Market Trends of Norway E-commerce Industry
This section covers the major market trends shaping the Norway E-commerce Market according to our research experts:
Growing Number of E-shoppers is Expected to Boost E-commerce Market
- E-shoppers are the consumers that order their goods and services online to be delivered at home. Today e-shoppers are confident in the online shopping experience and now expect a high level of service with every purchase. Moreover, the region has a 98% population that has access to internet connection.
- As per data from Eurostat, the percentage of internet users in Norway that bought goods or services online was 78% in 2017. This percentage drastically increased to 87% in the year 2020. Due to the increase in e-shoppers, the e-commerce sector is gaining growth and is expected to grow further over the forecast period.
- The use of e-commerce activities has gained much popularity among many consumers in Norway over the past few years. This popularity has been enhanced by using social media platforms which have boosted the way such activities are carried out. Platforms like Facebook and Pinterest remain to be highly popular in the country. Many market players are promoting their products and services on social media platforms to gain more market share.
- Credit and debit cards are the most commonly used electronic payments; that Norwegian people choose for their online purchases. Card payments remain attractive partly because of the rewards and rebates. As per the Norges Bank, the most famous payment method at points of sale in Norway was card payments, with 83% in Spring 2021.
- Moreover, the frequency in which people use the internet is relatively high in Norway. As per Eurostat, 95% of internet users in Norway used the internet daily at least once a day in 2021 compared to 94% in 2020. This increase in daily internet use can inspire more e-shoppers to use e-commerce websites, which may result in the growth of the e-commerce market in the region.
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Consumer Electronics Segment is Expected to Grow at a Significant CAGR
- As per the International Trade Association, Norway is a modern, energy-rich country and is considered one of the world's wealthiest countries, with the GDP per capita based on purchasing power parities exceeding USD 63,500. Incomes in the region are also more evenly distributed, making every person a consumer.
- Moreover, some of Norway's most popular and biggest e-commerce stores are consumer electronics store Komplett.no and consumer electronics retailer Elkjøp (known as Elgiganten outside Norway). These Market players offer consumers discounts and advanced payment systems to gain more market share.
- As per Statistics Norway, the online purchase of electronics equipment was 23% in 2019, 13% in 2020, and 20% in 2021. The increase in online purchases is further expected to grow over the forecast period due to more advanced apps by e-commerce market players and faster delivery speed.
- Similarly, the online purchase of computer hardware was 13% in 2019 and increased to 17% in 2021. Furthermore, the online purchase of media (films and music) was 48% in 2019, and it grew to 63% in the year 2021. In the coming years, this growth is further expected in the electronics and media segment.
- The online purchase of consumer electronics is more prevalent in the age group of 25 to 44. The age group accounted for more than 56% of online purchases of electronic equipment in the year 2021. Higher internet penetration in the region and extensive digital advertising by e-commerce companies is further expected to increase the demand for e-commerce purchasing of electronic and media over the forecast period.
