Europe E-Commerce Market Report and Forecast 2024-2032

Europe E-commerce Market Size

The Europe e-commerce market value reached approximately USD 911 billion in 2023. The market is projected to grow at a CAGR of 9.50% between 2024 and 2032, reaching a value of around USD 2,090.04 billion by 2032.

Europe E-commerce Market Growth

E-commerce in Europe provides several advantages, such as broader market access, convenience, and a wide variety of products. It helps businesses lower operating costs and obtain valuable customer insights. The EU's single market facilitates easier cross-border trade, and advancements in technology enhance the shopping experience.

Additionally, e-commerce promotes sustainability by decreasing the need for physical stores and reducing travel. Increased competition can lead to better pricing for consumers, and small and medium-sized enterprises (SMEs) benefit from a more level playing field, enabling them to compete with larger firms and drive further the growth of the Europe e-commerce industry.

Europe E-commerce Market Analysis

The growth of the Europe e-commerce market is supported by rising internet access, widespread mobile usage, and evolving consumer habits. In 2021, online retail sales in the region amounted to EUR 768 billion, representing 16.1% of all retail sales. Germany has one of the largest e-commerce markets in Europe. As of 2022, e-commerce penetration in Germany reached about 80%, positioning itself as the third highest on a global scale.

Moreover, by 2025, it is estimated that the online population of Germany will reach 68.4 million. The increasing population is quickly embracing digital payment methods, which offer greater convenience and security for online transactions. This trend further boosts the demand for Europe e-commerce market.

Europe E-commerce Industry Outlook

According to the Global System for Mobile Communications, the Mobile Economy in Europe is experiencing steady growth, with unique mobile subscribers increasing from 496 million in 2022, with a 90% penetration rate, to a projected 507 million by 2030, reaching a 92% penetration rate. Similarly, the number of mobile internet users is expected to rise from 464 million in 2022, with an 85% penetration rate, to 479 million by 2030, achieving an 87% penetration rate.

By 2030, the mobile landscape in France and Germany is expected to show significant advancements. In France, subscriber penetration will increase from 93% in 2022 to 96% in 2030, while smartphone adoption will rise from 85% to 94%. In Germany, subscriber penetration is expected to rise from 91% in 2022 to 94% by 2030, while smartphone adoption is anticipated to increase from 82% to 93%, according to the Global System for Mobile Communications. This growth fuels the Europe e-commerce industry revenue by driving businesses to enhance and develop mobile-friendly websites and apps, thereby improving the overall shopping experience.

According to the Deutsche Bundesbank, in Germany, the share of mobile payments at the point of sale (POS) has shown significant growth. By turnover, mobile payments accounted for 2.7% in 2021, up from 2.1% in 2020. Similarly, by the number of transactions, mobile payments represented 2.6% in 2021, compared to 2.2% in 2020.

Eurostat reports that internet access in France has increased from 75.3% in 2010 to 92.8% in 2023. This rise in internet penetration boosts e-commerce adoption among a larger user base, which in turn drives the growth of the Europe e-commerce market revenue and creates more business opportunities.

According to the World Bank, internet usage in Italy has grown from 68% in 2019 to 85% in 2022. Similarly, in Germany, the proportion of individuals using the Internet has increased from 88% in 2019 to 92% in 2022.

Europe's substantial and diverse consumer base offers extensive e-commerce market opportunities.

• Well-developed logistics and digital infrastructure support efficient online transactions and delivery.

• Widespread internet access and smartphone usage facilitate easy and widespread online shopping.

Varying regulations across countries can create compliance challenges and hinder market entry.

• Cultural and language differences can complicate marketing and customer service strategies.

• Increasing cyber threats pose risks to consumer trust and data security.

Growing smartphone use offers new avenues for mobile-based shopping and engagement.

• Growing demand for eco-friendly products and practices can be leveraged for competitive advantage.

• Advancements in AI, AR, and other technologies can improve customer experiences and operational efficiency, driving the Europe e-commerce market revenue.

High competition from both local and global players can pressure profit margins.

• Economic fluctuations and inflation can impact consumer spending and purchasing power.

• Evolving data protection and e-commerce regulations can affect operational practices and costs.

Key Players in the Europe E-Commerce Market and their Key Initiatives

eBay Inc.

• Launch of Managed Payments System to streamline transactions. 

• Expansion of Authenticity Guarantee for luxury items. 

Amazon.com Inc.

• Expansion of fulfillment centers in key European locations to capture the Europe e-commerce market opportunities. 

• Introduction of Amazon Fresh grocery delivery service in new European cities.

Allegro

• Expansion into new markets to increase regional presence. 

• Launched a new delivery program, Allegro Delivery.

Zalando SE

• Increased collaboration with over 5,800 brands to meet the growing demand of the Europe e-commerce market. 

• Launched the "do.MORE" sustainability strategy.

Europe E-commerce Industry Segmentation

“Europe E-commerce Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Business to Consumer (B2C)

• Business to Business (B2B)

Market Breakup by Industry

• Beauty and Personal Care

• Fashion and Apparel

• Consumer Electronics

• Food and Beverage

• Health and Wellness

• Home Decor

• Household Consumables

• Others

Market Breakup by Country

• Germany

• United Kingdom

• France

• Italy

• Others

Europe E-commerce Market Share

With the growth of the Europe e-commerce market, the beauty and personal care sector thrives due to strong consumer demand, personalized recommendations, and easy online access to a diverse product range. E-commerce also facilitates niche markets and provides brands with global reach.

Similarly, the fashion and apparel sector benefits from rapid trend adaptation, a wide array of products, and enhanced shopping experiences through features like virtual try-ons. Lower operational costs and access to international markets further propel growth for fashion brands. Both sectors effectively use online platforms to broaden their audience and increase sales.

Leading Companies in the Europe E-commerce Market

Market players are adopting software technologies to enable a more customised user experience, particularly on mobile devices.

• eBay Inc. 

• Amazon.com Inc. 

• Allegro

• Zalando SE  

• ASOS Plc 

• Rakuten Group Inc.

• Cdiscount 

• Otto (GmbH & Co. KG) 

• Dante International S.A. (eMAG) 

• Fruugo.com Ltd

Key Highlights of the Report

Europe E-Commerce Market Report Snapshots

Europe E-Commerce Market Size

Europe E-Commerce Market Growth

Europe E-Commerce Market Analysis

Europe E-Commerce Market Share

Europe E-Commerce Companies