We see the companies in this report as disruptors in the individual sub-sectors due to the greater adoption of innovative upcoming technologies discussed in the report. Sectors gaining traction in terms of funding and M&A activity in Europe are Analytics, IoT, AR/VR, Digital marketing, Retail personalization, Retail merchandising, and logistics.
- European firms have increasingly started using AI in marketing with a strong focus on collaboration between marketing and data science. The predictive analytics solutions are helping retailers re-direct marketing efforts precisely. AI & Analytics companies saw robust funding and acquisition activity with 17 funding deals in 1H’22 (+140% vs. 1H’21) and 6 M&A deals (+100% vs. 1H’21)
- Europe has seen the emergence of connected logistics systems resulting in demand for IoT solutions such as track & trace solutions, real-time KPIs, push notifications, supply chain monitoring, and vehicle tracking by large firms. 1H’22 saw an uptick in M&A activity with deals worth $1.5bn (+128% vs. 1H’21). One of the most important deals was INWIT’s acquisition by Ardian for $1.4bn in March 2022
- With global marketing tools coming increasingly under the scrutiny of Government authorities, well-established European alternatives in the field of omnichannel marketing automation are likely to thrive going forward. Digital marketing companies saw robust funding and acquisition activity with 9 funding deals in 1H’22 (+131% vs. 1H’21)
- Key emerging AR/VR technologies in European retail markets are virtual showrooms, in-store activation, navigation, and virtual try-on solutions to name a few
- Europe is considered to be a pioneer in personalization. Many European companies have implemented personalization into their loyalty programs and are aiming to engage with customers outside of the buying cycle
- To cut costs and enhance productivity, European eCommerce & retail companies (including grocery giants such as Tesco and Carrefour) are increasingly resorting to automated warehouses that use robots, AI, IoT, and automated guided trucks