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The digital commerce software market size is forecast to increase by USD 4.82 billion, at a CAGR of 10.03% between 2023 and 2028. The market has experienced remarkable growth in recent years, driven by the increasing demand for convenience and the ability to shop from anywhere at any time. This trend is further fueled by the advent of omnichannel retailing, which integrates online and offline channels to provide a seamless shopping experience. Additionally, the growing demand for entertainment and media has led to an increase in digital consumption, with streaming services and online gaming platforms becoming increasingly popular. As a result, businesses are investing heavily in digital transformation to meet the evolving needs of consumers and stay competitive in the market. The e-commerce landscape is constantly evolving, with new technologies and business models emerging to meet the changing demands of consumers.
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The market is witnessing significant growth due to the increasing trend of online shopping. E-commerce platforms have become essential for businesses to establish an online presence and cater to the needs of mobile commerce (m-commerce) users. With the widespread use of smartphones and high-speed internet, the electronics sector, healthcare, and automotive sectors are among the major industries adopting e-Commerce solutions. E-commerce software includes various components such as website builders, hosting, and payment gateways. Manual processing errors are being replaced by AI and Big Data analytics to enhance efficiency and accuracy. Cloud-based deployment is a popular choice for e-commerce businesses due to its flexibility and scalability. The growth of the e-Commerce industry is propelled by the increasing internet penetration rate and the number of mobile users. High-speed internet technology has made online platforms more accessible and convenient for consumers, leading to an increase in online business. E-commerce software providers like e-Commerce website builders, hosting, and payment gateway providers are offering innovative solutions to retailers to streamline their operations and provide a seamless shopping experience to customers.
Growth of the e-commerce industry is notably driving market growth. The digital commerce software market is experiencing significant growth due to the expanding e-commerce industry and the increasing need for efficient retail management. With the rise of online shopping and the pressure to deliver orders quickly, businesses, particularly small ones, are turning to digital commerce software to streamline their operations. This technology enables features such as online support, gift cards, and bulk buying for smartphone users and desktop customers alike. Moreover, it facilitates communication, information sharing, and online shipping, leading to increased website traffic and sales in apparel and fashion, clothing, bags, accessories, jewelry, medical equipment, and other industries. Cloud-based technology and on-premise solutions offer security and configuration options for businesses of all sizes.
In addition, digital commerce software also supports cross-border e-commerce, AI, IoT, and blockchain technology, making it an essential tool for businesses looking to expand their reach and offer cashless transactions. The e-commerce market, including m-commerce and online marketplaces, is projected to continue growing, making digital commerce software an indispensable investment for businesses seeking to remain competitive. Thus, such factors are driving the growth of the market during the forecast period.
Evolving role of social media in e-commerce is the key trend in the market. The digital commerce software market is witnessing significant growth due to the increasing trend of social shopping. With the integration of Buy buttons on social media platforms like Facebook and Instagram, consumers are increasingly making purchases directly through these sites. This presents a valuable opportunity for brands to enhance their online presence and reach a wider audience. Social media influencers can also help boost discoverability for businesses among their followers. Digital commerce software solutions, such as Shopify, enable seamless integration of social media and online stores, allowing consumers to make purchases directly from these platforms. Small businesses, including grocery stores and brick-and-mortar retailers, are increasingly adopting digital commerce software to cater to the needs of tech-savvy consumers. Smartphone users and mobile device users are driving the growth of m-commerce, with online ads and website traffic from mobile devices accounting for a significant portion of e-commerce sales.
Apparel and fashion, clothing, bags, accessories, and jewelry are popular categories for online purchases. Digital commerce software platforms offer various features such as gift cards, online support, bulk buying, and doorstep delivery services, making shopping more convenient for consumers. Cashless transactions, cloud-based technology, and security are essential considerations for businesses. Hospitals, clinics, and medical equipment suppliers are also embracing digital commerce to streamline their operations and improve patient care. The e-commerce market is evolving rapidly, with the integration of AI, IoT, and blockchain technology. Cross-border e-commerce is gaining popularity, and online marketplaces are offering more competitive pricing and a wider range of products. E-commerce businesses must configure their digital commerce software to stay competitive and meet the evolving needs of consumers. Security remains a top priority, with businesses implementing robust security measures to protect customer data and transactions. Thus, such trends will shape the growth of the market during the forecast period.
Data privacy and security concerns is the major challenge that affects the growth of the market. Digital commerce software has become an essential tool for businesses looking to expand their reach and enhance customer experience. However, the implementation of this technology comes with certain challenges, particularly in terms of security and privacy. With the increasing number of smartphone users and mobile devices, retailers are seeing a surge in online purchases and website traffic. This trend is not limited to small businesses and online marketplaces but also extends to brick-and-mortar stores, grocery stores, and even hospitals and clinics dealing with medical equipment. Gift cards, bulk buying, and doorstep delivery services have become common features in digital commerce, making cashless transactions more convenient for consumers. However, these features also present new entry barriers for small businesses. Cloud-based technology and on-premise solutions offer flexibility, but retailers need to consider the security implications of each option. The use of AI, IoT, and blockchain technology in digital commerce is on the rise, providing benefits such as personalized recommendations and secure transactions.
