Collaborative economy: growth 10 times faster than Europe’s GDP by 2025

by bold-lichterman

  • By 2025, 570 billion euros in transactions should be managed by European collaborative platforms (20 times more than today).
  • The collaborative economy generated 3.6 billion euros of revenue in Europe in 2015, this figure should reach 83 billion euros in 10 years.
  • Transport generated 1.7 billion euros in revenue in 2015, more than half of the sector’s revenue.

With nearly 3.6 billion euros of revenue generated in Europe in 2015, nearly double compared to 2014, the platforms of the collaborative economy continue to grow. By 2025, the latter should see their turnover increase by 35% per year to reach 83 billion euros according to the study “Assessing the size and presence of the collaborative economy in Europe»Produced by PwC and published this Monday, September 5th. Over the same period, the economy should grow “only” by 3% per year. In the end, the collaborative economy should grow 10 times faster than European GDP.

At the request of the European Commission, the consulting firm drew up an assessment of the size and impact of the collaborative economy in the European Union, focusing on five main sectors: finance, accommodation, transport, personal and business services. Faced with the potential presented by the sector, it is easy to understand the economic stake that this represents for Europe. The latter is also considering new ways of taxing players in the collaborative economy. AirBnB has indeed been singled out this summer, because of the amount of taxes it paid in France in 2015 (70,000 euros), considered derisory compared to the turnover it achieved on the market (4.9 million euros).

Transaction volumes multiplied by 20

First observation: in 2015, nearly 28 billion euros of transactions were processed by platforms, nearly double compared to 2014. And this growth is not about to end, if we are to believe the estimates by PwC. In 2025, it is in fact 570 billion euros that should transit through these platforms, 20 times more than at present.

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Note that it is the individuals offering a service via these platforms who are the first beneficiaries of this exponential growth, since they capture on average 85% of the value produced in the sector.

Transport, the most lucrative sector

If we consider the growth sectors, two main services stand out: transport and accommodation. In terms of revenue generated, it is the transport players that come first, with 1.7 billion euros in revenue in 2015 (more than half of the turnover of the entire collaborative economy) , followed by accommodation and home services. In terms of volume of transactions processed, on the other hand, hosting services stand out, with 15 billion euros of transactions recorded in 2015 (again more than half of transactions in the entire sector).

By 2025, transport services are still expected to lead the way in terms of revenue, according to PwC estimates. Home services should take second place on the podium, ahead of accommodation. The bar of 100 billion euros of transactions processed should be exceeded for four of the five sectors studied, only business services should grow less quickly than the others.

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France and the United Kingdom, champions of collaborative work in Europe

Among the 275 players in the collaborative economy identified by PwC in Europe, 50 are located in France, and 50 in the United Kingdom. The two countries are thus the industry leaders in Europe, followed by Spain, Germany and the Netherlands.

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It is regrettable, however, that the study classifies countries according to the number of players established there, and not according to the volume of turnover generated there.

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