Social Networking Market Analysis North America,APAC,Europe,South America,Middle East and Africa - US,China,Japan,UK,Germany - Size and Forecast 2023-2027

Social Networking Market Size 2023-2027 

The social networking market size is estimated to grow by USD 163.6 billion at a CAGR of 16.9% between 2022 and 2027. The market's expansion relies on several factors, including the increasing penetration of the Internet, collaborations and partnerships among companies, and the surging demand for video content. These factors collectively drive market growth, indicating a shift towards more interconnected and content-driven digital landscapes. As Internet penetration deepens, collaborations and partnerships among companies have become more prevalent, facilitating the development of innovative solutions and services. Additionally, the rising demand for video content underscores a broader trend toward digital consumption and engagement. This convergence of factors underscores the market's evolution towards more interconnected, content-rich, and collaborative environments, reflecting a broader shift toward digitalization and connectivity in various industries.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

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

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Market Segmentation

This market report extensively covers market segmentation by type (advertising, in-app purchase, and paid apps), distribution channel (Google and Apple), and geography (North America, APAC, Europe, South America, and Middle East and Africa).

By Type

The market share growth by the advertising segment will be significant during the forecast period. In 2022, the advertising segment accounted for the biggest market share compared with the other segments. Social media advertising is the practice of using social media to connect with the target audience; social media apps facilitate highly tailored advertising campaigns on social networking sites. 

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The advertising segment was valued at USD 73.43 billion in 2017. Some of the most popular ad formats include static image ads, video ads, story ads, and messenger ads. The growing popularity of social media platforms for promoting brands and increasing product awareness is driving the growth of the market. Additionally, increasing sales of consumer products through advertising is expected to boost market growth. About 50% of the global population uses social media, which means that the segment will grow during the forecast period, which, in turn, will boost the growth of the market in focus.

By Region

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North America is estimated to contribute 40% 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. North America is home to some of the world's largest social networking companies, including Facebook, Twitter, and LinkedIn, among others. These companies dominate the networking landscape in the region, with millions of active users across the region. An increasing trend in the US is the launch of technologically advanced video reel-based apps with video editing support features. Moreover, nowadays, the increased use of social networks by businesses for marketing purposes is expected to fuel the growth of the market in the region.

Market Dynamics and Customer Landscape

The market is thriving, with B2C enterprises focusing on in-app purchases and the purchase of apps. It embraces a bottom-up approach and utilizes independent databases for performance tracking. With a vast user base of smartphone users, the market is adopting the S-curve function for growth. Leading platforms like Signal, Facebook Messenger, and iMessage dominate the space. Amidst national lockdowns, these platforms have become essential for staying connected and entertained, offering a variety of content, including theatre, sports, art, music, and games. As the market evolves, addressing data security concerns and integrating 5G technology are becoming paramount. 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.

Key Market Driver

Increased Internet penetration is the key factor driving the growth of the market. They have seen a huge increase in demand over the years due to a variety of factors, such as increased Internet Penetration. Facebook, YouTube, and WhatsApp are the most popular platforms worldwide, representing a significant and sustained increase in demand for these platforms. One of the most important effects of the increasing Internet penetration is the growing user base of these platforms. Moreover, as the Internet becomes more pervasive, social networking platforms are creating more diverse and active communities. With more and more people having access to the Internet, users can connect with others who share similar interests and values regardless of their geographical location. This creates new online communities, strengthens existing ones, and fosters interaction and engagement.

Another impact of increased internet penetration on social networking is indeed the emergence of new social networking platforms. This trend is further fueled by the growing number of smartphone users, who have access to platforms like Facebook Messenger and other Messaging site. Additionally, e-commerce platforms and music streaming services are leveraging social networking features to enhance user engagement and offer more personalized experiences.  As more people gain access to the Internet, entrepreneurs and innovators are creating new social networking platforms to cater to the diverse needs and interests of users. Finally, increased Internet penetration has also led to the proliferation of these apps and mobile devices, which have made it easier for people to access these platforms on the go. This has further increased the reach and impact of this networking on individuals and society, which will have a positive impact on market growth during the forecast period.

