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The e-commerce market size is forecast to increase by USD 12,951.56 billion, accelerating at a CAGR of 27.15% between 2023 and 2027. The growth of the platforms is fueled by factors like increased online spending and smartphone penetration, while challenges such as regulatory issues, counterfeit products, and long product replacement cycles hinder market expansion. Advanced targeting options contribute to the advantages of these platforms.
Amazon is the leading the e-commerce platform globally, capturing a significant share of the market with its extensive product selection and fast delivery services. The global market is projected to reach USD 3.9 trillion by 2024.
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Home Appliances Segment Dominates the Market
The home appliances segment was valued at USD 1,099.73 billion in 2017 and continue to grow by 2021. High revenues in the segment result from growing brands trust and consumers' home improvement trends. Improved recycling initiatives played a key role, in reducing consumer-generated e-waste by 9% in 2020. The rise of IoT and smart energy in consumer electronics is expected to further reduce e-waste. While some consumers prefer buying home appliances in physical stores for a hands-on experience, online retailers are creating showrooms for multichannel shopping, through various smartphone devices, tablets and apps which allow customers to interact with products and seek information. This helps customers persuade and increase the brands reputation.
Market - Revenue Share by Home Appliances Segment, 2017-2027
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APAC Holds a Prominent Position in the Market. APAC is estimated to contribute 48% to the growth of the global market during the forecast period. APAC is the fastest-growing market of due to the growing buying power and economy of the middle-class population. The region comprises countries such as Pakistan, Bangladesh, and Indonesia that are considered to be late adopters of digital technology. The market in these countries is expected to grow significantly during the forecast period, which will be the primary factor influencing the market in this region.
China, which is the leading revenue generator, has multiple global companies such as Alibaba and Jingdong (JD.com). These companies restrict the influence of foreign companies in the Chinese market, retaining the revenue within the country. The revenue generated is re-invested in activities in the country.
Regional Analysis of Market, Global, 2017-2027
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The market is thriving with the increasing penetration of smartphones among the population. With the proliferation of digital content, sectors like travel, leisure, and financial services are witnessing significant growth in online transactions. Technological awareness and advancements in connectivity, driven by 4G and 5G technology, have enhanced the user experience, leading to a surge in the adoption of smartphones for online activities, including shopping. This trend is particularly beneficial for small and medium enterprises, as well as large enterprises, which leverage online marketing tools such as Google ads and Facebook ads to reach consumers effectively. Additionally, B2B e-commerce platforms are gaining traction, facilitating the buying and selling of goods and services between businesses, thereby driving revenue growth in the e-commerce sector.
Additionally, consumer behaviour is impacted by efficient fulfilment processes to ensure customer satisfaction and business prosperity. Easy order placement, processing, and timely delivery are essential for shaping positive customer experiences. The innovation in this landscape is the rise of subscription-based models, which have become a transformative force. These models not only enhance customer loyalty through personalized and recurring supply but also provide businesses with a predictable revenue stream, optimizing inventory management. Simultaneously, the B2C e-commerce paradigm has revolutionized the retail sector by establishing direct connections between businesses and consumers. Through user-friendly platforms, B2C e-commerce allows businesses to showcase products globally, fostering direct relationships and tailoring offerings to meet specific customer needs. Concurrently, these elements – efficient fulfillment, subscription models, and B2C engagement – weave a comprehensive narrative of a customer-centric future where satisfaction, loyalty, and direct relationships are at the forefront of industry dynamics.
The market is thriving due to consumers shifting to online platforms offering convenience and a wide range of B2C products. Offline retailers entering the online arena are also contributing to the market's significant growth in the forecasted period. E-retailers provide services such as product comparison, cash-on-delivery options, and easy return policies, enhancing the overall customer experience and promoting market growth.
Challenges and Opportunities in the ECommerce Sector
Latest design trends heavily influence customer choices, but the durable nature of many products, especially branded items, results in infrequent replacements. Viewed as one-time investments, these products command high prices and offer superior quality. Businesses face a challenge as prolonged replacement cycles hinder sales volume, impacting the dynamic market. Longevity leads consumers to opt for maintenance, reducing the need for frequent repurchases and reshaping the landscape for businesses in the ever-evolving world of online commerce.
