The market for B2B marketplaces in Europe is growing rapidly, attracting more and more investment, according to a new research document.
Applico Inc.’s report, “The Europe B2B Marketplaces Top 25 Ranking 2023,” indicates that the top 25 marketplaces have attracted more than $2.1 billion in investment. Building materials, retail and food attracted 85% of those funds.
The report notes that U.S. investors are following a similar strategy, directing more than 40% of capital to the building materials, food and B2B markets of the top digital B2B marketplaces in the U.S.
However, markets focusing on industrial contract manufacturing equipment are emerging as a new growth area for investment, where successful U.S. companies have attracted $475 million in investments, according to the report. The report also highlights that there are markets in Europe with similar business models and opportunities.
European B2B marketplace growth
Amazon Business and Xometry are examples of B2B operators looking to expand their presence in the European market. Amazon Business has improved its logistics processes in Europe to make bulk purchases of a variety of goods, including office furniture, IT equipment, paper and printer ink, more attractive to business customers. This allows Amazon to make greater profits than retail sales of small orders.
“With more purchases by businesses, the economics of order fulfillment become more profitable,” Amazon officials told Reuters.
Amazon Business began its expansion into the European market in 2016, launching business in Germany and then the U.K. in 2017. The company also operates in France, Italy and Spain.
The ecommerce company deals with such corporate clients as:
- ABB is an electrical equipment company
- Siemens Gamesa, a wind energy technology company
- Centrica Business Solutions – engineering giant in the field of energy technology
When asked to comment on Amazon Business’ possible expansion into additional European markets, a spokesman said the company “does not disclose its future plans.
Earlier this year, Xometry Inc., an online marketplace that connects corporate clients with manufacturing service providers, strengthened its presence in Europe by launching xometry.uk in the United Kingdom.
With the U.K. implementation, Xometry Europe now provides localized marketplaces in nine languages, including English, German, French, Italian, Spanish, Polish, Dutch, Norwegian and Swedish.
The localization of Xometry’s marketplaces allows local customers to get quotes and order parts using the local currency.
“Our aggressive expansion across Europe reflects our commitment to becoming a global marketplace for a significant and growing industrial market,” stressed Dmitry Kafidov, CEO of Xometry Europe.
Xometry for customers in the UK provides production capabilities for both prototypes and large batches of products. The service already available includes 15 manufacturing technologies, including CNC machining, 3D printing, injection molding, as well as 120 materials and many finishing options. Xometry UK also offers various certification options and quality control reports for final parts.
