• BCG Estimates That Quantum Computing Could Create From $450 to $850 Billion of Value in Next 15 to 30 Years
• Europe Is Currently Among Leaders Globally in Terms of Public Support and Fundamental Research, but Lacks Member State Coordination, Sufficient Private Capital, and a Talent Pipeline to Capitalize On
• Lessons From the Semiconductor Industry Need to Be Learned to Scale Capability and Protect European Quantum Sovereignty

PARIS—Investments in quantum reached all-time record highs in 2021 and are predicted to continue rising significantly, with multiple existing industries set to benefit and new industries likely to be created. Boston Consulting Group (BCG), one of the world’s leading management consulting firms, today published new research highlighting the scale and pace of global quantum computing, titled, Can Europe Catch Up With the US (and China) in Quantum Computing?

While the US is a clear frontrunner on quantum computing patents, venture capital, and volume of talent, the BCG report finds that the EU currently leads the way in terms of public investment. However, the EU lacks a coherent plan of action to coordinate individual Member State activities, has an underdeveloped private capital market prepared to invest in late-stage quantum businesses, and is not developing sufficient quantum computing talent to meet anticipated demand. BCG’s report highlights that the US currently has between two and three times more quantum talent in the business world than does the EU.

Without urgent action, the report shows, the EU risks repeating mistakes made in the semiconductor industry. Europe, together with the UK and China, is currently well-positioned in a trio of pursuers that are chasing the US. The EU is among leaders in public action in quantum and has put in place plans such as the Quantum Flagship, coordinating research efforts across multiple industries, and running pilot educational projects to give a direction to the developing ecosystem.

So what does the EU need to do to avoid repeating the mistakes it made more than a decade ago in failing to scale a continental semiconductor industry?

“The EU has all the ingredients needed to succeed in the quantum race but needs to rapidly develop and deliver a comprehensive plan to turn potential into action,” says François Candelon, a managing director and senior partner at BCG, and coauthor of the report. “Europe’s history when dealing with tech revolutions has too often been characterized by early promise, failure to scale at critical moments, and then an expensive attempt to catch up. Policymakers need to learn those lessons fast. The good news is that the window is still open to create and execute a European strategy, building public and private capital powerhouses to invest in and scale European universities' ability to train the next generation of quantum experts.”

An Action Plan for Europe

BCG’s report maps an action plan for Europe to maintain quantum sovereignty:

• First, create an integrated EU-wide action plan that aligns Member State programs and strategies.
• Second, close the European investment gap, particularly for late-stage funding, to allow European start-ups to scale quickly.
• Third, build an end-to-end talent pipeline from high school to post-graduate to create enough talent to meet surging business demand.

Quantum Sovereignty

The COVID-19 crisis highlighted Europe’s capability to design and manufacture at scale new vaccines that proved essential to controlling the impact of the pandemic on the continent. Conversely, the lack of in-house European manufacturing capabilities for advanced semiconductors showed its dependence on a global supply chain. According to BCG estimates, the chip crisis prevented the production of around 10 million vehicles, which was particularly impactful for Europe, home to major automobile manufacturers.

Quantum will impact multiple industries central to a country’s competitiveness and sovereignty such as aerospace, defense, pharma, and chemicals. If Europe wants to maintain its global relevance as well as self-sufficiency in key economic areas, it must ensure access and master quantum capabilities in all stages of the supply chain, from R&D to manufacturing and end applications.

Download the publication here.

For more information, please contact Brian Bannister at +44 7919 393753 or bannister.brian@bcg.com.

