunhofer
Cleantech Group