Global Social Commerce Market by Device, Business Segment, and Geography - Forecast and Analysis 2023-2027

Social Commerce Market Forecast 2023-2027

The social commerce market size is estimated to grow by  USD 4.2 billion between 2022 and 2027 accelerating at a CAGR of 31%. Social commerce enables consumers to customize their search and purchase experiences by utilizing reviews and feedback, driving market expansion. Positive feedback nurtures customer loyalty, elevating market growth. Additionally, impactful advertisements on social media platforms like Instagram and Facebook, combined with the growing number of mobile internet users, substantially contribute to market expansion. This symbiotic relationship between consumer engagement and platform advertising extends the market's reach and influence, reflecting the evolving landscape of online commerce.

What will be the Size of the Market During the Forecast Period?

To learn more about this report, View Sample PDF

Market Segmentation

This report extensively covers market segmentation by the device (laptops and PCs, mobiles, tablets, and others), business segment (business to consumer, business to business, and consumer to consumer), and geography (APAC, North America, Europe, South America, and the 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.

Market Dynamics and Customer Landscape

In today's digital age, the market is revolutionizing the shopping process for customers. Virtual environments are no longer just for gaming, but also for product discovery and checkout. Interested buyers can now browse and purchase items directly from networking site platforms, making content shopping a popular trend among millennials and individuals. Brands and sellers are leveraging influencer collaboration and shoppable posts to increase brand awareness and reach a larger audience. Consumer purchase behavior is changing, with the internet-savvy population preferring personalized shopping experiences. Modern technologies like messaging features enable seamless communication between buyers and sellers.

The market caters to both large players and smaller niche providers, ensuring a diverse range of products from electronics to home decor. Privacy concerns and regulatory compliance are crucial aspects of social commerce, with secure payment methods and user data protection being top priorities. Changing consumer preferences and user-generated content further enrich the user experience. As the market continues to evolve, it's essential for brands and sellers to adapt and provide a seamless shopping journey while maintaining transparency and trust. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Personalized shopping experience and diverse product portfolios on social commerce platforms is notably driving market growth. In the realm of virtual environments, social commerce empowers customers to engage in a more interactive and personalized shopping process. Through networking site platforms, product discovery occurs as interested buyers browse and share content, providing valuable reviews and feedback that influence purchasing decisions. Brands and sellers leverage these platforms to boost brand awareness and reach, with millennials and younger generations leading the charge. Small businesses and individuals also benefit from this modern technology, which facilitates immediate communication, messaging features, and secure payments. Consumer preference is shaped by social interactions, with video commerce, livestream shopping, and influencer collaborations playing a significant role.

Product categories, such as personal and beauty, electronics, home decor, and diverse segments like apparel, books, cosmetics, and electronic gadgets, require regular updates to attract new customers and retain loyalty. However, concerns over data collection, security, and cyberattacks necessitate ongoing efforts to ensure a safe and transparent information exchange. Marketing tools and personalized customer experiences further enhance the buyer experience, making social commerce a powerful and evolving marketing channel. This circulation of content helps drive traffic to the company's website, increase the customer base, and leverage market growth during the forecast period.

Significant Market Trends

Technological advances in social media are an emerging trend shaping market growth. In the contemporary social media landscape, virtual environments have transformed the way customers engage in shopping processes. Markets enable product discovery and checkout through content shopping and sharing on networking site platforms. Messaging features facilitate immediate communication between interested buyers and brands or sellers, fostering brand awareness and consumer preference. Millennials and younger generations are particularly drawn to social commerce, utilizing mobile technology for personalized shopping experiences.

Modern technologies, such as chatbots and Video Commerce, offer personalized customer service and livestream shopping. Brands and small businesses can collaborate with influencers and create shoppable posts to reach larger audiences. However, security concerns and cyberattacks pose challenges, necessitating robust data collection and privacy measures. Such networks continue to evolve as marketing tools, offering personalized shopping experiences in sectors like personal and beauty, electronics, and home decor.

Major Market Challenge

Efforts required for customer engagement and retention are a significant challenge hindering market growth. In the market, customers hold significant control over the shopping process. Virtual environments, such as networking site platforms, have replaced traditional retail stores for product discovery and checkout. Interested buyers engage with brands and sellers through messaging features, sharing, and immediate communication. Millennials and younger generations prefer this content-driven shopping experience, which modern technologies like mobile technology enable.

Brands and sellers leverage marketing tools, personalized customer interactions, and social media influencer collaborations to increase brand awareness and consumer preference. Small businesses and individuals can also benefit from this market. However, consumer purchase behavior can be influenced by security concerns, data collection, and cyberattacks. Personalized shopping experiences, including Video Commerce and livestream shopping, are popular in sectors like personal and beauty, electronics, and home decor. Such networks provide a platform for shoppable posts and interactions, making the buyer experience more engaging.

Get a detailed analysis of drivers, trends, and challenges  View Report Sample

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and forecasting strategies.

Customer Landscape

Market Segmentation by Device, Business Segment, Geography

Device Analysis

The laptops and PCs segment was valued at USD 289.15 billion in 2017 and continue to grow by 2021. The large screens of laptops and PCs enhance the visual appeal of social media website platforms. The growing popularity of social networking websites has led to growth in the market. Laptops are widely used for gathering information such as customer reviews, product information, and product ratings. 