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
 
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

More Than 30% of Consumers Would Fully Switch Their Diets to Alternative Proteins to Make a Positive Climate Impact, Reports the First BCG and Blue Horizon Multi-Market Survey of Alternative Proteins

BOSTON & ZURICH—Dramatic, above-inflation price increases for animal-based products over the course of the pandemic led to an unprecedented spike in the sales, funding, and public awareness of the alternative protein sector. Increasing global concerns about food security and climate impact have further fueled this development. With 25% of global greenhouse gas emissions caused by the food value chain, the shift to alternative proteins may be the most capital-efficient and high-impact solution to addressing the climate crisis. Projected to represent at least 11% of all meat, seafood, eggs, and dairy consumed globally by 2035, alternative proteins will save 3x the emissions for each dollar invested compared with the next-best tool in the box—decarbonizing cement—according to a forthcoming report from Boston Consulting Group (BCG) and the impact investor Blue Horizon.

The report, The Untapped Climate Opportunity in Alternative Proteins, willpresent findings from a survey of more than 3,700 consumers in seven countries (China, France, Germany, Spain, the United Arab Emirates, the United Kingdom, and the United States) regarding their reasons for trying alternative proteins and the inhibitors that keep them from buying even more. Three-quarters of survey respondents cited a healthier diet as their primary motivator for consuming alternative proteins, while more than 30% of consumers would fully switch their diets to alternative proteins if they believed doing so would have a major positive impact on climate.

Across all markets surveyed, consumers view alternative proteins positively: 76% are aware of the category, and approximately nine out of ten said they like at least some of the alternative-protein products they have tried. While consumers in China and Germany are the most willing to pay close to parity with protein equivalents, no consumer in any region is willing to pay a premium for alternative proteins that match meat for taste, texture, and nutrition—a price premium requires value add.

“Nearly one in three people across the world are plagued by food insecurity. Coupled with the impact of the continued geopolitical crises on the supply chain and food prices, there is immense pressure on the global food system,” says Ben Morach, a BCG managing director and partner. “Pivoting away from animal-based proteins will lead to shorter, more resilient, and potentially more local supply chains. Widespread adoption of alternative proteins can remove the risk of supply chain disruptions and play a critical role tackling climate change, with consumers playing a key part in propelling this transition.”

Bjoern Witte, CEO of Blue Horizon, adds: “The products consumers are seeing on the shelves today will be followed by a wave of cleaner, healthier, and tastier alternative proteins, as technology allows for increasing innovation. We've seen the fast-paced development of these technologies in our own portfolio as well as the wider food-tech industry, leading to an overall better consumer product range. This is great news for today's consumers, but we're just at the beginning, really. Future generations will benefit greatly from the demonstrable impact this will have on the environment, as shown through our analysis of climate data. This is the second report from BCG and Blue Horizon confirming that protein transformation is the most capital-efficient way to avoid emissions and deliver Impact of Capital Employed (IoCE). If we reach 11% market penetration by 2035, which is our goal, we could save more carbon emissions than decarbonizing 95% of the aviation sector. The positive impact is absolutely massive, and secular drivers have never been stronger—the time to invest is now.”

An Acceleration in Funding

Capital invested in alternative proteins rose at an annual rate of 124%, from $1 billion in 2019 to $5 billion in 2021, with investments in fermentation and animal-cell-based companies leading the way. Investment in alternative proteins is increasingly global. Middle East funders, which tend to focus on animal-cell-based investments, made up 11% of worldwide investment in alternative proteins last year while APAC investment, fueled by plant-based deals, increased by 92%.

For investors, a key finding of the report is the fact that investments in plant-based proteins are more CAPEX-efficient with regard to carbon dioxide and methane emission reductions than in any other industry. Plant-based protein market penetration as forecasted in the Food for Thought I base case would save 0.85 gigaton of emissions by 2035. This savings potential is equivalent to decarbonizing a majority of the aviation industry. Investing in plant-based proteins has the highest emission savings per invested capital—at least twice as effective as investments in cement, iron, steel, chemicals, or transport. Blue Horizon developed a proprietary impact framework whereby every investment is assessed via a theoretical impact value, allowing the company to calculate a precise IoCE.

