In the interconnected web of global trade, the logistics sector is a main artery, facilitating the movement of goods and services across continents. From bustling ports to intricate supply chains, logistics forms the backbone of modern commerce, underpinning economic growth and prosperity. 

Despite recent challenges like the pandemic and digital disparities, deep tech solutions are crucial for streamlining and enhancing logistics operations. Through innovations like Freight Tech, Warehouse Tech, and Last Mile Delivery, deep tech companies can reshape logistics, fostering competitiveness and efficiency in global trade.

Here is more on what each of the three main domains includes:

• Freight Tech encompasses Maritime, Waterways, Air and Rail freight, Trucking Logistics, Middle Mile, Fleet Management and Routing & Loading Optimization tools. 
• Warehouse Tech covers warehouse automation, warehouse fulfillment and sustainable packing automation, 
• Last-mile delivery spans across Delivery Services, Ultrafast Delivery, Drones, evTOL and reverse logistics.

Key challenges in the global logistics landscape

Against the backdrop of rapid globalization, the logistics sector has witnessed profound transformations, spurred by technological advancements and evolving consumer demands. The rise of e-commerce, the proliferation of digital platforms, and the emergence of Industry 4.0 have reshaped the way goods are transported, stored, and delivered worldwide. 

Yet, the sector faces several challenges hindering its digitalization journey, including siloed stakeholder environments, data harmonization issues, and inadequate optimization of business processes. Outdated interoperability methods and insufficient data quality further exacerbate inefficiencies, while cybersecurity gaps persist despite regulatory efforts. Rising concerns about supply chain security and the absence of a legal framework for electronic transactions highlight additional hurdles. Integration of initiatives impacting the supply chain remains disjointed, emphasizing the need for comprehensive solutions to address these multifaceted challenges.

Sustainability and Sovereignty Impact Potential for Europe

Europe's quest for sustainability mandates a logistics overhaul, with innovative solutions driving decarbonization, combatting illegal trafficking, and bolstering cybersecurity. The aim? To streamline operations, boost competitiveness, and alleviate burdens on businesses. 

Some of the desired outcomes include:

• To empower decarbonization through just the arrival of ships, trucks, train, barges and aircraft and optimized multimodal business processes 
• To remove the red tape and dramatically reduce illegal trafficking
• To enable cyber threat resilience
• To improve competitiveness as only 8 EU countries rank in the Top 20 World Bank Logistics Performance Index
• To reduce the burden on BCOs 

New deep tech and digital solutions needed

Various digital and deep-tech solutions, such as actionable artificial intelligence, predictive analytics, hyper-automation, next-gen robots, IoT, and many more are needed to address logistics challenges. These innovations would optimize operations, enhance sustainability, improve workforce engagement, ensure data security, and enable seamless integration, ultimately revolutionizing the logistics sector.

What’s ahead of Europe’s logistics industry 

The digitalization of logistics in Europe aims to enhance growth, competitiveness, and efficiency, leading to substantial cost savings and emissions reductions. Estimates by the European Commission suggest that implementing electronic freight transport information (eFTI) could save €20-27 billion in administrative costs, reduce CO2 emissions by over 1300 tons, and save millions of work hours.

Additionally, The Alliance for Logistics Innovation through Collaboration in Europe expects a 10-30% improvement in efficiency that could result in a €100-300 billion cost relief for the European industry. Finally, the global digital logistics market, valued at $24.8 billion in 2022, is projected to reach $155.3 billion by 2032, as per Allied Market Research.

D2XCEL extends an invitation to deep tech and digital ventures across Europe, operating in the field of logistics to check the eligibility requirements and join our 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.