The market analysis and report are fragmented in nature. Some significant players include Alibaba Group Holding Ltd, Amazon.com Inc., Apple Inc., Best Buy Co. Inc., Costco Wholesale Corp.
The research report also includes detailed analyses of the competitive landscape, competitor, market growth and forecasting of the market and information about 15 companies, including:
Ebates Performance Marketing Inc., eBay Inc., Flipkart Internet Pvt. Ltd., Groupon Inc., Inter IKEA Systems B.V., JD.com Inc., Lojas Americanas S.A., Otto GmbH and Co. KG, priceline.com LLC, Shopify Inc., The Home Depot Inc., Walmart Inc., Wayfair Inc., Zalando SE, and Etsy Inc.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2027.
The market continues to thrive, driven by a multitude of factors. The widespread adoption of smartphones, coupled with increasing digital content consumption, has transformed the way consumers interact with businesses. This trend extends across various sectors, including travel, finance, and retail, where e-tailing has become increasingly popular. Technological awareness and improved connectivity, facilitated by advancements in 4G and 5G technology, have enhanced the user experience, leading to a surge in online shopping. Small and medium enterprises, along with established organizations and large enterprises, have embraced e-commerce platforms to reach a broader consumer base. With the rise of social media applications and online marketing tools like Google and Facebook ads, businesses are leveraging diverse channels to engage with customers and drive sales. Additionally, the emergence of B2B e-commerce platforms and specialized marketplaces has revolutionized the buying and selling of goods and services. As the e-commerce landscape continues to evolve, businesses must adapt to changing consumer tastes and preferences, leveraging innovative technologies like augmented reality and virtual reality to enhance the online shopping experience. Government initiatives, such as Bharat Craft by the Union Ministry of India, underscore the importance of environmental and social standards in e-commerce operations. With the proliferation of payment gateways and the advent of initiatives like the Unified Payment Interface (UPI), the e-commerce market is poised for sustained growth, catering to a global audience with diverse needs and preferences.
The market is experiencing robust growth, driven by the increasing penetration of smartphones and rising internet connectivity worldwide. With the proliferation of mobile devices, consumers are increasingly turning to online platforms for their shopping needs, spanning various sectors such as travel, leisure, and financial services. This trend has prompted major e-commerce players to enhance their technical infrastructure and develop branded shopping apps to cater to the growing demand. Additionally, the emergence of 5G Wi-Fi technology and the concept of social shopping are reshaping the e-commerce landscape, offering enhanced browsing and communication experiences. As small and medium-sized businesses (MSMEs) enter the online marketplace, vertical marketplaces and the business-to-consumer (B2C) model are gaining prominence, paving the way for a dynamic and competitive e-commerce ecosystem.
The proliferation of smartphones has revolutionized various aspects of modern life, including the way people travel and engage in leisure activities. With an increasing smartphone-using population, individuals now have easy access to travel information, booking platforms, and leisure-related apps, enhancing convenience and choice. This trend is particularly notable among consumers with higher wealth, who often seek personalized travel experiences and luxury leisure options. Furthermore, the rise of smartphone usage has not only impacted consumer behavior but also transformed business-to-business (B2B) interactions, as companies leverage digital platforms for transactions and communications, thus reducing operational costs. However, alongside these advancements come challenges, such as managing operational and inventory costs. Despite the efficiencies gained through digitalization, businesses must remain vigilant in controlling expenses to maintain profitability and sustainability in an increasingly competitive landscape dominated by technology and consumer demands.
E-Commerce Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.15% |
Market growth 2023-2027 |
USD 12,951.56 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
26.6 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, Germany, and UK |
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., Ebates Performance Marketing Inc., eBay Inc., Flipkart Internet Pvt. Ltd., Groupon Inc., Inter IKEA Systems B.V., JD.com Inc., Lojas Americanas S.A., Otto GmbH and Co. KG, priceline.com LLC, Shopify Inc., The Home Depot Inc., Walmart Inc., Wayfair Inc., Zalando SE, and Etsy Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth, market report inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market research and growth, 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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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