Significant Progress in the Regulation of Alternative Proteins

Sensible and effective regulation is imperative to ensure that the rapid innovation and growth of the alternative protein market deliver safe, healthy, and transparent food to customers. There has been an acceleration, around the globe, to provide regulatory approval for fermentation-based and animal-cell-based products. In 2015, Israel led the way by announcing that its novel framework for regulating food safety would apply to alternative proteins. And in its latest five-year plan released in January 2022, China acknowledged the need to “expand beyond traditional crops, livestock, and poultry to more abundant biological resources” and made animal-cell-based meat and other alternative proteins part of its food security strategy.

Learn more about key findings from the report here.

Media Contacts:
BCG: Eric Gregoire, +1 617 850 3783, gregoire.eric@bcg.com
Blue Horizon: Marc Duckeck, +41 79 639 42 38, marc.duckeck@bluehorizon.com

ABOUT BLUE HORIZON

Blue Horizon is accelerating the transition to a Sustainable Food System that delivers outstanding returns for investors and the planet. The company is a global pioneer of the Future of Food. As a pure play impact investor, Blue Horizon has shaped the growth of the alternative protein and food tech market. The company invests at the intersection of biology, agriculture and technology with the aim to transform the global food industry. Blue Horizon was founded in 2016 and is headquartered in Zurich, Switzerland. To date, the company has invested in more than 70 companies. Its business model offers an attractive opportunity to invest in the evolution of the global food system while contributing to a healthy and sustainable world. www.bluehorizon.com

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
 
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

New Report from AI for the Planet Alliance, BCG, and BCG GAMMA Reveals a Strong Appetite for Using AI to Tackle Climate Change, but Organizations Face Obstacles to Achieving Impact at Scale

BOSTON—Climate change will have significant impacts on environmental, social, political, and economic systems around the world. Climate change mitigation, along with adaptation and resilience, is therefore crucial. Efforts to achieve net-zero emissions by 2050 will be essential, as will efforts to prepare for the consequences of climate change and to minimize the resulting harm. Applying advanced analytics and artificial intelligence (AI) to climate challenges provides a vital way to make meaningful change at this critical moment.

According to a new report from the AI for the Planet Alliance, produced in collaboration with Boston Consulting Group (BCG) and BCG GAMMA, 87% of public- and private-sector leaders who oversee climate and AI topics believe that AI is a valuable asset in the fight against climate change. The report, titled How AI Can Be a Powerful Tool in the Fight Against Climate Change, is being released today.

Based on survey results from over 1,000 executives with decision-making authority on AI or climate-change initiatives, the report finds that roughly 40% of organizations can envision using AI for their own climate efforts (see the exhibit). However, even among these experts, there is widespread agreement that significant barriers to broad adoption remain in place: 78% of respondents cite insufficient AI expertise as an obstacle to using AI in their climate change efforts, 77% cite limited availability of AI solutions as a roadblock, and 67% point to a lack of confidence in AI-related data and analysis.

“AI’s unique capacity to gather, complete, and interpret large, complex data sets means it can help stakeholders take a more informed and data-driven approach to combating carbon emissions and addressing climate risks,” said Hamid Maher, managing director and partner at BCG and BCG GAMMA, and a coauthor of the report. “However, most existing AI-related climate solutions are scattered, tend to be difficult to access, and lack the resources to scale. These shortcomings need to change.”

Uses of AI in Combating Climate Change

Global leaders can use AI to achieve their goals in multiple ways:

• Mitigation. One of the most critical uses of AI is in the measurement, reduction, and removal of emissions and greenhouse gas (GHG) effects. More than 60% of public- and private-sector leaders see the greatest business value for their organizations in the reduction and measurement of emissions. According to BCG, use of AI can drive reductions of 5% to 10% GHG emissions, or 2.6 to 5.3 gigatons of CO₂e if applied globally.
• Adaptation and Resilience. Adapting to climate change is a critical undertaking for policy makers and the public, as it boosts resilience to the effects of both long-term climate trends and extreme weather events. AI is well suited to help project climate-related hazards, whether by improving long-term projections of localized events such as sea-level rise or by upgrading early warning systems for extreme phenomena such as hurricanes or droughts.
• Fundamentals. AI can be used to support research and education efforts about climate change, helping stakeholders understand the risks and implications involved and encouraging them to share what they learn. These efforts support and magnify ongoing work toward mitigation and adaptation and resilience.

