The Europe quick e-commerce (quick commerce) market is one of the fastest growing e-commerce industries that provides the facility of delivering goods within a few minutes or an hour. Quick commerce business model aims at delivering various products ranging from groceries, food items, beverages, and others to customers within a very short timeframe, usually within an hour after ordering. The need for quick and convenient shopping along with changing consumer behavior has boosted the growth of quick commerce platforms across Europe.
The Global Europe quick e-commerce (quick commerce) Market is estimated to be valued at US$ 5.59 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2030.
The growth in smartphone penetration, internet connectivity, and expansion of online grocery platforms across Europe act as major growth drivers for the quick e-commerce market. However, the high costs incurred in setting up dark stores and last-mile deliveries pose challenges for quick commerce vendors.
Key Takeaways
Key players operating in The Europe Quick E-Commerce (quick commerce) are Motorola Solutions, ABB, Everbridge, Hexagon, IBM, General Electric, Siemens, Honeywell, Huawei, Cisco, Microsoft, Rockwell Collins, Saab, Ericsson, Harris Corporation, Motorola Solutions, NEC Corporation, Lockheed Martin, TCS, Atos. These players are focusing on strategic collaborations and new service launches to gain momentum in the market.
There is high growth potential for quick commerce platform providers in dense urban areas across Europe. The companies are targeting tier 1 and tier 2 cities to expand their footprint. Investments in smart city infrastructure development also offers key opportunities for growth.
The quick commerce players based in Europe have expanded their business operations globally. Motorola Solutions and Ericsson have established quick commerce logistics centers in the Middle East and Asia Pacific region. Other players are also evaluating opportunities in the US and other international markets.
Market drivers:
1) Rising urbanization: High population density in urban areas of Europe creates the need for quick grocery and food delivery services. This acts as a key driver for the quick commerce market.
2) Changing customer demands: Customers nowadays demand instant gratification. They expect their shopping needs to be fulfilled instantly through their mobile phones. This drives the adoption of quick commerce platforms.
Market Restrain:
1) High operating costs: Setting up distribution centers/dark stores and managing quick delivery operations involve substantial investments and expenses. This poses challenges for quick commerce businesses to break-even.
2) Traffic congestion issues: Traffic on roads can delay quick deliveries, especially in densely populated European cities. This affects the customer experience negatively.
Segment Analysis
The Europe Quick E-Commerce market can be segmented by type into product, grocery delivery; time into 30 minutes, 60 minutes; end user into individuals, corporate. The product grocery delivery subsegment dominates the market as it offers consumers convenience of getting daily requirements right at their doorstep within minutes. Factors like busy lifestyles, inability to grocery shop during evening hours are driving demand for quick grocery deliveries.
Global Analysis
Regionally, Western Europe accounts for the largest share in the Europe Quick E-Commerce market due to advanced infrastructure and higher consumer disposable incomes. Countries like UK, Germany, France dominate the regional market. Large population centres, high smartphone penetration rate contributing to growth. Eastern Europe is the fastest growing regional market owing to improving digital infrastructure and consumer adoption of e-commerce. Increasing presence of international Quick Commerce startups will further aid growth during forecast period.
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