A recent report ongoing study by Infinium Global Research on the e-commerce market provides an in-depth analysis of segments and sub-segments in the CEEC as well as regional e-commerce market. The study also highlights the impact of drivers, restraints, and macro indicators on the CEEC and regional e-commerce market over the short term as well as long term. The report is a comprehensive presentation of trends, forecasts, and dollar values of the CEEC e-commerce market. According to the Infinium Global research study, the CEEC E-commerce market is projected to grow at a CAGR of 13.70% between 2023 and 2030, expanding from USD 98.60 billion in 2022 to reach to USD 274.41 billion in 2030.
The e-commerce sector in CEEC has expanded swiftly in recent years. The e-commerce sector in CEEC has surged due to rising internet penetration, growing middle class, mobile technology adoption, improved logistics, digital payment solutions, market liberalization, and changing consumer behavior favoring online shopping. Moreover, this swift expansion is enhancing customer access to products and services. The advent of e-commerce enables companies to reach a vast consumer base and extend their business into previously unreachable markets across the CEE region.
The key players operating in the market are focusing on vertical and horizontal growth. Vertical strategies involve product diversification, increasing production capacity, launching new products, acquisitions, mergers, and other developments. Horizontal strategies focus on market penetration, expanding into new regions with new plants and sales offices, innovating in new product categories, and other similar developments.
The players in the market are implementing merger and acquisition strategies for the growth of business. For instance, in April 2022, Allegro Company merged with the MALL Group which boosted the combined group's global expansion by integrating the strengths of both companies. This merger, unprecedented in its scope across the region, offers sellers access to an international marketplace. By centralizing their inventory, they can reach millions of shoppers in the European Union, providing them with a vast product selection, competitive pricing, and expedited shipping. Along with the merger, the company is expanding its business by implementing a horizontal strategy. For the expansion of the sales area of the company, the company targets the Czech market as this market has one of the major customer concentrations and internet penetration. According to the World Bank internet penetration in the Czech Republic is around 85% in 2022. Furthermore, In May 2023, the Allegro Company successfully entered the Czech market with Allegro. Cz. The Allegro. cz, a localized version of its popular Polish e-commerce platform. This expansion brings a vast selection of 100 million listings to Czech consumers, made available through partnerships with Polish merchants, signaling a significant growth phase for Allegro and its regional partners. The merger and expansion is one of the key success factors for the players to get maximum revenue.
Additionally, the e-commerce market in the CEEC region is more focused on shifting towards the B2B transaction trend. According to the Infinium Global research study, in the E-commerce market, B2B transactions are dominant in the CEEC region. The first preference of market players is toward the B2B segment. More than 74% of value shares are accounted for by the B2B transactions in the CEEC market.
The majority of players are focusing on the ongoing trend of B2B transactions in the CEEC e-commerce sector. Players in the e-commerce market are focusing on B2B transactions owing to larger transaction sizes, stable revenue streams, efficiency, global reach, customization options, and supply chain integration. According to the Infinium Global research study, in the E-commerce market, B2B transactions are dominant in the CEEC region. The first preference of market players is toward the B2B segment. More than 74% of value shares are accounted for by the B2B transaction in the CEEC market.
Key Insights in the Report:
Hungary's internet penetration has surged in recent years, with 89 percent of households having internet connectivity in 2021. This substantial increase indicates a growing potential pool of online shoppers in the CEE region, offering significant opportunities for expansion in the e-commerce market, both domestically and internationally. Government initiatives aimed at expanding e-commerce activities present a promising opportunity for market growth. Governments across the CEE region are actively implementing programs and regulations to foster digital innovation and stimulate the e-commerce market's expansion throughout the forecasted period. The robust investment in telecommunication infrastructure is contributing to the rise in internet penetration across the region. For instance, according to the Polish Statistics Office, 93.3 percent of all homes had internet connections in 2022. This investment is laying the groundwork for further growth in online shopping and e-commerce activities in the CEEC region.
