Fast-Forward: How AI and Data Are Rewiring Europe’s Supply Chain

Europe’s supply chain management market is on a remarkable trajectory, projected to reach US $11.6 bn by 2030 with a robust 10.6% CAGR from 2024 to 2030. While the industrial sector faces headwinds, the region’s ecommerce engine is running hotter than ever driven by consumers who now expect delivery in under two days. 

The New Logistics Playbook: Speed, Proximity, and Flexibility 

To meet these rising expectations, companies are reimagining their logistics networks: 

• Smaller, strategically located warehouses are popping up closer to customers, slashing last-mile costs and delivery times. 

• Flexible, modular warehouse designs are gaining traction, allowing rapid scaling and adaptation to shifting market dynamics. 

Digital and AI: From Buzzwords to Business Backbone 

The digital transformation of European supply chains is no longer optional: 

• 48% of organizations now rank digital supply chain transformation as a high priority, with 27% calling it their top priority. 

• Amongst high performers, a third say it’s their number one focus. 

• AI and machine learning adoption has tripled as a priority, rising from 12% to 36% in 2024, while analytics investment has jumped to 51%. 

Key investment areas for 2025: 

Data: The New Supply Chain Currency 

The rise of IoT and real-time analytics is transforming inventory management and end-to-end visibility. But the real game-changer? Better data practices. 

• Organizations are moving toward a “single source of truth”: 40% have achieved this, and another 32% are on the way. 

• Amongst high performers, 75% have or are implementing unified data systems, compared to just 41% of less resilient organizations. 

To unlock the full potential of AI and analytics, companies are rethinking how they capture, structure, and store data—making it accessible and actionable for next-gen tools. 

What Does This Mean for M&A and Capital Market Activities? 

Europe’s supply chain M&A is accelerating, driven by digitalization and AI adoption. Companies with advanced analytics and scalable, tech-enabled solutions are attracting premium valuations as buyers seek operational efficiency and recurring revenues. Since 2023, there have been 193 supply chain management transactions—76 in 2023, 79 in 2024, and 38 year-to-date in 2025—with Private Equity, Venture Capital, and Strategic buyers each accounting for roughly a third, highlighting a balanced and competitive market.  To illustrate these trends, here is a selection of notable supply chain management M&A transactions from 2024-25: 

At TH Global, our Investment Banking team specializes in advising supply chain technology companies on strategic M&A, capital raising, and growth initiatives. We help founders and management teams articulate their value proposition, optimize financial performance, and position their businesses to attract top-tier global investors and strategic buyers. With deep sector expertise and a global network, TH Global ensures clients are well-prepared to seize opportunities in this fast-evolving market and achieve successful, value-maximizing outcomes. 

References:  

Source: Pitchbook 

Source: The State of European Supply chain by Reuters Events in partnership with Maersk 

Source: Gartner, Hype cycle for Supply Chain Planning Technologies 

Source: Grand View Research, Europe’s Supply Chain Management Market Size & Outlook