M-commerce to bolster European economy by £15.1 billion in 2017

Monday, July 16, 2012 - 11:28 by Graham Miller

In 2011 the total value of the m-commerce market in Europe was £1.3 billion, but a new study suggest that this will grow exponentially over the next five years, until it accounts for 6.8 per cent of the total online shopping industry.

Analysts at Forrester questioned 14,000 consumers from across the continent, including those in the UK, in order to forecast the future of the m-commerce market which, in half a decade, will be a major source of economic growth.

The UK is already ahead of the curve when it comes to safe shopping online from a smartphone, fuelled by the popularity of high end handsets and the fact that people can pick them up free as part of pay monthly contracts, lowering the barrier for entry into the world of m-commerce.

The report established that a number of different categories within the retail sector will benefit particularly from the rise of m-commerce in Europe.

In particular, the sales of books, DVDs and music tracks will be bolstered, thanks to more people carrying out safe shopping online via their portable devices.

Purchasing tickets for live events is also expected to become a popular pastime amongst people with smartphones, according to the study.

M-commerce platforms are able to offer a number of benefits over bricks and mortar retail and even standard e-commerce outlets, largely due to the fact that modern smartphones have useful integrated features, that can be unified with the shopping experience.

For example, location-based services which allow users to receive offers and discounts depending on where they are positioned, are predicted to become particularly important within the next five years.

Forrester found that the UK alone will contribute £4.8 billion a year to the European economy via m-commerce by 2017, making it the continental leader in this area.