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The digital commerce market size is estimated to grow by USD 3634 billion at a CAGR of 16.6% between 2023 and 2028. The digital commerce landscape is experiencing significant growth, driven by robust internet penetration, increasing penetration of smartphones, and the adoption of digital platforms by small and medium-sized businesses. With over 4.66 billion internet users worldwide, businesses have a vast market to reach through online channels. Moreover, the proliferation of smartphones has made online shopping more accessible and convenient than ever before. According to recent statistics, over 50% of all e-commerce sales in the US are made on mobile devices. Additionally, small and medium-sized businesses are recognizing the potential of digital commerce to expand their customer base and increase revenue. By leveraging digital platforms, these businesses can reach a global audience, offer flexible payment options, and provide seamless customer experiences.
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The market refers to the buying and selling of goods and services through an electronic network, specifically the Internet. This market encompasses various types of transactions, including Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Business (C2B), and Consumer-to-Consumer (C2C). The market is driven by the increasing use of the Internet in homes and offices, the widespread adoption of computers, tablets, cellphones, and broadband connections. E-commerce sector players require digital marketing expertise to establish an online presence and attract customers. Retailers in industries such as Logistics industry is increasingly leveraging e-commerce to reach a broader audience. Robotics and advanced technologies like smartphones and laptops facilitate seamless transactions. Women and social networking sites also play a significant role in driving e-business growth. Overall, the market is transforming traditional business models and offering new opportunities for businesses and consumers alike. Our researchers analyzed the data with 2023 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.
Robust Internet penetration is notably driving market growth. The market is experiencing significant growth due to the increasing use of smartphones and other smart devices, expanding online consumer base, and the availability of multiple payment modes. Cross-border ecommerce is gaining popularity, leading CXOs to prioritize cyber security issues and online fraud prevention. The e-commerce sector is witnessing a shift towards AI, machine learning, in-memory technologies, and blockchain for enhancing digital commerce visibility and ensuring secure transactions. Small and medium-sized businesses are adopting SaaS delivery models to expand their online presence and reach a wider audience.
Furthermore, logistics, warehouse, and transportation service providers are collaborating through memorandums of understanding to optimize supply chain operations and improve multi-enterprise visibility. Online sales of computers, tablets, cellphones, and other consumer electronics are on the rise, fueled by digital marketing expertise and the increasing availability of broadband connections. Online marketplaces, consumer-to-consumer sales, direct selling, web contacts, social media, mobile commerce, and mobile payments are driving the growth of the e-commerce industry. Local commerce is also gaining traction as businesses adapt to the changing consumer behavior and preferences. Thus, such factors are driving the growth of the market during the forecast period.
Advancements in technological digital commerce platforms is the key trend in the market. The market has witnessed significant growth in recent years, driven by the widespread use of smart phones and multiple payment modes. Cross-border ecommerce has become increasingly popular, leading to cyber security issues and online frauds being a major concern for CXOs. To address these challenges, e-commerce players are leveraging advanced technologies such as AI, machine learning, and in-memory technologies. Memorandums of understanding between logistics, warehouse, and transportation service providers have become essential for ensuring multi-enterprise visibility and efficient delivery.
Furthermore, small and medium-sized businesses are also adopting SaaS delivery models to enhance their digital commerce visibility. Consumers are shopping online for various products, including homes and offices, computers, tablets, cellphones, and broadband connections. E-commerce retailers are focusing on building a strong online presence through digital marketing expertise and social media engagement. Mobile commerce, social commerce, and local commerce are also gaining traction, with online sales increasingly being made through mobile devices and mobile payments. Blockchain technology is revolutionizing the e-commerce sector by streamlining customs clearance and enabling secure transactions through smart contracts. Thus, such trends will shape the growth of the market during the forecast period.
Growing data privacy and security concerns is the major challenge that affects the growth of the market. Digital commerce, encompassing online sales through various devices and platforms, has seen significant growth in recent years. However, this expanding market is not without challenges. Cyber security issues, including online frauds, pose a major threat to both consumers and businesses. With the increasing use of smart phones for real-time transactions, data collected on these devices can be misused, leading to potential financial losses and privacy concerns. Payment service providers employ cookies to gather customer data, which, if mishandled, can compromise privacy. Cross-border ecommerce adds complexity with memorandums of understanding required between countries for seamless transactions.
