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Internet Boom: E-Commerce Growing Yearly by more than Ten Percent

Study by eco and Arthur D. Little shows increasing digitalization of purchase and payment processes

Already grossing 30 billion euros, Internet services like e-commerce or social networks are now the strongest revenue earners of the entire German Internet industry. In the coming three years, they will grow annually by more than ten percent respectively, so that by the year 2016 their volume is estimated to reach 41 billion euros. The largest portion of this is the e-commerce segment, with 28.4 billion euros. This is one finding from the recent study by the Association of the German Internet Industry, eco, and the business consultancy Arthur D. Little.

Digital purchases, payment and advertising make up the largest share of the market for the German Internet industry: More than 49 percent of the economic performance is generated in this area. According to the forecast from eco and ADL, the total volume of this segment will grow to 41.2 billion euros in 2016. Central to this is the role of e-commerce. With around 21.7 billion euros, this portion of the industry is already responsible for more than two thirds of the total revenues from end-customer oriented services.

Online Advertising: Success for German providers of tailor-made products and services

The second largest segment in the area Aggregation and Transactions is online marketing, with a turnover of almost seven billion euros. The German providers are yet to surpass the American Internet giants, but with their special solutions for national customers, they are generating ever larger revenues. As the German economy continues to grow despite the euro crisis, this market will also continue to develop positively in double-digit percentages: eco and Arthur D. Little expect annually eleven percent. For 2016, they estimate revenues of 9.8 billion euros. Harald A. Summa, CEO of eco, welcomes the development: “It is clear that the German Internet industry, with know-how and custom-made offers, can advance into exactly those niches in which the giant American corporations can no longer maneuver themselves. This still has enormous potential.”

Payment over the Internet growing significantly

At the moment, the fastest growing segment is the still relatively small segment of digital payment services. The overriding reasons: Strong trust in security technology and better availability of mobile Internet. Additionally, it is not only online purchases which are paid for digitally – in more and more retail shops, customers can settle their accounts with the help of mobile devices. Today, the turnover from such billing and payment services in Germany is around one billion euros. With more than 15 percent growth, this segment is expected to reach a volume of 1.6 billion euros by the year 2016.