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 |
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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.
