Europe E-commerce Logistics Market Outlook, 2029

The demands for e-commerce are very different from traditional sales channels and the standard traditional warehouses. When it comes to running an online shop or marketplace, e-commerce logistics refers to the procedures involved in keeping and delivering goods, which include inventory management as well as the selecting, packaging, and shipping of online orders. With millions of parcels being sent throughout the nation on any given day, it is critical that mechanisms be in place to keep them on track and ensure that they are delivered to the correct location in a reasonable amount of time.

E-commerce logistics begins with the movement of goods from the manufacturer and continues until the merchandise reaches the final destination of the end consumer. Digital fulfilment is one of the most important components of e-commerce logistics. In Europe, the e-commerce market has grown rapidly in the last few years. Also, Europe is home to several major e-commerce logistics companies that operate in many countries. These players are very interesting for online retailers that sell cross-border. Europeans shop mostly within their own region. 88% of online purchases made by Europeans were mainly from national sellers. In a ranking of top e-commerce retailers in Europe, most of the retailers originated from Germany, France, and the UK.

According to the research report, “Europe E-commerce Logistics Market Outlook, 2029”, the market was valued at USD 124.79 Billion market size in 2023. The growing popularity of online shopping is driving the e-commerce logistics business in Europe, as merchants strive to optimize logistics for dependable, quick deliveries. Businesses are being forced to improve their supply chain networks and last-mile delivery capabilities in response to consumer demand for quick fulfilment, including same-day and next-day delivery choices.

Automation, artificial intelligence, and big data analytics are just a few of the technological innovations that are revolutionizing distribution and warehousing operations to make them more effective and adaptable to changing consumer needs. Another significant factor is cross-border trade inside Europe, as more and more customers place orders for items from nearby nations, requiring simplified logistics for effective international delivery. Logistics operations in Europe are also being impacted by sustainability, as businesses are implementing carbon-neutral warehouses, electric vehicles, and eco-friendly procedures to comply with local environmental regulations.

The Europe E-commerce Logistics Market encompasses a diverse range of service offerings, each playing a vital role in the efficient delivery of goods to customers. The warehousing segment provides secure and organized storage solutions, ensuring that products are readily available and well-maintained prior to shipment. The transportation category, which is currently leading the market, seamlessly connects these warehouses to the end consumers, leveraging a robust network of delivery options to facilitate the timely and reliable movement of goods. Whether it's by air, road, or rail, the transportation services deployed in this market are meticulously orchestrated to minimize delivery times and maximize customer satisfaction.

Complementing these core functions, the 'Other Service' category encompasses specialized offerings such as returns management and inventory optimization, addressing the unique challenges and evolving needs of the e-commerce landscape. This multifaceted approach to logistics services allows the Europe E-commerce Logistics Market to cater to the diverse requirements of online shoppers, ensuring a seamless and enjoyable purchasing experience from start to finish.

According to the report, the European market is segmented into two operational areas, including international and domestic. Among these types, the domestic e-commerce logistics market is anticipated to acquire a larger portion of the market during the forecast period. Increasing e-commerce penetration across the region is anticipated to fuel the market growth for domestic e-commerce. Further, the market is segmented into various service types, including warehousing, transportation, return and inventory management. Among these types, the transportation segment leads the market with more than 60% in 2023, which is expected to continue the growth in the upcoming timeframe.

Further, the market is segregated into four basic transportation modes, including road, rail, air, and sea. Among these types, the road transportation segment is expected to acquire the highest market share during the forecast period. In terms of transportation mode, road transportation is the most widely used mode for both domestic and international logistics. Europe's well-developed road network and efficient transportation infrastructure make it suitable for timely and reliable deliveries. While rail, air, and sea transportation modes are also utilized, especially for long-distance and international shipments, road transportation remains the primary mode due to its flexibility and cost-effectiveness. However, the strategic port locations across Europe and the strong maritime industry make sea transportation a crucial mode for international logistics, particularly for bulk and containerized goods.

The Europe E-commerce Logistics Market encompasses a diverse array of product segments, each with its own unique logistical requirements and considerations. Electronics, ranging from smartphones and laptops to smart home devices, represent a significant portion of the market, as consumers increasingly turn to online platforms to fulfill their tech-savvy needs. Apparel and accessories, from fashion-forward clothing to stylish bags and accessories, also command a leading position, as customers appreciate the convenience and selection offered by e-commerce platforms.

Home furnishing products, including furniture, home decor, and household items, have also witnessed a surge in demand, as people seek to curate their living spaces from the comfort of their own homes. The health, personal care, and beauty segment caters to the growing consumer focus on wellness and self-care, with a wide range of products, from skincare and makeup to vitamins and supplements, available at the click of a button. The auto and parts segment, encompassing everything from replacement parts to automotive accessories, has also found a strong foothold in the e-commerce landscape, catering to the needs of car enthusiasts and DIY mechanics. Baby products, from diapers and formula to toys and nursery items, have become a popular category, as parents leverage the convenience and selection of online shopping to meet the evolving needs of their little ones. Finally, the books segment, once the domain of traditional brick-and-mortar stores, has seamlessly transitioned to the digital realm, offering readers a vast selection of titles at their fingertips. Across these diverse segments, the Europe E-commerce Logistics Market continues to evolve, adapting to the changing consumer preferences and the ever-increasing demand for seamless, efficient, and reliable delivery solutions.

The European e-commerce logistics market is divided into several major countries, including Germany, the United Kingdom, France, the Netherlands, Spain, Italy, and Russia. Among these countries, the UK is estimated to lead the market during the forecast period. The UK is an island nation separated physically and politically from mainland Europe by the twin barriers of the Channel and Brexit. The UK is nonetheless the continent’s e-commerce leader. Its consumers are educated shoppers, with high potential for quality and service from both domestic and international retailers, and its online sales revenue outranks the combined scale of its two closest continental rivals, Germany and France.

Logistics leaders are launching new services to connect the UK with mainland Europe and help businesses of all sides negotiate shifting border processes, fees, and transport disruption. One World Express recently announced a new platform called Ship2world in partnership with supply chain technology specialist Orange Connex. The platform allows merchants to access hundreds of shipping options and optimise routes, with competitive pricing for UK merchants on outbound shipping to the US, Canada, Australia, and Germany.

COVID-19 impact

In 2020, a noticeable spike in online shopping habits has been recorded across Europe, with many consumers from different countries stating that they had started e-shopping more due to the impact of the coronavirus (COVID-19) pandemic. However, disruptions in the supply chain had impacted the delivery time slot, which impacted the market's growth. However, in 2021, most of the same countries saw an increase in the number of people who bought online more due to the crisis.

Major Companies present in the market

FedEx Corporation, Deutsche Post AG, SF Express Co. Limited, United Parcel Service, Inc., Aramex International, XPO Logistics, Inc., Deutsche Bahn AG, Nippon Express Co., Limited, Kerry Logistics Network Limited, Rhenus Group, Clipper Logistics plc, Gati Limited, Kenco Group, Inc., ZTO Express.

Considered in this report

• Geography: Europe
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Europe E-Commerce Logistics market with its value and forecast along with its segments
• Country-wise e-commerce logistics market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• Germany
• United Kingdom
• France
• Netherlands
• Spain
• Italy
• Russia

By service type in the report

• Warehousing
• Transportation
• Other Service (Return, Inventory management)

By operational area in the report

• International
• Domestics

By transportation mode in the report

• Road
• Rail
• Air
• Sea

By product type in the report

• Electronics
• Apparel and Accessories
• Home Furnishing Products
• Health, Personal Care and Beauty
• Auto and Parts
• Baby Products
• Books
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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