However, these technologies also require robust cybersecurity measures to prevent unauthorized access and data leaks. Retailers need to invest in reliable Internet connections and third-party services to mitigate vulnerabilities and ensure a seamless customer experience. In the e-commerce market, cross-border sales and online ads are becoming increasingly common. M-commerce and online shipping are also gaining popularity, making it essential for retailers to have a strong digital presence. Apparel and fashion, clothing, bags, accessories, and jewelry are some of the most popular categories for online sales. Retailers need to prioritize security configuration and communication to provide customers with accurate information and efficient online support. 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.
cleverbridge AG - The company offers configurable e commerce platform that allows to sell everything online around the world.
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 on-premises segment is estimated to witness significant growth during the forecast period. The market encompasses various sectors such as gift cards, online support for small businesses, grocery stores, and brick-and-mortar stores. This market caters to the needs of smartphone users and mobile device users, enabling communication, information access, and online ads for bulk buying. Online shipping and purchases facilitate doorstep delivery services, while cashless transactions ensure convenience. Apparel and fashion, including clothing, bags, accessories, and jewelry, are significant categories. Digital entry barriers, such as cloud-based technology and on-premise solutions, offer security and configuration options.
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The on-premises segment was the largest and was valued at USD 3.44 billion in 2018. Hospitals, clinics, medical equipment, and other industries also utilize digital commerce software. Blockchain technology and AI are integral to this market, enhancing security and streamlining operations. Cross-border e-commerce, M-commerce, online marketplaces, and O2O (online-to-offline) strategies are shaping the E-commerce market. IoT and AI further optimize the customer experience. The E-commerce market's growth is driven by the increasing popularity of online shopping, with website traffic and sales continuing to rise.
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North America is estimated to contribute 41% 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. The e-commerce software market is experiencing significant growth due to the increasing trend of online shopping. E-commerce platforms are transforming traditional retail industries, including electronics, healthcare, automotive, and more, by enabling seamless digital transactions. Mobile commerce (m-commerce) is a key driver of this growth, with high-speed internet and the widespread use of smartphones making online shopping more accessible than ever. Cloud-based deployment is a popular choice for e-commerce software, allowing businesses to scale their operations and reduce manual processing errors. Omni-channel strategies, which integrate online and physical stores, are also gaining traction. In the healthcare sector, e-pharmacies and digital platforms for over-the-counter drugs are becoming increasingly common. Customer information security is a major concern in the e-commerce industry, with data security issues a potential risk for both retailers and consumers. Advanced security features, such as two-factor authentication and encryption, are essential to mitigate these risks.
However, insecure modules, plugins, and other vulnerabilities can still pose a threat. E-tailers are investing in digital infrastructure to meet the demands of mobile users, with mobile apps and digital platforms becoming essential tools for businesses. Stay-at-home policies and business strategies have further accelerated the shift towards digital commerce. Despite these advances, challenges remain, including data security issues and the need for advanced security features to protect sensitive customer information.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is witnessing significant growth due to the increasing trend of online shopping. E-commerce platforms are becoming increasingly popular as consumers turn to digital platforms for convenience and ease of use. Mobile commerce (m-commerce) is a key driver of this growth, with high-speed internet and the widespread use of smartphones enabling seamless shopping experiences. The electronics sector is a major contributor to the market, with cloud-based deployment and omni-channel strategies becoming increasingly common. Other sectors, such as healthcare and automotive, are also adopting digital platforms, with e-pharmacies and e-tailers offering over-the-counter drugs and other products online.
In addition, digital infrastructure is crucial for the success of e-commerce businesses, with customer information security being a major concern. Retailers are leveraging mobile apps and AI to provide personalized shopping experiences and streamline operations. However, data security issues persist, with advanced security features and plugins being used to mitigate risks. Physical stores, malls, shops, and grocery outlets are also adapting to the digital age, with stay-at-home policies driving online business. The market is expected to continue growing as more consumers turn to digital platforms for their shopping needs.
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Market Scope |
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Report Coverage |
Details |
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Page number |
139 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.03% |
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Market growth 2024-2028 |
USD 4.82 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.88 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, China, UK, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adobe Inc., Chetu Inc., cleverbridge AG, Digital River Inc., eBay Inc., HCL Technologies Ltd., International Business Machines Corp., Intershop Communications AG, Kibo Software Inc., Kiva Logic, Oracle Corp., PEPPERI Ltd., Salesforce Inc., SAP SE, Sappi Ltd., Shopify Inc., Simbirsk Technology Ltd. , Tata Consultancy Services Ltd., Vendio Services LLC, and Volusion LLC |
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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 the market forecast period |
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Customization purview |
If our market 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 Deployment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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