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The online on-demand services market in Europe is estimated to grow at a CAGR of 35.36% between 2022 and 2027. The size of the market is forecast to increase by USD 1,226.33 billion. The growth of the market depends on several factors, including the advantages of online on-demand service platforms, increasing Internet penetration, and the increasing influence of digital media.
This report extensively covers market segmentation by service (home services, food and grocery delivery services, transportation, and others), and platform (mobile and web). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing influence of digital media is notably driving the market growth, although factors such as high competition among vendors may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing influence of digital media is notably driving market growth. Digital platforms, including digital media, have become a crucial marketing and communication channel for vendors operating in the European market as a result of the widespread use of smartphones. One of the key components of the marketing plan used by online on-demand service providers is service visibility. To increase their service visibility and drive sales, numerous online on-demand service providers are broadly implementing digital media marketing strategies.
Technologically advanced smartphones have a number of unique features that help online on-demand service providers become more visible. To increase consumer awareness of the availability of their services, for instance, online on-demand service providers send push messages and emails with information about the launch of their new services and discounts they are offering to consumers. These factors are expected to boost the growth of the market in Europe during the forecast period.
The rising number of advertising and marketing campaigns is an emerging trend in market growth. The expansion of the vendors competing in the European market depends on successful marketing and advertising campaigns. To increase consumer awareness and maintain a sizable customer base, market vendors concentrate on launching advertising campaigns across a range of platforms. To attract customers, they began utilizing a variety of marketing techniques.
Some of the marketing strategies and promotional activities adopted by vendors are customization of services, cashback options and gift coupons on the purchase of services, and discounts on the first few orders and frequent orders. Hence, the focus of vendors on launching new advertising campaigns is expected to drive the growth of the online on-demand services market in Europe during the forecast period.
High competition among vendors is a major challenge impeding market growth. Due to the presence of numerous regional and international competitors who compete based on factors like acquisitions, expansions, and marketing and advertising campaigns, the European market is dynamic. The presence of numerous vendors is escalating price competition and vendor competition. These price wars could reduce profit margins and force smaller companies out of the market.
The European market is very fragmented and has a large number of unorganized vendors. Issues with unorganized vendors, like their inability to uphold standards of service quality and ensure transparency and timely service, can negatively impact the overall business of such vendors. Moreover, the market in Europe witnesses tough competition from various small, local brick-and-mortar stores. Hence, all these factors are expected to hamper the growth of the online on-demand services market in Europe during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Online On-demand Services Market in Europe Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A1 Quality Cleaning Services - The company offers carpet cleaning, house cleaning, office cleaning, and end-of-lease cleaning. The key offerings of the company include professional home cleaning services such as scrubbing floors and cleaning bathrooms for residential and commercial clients.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the home services segment will be significant during the forecast period. Home services include services such as cleaning, laundry, gardening, repair and maintenance, and home security services. This segment generates revenue from services such as interior designing, pest control, home deep cleaning, sofa cleaning, laundry services, glasswork, woodwork, and waterproofing.
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The home services segment was valued at USD 42.07 billion in 2017 and continued to grow until 2021. Growing demand for various on-demand online services such as housekeeping services has led to an increase in the number of providers offering numerous types of maintenance services in Europe. The entry of several players into emerging markets has raised people's awareness of the type and quality of services offered and has also created a demand for these services from new customers. Moreover, repair and maintenance work like plumbing, electrical repair, and home painting, requires a specific skill set. Therefore, people hire professionals for this kind of work. Furthermore, changing consumer lifestyles and rising disposable incomes of Europeans are driving demand for on-demand home services. In addition, household cleaning and hygiene have become a necessity in all households. Therefore, such factors are expected to fuel the demand for online on-demand services such as home services in Europe during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the online on-demand services market as a part of the global specialized consumer services market. The parent global specialized consumer services market covers revenue generated by consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Online On-demand Services Market In Europe Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 35.36% |
Market growth 2023-2027 |
USD 1,226.33 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
31.12 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
A1 Quality Cleaning Services, ABM Industries Inc., Airtasker Pty Ltd., Amazon.com Inc., Aramark, Cleaners of London, Klarx GmbH, Lawbit Ltd., MAID2CLEAN Ltd., Mitie Group Plc, Rentokil Initial Plc, Swan Transportation Services Ltd., Arive GmbH, Dorfner GmbH and Co. KG, Gorillas Technologies Holding BV, ISS AS, REIWAG Facility Services GmbH, Sodexo SA, Sunshine Cleaning Systems Inc., and Compass Group Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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