64 European Industrial Startups to Watch in 2024

What happened?

Specialized media outlet Sifted has published a mapping of 64 European industrial startups to watch in 2024. The report, based on investment data, commercial traction, and innovative potential, classifies the companies into seven categories: robotics and automation, additive manufacturing (3D printing), energy and climate, advanced materials, logistics and supply chain, industrial software (IIoT, digital twins), and industrial hardware. Among the selected ones, names like Picnic (Netherlands, agricultural robotics), which has developed an autonomous harvesting system for vertical crops; Replique (Germany, on-demand manufacturing), connecting manufacturers with a decentralized 3D printing network; Matter (UK, solid-state batteries), working on silicon anodes to double energy density; and Dust Identity (Germany, traceability via diamonds), using diamond nanoparticles to authenticate industrial components, stand out. The list also includes Roboception (Germany, 3D vision for robots), Forto (Germany, digital logistics), and Exotec (France, warehouse robotics), among others.

Why is it important?

Europe faces the challenge of regaining its industrial sovereignty against China and the US. Investment in industrial deep tech reached €12 billion in 2023, according to Dealroom, and is expected to grow by 30% in 2024. This growth is driven by the need to reduce dependence on Asia for semiconductors, batteries, and rare earths. For instance, European production of batteries for electric vehicles will rise from 10% to 25% globally by 2025, according to Transport & Environment. These startups not only develop critical technologies but also create skilled jobs and reduce reliance on external suppliers. As Sifted notes, 'European industry is at a turning point: digitalization and sustainability are the two main levers.' Additionally, the pandemic and the war in Ukraine have accelerated the adoption of automation and resilient supply chains, with a 40% increase in demand for industrial robots in 2023, according to the International Federation of Robotics.

Consequences for the ecosystem

• Investment: Industrial venture capital is expected to exceed €15 billion in 2024, with increasingly larger funding rounds (series B and C). For example, German robotics startup RobCo raised $52 million in 2023, and Exotec raised $335 million in 2022. Sifted's report highlights that 40% of the listed startups have already reached series B or later.
• Corporate collaboration: Major groups like Siemens, Bosch, and ABB are already setting up open innovation labs with these startups. Siemens launched its Industrial Metaverse program in 2023, investing €100 million in digital twin startups. Bosch has created a €400 million fund for industrial deep tech.
• Talent: Demand for engineers in applied AI, robotics, and materials science will grow by 25% annually, according to LinkedIn. Germany needs an additional 100,000 engineers by 2025, according to VDI. Startups like Roboception already collaborate with technical universities to train talent.
• Regulation: The EU's Industrial Data Act and Critical Raw Materials Act will favor startups betting on circularity and efficiency. For example, the EU Chips Act will mobilize €43 billion for semiconductors, benefiting hardware startups like Ceragon (France, radio frequency chips).

What readers should know

Not all listed startups have the same level of maturity. Some are early-stage with prototypes, while others already generate millions in revenue. It's worth closely following those with solid patents and partnerships with manufacturers. For instance, Dust Identity has 15 patents and collaborates with Airbus. Moreover, geography matters: Germany, the Netherlands, and the UK concentrate 60% of the startups, but countries like Estonia, Sweden, and Finland are emerging in robotics and industrial software. Estonia has the highest density of AI startups per capita in Europe, according to Startup Estonia. Finally, hype should not obscure risks: long B2B sales cycles (12 to 24 months), capital-intensive needs (a hardware startup may need €50 million before generating revenue), and dependence on global supply chains (e.g., chip shortages affected 30% of robotics startups in 2022).

"Europe has the opportunity to lead the fourth industrial revolution if it bets on startups that combine deep tech with scalable business models," concludes Sifted's analysis. To achieve this, it will be key for European institutional investors and pension funds to increase their exposure to deep tech, which currently accounts for only 5% of total venture capital, compared to 15% in the US.