Need for Meaningful Support

A multitude of critical uses for AI exist in the climate change arena, but any successful AI solution must be user-friendly and readily accessible. It must offer tangible benefits to the user and provide clear recommendations that are easy to act on. AI solutions therefore need much more meaningful support, including access to capital investment, decision makers, and trained practitioners.

“AI has strong promise to help solve the climate crisis, but AI alone is not enough. It depends on the will of decision makers to act and make necessary changes—supported in part by AI and other emerging technologies,” said Damien Gromier, founder of AI for the Planet and a coauthor of the report.

AI for the Planet has invited all interested parties to participate in its call for solutions, with proposals in any stage of maturity (if ready for a first pilot, at a minimum) and from any sector, whether private, public, academic, or nonprofit. Support for each solution chosen will be tailored to its needs and may range from customized commercial or technical support to investor relationships and network development.

To learn more about the call for solutions or to apply, please see here.

See detailed survey findings and information about the report here.

Media contact:
BCG: Eric Gregoire, gregoire.eric@bcg.com
AI for the Planet Alliance: Damien Gromier, damien.gromier@startupinside.com

ABOUT THE AI FOR THE PLANET ALLIANCE

AI for the Planet is an alliance created by Startup Inside, with Boston Consulting Group (BCG) and BCG GAMMA as knowledge partners, and in collaboration with the AI for Good Foundation; the United Nations Development Programme (UNDP); the United Nations Educational, Scientific and Cultural Organization (UNESCO); and the UN Office of Information and Communications Technology (OICT).

It is a unique, multidisciplinary, and diverse coalition intended to: 1. Promote innovation in applying advanced analytics and artificial intelligence (AI) to climate challenges, supported by global experts from academia, startups, and the public and private sectors; 2. Act as a global platform for identifying and prioritizing the leading tools and use cases for AI in addressing the climate crisis; 3. Identify and champion the most promising solutions for addressing climate change mitigation and adaptation and resilience, especially in the Global South, offering the solutions visibility and recognition; 4. Ensure impact at scale through concrete and measurable actions, such as building access to funding and to practitioners on the ground; and 5. Facilitate the development of networks between project teams, investors, and experts in the field—including startups, corporations, and the public sector.

ABOUT BCG GAMMA

BCG GAMMA is BCG’s global team dedicated to applying artificial intelligence and advanced analytics to critical business problems at leading companies and organizations. The team includes more than 1,500 data scientists and engineers who utilize AI and advanced analytics (including machine learning, deep learning, optimization, simulation, natural language, and image analytics) to build solutions that transform business performance. BCG GAMMA’s approach builds value and competitive advantage at the intersection of data science, technology, people, business processes, and ways of working.

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
 
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

A BCG Survey of More Than 7,000 Deskless Workers from the US, Australia, France, Germany, India, Japan, and the UK Shows That Almost 40% May Quit Their Jobs in the Coming Months

BOSTON—“Deskless” workers include construction, distribution, factory, health care, retail, and transportation employees, and comprise approximately 75% to 80% of all workers. And unlike the 20% to 25% of desk-bound or office workers, deskless workers don’t have the option of working hybrid.

With many organizations already struggling with deskless talent shortages, the latest study from Boston Consulting Group (BCG), titled “Why Deskless Workers Are Leaving—and How to Win Them Back,” shows that the problem could worsen significantly in the months aheadif company leaders don’t act quickly.

Based on a seven-nation BCG survey conducted this spring, the research showed that employers are at risk of losing as many as 37% of their deskless workers within the next six months. Nearly a third of those workers already are planning to leave. A similar percentage said they haven’t yet decided whether they want to stay or go. And a slightly higher percentage said they expect to stay in their jobs for the next six months but aren’t ready to make a commitment beyond that.