The e-commerce market in the CEE region is driven by the rising internet penetration across the region. The robust investment in the telecommunication infrastructure leads to a rise in internet penetration across the region. For instance, according to the Polish Statistics Office, 93.3 percent of all homes had internet connection in 2022. The availability and speed of the Internet are greatly influenced by the existence and caliber of telecommunication infrastructure, including fiber optic cables, mobile towers, and Internet Service Providers (ISPs). For instance, according to the Office of Electronic Communications, telecommunications investment spending was USD 2.85 billion (PLN 11.24 billion), up 26.3% from 2021. A more robust infrastructure facilitates improved internet accessibility and customer satisfaction. For example, according to the Office of Electronic Communications, the prevalence of fixed-line broadband internet service grew in Poland for a second consecutive year, 63.2% of homes have internet access in 2022. With the rising internet penetration, there is a growing demand for the e-commerce market in the CEEC region. Additionally, increasing consumer interest in convenient shopping solutions drives the demand for the CEEC e-commerce market. Consumers in the CEE region are living hectic lives because of increased urbanization and industrialization. As a result of today's fast-paced lifestyle, consumers are increasingly seeking simple purchasing options to save time. The fundamental benefit of internet buying is convenience for consumers. Customers may shop online anytime they want, without having to deal with parking issues or wait in the payment line. Working professionals prefer online purchasing since it eliminates the need to visit physical stores during business hours. Furthermore, as many e-commerce businesses provide goods from all around the region, online buying may provide customers with a wider selection of goods. Since e-commerce platforms are now more easily accessible, current customers may easily access a large choice of items. For instance, The International Trade Administration (ITA), and the U.S. Department of Commerce, report that pay-by-link (56%), cash on delivery (30%), and cards (10%) are the most widely used online payment options in Poland. Moreover, the utilization of big data and artificial intelligence facilitates the collection of customer preference and behavior data by e-commerce websites, hence enabling customized marketing techniques that can provide specialized suggestions for improvement. This technique provides satisfaction and faithfulness to the customers. Therefore, increasing consumer interest in convenient shopping solutions drives the demand for the e-commerce market.
However, increasing data privacy concerns can hamper the growth of the market. An increasing amount of personal consumer data is being generated online due to the development of e-commerce sales. For example, the International Trade Administration projects that by 2026, e-commerce will account for up to 20% of Poland's total retail sales. Due to the increasing volume of sensitive information being communicated online, there is an increasing concern about the safety of personal and financial data due to escalating incidences of data breaches, phishing, and malware. Data breaches are among the most common risks to data privacy. A data breach occurs when hackers gain illegal access to a company's computer networks and steal critical information. This information may be utilized to carry out fraudulent activities, identity theft, or other offenses. For instance, Morele.net suffered a data breach that affected 2.2 million customers due to an alleged lack of cybersecurity safeguards. This rising incidence of data breaches has caused trust issues among consumers., the organization was later charged PLN 3.8 million as a fine by the Urząd Ochrony Danych Osobowych, Poland's data protection regulator, for violating the EU General Data Protection Regulation. Furthermore, rising government initiatives to expand e-commerce activities create an opportunity for the market to expand. The European Union has implemented various initiatives, such as regulatory support for e-commerce businesses to protect consumers and businesses and further expand the e-commerce market. For instance, In April 2022, the European Union approved the Digital Markets Act (DMA) which regulates large online platforms acting as “gatekeepers” in digital markets, and the Digital Services Act (DSA) which addresses changes, particularly about online intermediaries. These laws aim to make the digital realm safer and more accessible for all users, as well as to provide a fair opportunity for e-commerce enterprises across Poland.
The CEEC e-commerce market covers the analysis of countries such as Poland, Hungary, Romania, Czech Republic, Slovakia, and the Rest of CEEC. Poland accounted for the largest market share of the CEEC E-commerce Market. The country constituted 24.14% of the market share in 2022 and is projected to increase up to 24.14% by the end of the forecast period 2023-2030. Poland generated USD 23.80 Billion in revenue in 2022. Poland stands as one of the largest and most developed e-commerce markets in the CEEC region. With a large population of tech-savvy consumers and a rapidly expanding internet infrastructure, Poland has seen significant growth in online shopping in recent years. Currently, 77 percent of Polish Internet users buy products online. By 2026, e-commerce is expected to account for 20 percent of all retail sales in Poland.
| Report Coverage | Details |
|---|---|
| Market Size in 2022 | USD 98.60 Billion |
| Market Size by 2030 | USD 274.41 Billion |
| Growth Rate from 2023 to 2030 | CAGR of 13.70% |
| Largest Market | Poland |
| No. of Pages | 80 |
| Market Drivers |
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| Market Segmentation | By Type, By Transaction, and By Payment |
| Regional Scope | Poland, Slovakia, Hungary, Serbia, and Rest of CEEC |
The report on CEEC e-commerce market covers segments such as type, transaction, and payment. On the basis of type, the sub-markets include home appliances, apparel, footwear and accessories, books, cosmetics, groceries, and others. On the basis of transaction, the sub-markets include b2b, b2c, c2c, and others. On the basis of payment, the sub-markets include cash payment, bank transfer, card payment, digital wallet, and others.
The report provides profiles of the companies in the market such as Allegro, CCC Group, Playersroom, Dante International SA, Amazon.com, Inc., Alza.cz a.s., FC ecom, sro (Factcool), Empik Group, Zalando SE, and HP TRONIC Zlín, spol. s.r.o.
The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the e-commerce market. Moreover, the study highlights current market trends and provides forecasts from 2023-2030. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.