Furthermore, small & medium-sized businesses and CXOs seek digital marketing expertise to boost their online presence and engage in multiple payment modes. Emerging technologies like AI, machine learning, block chain, and in-memory technologies offer solutions for enhancing digital commerce visibility and security. Logistics, warehouse, and transportation service providers play crucial roles in ensuring efficient delivery of goods. Online sales span homes and offices, as well as computers, tablets, and cellphones, all requiring broadband connections. Social media and mobile commerce, including social commerce and local commerce, further expand the digital marketplace. Regulations and partnerships, such as those between online marketplaces and retailers, are essential for mitigating risks and fostering trust in the e-commerce sector. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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.
JD.com Inc.- The company offers digital commerce such as an online shopping experience offering a vast selection of products across every major category, including electronics, apparel and home furnishings, FMCG, fresh food, home appliances, and others and delivering them at an amazingly fast speed to provide a truly one-stop shopping experience to Chinese consumers.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the Business to business segment will be significant during the forecast period. The digital commerce market is experiencing significant growth due to the proliferation of smart phones, multiple payment modes, and cross-border e-commerce. CXOs are increasingly focusing on digital commerce visibility to expand their businesses, leveraging AI, machine learning, and in-memory technologies.
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The Business to business segment showed a gradual increase in the market share of USD 1294.40 billion in 2018. Small and medium-sized businesses are embracing SaaS delivery models to enhance their online presence and reach a wider customer base. Cyber security issues and online frauds are major concerns, necessitating the implementation of advanced security measures such as block chain and memorandums of understanding with logistics, warehouse, and transportation service providers. Online sales are no longer limited to homes and offices, with the rise of mobile commerce, social commerce, and local commerce. Digital marketing expertise is essential for retailers to effectively engage with consumers through web contacts, social media, and mobile payments. The e-commerce sector is transforming rapidly, offering immense opportunities for innovation and growth.
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APAC is estimated to contribute 54% 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.
Digital commerce refers to the buying and selling of goods and services through an electronic network, specifically the Internet. This encompasses various business models such as business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C). E-commerce and e-business are interchangeable terms used to describe this phenomenon, with e-tail being a specific term for businesses that sell products online. Digital commerce software and inventory management solutions facilitate the process, enabling retailers to manage sales and marketing efforts across multiple channels. The automotive segment, manufacturing, retail household goods, healthcare and pharmaceuticals, media & entertainment, food & beverage, and logistics companies are significant contributors to the digital commerce landscape. Omni-channel players leverage digital technology to provide seamless shopping experiences, integrating browsing and payment methods on desktops, smartphones, and tablets. Payment methods include card payment, bank transfer, wallet payment, cash payment, and even crypto currency. Personalization technology and AI-based e-commerce solutions enhance the customer experience. Trading networks and automation streamline operations for increased efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Digital Content Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast
Digital Commerce Software Market by Deployment and Geography - Forecast and Analysis
Digital Transformation in Retail Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast
Digital commerce, also known as e-commerce or e-business, refers to the buying and selling of goods and services through an electronic network, specifically an online store. This type of business model includes business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C) transactions. The internet is the backbone of digital commerce, enabling consumers to browse and purchase items using various devices such as desktops, smartphones, and tablets. E-commerce encompasses various sectors, including automotive, manufacturing, retail household goods, healthcare and pharmaceuticals, media & entertainment, food & beverage, and more. Omni-channel players leverage digital technology to offer seamless sales and marketing experiences across multiple channels.
Furthermore, digital commerce software solutions, such as inventory management systems, help businesses manage their stock and sales effectively. Consumers prefer online shopping due to its convenience and the ability to compare prices and reviews easily. The browsing method and payment method play crucial roles in the digital commerce experience. Payment options include card payment, bank transfer, wallet payment, cash payment, and even crypto currency. Logistics companies and automation play a significant role in ensuring timely delivery of goods. AI-based e-commerce solutions and personalization technology enhance the CX (customer experience) by offering customized recommendations and solutions based on user behavior and preferences. Trading networks facilitate the exchange of goods and services between businesses and consumers, further expanding the digital commerce landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.6% |
Market growth 2024-2028 |
USD 3634 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.86 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
China, US, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Amazon.com Inc., Apple Inc., Best Buy Co. Inc., Costco Wholesale Corp., eBay Inc., Flipkart Internet Pvt. Ltd., JD.com Inc., Meituan Dianping, MercadoLibre Inc., NASPERS Ltd., Otto GmbH and Co. KG, Rakuten Group Inc., Shopee Ltd., Shopify Inc., The Home Depot Inc., Trendyol BV, Walmart Inc., Wayfair Inc., and Zalando SE |
Market dynamics |
Parent market analysis, Market Forecasting, 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 market 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Business Segment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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