A recently released research report by GlobalData has painted a promising picture for the European e-commerce market, indicating that it is set to reach a substantial $1.5 trillion by the year 2027. This projection reflects a consistent annual growth rate of 9%. However, this anticipated growth rate lags slightly behind the global average of 9.5%. According to GlobalData’s estimations, global e-commerce spending is expected to hit a remarkable $9.3 trillion by 2027, a significant jump from $5.9 trillion recorded in 2022. This translates to an impressive growth of nearly 60% over five years.
The years leading up to this anticipated growth have witnessed even higher annual growth rates, notably 15% between 2016 and 2022. During this period, online expenditures surged from $2.5 trillion to the aforementioned $5.9 trillion. This substantial increase can be partially attributed to the global impact of the COVID-19 pandemic. The resulting lockdowns played a pivotal role in accelerating the shift towards online shopping.
The democratization of the global e-commerce market is a significant contributor to this expected growth. E-commerce as a service companies such as Shopify and online marketplaces like Amazon and Alibaba have opened doors for individuals to become merchants in the digital landscape. These platforms have expanded their reach, allowing virtually anyone to partake in e-commerce, making it more inclusive than ever.
Furthermore, advancements in technology, the introduction of innovative delivery services, and increased internet accessibility are expected to drive the global value of e-commerce transactions to a staggering $9.3 trillion by 2027. This continued growth paints a promising outlook for the future of the e-commerce sector, with the digital marketplace becoming increasingly accessible and convenient.
The report also highlights the role of major players in the e-commerce landscape, with the United States and China predicted to represent over half of the e-commerce industry’s value by 2027. However, Europe is also expected to experience significant growth. Emerging markets should not be underestimated, with India being a prominent example. India is forecasted to maintain an impressive average annual growth rate of 23% until 2027. This underlines the ongoing expansion and transformation of the global e-commerce landscape, making it an exciting and dynamic sector with significant opportunities for consumers and businesses alike. In light of the evolving online shopping landscape, a recent report has revealed that over 90% of global retailers are actively embracing AI technology.