Significant Market Trends

Social media advertisements gaining traction is the primary trend in the market growth. This advertising has seen tremendous growth in recent years. The prevalence of social media means that businesses can reach large numbers of users through social media advertising. Social media advertising is highly effective as social media platforms offer advanced targeting options. This allows businesses to reach specific audiences based on their demographics, interests, and behaviors. This means businesses are more likely to create relevant ads that are clickable and convert to sales.

The rise of influencer marketing on these platforms has also contributed to the growth of social media advertising. Businesses can partner with popular influencers to promote their products or services to their followers by leveraging the influencer's credibility and reach. Overall, the growth is expected to continue during the forecast period as more businesses increasingly turn to social media as a key marketing channel, which, in turn, will boost the growth of the market.

Major Market Challenge

Privacy concerns are obstructing market growth. These platforms are often criticized for collecting and sharing data from users without their knowledge or consent. Many users are concerned that their personal information may be compromised, leading to identity theft and other cybercrime. We often collect large amounts of personal data from our users. This data may be used for targeted advertising or sold to third-party companies, raising concerns about user privacy and data security. Social networks use tracking technologies such as cookies and device IDs to monitor your online activity across multiple websites and devices. This allows to create detailed profiles of users, which can be used for targeted advertising and other purposes.

Users unwittingly share personal information on social networks, such as their full names, addresses, or phone numbers, which can be used to identify them. This can lead to identity theft, stalking, and other privacy violations. Social networks may be vulnerable to hacking and other security breaches, which can expose the personal information of users to unauthorized parties. Overall, social networks can be a valuable tool for connecting with others and sharing information, but users should be aware of the potential privacy risks and take steps to protect their personal information. This can include using strong passwords, adjusting privacy settings, and limiting the amount of personal information that they share on social networks. Such factors will hinder the market growth during the forecast period.

Key Market Customer Landscape

The 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 Market Customer Landscape

Who are the Major Market Companies?

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.

Alphabet Inc.: The company offers social media platform to share videos, add comments, likes, dislikes, and add short reels through its subsidiary called YouTube.

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

• Automattic Inc.
• ByteDance Ltd.
• Discord Inc.
• Ebates Performance Marketing Inc.
• LinkedIn Corp.
• MediaLab.Ai
• Meetup
• Meta Platforms Inc.
• Myspace LLC
• Nextdoor Holdings Inc.
• Pinterest Inc.
• Quora Inc.
• Reddit Inc.
• Snap Inc.
• Telegram Group 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The 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. 

• Type Outlook 
  • Advertising
  • In-app purchase
  • Paid apps

• Distribution Channel Outlook 
  • Google
  • Apple

• 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

The market is continually evolving, driven by various factors such as performance indicators, consumer attitudes, and data security concerns. Messaging sites like Facebook Messenger, Instagram, iMessage, and WeChat are integral to this market, offering platforms for communication and interaction. Emerging trends like live streaming videos, OTT platforms, and AI-based libraries are reshaping how users engage with social media. Additionally, the market is witnessing increased digitization, with platforms like TikTok and TRUTH Social gaining popularity. With the advent of 5G technology, social networking is expected to become more immersive, offering new experiences on smartphones, tablets, smart TVs, and other devices.

Furthermore, the market is deeply influenced by the level of digitization and exchange rates, shaping user engagement and platform growth. Major players like Instagram, Facebook Shops, and Sina Weibo cater to diverse user needs, while platforms such as Backlinko and Business of Apps provide insights into market trends. Emerging technologies like 3D image context, AI-based libraries, and customized photo collages enhance user experiences. The market is highly competitive, with Big Tech companies dominating app stores like Google Play Store, Apple iOS store, and Microsoft Store. As users increasingly rely on cloud-based apps across Android and Apple iOS-based devices, the social networking landscape continues to evolve rapidly.

Market Scope
Report Coverage	Details
Page number	151
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 16.9%
Market growth 2023-2027	USD 163.6 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	16.17
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 40%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., Automattic Inc., ByteDance Ltd., Discord Inc., Ebates Performance Marketing Inc., LinkedIn Corp., MediaLab.Ai, Meetup, Meta Platforms Inc., Myspace LLC, Nextdoor Holdings Inc., Pinterest Inc., Quora Inc., Reddit Inc., Snap Inc., Telegram Group Inc., Tencent Holdings Ltd., Twitter Inc., Yelp Inc., and Z Holdings Group
Market dynamics	Parent market 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 market forecast period.
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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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