Spending on services purchased online to increase to PLN 79bn in 2023
According to PMR data, in 2022 the market of online retail trade in services in Poland reached PLN 68bn, a third more than in 2021, and its future growth will be driven by users’ migration to the online distribution channel.
The market has doubled its value since the pandemic
According to the PMR report, the value of online retail trade in services in 2022 reached around PLN 68bn, increasing by 33%. It is worth noting that this is almost the doubled value from the crisis year of 2020. In the years 2021-2022, the market experienced significant growth due to the low base effect from 2022 and rapid price increases. It is also important to keep in mind that in most service categories, the growth rate depends on the overall development of the industry and the pace of migration to the online channel. Hence growth in the digital channel does not necessarily indicate the same pace of development for the industry as a whole. PMR forecasts indicate single-digit growth in the years 2023-2028 – the compound annual growth rate (CAGR) will stand at 9.6%.
The market grows more slowly in volume terms
In volume terms, the market of online retail trade in services grew by 19% in 2022. According to forecasts, in 2023 we will see further growth of around 14 million RGUs (revenue generating units). Comparing the value and volume growth rates, it is evident how significant the general price increases are in driving market value growth. The consumer survey conducted by PMR for the report also confirms this.
By 2027, there will be around 55 million services sold. However, it is important to note that in most cases this will not be the result of the availability of completely new services, but rather a shift in the distribution channel to services that have been traditionally sold through offline channels.
Looking at the market in terms of individual transactions and subscriptions, the former still dominate, but the share of subscriptions in the market volume is increasing. On the one hand, the subscription model allows optimization of consumer spending, and on the other hand, it benefits providers by fostering customer loyalty.
The structure of the services market is stable
There is no clearly dominant category in the market of services sold online, although several major ones can be identified. Before the pandemic, the largest segment of the market in terms of value was the sale of airline tickets, which, for obvious reasons, changed radically in 2020. In subsequent periods, the share of other segments has increased, especially those that are not fully digitized yet and their migration to the online channel is progressing.
Currently, the largest segment in the market is insurance, and its importance is growing, due to the migration of sales to the internet. This is linked to the spread of digital knowledge in society and greater confidence in online sales of such services.
According to PMR forecasts, the shares of individual segments will stabilize as the market is gradually saturated with online distribution.
Find comprehensive information about the current state of the Polish online retail of services in the PMR report:
Methodology note
The article is based on the latest PMR report “Online retail of services in Poland 2023. E-commerce market analysis and development forecasts for 2023-2028”. The report measures volume and value components of the online retail trade in services in Poland. It includes a detailed analysis of 32 categories of services sold online, supplemented with findings and conclusions from a custom consumer survey. The report also presents forecasts for each of the discussed service categories until 2028. The whole is complemented by analytical comments and description of the most important trends in each market segment, as well as a comprehensive database of market indicators.
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