e-Commerce Technology Market by Application and Geography - Forecast and Analysis 2021-2025

The e-commerce technology market share is expected to increase by USD 10.57 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 19.07%.

This e-commerce technology market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers e-commerce technology market segmentation by application (B2C and B2B) and geography (North America, APAC, Europe, South America, and MEA). The e-commerce technology market report also offers information on several market vendors, including Adobe Inc., BigCommerce Holdings Inc., commercetools GmbH, HCL Technologies Ltd., Open Text Corp., Oracle Corp., Pitney Bowes Inc., Salesforce.com Inc., SAP SE, and Shopify Inc. among others.

What will the E-Commerce Technology Market Size be During the Forecast Period?

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E-Commerce Technology Market: Key Drivers, Trends, and Challenges

The increasing e-commerce sales are notably driving the e-commerce technology market growth, although factors such as growing concerns over data privacy and security may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the e-commerce technology industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key E-Commerce Technology Market Driver

One of the key factors driving the e-commerce technology market is increasing e-commerce sales. The e-commerce industry is progressing quickly, owing to various factors, such as the growing tech-savvy population, increasing Internet penetration, and the rising use of smartphones. The demand for globally manufactured products is also fueling growth by generating cross-border e-commerce sales. Furthermore, the presence of various multiple payment options, such as credit and debit cards, Internet banking, electronic wallets, and cash-on-delivery (COD), has led to a paradigm shift in the purchasing patterns of people from brick-and-mortar stores to online shopping. Also, e-commerce platforms not only enable consumers to buy goods easily as they do not have the physical barriers involved in offline stores but also help them in making better and more informed decisions, as consumers can view multiple user reviews on the website before purchasing a product. The growth of the e-commerce sector directly impacts the e-commerce technology market. All these factors have increased the demand for e-commerce software and services from end-users. Hence, the growth of the e-commerce industry will boost the growth of the global e-commerce technology market during the forecast period.

Key E-Commerce Technology Market Trend

The rising focus on developing headless CMS is another factor supporting the e-commerce technology market growth in the forecast period. The increasing number of touchpoints for customers, such as IoT devices, smartphones, and progressive web apps, is making it difficult for legacy e-commerce websites to manage demand from customers. Even though most retailers have not embraced the IoT, more customers are exploring new product information through devices, such as IoT-enabled speakers, smart voice assistance, and in-store interfaces. To resolve this issue and provide a more effective user experience, vendors are offering a headless e-commerce architecture. Headless e-commerce architecture is a back-end-only content management system (CMS). Furthermore, vendors are offering headless CMS solutions to simplify e-commerce applications and provide flexible software packaging for their clients. For instance, Magento, a subsidiary of Adobe Inc., offers GraphQL, a flexible and performant application programming interface (API), which allows users to build custom front ends, including headless storefronts, advanced web applications (PWA), and mobile apps. Such developments are expected to provide high growth opportunities for market vendors during the forecast period.

Key E-Commerce Technology Market Challenge

Growing concerns over data privacy and security will be a major challenge for the e-commerce technology market during the forecast period. Data privacy and security risks are the major barriers to the adoption of e-commerce technology. Hackers are constantly trying to search for vulnerabilities and loopholes in e-commerce infrastructure. Although e-commerce players, vendors, and end-user organizations try to adopt proactive prevention plans to counter security breaches within their systems, the rise in the number of e-commerce website hacking and ransomware attacks has resulted in financial and data loss for companies. In addition, public cloud infrastructure is more prone to glitches in source codes, as the public cloud is multi-tenant. This affects various applications running in the cloud environment. Hackers can gain access to cloud-based data storage systems easily as the public cloud-based infrastructure is based on open architecture and shared resources. Therefore, vendors are encrypting their clients' data and are implementing multi-factor authentication systems, such as biometrics, for verifying the identity of users in the IT systems of clients. However, the increased attacks on e-commerce websites and resultant losses have discouraged most companies and enterprises from adopting e-commerce technology.

This e-commerce technology market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global e-commerce technology market as a part of the global IT consulting and other services market within the global IT services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the e-commerce technology market during the forecast period.

Who are the Major E-Commerce Technology Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• Adobe Inc.
• BigCommerce Holdings Inc. 
• commercetools GmbH
• HCL Technologies Ltd.
• Open Text Corp.
• Oracle Corp.
• Pitney Bowes Inc.
• Salesforce.com Inc.
• SAP SE
• Shopify Inc.

 

This statistical study of the e-commerce technology market encompasses successful business strategies deployed by the key vendors. The e-commerce technology market is fragmented and the vendors are deploying growth strategies such as organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Adobe Inc. - The company offers adobe commerce cloud which is powered by Magento and is Built for multi-channel commerce experiences for B2B and B2C customers on a single platform.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The e-commerce technology market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

E-Commerce Technology Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the e-commerce technology market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global IT consulting and other services market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

 

Which are the Key Regions for E-Commerce Technology Market?

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37% of the market’s growth will originate from North America during the forecast period. The US and China are the key markets for the e-commerce technology market in North America. Market growth in this region will be faster than the growth of the market in other regions.

The increasing presence of online shopping will facilitate the e-commerce technology market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 pandemic had a positive impact on the growth momentum of the e-commerce technology market in North America in the first half of 2020. The outbreak of the deadly virus severely impacted the supply chain system and offline retail commerce activities in the region. Lockdowns imposed by various North American countries such as the US and Canada to prevent the spread of COVID-19 temporarily halted offline retail operations in 2020. Therefore, online shopping in the US grew 42% in 2020 as compared to 2019, according to the recent Adobe Digital Economy Index. Several small and medium ventures came into the online retailing sector and launched their e-commerce platforms to reach consumers. Such developments supported the growth of the e-commerce technology market in North America in 2020 and are also anticipated to drive the regional market during the forecast period.

What are the Revenue-generating Application Segments in the E-Commerce Technology Market?

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The e-commerce technology market share growth in the B2C segment will be significant during the forecast period. The growing adoption of e-commerce payment platforms and their ability to ensure secure online transactions have also attracted a large number of customers to shop for consumer goods on e-commerce websites. Most online shoppers today prefer to make payments for their online orders through e-commerce payment platforms that are secured using the latest payment processing technologies.

This report provides an accurate prediction of the contribution of all the segments to the growth of the e-commerce technology market size and actionable market insights on the post-COVID-19 impact on each segment.

You may be interested in our similar Report: 

E-commerce Market -The Market size is expected to reach a value of USD 10.87 trillion, at a CAGR of 28.64%, during 2021-2025. 

E-Commerce Technology Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 19.07%
Market growth 2021-2025	USD 10.57 billion
Market structure	Fragmented
YoY growth (%)	17.57
Regional analysis	North America, APAC, Europe, South America, and MEA
Performing market contribution	North America at 37%
Key consumer countries	US, China, Germany, Japan, and the UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Adobe Inc., BigCommerce Holdings Inc., commercetools GmbH, HCL Technologies Ltd., Open Text Corp., Oracle Corp., Pitney Bowes Inc., Salesforce.com Inc., SAP SE, and Shopify Inc.
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, and Market condition analysis for the 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.

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What are the Key Data Covered in this E-Commerce Technology Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive e-commerce technology market growth during the next five years
• Precise estimation of the e-commerce technology market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the e-commerce technology industry across North America, APAC, Europe, South America, and MEA
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of e-commerce technology market vendors

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