E-commerce Market

E-commerce Market Size

The global E-commerce Market size was valued at USD 12.7 trillion in 2022 and is projected to reach USD 51.2 trillion by 2030, growing at a CAGR of 18.90% from 2023 to 2030. The introduction of several technological innovations such as multiple modes of transportation, and advances in logistics all have a significant impact on the e-commerce business. Industry players in the e-commerce business have invested in cutting edge technology such as AI and ML to offer an unparalleled experience. The market is also expected to grow substantially as consumers prefer the convenience of shopping on their mobile devices and cross-border e-commerce is expected to rise more retailers are expanding their reach beyond the domestic market to international markets. The market growth is restrained by several security threats such as data breaches, hacking, and fraud, which can compromise customer information and cause financial loss. Cybersecurity challenges such as protection against hacking, phishing, or malicious attacks targeting an online e-commerce platform which is a major restraining factor for the market growth. E-commerce companies must overcome these issues to succeed and provide their customers with a safe and reliable shopping experience.

Analyst’s Review 

Advances in technology are expected to make e-commerce accessible to consumers, and virtual reality, artificial intelligence, and cryptocurrencies play a critical role in shaping the industry. The e-commerce sector is constantly changing and due to the progress and development of technology, it has expanded into various areas of e-commerce. The emergence of AR and VR technologies have changed the way consumers shop online, creating an immersive and realistic shopping experience. The use of voice assistants and the increase in popularity of smart speakers would increase the number of voice searches in e-commerce. As mobile devices become more common, mobile shopping is becoming increasingly popular and will continue to be a major trend as it improves personalization, analyze data and improve customer service. Personalization is becoming increasingly essential in e-commerce, allowing businesses to tailor their browsing methods and services to individual customers.

In addition, digital media advertising on e-commerce sites allows customers to be targeted based on interests, behaviours, and connections across demographic and geographic barriers. These advanced targeting options increase ad relevance and provide a higher level of personalization, stimulating e-commerce market growth. In addition, the e-commerce market is fuelled by the growing popularity of interest-based targeting, which helps reach audiences through their self-reported activities, interests, skills, and most viewed pages.

Market Definition

E-commerce operates through online platforms that allow customers to purchase goods or services from anywhere, at any time, using their internet-enabled devices. It also provides numerous benefits to sellers, such as global reach, minimal transaction costs, higher margins of profits, and direct communication between the parties involved in the delivery of goods and services. E-commerce is characterized by features such as online shopping, secure payment gateways, electronic catalogues, personalized recommendations, and multiple payment options. It has gained widespread popularity over recent years due to its convenience, accessibility, and ability to reach customers globally.

Market Dynamics

The advent of affordable smartphones and internet connections is a key factor bolstering the demand for e-commerce market. With the development of e-commerce technology, the number of people who can afford electronics such as smartphones has increased significantly in recent years. In addition, internet access has accelerated in recent years, allowing more and more people to shop online. The market growth is propelled by the increase in high-speed internet connection which has enabled customers to quickly and conveniently access e-commerce websites and make purchases. This enabled business to provide their customers with a better shopping experience, which led to increase in overall sales.

The market growth is restrained by risk of theft particularly in commercial business dealings. Customers' perceptions of e-commerce will be impacted. The potential criminal activity for internet commercial transactions. Additionally, in order to retain consumer confidence in online buying and to limit or eliminate such concerns, online business organizations need to implement the proper strategies and take the necessary actions. To safeguard information and data for the convenience of customers purchasing online, protection of consumer data is essential, which can drive the market growth.

Segmentation Analysis

The global e-commerce market is segmented based on browsing method, business type, application, and geography.

Browsing Method

Based on browsing method, the e-commerce market is segmented into desktop/laptop and mobile & tablets. Desktop/laptop is the dominating segment owing to the growing customer preferences for high quality visualization, which provides better shopping experiences and detailed browsing method information.

Business Type

Based on business type, the e-commerce market is categorized into business to business (B2B), business to consumer (B2C), customer to business (C2B), and others. The business to business (B2B) segment led the market in 2022 owing to the growing focus on emerging technologies such as AI, VR, and AR. The expansion of the e-commerce market is anticipated to be driven by digital commerce software that can be utilized in conjunction with ERP software and inventory management solutions. 

Application

Based on application, the e-commerce market is classified into BFSI, automotive, manufacturing, healthcare & pharmaceuticals, media & entertainment, and others. The media & entertainment segment is expected to dominate over the forecast period mainly due to the increased use of the internet, the availability of a range of exclusive material in numerous languages, the convnience of using any device to access these services, and the economic effectiveness of the cheaper prices charged compared to TV cables.

E-commerce Market Regional Analysis

Based on regional analysis, the global e-commerce market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America is dominating the global market driven by the growing implementation of 4G and 5G technology for connectivity purpose which is expected to have a positive impact on the market as it provides an uninterrupted, seamless experience to the user. The adoption of smartphones is gaining momentum at a significant rate, thus increasing the exposure of online shopping for the customer. The expansion of e-commerce platforms and the resulting hike in the number of online buyers, specifically in emerging markets, is one of the vital factors supporting the e-commerce fulfilment services market growth in the region.

The development of advanced technologies has enabled companies to offer more personalized experiences to their customers, which has increased customer engagement and loyalty. In addition, the emergence of new technologies made it possible to make the operations of companies more efficient, which led to cost savings and better customer service. Additionally, the increased concentration of key market players and the launch of advanced technologies by manufacturers to improve the experience of online medicine purchases for customers are expected to boost the market's growth.

Competitive Landscape

The global e-commerce industry report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions.

List of Key Companies in E-commerce Market

• JD.com Inc.
• Etsy Inc.
• MikMak,
• FedEx Corp.
• Coop Alleanza 3.0
• ShipBob, Inc.
• Red Stag Fulfillment
• Shipfusion Inc.
• Sprocket Express

Key Industry Developments 

• July 2023: Coop Alleanza 3.0, launched an innovative and advanced e-commerce service to improve customers’ online shopping experience. The portal, www.easycoop.com, enables consumers to enjoy flexibility, particularly during checkout, deciding the day and time window in which to receive their orders.
• June 2023: eBay and Techstars collaborated to launch an accelerator program for early stage e-commerce solutions companies. The partnership combines eBay's experience in facilitating global commerce with Techstars' capabilities as a startup investor focus on emerging companies shaping the future of e-commerce with technologies such as artificial intelligence (AI), Web3, privacy, security and infrastructure.

The Global E-commerce Market is Segmented as:

By Browsing Method

• Desktop/laptop
• Mobile & Tablets

By Business Type

• Business to Business (B2B)
• Business to Consumer (B2C)
• Customer to Business (C2B)
• Others

By Application

• BFSI
• Automotive
• Manufacturing
• Healthcare & pharmaceuticals
• Media & Entertainment
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America