Europe E-commerce Market by Business Model (Horizontal E-commerce and Vertical E-commerce), Browsing Medium, Payment Mode (Card Payments, Digital Wallets, Bank Transfers, Cash Payments), Operating Channel, and Offering - Forecast to 2030

The Europe E-commerce Market is projected to reach $2,984.8 billion by 2030, at a CAGR of 15.7% from 2024 to 2030. The growth of this market is driven by rising internet and smartphone penetration, the growing usage of social media and social commerce, and increasing consumer interest in convenient shopping solutions. Furthermore, E-commerce automation and the expansion of cross-border E-commerce are expected to create market growth opportunities during the forecast period.

However, online fraud and cybersecurity issues and local laws and regulations for international E-commerce restrain the growth of this market. Also, high internet prices and increasing security & privacy concerns are major challenges for the players in this market. Furthermore, the rising adoption of AI and the growing use of AR and VR technologies in E-commerce are key trends in the Europe E-commerce market.

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Growing Use of Social Media and Social Commerce

Social commerce is the sale and purchase of goods or services directly within a social media platform. Social commerce integrates the entire e-commerce purchasing process into social media. As a result, users can make purchases directly from their social media feeds. Social commerce is the way forward as it understands and caters to consumers’ changing preferences. Several studies have indicated that users spend considerable time researching products and brands on social media. This has elevated the significance of E-commerce on social media platforms. E-commerce broadly encompasses the process of buying and selling goods online. It includes selling products through various digital channels, including online marketplaces, websites, and dedicated retailer apps. Social commerce involves selling products & services directly through a social media platform. Since social media is an online channel, social commerce is a subset of E-commerce. The popularity of online marketplaces has increased significantly in recent years. The popularity of online marketplaces in Europe has grown slower compared to the U.S. or China. However, these marketplaces have become an increasingly crucial online route of entry for brands worldwide looking to break into the European market.

Moreover, European consumers use cosmetic products extensively and perceive them as essential in improving their quality of life and boosting self-esteem and social interactions. Consumers’ increased health consciousness drives the demand for natural personal care products. Consumers are turning to organic personal care products, which is expected to drive market growth during the forecast period. Furthermore, for beauty brands, the importance of influencers and micro-influencers will continue to grow as they help boost sales in the beauty space through E-commerce.

Furthermore, the growth of the social commerce industry has been partly fueled by innovative start-ups. These start-ups have also attracted global venture capital and private equity funds, driving multi-million-dollar investments into their business operations. Additionally, various key players in this market are launching initiatives in the social commerce space, which is expected to boost the growth of the E-commerce market in Europe. For instance, in February 2024, Romanian online retailer eMAG, with operations in Romania, Bulgaria, and Hungary and a marketplace hosting 40,000 sellers, developed a 100,000–120,000 sqm logistics hub near Budapest, one of the largest in Central and Eastern Europe (CEE). Such developments are expected to boost social commerce in European countries, supporting the growth of the Europe E-commerce market.

Key Findings in the Europe E-commerce Market Study:

The Vertical E-commerce Segment to Register the Higher CAGR During the Forecast Period

Based on business model, the Europe E-commerce market is segmented into horizontal E-commerce and vertical E-commerce. The vertical E-commerce segment is projected to register the higher CAGR during the forecast period. The growth of this segment is driven by the growing popularity of dedicated E-commerce portals, the shorter timespans required for shopping from vertical E-commerce, and the availability of personalized merchandising. The vertical E-commerce model allows businesses to offer customers a specialized and tailored shopping experience within specific product categories or industries. By focusing on a specific niche, businesses can differentiate themselves from larger, more generalized E-commerce platforms and establish a strong brand identity.

The Mobile/Tablet Segment to Register the Higher CAGR During the Forecast Period

Based on browsing medium, the Europe E-commerce market is segmented into desktop/laptop and mobile/tablet. The mobile/tablet segment is subsegmented into application-based and browser-based. The mobile/tablet segment is projected to register the higher CAGR during the forecast period. The growth of this segment is driven by the higher sales of mobile/tablet devices compared to laptop/desktop devices and growing internet penetration across the globe. The pocket-friendly size of smartphones is the main reason for the higher use of smartphones for E-commerce.

The Digital Wallets Segment to Register the Highest CAGR During the Forecast Period

Based on payment mode, the Europe E-commerce market is segmented into card payments, digital wallets, bank transfers, cash payments, and other payment modes. The digital wallets segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the convenience and security of digital wallets and E-commerce portals’ encouragement to use digital wallets.

The Omni-channel E-commerce Segment to Register the Higher CAGR During the Forecast Period

Based on operating channel, the Europe E-commerce market is segmented into pure play E-commerce and omni-channel E-commerce. The omni-channel E-commerce segment is projected to register the higher CAGR during the forecast period. The growth of this segment is driven by the benefits of omni-channel E-commerce, such as enhanced customer experience, increased sales & consumer traffic, better customer loyalty, and better data collection for optimum customer and resource management.

The Beauty & Fashion Products Segment to Register the Highest CAGR During the Forecast Period

Based on offering, the Europe E-commerce market is segmented into beauty & fashion products, travel & tourism, electronic products, household products, pharmaceutical products, food & beverage, and other offerings. The beauty & fashion products segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by various factors, such as rapidly changing customer behaviors and preferences in online shopping, high demand for cosmetics and clothing, and the rising popularity of mobile wallets. Also, the increasing use of smartphones, the incorporation of advanced technologies in online platforms, and the higher availability of various beauty & fashion goods for comparison on E-commerce platforms support this segment's growth.

Spain to be the Fastest-growing Country-level Market

Based on geography, the Europe E-commerce market is segmented into the U.K., Germany, France, Italy, Spain, the Netherlands, Switzerland, Sweden, Poland, Norway, Denmark, Ireland, Russia, and the Rest of Europe. Spain is slated to register the highest CAGR during the forecast period. The growth of this market is mainly driven by the growing acceptance of mobile commerce, government initiatives encouraging the use of advanced technologies, rising internet penetration, and consumer inclination toward online payment and shopping platforms.

Spain is one of Europe's largest markets for fashion, electronics, and media in terms of revenue. This market is primarily driven by rising Internet and smartphone penetration, increasing reliance on social media to promote e-commerce platforms, expanding omnichannel business models, and the introduction of new payment modes. Smartphone usage and technological awareness among users have increased dramatically over the last decade, positively impacting market growth. Furthermore, advances in connectivity and the availability of high-speed internet, such as 3G, 4G, and 5G, have positively impacted market growth. Additionally, the key players in this market are undertaking initiatives for market development. For instance, in December 2022, Chinese e-commerce giant Alibaba launched a new marketplace called Miravia in Spain. The platform offers fashion, beauty, food, and lifestyle products.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading players. The key players operating in the Europe E-commerce market are Amazon.com, Inc. (U.S.), Alibaba Group Holding Limited (China), eBay Inc. (U.S.), Rakuten, Inc. (Japan), ALLEGRO.EU S.A. GROUP (Luxembourg), AliExpress (China), Zalando SE (Germany), ASOS plc (U.K.), Cdiscount (France), Otto GmbH & Co KG (Germany), Flubit Ltd (France), The Very Group Limited (U.K.), Ocado Group (U.K.), H & M Hennes & Mauritz AB (Sweden), and E.Leclerc (France).

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