Luxembourg E-Commerce Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Luxembourg E-commerce market is expected to register a CAGR of 8.9% over the forecast period from 2022 to 2027.

• Luxembourg's geographical location enables the country's e-commerce market to benefit from proximity to significant e-commerce markets in Europe, such as Germany. Thus, enabling new international merchants to enter the Luxembourg e-commerce market via cross-border e-commerce.
• The e-commerce market in Luxembourg is expected to increase due to convenient banking facilities and high internet and smartphone penetration, enabling consumers to browse for the desired product and purchase it online easily.
• According to the Global Innovation Index 2021, Luxembourg is ranked 23rd of the 132 economies in the study. According to the European questionnaire on Information and Communication Technologies reported by Eurostat, 94% of internet users in Luxembourg will use the internet at least once a day in 2021.
• Further, new VAT regimes have been implemented that include amendments initiated by the European Commission with the fundamental objective of regulating and controlling e-commerce activities. This includes the implementation of a one-stop VAT shop (One-Stop-Shop or “OSS”) for intra-community distance selling of goods and the distance providing of services. Thus easing the processes of doing business in the region.
• Due to stringent lockdowns in the country during the Covid-19 pandemic, there was a sudden surge in e-commerce in the country as businesses had to implement online retail to serve their customers. Also, Covid-19 has expanded the scope of e-commerce through new firms, consumer segments, and products.

Scope of the Report

Conducting an e-commerce business means fostering relationships and selling information, services, and goods over computer communication networks. E-commerce usually refers to trading goods and services over the internet, which means broader economic activity. E-commerce consists of B2B and B2C and internal organizational transactions that support these activities.

The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period in Luxembourg. The study further analyzes the overall impact of Covid-19 on the ecosystem. The scope of the report encompasses market sizing and forecast for segmentation by B2B and B2C, in which the B2C channel is further segmented by application.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Increased adoption of Digital Solutions

• In 2021, Luxembourg was ranked 8th of 27 members of the Digital Economy and Society Index (DESI). The country performs very well in terms of connectivity, ranking 4th, and is also above the EU average score for integration of digital technology.
• The government of Luxembourg implemented a variety of strategies and initiatives to boost the digital skill of the population in the country. For instance, the competent ministries have launched initiatives for children and youth in the school system to support digital skill training for sectors such as industries, education, research, and the public sector.
• Further, the country is noted to focus on the rollout of fiber technology and mobile 5G networks which aids the adoption of digital solutions in urban and rural areas of the country. The country's new National Broadband strategy emphasizes ensuring private investments for gigabit objectives for 2025 in the country.
• Mobile commerce is expected to outpace other channels of overall e-commerce in the near future due to the surge in popularity of mobile commerce as well as the increase in the adoption of mobile by the public for shopping needs rather than a desktop.

To understand key trends, Download Sample Report