Market Size of Luxembourg E-Commerce Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Luxembourg E-commerce Market Analysis
During the time frame of the forecast, it is expected that the Luxembourg E-Commerce Market will register a CAGR of 8.9%.
- Because of where Luxembourg is located, its e-commerce market can take advantage of its closeness to important e-commerce markets in Europe, such as Germany. Because of its location, it is easier for new international merchants to enter the e-commerce market in Luxembourg through cross-border e-commerce.
- The e-commerce market in Luxembourg is expected to grow because banking is easy and there are a lot of people with internet access and smartphones. This makes it easy for people to look for what they want and buy it online. According to the European Economic Forecast, the GDP in Luxembourg will slow down to 1.7% in 2023 before returning to 2.4% in 2024.
- According to a report by Datareportal, the internet penetration reached 98.7%, with 642.8 thousand internet users in Luxembourg at the start of 2023. About 868.8 thousand mobile connections were active in Luxembourg in early 2023. These online shoppers will boost the e-commerce market.
- The European E-commerce Report 2022 confirms 80% of Luxembourgers' shops are online.
- To lessen the effects of rising inflation, the government of Luxembourg decided to temporarily lower VAT rates through 2023.These changes will allow buyers to shop more and increase revenues for e-commerce players.
- During the COVID-19 pandemic, there was a sudden rise in e-commerce in the country because businesses had to use online retail to serve their customers. The scope of e-commerce expanded with new firms and consumer segments.
Luxembourg E-commerce Industry Segmentation
E-commerce is the buying and selling of goods using a digital environment like the internet. E-commerce consists of B2B and B2C transactions and internal organizational transactions that support these activities. E-commerce has helped businesses expand into broader markets by providing cheaper and more efficient distribution channels for their products or services.
The Luxembourg e-commerce market is segmented into B2C eCommerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture, and Home) and B2B eCommerce.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By B2C ecommerce | ||||||||
| Market size (GMV) for the period of 2017-2027 | ||||||||
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| By B2B ecommerce | |
| Market size for the period of 2017-2027 |
Luxembourg E-Commerce Market Size Summary
The e-commerce software market in Luxembourg is poised for significant growth, driven by its strategic location in Europe, which facilitates cross-border e-commerce opportunities. The country's high internet penetration and widespread smartphone usage have created a conducive environment for online shopping, with a substantial portion of the population engaging in digital commerce. The government's initiatives, such as temporary VAT reductions to combat inflation, further bolster the market by encouraging consumer spending. The COVID-19 pandemic accelerated the shift towards e-commerce, expanding the market's scope with new businesses and consumer segments. As Luxembourg continues to embrace digitalization, the e-commerce sector is expected to experience broader expansion, supported by advancements in internet speed and connectivity, including efforts to lead in 5G technology.
Luxembourg's e-commerce market is characterized by a growing number of local and international brands, particularly in the fashion industry, which significantly contributes to the market's revenue. The government's focus on innovation and digital transformation, exemplified by initiatives like the GovTech Lab and the Finnovation Hub, aims to modernize business models and enhance the financial sector's digital capabilities. Collaborations with global companies and investments in smart technologies, such as graphene nanotubes for smart textiles, highlight the country's commitment to integrating advanced solutions into its e-commerce landscape. As the market becomes more competitive, driven by both local and international players, Luxembourg is set to strengthen its position in the global e-commerce arena.
Luxembourg E-Commerce Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness-Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Key market trends and share of e-commerce of total Retail sector
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1.4 Impact of COVID-19 on the e-commerce sales
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2. MARKET SEGMENTATION
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2.1 By B2C ecommerce
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2.1.1 Market size (GMV) for the period of 2017-2027
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2.1.2 Market Segmentation - by Application
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2.1.2.1 Beauty & Personal Care
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2.1.2.2 Consumer Electronics
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2.1.2.3 Fashion & Apparel
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2.1.2.4 Food & Beverage
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2.1.2.5 Furniture & Home
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2.1.2.6 Others (Toys, DIY, Media, etc.)
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2.2 By B2B ecommerce
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2.2.1 Market size for the period of 2017-2027
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Luxembourg E-Commerce Market Size FAQs
What is the current Luxembourg E-Commerce Market size?
The Luxembourg E-Commerce Market is projected to register a CAGR of 8.90% during the forecast period (2024-2029)
Who are the key players in Luxembourg E-Commerce Market?
Wehkamp BV, Luxcaddy, Next Germany GmbH, Auchan Retail and Zalando SE are the major companies operating in the Luxembourg E-Commerce Market.