Mobile phones are commonly used for accessing social commerce websites. For instance, Qwiqq, a social commerce app, is designed for e-commerce sales. The app is linked to PayPal (an American online transaction service provider) and networking site websites, such as Facebook, Foursquare, and Twitter. These websites provide product information to consumers.

Get a glance at the market contribution of various segments View Sample PDF 

The retail industry is witnessing a rise in e-commerce on social networking platforms as consumers increasingly use tablets instead of PCs for online shopping. This trend has resulted in an increase in group buying. Retailers prefer using tablets to access networking site websites because of their compactness and portability. They use these devices extensively to collect, compile, and post customer reviews on social networking websites.

Business Segment Analysis

B2B social commerce is the process of selling products between two businesses online. The benefits of social commerce platforms, such as the expansion of business reach in a cost-effective manner and additional sales channels, are major factors in encouraging B2B companies to increase their online presence.  In 2021, global online sales on B2B social commerce sites, log-in portals, and similar marketplaces increased by 17.8% to USD 1.63 trillion from USD 1.39 trillion in 2020. The increasing presence of online shopping has been a major factor driving the increased penetration of social commerce services among B2C companies. Another major factor driving the growth of this segment is increasing retail sales globally. C2C, or customer-to-customer, is a business strategy that promotes transactions between private entities, especially online. C2C enterprises serve as middlemen, fostering participation and assisting consumers in reaching larger audiences. C2C enterprises facilitate customer connections by locating and connecting consumers and sellers.

Geographical Analysis

APAC is estimated to contribute 76% 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.

For more insights on the market share of various regions View the Sample PDF now!

The market in APAC is experiencing robust growth due to the expanding Internet-savvy population, particularly in countries like India, Indonesia, Vietnam, the Philippines, Sri Lanka, and Pakistan. Large players and smaller niche providers are capitalizing on this trend, as consumers increasingly prefer mobile shopping and user-generated content. However, privacy concerns and regulatory compliance are crucial considerations, necessitating secure payment methods and user data protection. Changing consumer preferences prioritize user experience, product recommendations, and social influence in their business strategies. Multichannel retailing, the latest technology such as artificial intelligence and augmented reality, and consumer behavior analysis are essential for effective customer engagement and conversion rates.

Take a quick look at various segments. View the Report Sample PDF

Who are the Major Market players?

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.

Advance - The company offers social commerce through the social media platform, Reddit. Also, the company offers different types of media such as newspapers, news and information websites, magazines, and others.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Alibaba Group Holding Ltd.
• Automattic Inc.
• ByteDance Ltd.
• Charlton Media Group
• Etsy Inc.
• Eventbrite Inc.
• Fashnear Technologies Pvt. Ltd.
• iQIYI Inc.
• Meta Platforms Inc.
• Microsoft Corp.
• One97 Communications Ltd.
• PayPal Holdings Inc.
• PDD Holdings
• Renren Inc.

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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

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 to 2027. 

• Device Outlook 
  • Laptops and PCs
  • Mobiles
  • Tablets
  • Others
• Business Segment Outlook
  • Business to business
  • Consumer to consumer
  • Business to Consume
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In today's digital age, social commerce has emerged as a revolutionary marketing strategy that combines social media and e-commerce. Virtually, consumers can now make purchases directly through social media platforms like Instagram, Facebook, and TikTok using features such as Shopping tabs, Live Shopping, and Buy Now buttons. This trend is particularly popular among the younger generation, as envisioned in the context text. Moreover, Social Commerce enables brands to create engaging content, build communities, and foster customer relationships. Producers can showcase their products through visuals, videos, and interactive experiences, making shopping an enjoyable experience. Brands can also use networking site influencers to promote their products, reaching a wider audience and increasing brand awareness.

Customers benefit from Social Commerce by having a seamless shopping experience, with the convenience of making purchases directly on the platform. Additionally, social media algorithms can suggest personalized recommendations based on users' interests and browsing history. Social Commerce is a game-changer for businesses, offering opportunities for increased sales, customer engagement, and brand loyalty. Brands can use this strategy to reach new audiences, expand their customer base, and stay competitive in the market. In summary, Social Commerce is a powerful marketing tool that combines networking site and e-commerce, offering benefits for both brands and consumers. It is a must-have strategy for businesses looking to stay ahead in today's digital marketplace.

Market Scope
Report Coverage	Details
Page number	165
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 31%
Market growth 2023-2027	USD 4.2 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	29.3
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 76%
Key countries	US, China, Japan, Thailand, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Advance, Alibaba Group Holding Ltd., Automattic Inc., ByteDance Ltd., Charlton Media Group, Etsy Inc., Eventbrite Inc., Fashnear Technologies Pvt. Ltd., iQIYI Inc., Meta Platforms Inc., Microsoft Corp., One97 Communications Ltd., PayPal Holdings Inc., PDD Holdings, Renren Inc., Shopify Inc., SINA Corp., Twitter Inc., Verizon Communications Inc., and Tencent Holdings Ltd.
Market dynamics	Parent market growth 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, and Market condition analysis for the forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

View Sample PDF 

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Detailed analysis of customer landscape covering Diver of price sensitivity, Adoption of the lifecycle, and key purchase criteria
• Companies landscape comparing criticality of inputs and factors of differentiation
• Exclusive Matrix on companies' position and classification
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch