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The subscription e-commerce platform market size is estimated to grow at a CAGR of 68.44% between 2022 and 2027. The market size is forecast to increase by USD 407.31 billion The growth of the market depends on several factors, including convenience and personalization provided by subscription services and access to exclusive products offered by subscription platforms, predictable revenue model of subscription models
This subscription e-commerce platform market report extensively covers market segmentation by type (offline and online), application (beauty and personal care, food and beverages, clothing and fashion, entertainment, and health and fitness), and geography (North America, Europe, APAC, 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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Convenience and personalization provided by subscription services are notably driving the market growth, although factors such as the increasing competition in global subscription e-commerce platform market may impede the 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.
One of the key factors driving the subscription e-commerce platform market is the convenience and personalization provided by subscription services. The global subscription online platform market is driven by customers' demand for a seamless and flexible purchasing experience, which fuels convenience and personal experiences.
Such a personalised approach encourages feelings of exclusivity and contentment, improving the overall consumer experience. Subscription e-commerce platforms draw and keep customers who value time-saving solutions and want products for beauty and personal care, clothing and fashion, and others that fit their unique preferences and demands by offering ease and personalization. Hence, the convenience and personalization provided by subscription services is a key factor that is expected to drive the growth of the market in focus during the forecast period.
A key factor shaping the subscription e-commerce platform market growth is the expansion of subscription models into new industries. An important trend in the global subscription e-commerce platforms market is to use subscription models that are not typical of traditional sectors like healthcare, fitness and education. This trend is driven by the increasing need of customers to enjoy simple and individual experiences in these areas.
For instance, healthcare subscriptions provide services like medication deliveries, telemedicine consultations, and individualized wellness regimens. Access to virtual exercise sessions, personalized training plans, and fitness equipment rentals are all provided via fitness subscriptions. Similarly, education subscriptions include online courses, training programs for developing skills, and educational materials. The trend indicates that subscription models can have a beneficial effect on consumers in many different enterprises, by providing value, convenience, and personalized experience, as well as increasing customer engagement and satisfaction. Hence, this trend is expected to drive the growth of the market in focus during the forecast period.
Increasing competition in global subscription e-commerce platform market is one of the key challenges hindering subscription e-commerce platform market growth. The growing saturation of the global subscription e-commerce platform market presents a major challenge to entry for new players in the market focus.
It becomes challenging for new firms to enter the existing market and differentiate themselves from the competition when there are so many established players such as Shopify, BigCommerce, and Automattic, among others. Due to market saturation, there are different options available to clients in a crowded environment. It might be difficult for new entrants to get traction in this fiercely competitive market if they fail to differentiate themselves from the competition successfully. This can lead to restricted client acquisition and market share, which can prevent market growth during the forecast period.
The market 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 Subscription E-commerce Platform 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.
Amazon.com Inc: The company offers subscription eCommerce platform solutions such as Amazon Prime and Prime Lite Membership.
The research 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 offline segment will be significant during the forecast period. Offline mode is becoming a major segment in the global subscription online shopping platform market. The normal brick-and-mortar businesses that provide subscription-based services are represented in offline mode. This scenario is driven by a need to be physically present and experience individual experiences.
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The offline segment was valued at USD 3.68 billion in 2017 and continued to grow until 2021. For instance, Birchbox, which enables customers to visit their physical stores and personally select products for their monthly subscription boxes. The offline mode is a significant segment that is anticipated to fuel the growth of the global subscription e-commerce platform market during the forecast period because it gives customers a chance to experience the products physically with products, experience instant gratification, and receive personalized services.
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North America is estimated to contribute 39% 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. In particular, the fast growing e-commerce sector of North America is driving the regional market in focus. Moreover, the regional market in focus is also gaining significant momentum thanks to the increasing impact of social media platforms like Instagram and Meta as well as celebrity endorsements on consumer lifestyles. A favorable market illustration is created across the region by the introduction of long-term subscription services by major market players to foster customer loyalty and cater to distinct consumer interests and preferences.
In 2020, the subscription e-commerce platform market in North America was positively impacted by the COVID-19 epidemic. Because of the restrictions and constraints, consumers have started to use Internet shopping for everyday needs, in particular subscription services. This is why subscription services such as meal kits, beauty hampers and health memberships have become very popular in recent years. However, supply chain interruptions and macroeconomic turmoil were responsible for the early difficulties on the market. The rising inclination for convenience, personalized experiences, and carefully curated product offerings, as well as the growth of subscription services into new sectors like healthcare and pet care, are further driving forces for the market in focus during the forecast period.
The subscription e-commerce platform 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.
Subscription E-commerce Platform Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 68.44% |
Market growth 2023-2027 |
USD 407.31 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
59.02 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adobe Inc., Amazon.com Inc., Automattic Inc., BigCommerce Holdings Inc., Chargebee Inc., Cratejoy Inc., Crystallize AS, Digiwagon Technologies, FastSpring, Paddle, Podia Labs Inc., Recurly Inc., Sellfy UAB, Shift4, Shopify Inc., sticky.io, Stripe Inc., Swell Commerce Corp., ThriveCart, and Wix.com 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, 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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