European ecommerce to grow 9% annually

By: Trademagazin editor Date: 2023. 10. 10. 09:37

The European ecommerce market is expected to reach 1.5 trillion dollar by 2027, according to GlobalData in a new research report. This translates to an average annual growth rate of 9 percent.

It means that European growth is lagging slightly behind the global growth rate, which GlobalData estimates at 9.5 percent. The data and analytics firm predicts that global ecommerce spending will reach 9.3 trillion dollars in 2027, compared to 5.9 trillion dollars in 2022. This represents a total growth of just under 60 percent in five years.

Pandemic

In recent years, the annual growth in ecommerce spending has been higher, specifically 15 percent between 2016 and 2022. Online expenditures during this period increased from 2.5 trillion dollars to the mentioned 5.9 trillion. GlobalData attributes this significant increase in part to Covid-19, stating: “Covid-19 was a crucial factor in this growth as the pandemic lockdowns accelerated the shift to online shopping.”

Ecommerce as a service

But the growth is far from over, as indicated by GlobalData’s new forecast. The firm explains: “The global ecommerce market is being democratized by ecommerce as a service companies, like Shopify, and marketplaces, like Amazon and Alibaba, that allow anyone to become a merchant.”

“Alongside this”, GlobalData continues, “improved technology, new delivery services, and wider internet adoption will help the global value of ecommerce transactions hit 9.3 trillion dollars by 2027.”

Geographical disparities

The US and China are expected to account for over half of the ecommerce industry’s value in 2027, according to GlobalData, which expects substantial growth for Europe. “However, emerging markets should not be overlooked”, the agency emphasizes. India is an exponent, with an expected average annual growth rate of 23 percent until 2027.

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