The study found that Gen Z and hourly paid staff are more likely to leave their jobs than other deskless workers, with 48% of younger employees at risk of leaving within the next six months.

Uptick in Resignations Could Exacerbate Talent Shortages

BCG’s latest employment survey results were released against the backdrop of widespread global talent shortages that threaten to further disrupt global labor markets and supply chains.

Persistent talent shortages now rank among the greatest challenges facing many companies. The US has millions more job vacancies than people looking for work. Germany reports record-high shortages of skilled workers. France and the other countries included in the survey face similar challenges.

Globally, Japan’s deskless workers indicated the weakest attachment to their current jobs, with 42% either planning to leave (11%), undecided (24%), or unwilling to make a commitment beyond six months (7%). Workers in the UK followed closely behind at 41%, with a higher percentage (15%) already having decided to leave their current jobs in the next six months, another 15% unwilling to commit beyond six months, and 11% undecided. At the other extreme, German and US deskless workers were the least at risk of leaving, the survey showed—but not by much, with 13% and 12%, respectively, already planning their exits. Among the seven countries surveyed, France had the lowest percentage of deskless workers already planning to quit—although they comprised a still-significant 10% of employees.

“The costs of open positions are only going to get worse unless leaders start to materially address the reasons why employees are leaving,” said Debbie Lovich, BCG’s global leader for the future of work. “The good news is that when leaders take the time to walk in the shoes of and listen to their ‘deskless’ talent they will find ideas—often low-cost ones—for how they can immediately make their employees lives better. And they will also surface more innovative ideas (e.g., shift marketplaces, upskilling, expanded and differentiated benefits) that will enhance the work and lives of these critical colleagues.”

What Workers Want

When asked to identify the main factors driving their decision to leave their current job, more than four in ten respondents (41%) identified a lack of career advancement opportunities. Thirty percent cited pay, 28% said they want more flexibility in where and when they work, 22% said improving work-life balance, and 15% highlighted a lack of enjoyment in their current position.

Among the respondents who said they plan to stay in their current job for at least another year, nearly half (48%) identified satisfaction with pay as one of the top reasons. The next most common reasons included enjoyment of their current role (30%), job security (27%), an easy commute (23%), and career advancement (23%).

Satisfaction and Pain Points

The benefits for employers who understand and act on their deskless workers’ needs are clear. Satisfied workers are eight times as likely to stay in their roles for over two years than unsatisfied workers.

Overall, deskless workers identified five challenges when asked about pain points: their work schedules (56%, applicable mostly to shift workers), benefits package (49%), a lack of opportunity for career growth and advancement (48%), a lack of opportunity to learn new skills (46%), and feeling that their contributions go unnoticed (42%).

Avoiding the Next “Great Resignation”

The BCG research points to several bolder steps leaders can pursue to address the concerns of unsatisfied employees and strengthen their bonds with satisfied employees. Compensation clearly needs to be addressed, but other factors are also critical:

• Flexible scheduling. Consider each worker’s lifestyle and needs when designing and scheduling shifts, create shift “marketplaces” where and when it’s possible, and use technology to creatively design workers’ schedules.
• Expanded benefits. Consider expanding benefits to entire households, offering on-site or subsidized daycare, providing financial planning assistance, and other job and life-enhancement perks.
• Career growth and upskilling. Invest in upskilling and/or retraining all workers, including frontline managers, to support career growth, actively identifying career pathways for workers.
• Demonstrated support of and commitment to deskless workers. Build a “frontline-first culture” with leaders committed to spending time listening to and acting on their deskless employees’ views.

Learn more about key findings from the report here.

Media Contacts:
Brian Bannister
+44 7919 393753
bannister.brian@bcg.com

Eric Gregoire
+1 617 850 3783
Gregoire.eric@bcg.com

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
 
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.