May 22, 2024
Europe Quick E-Commerce Market

Europe Quick E-Commerce (Quick Commerce) Market is Estimated to Witness High Growth Owing to Technological Advancements in Delivery Logistics

The Europe quick e-commerce (quick commerce) market has seen tremendous growth over the recent past owing to the rising demand from consumers for hyperlocal delivery of daily essentials and grocery items within a short span of time, in most cases within one hour. Quick commerce refers to delivering goods ordered online to customers within a few hours by leveraging local dark stores, fulfillment centers, and logistics infrastructure. Common products sold through quick commerce include groceries, household supplies, over-the-counter medicines, snack items, and food takeaways from nearby restaurants and cloud kitchens. The quick delivery model provides immense convenience to consumers to order everyday goods and receive them in no time, without having to step out, especially amid the ongoing pandemic.

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.

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.

Key opportunities in the market include increasing demand from lower-tier cities and expansion of product catalog to include fresh food items. Major companies are expanding their fulfillment centers across new cities to tap the emerging opportunities.

Technological advancements like AI-enabled forecasting, in-store automation, roadside deliveries through autonomous vehicles and drones are enhancing the delivery efficiency and enabling quicker deliveries within the promised timelines.

Market drivers:
The main driver for the growth of quick commerce market in Europe is the shift in consumer behavior towards online shopping for daily essentials and growing preference for fast, on-demand deliveries. The ongoing pandemic has further accelerated this trend as people try to minimize physical shopping. Moreover, investments from major e-commerce players to build hyperlocal logistics capabilities through automation and expansion into new markets will continue to propel market growth over the next few years.

Current Challenges in Europe Quick E-Commerce (Quick Commerce) Market
The Europe Quick E-Commerce Market
is facing challenges in terms of high cost of setting up infrastructure for quick delivery, lack of standardized delivery conditions across countries, regulatory barriers for autonomous vehicle adoption etc. Challenges in scaling up delivery infrastructure, achieving economies of scale at hyperlocal level, ensuring quality and timely deliveries are negatively impacting the growth of this market currently. Building consumer awareness about delivery timelines for quick commerce model and standardizing regulatory policies across countries is also a challenge.

SWOT Analysis
Strength: Existing grocery infrastructure and proximity to customers enables quick deliveries within defined time slots. Weakness: Hyperlocal model involves high fixed cost of maintaining fleet, fulfillment centers. Opportunity: Urbanization trend and increasing preference for convenience will drive demand. Threats: Entry of deep-pocketed global retailers can disrupt the market.

Geographical Regions
In terms of value, the UK quick e-commerce market captured over 30% share in 2024 owing to high smartphone and internet penetration and concentration of startups. The German market followed next driven by rising preference of citizens for seamless online grocery shopping and delivery experience. Other major country markets include France, Spain, Italy and Turkey where quick commerce adoption is surging backed by growing young working population with less time.

Fastest Growing Geographical Region
Central and Eastern Europe region is poised to be the fastest growing region for Europe quick e-commerce market during the forecast period. Countries like Poland, Czech Republic, Hungary etc are witnessing surge in number of quick commerce startups as well as gaining traction among young shoppers. Availability of skilled workforce, increasing digitization across Tier-1 and Tier-2 cities and government initiatives to promote digital commerce are some factors accelerating growth of quick commerce model in this region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it