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The social networking market size is estimated to grow at a CAGR of 16.9% between 2022 and 2027. The market size is forecast to increase by USD 163.6 billion. The growth of the market depends on several factors, including the increased Internet penetration, the collaborations and partnerships among vendors, and the soaring demand for video content.
This social networking market report extensively covers market segmentation by type (advertising, in-app purchase, and paid apps), distribution channel (Google and Apple), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased Internet penetration is notably driving the market growth, although factors such as privacy concerns obstruct market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased Internet penetration is the key factor driving the growth of the global social networking market. Social networks have seen a huge increase in demand over the years due to a variety of factors, such as increased Internet Penetration. Facebook, YouTube, and WhatsApp are the most popular social networks worldwide, representing a significant and sustained increase in demand for social networking platforms. One of the most important effects of the increasing Internet penetration of social networks is the growing user base of these platforms. Moreover, as the Internet becomes more pervasive, social networking platforms are creating more diverse and active communities. With more and more people having access to the Internet, users can connect with others who share similar interests and values regardless of their geographical location. This creates new online communities, strengthens existing ones, and fosters social interaction and engagement.
Another impact of increased Internet penetration on social networking is the emergence of new social networking platforms. As more people gain access to the Internet, entrepreneurs and innovators are creating new social networking platforms to cater to the diverse needs and interests of users. Finally, increased Internet penetration has also led to the proliferation of social networking apps and mobile devices, which have made it easier for people to access social networking platforms on the go. This has further increased the reach and impact of social networking on individuals and society, which will have a positive impact on market growth during the forecast period.
Social media advertisements gaining traction is the primary trend in the global social networking market growth. Social media advertising has seen tremendous growth in recent years. The prevalence of social media means that businesses can reach large numbers of users through social media advertising. Social media advertising is highly effective as social media platforms offer advanced targeting options. This allows businesses to reach specific audiences based on their demographics, interests, and behaviors. This means businesses are more likely to create relevant ads that are clickable and convert to sales.
The rise of influencer marketing on social media platforms has also contributed to the growth of social media advertising. Businesses can partner with popular influencers to promote their products or services to their followers by leveraging the influencer's credibility and reach. Overall, the growth of social media advertising is expected to continue during the forecast period as more businesses increasingly turn to social media as a key marketing channel, which, in turn, will boost the growth of the global social networking market.
Privacy concerns are obstructing the global social networking market growth. Social media platforms are often criticized for collecting and sharing data from users without their knowledge or consent. Many users are concerned that their personal information may be compromised, leading to identity theft and other cybercrime. We often collect large amounts of personal data from our users. This data may be used for targeted advertising or sold to third-party companies, raising concerns about user privacy and data security. Social networks use tracking technologies such as cookies and device IDs to monitor your online activity across multiple websites and devices. This allows social networks to create detailed profiles of users, which can be used for targeted advertising and other purposes.
Users unwittingly share personal information on social networks, such as their full names, addresses, or phone numbers, which can be used to identify them. This can lead to identity theft, stalking, and other privacy violations. Social networks may be vulnerable to hacking and other security breaches, which can expose the personal information of users to unauthorized parties. Overall, social networks can be a valuable tool for connecting with others and sharing information, but users should be aware of the potential privacy risks and take steps to protect their personal information. This can include using strong passwords, adjusting privacy settings, and limiting the amount of personal information that they share on social networks. Such factors will hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Social Networking Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers social media platform to share videos, add comments, likes, dislikes, and add short reels through its subsidiary called YouTube.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the advertising segment will be significant during the forecast period. In 2022, the advertising segment accounted for the biggest market share compared with the other segments. Social media advertising is the practice of using social media to connect with the target audience; social media apps facilitate highly tailored advertising campaigns on social networking sites.
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The advertising segment was valued at USD 73.43 billion in 2017 and continued to grow until 2021. Some of the most popular ad formats include static image ads, video ads, story ads, and messenger ads. The growing popularity of social media platforms for promoting brands and increasing product awareness is driving the growth of the global social media market. Additionally, increasing sales of consumer products through social media advertising is expected to boost market growth. About 50% of the global population uses social media, which means that the segment will grow during the forecast period, which, in turn, will boost the growth of the market in focus.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is home to some of the world's largest social networking companies, including Facebook, Twitter, and LinkedIn, among others. These companies dominate the social networking landscape in the region, with millions of active users across the region. An increasing trend in the US is the launch of technologically advanced video reel-based apps with video editing support features. Moreover, nowadays, the increased use of social networks by businesses for marketing purposes is expected to fuel the growth of the social networking market in the region.
The COVID-19 pandemic had a positive impact on the social networking market in North America as people turned to online platforms to stay connected while practicing social distancing measures. One of the most notable impacts of the COVID-19 pandemic has been the increase in the use of video conferencing platforms, such as Zoom, Skype, and Google Meet. With people unable to meet in person, these platforms became the go-to solution for virtual meetings, classes, and social gatherings. Social media usage also increased significantly as people used platforms such as Facebook, Twitter, and Instagram to stay informed and connected during the pandemic. Social media also became a vital source of information for people seeking news and updates about the disease and the spread of the pandemic. Overall, the COVID-19 pandemic accelerated the adoption of online platforms for social networking in North America, and these changes are likely to have a lasting impact on how people connect and communicate in the future.
The social networking market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global social networking market as a part of the global application software market within the global IT software market. The overall global IT software market covers companies that are engaged in developing and producing applications and system software. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Social Networking Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.9% |
Market growth 2023-2027 |
USD 163.6 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.17 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Automattic Inc., ByteDance Ltd., Discord Inc., Ebates Performance Marketing Inc., LinkedIn Corp., MediaLab.Ai, Meetup, Meta Platforms Inc., Myspace LLC, Nextdoor Holdings Inc., Pinterest Inc., Quora Inc., Reddit Inc., Snap Inc., Telegram Group Inc., Tencent Holdings Ltd., Twitter Inc., Yelp Inc., and Z Holdings Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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