Mobile Commerce Market

Mobile Commerce Market Size

The global Mobile Commerce Market size was valued at USD 402.85 billion in 2022 and is projected to reach USD 1,251.25 billion by 2030, growing at a CAGR of 17.60% from 2023 to 2030. In the m-commerce market, key drivers include the growing adoption of smart devices, improved broadband connectivity, cost-effective services, and the social acceptance of m-commerce services. This is supported by a study conducted by the Harvard Business Review, which found that only 7% of shoppers exclusively shop online, while 73% utilize multiple channels for their shopping needs. This signifies that customer experience remains consistent across m-commerce, desktop commerce, and brick-and-mortar store channels.

The market is further propelled by the increased compatibility of mobile payments and the deployment of applications for activities like fund transfers and bill payments. Additionally, advancements in integrated electronics enable the availability of diverse technologies such as broadband internet, handsets, and supporting service networks, thereby offering users unprecedented services.

Analyst’s Review 

Mobile commerce is thriving, with trends indicating its continued growth. Augmented reality (AR) is becoming more mainstream, enhancing the shopping experience on ecommerce and social media platforms. The rise of smart speakers and voice assistants is driving the popularity of voice search for online shopping. Enhanced security measures, such as biometric authentication, are bolstering consumer trust in mobile payments. The collaboration between service providers and mobile operators is facilitating advanced payment solutions. Governments worldwide are promoting digital payment methods. The adoption of bring-your-own-device (BYOD) and the availability of broadband connectivity are further propelling the mobile commerce industry's expansion. These trends indicate a promising future for mobile commerce and present opportunities for businesses to adapt and thrive in the digital landscape.

An October 2020 report by the UNCTAD & Netcomm Suisse eCommerce Association, reveals a significant increase in online shopping, ranging from 6 to 10% across various product categories, including cosmetics, personal care, agro-food, electronics goods, education, and online courses. As a result, offline companies are urged to venture into online delivery. The global crisis has accelerated the shift in consumer shopping habits towards online platforms, with a notable surge in online shopping for essential items.

Market Definition

Mobile commerce, also known as m-commerce, is a specialized category within the broader field of e-commerce. It involves the use of wireless handheld devices, such as smartphones and tablets, to conduct various types of commercial transactions online. Examples of m-commerce activities include mobile banking, in-app purchases, and using virtual marketplace apps like Amazon's mobile app. Additionally, digital wallets like Google Pay, Apple Pay, and Samsung Pay play a significant role in facilitating the exchange of money in this context. M-commerce relies on wireless devices to carry out activities like authorizing, initiating, and confirming transactions. The process is made possible by the presence of point-of-sale terminals that leverage nearfield communications or internet connectivity to process these transactions.

The anticipated growth of the global mobile commerce market is driven by the rising prevalence of smartphones, tablets, and other internet-enabled devices. M-commerce offers significant cost savings and improved transactional efficiency by eliminating the need for physical presence and intermediaries. Ongoing advancements in wireless and mobile technologies will further boost transaction volumes throughout the forecast period. Additionally, the increasing adoption of mobile internet due to enhanced bandwidth capabilities is expected to be a key driver for market growth.

Market Dynamics

The growing adoption of wireless handheld devices that provide enhanced security, convenience, and easy internet access has incentivized technologically savvy consumers to engage in mobile-based payments using digital wallets and online payment gateways. These methods allow customers to complete contactless transactions, eliminating the need for physical card swiping or manual data entry. As a result, human errors are reduced and the checkout process becomes smoother. To enhance security, mobile and wearable devices now offer various safety features, including biometric authentication through fingerprint and facial recognition, thereby increasing the trustworthiness of mobile payments. Additionally, many service providers are partnering with mobile operators to offer advanced payment solutions. Governments in different countries are also implementing initiatives to promote digital payment methods, which further contributes to the growth of the market. Moreover, the increasing trend of bring-your-own-device (BYOD) and the expanding availability of broadband connectivity are among the additional factors driving industry expansion.

Mobile networks are highly susceptible to criminal activity compared to traditional PC internet connections. The current technology required to establish an m-commerce business entails significant costs and necessitates a substantial initial investment. The advent of mobile apps and the reliance on cellular data make m-commerce more financially demanding than e-commerce. An important obstacle hindering the growth of the mobile commerce market is the issue of location management, particularly in rural areas.

Segmentation Analysis

The global mobile commerce market is segmented based on transaction, payment mode, and geography.

By Transaction

Based on transaction type, the m-commerce market is categorized into m-retailing, m-ticketing/booking, m-billing, and others. The m-retailing segment held the largest market share in 2022. The several factors including convenience, accessibility, and personalized user experience are contributing to the market growth. With mobile devices being a constant presence in people's lives, m-retailing allows consumers to shop anytime, anywhere, and offers personalized recommendations based on their preferences. The rise of mobile payment options has further accelerated the adoption of m-retailing, making transactions quick and secure. Additionally, m-retailing platforms often integrate social media features, allowing users to share their purchases and recommendations, driving brand awareness and customer engagement. As a result, m-retailing has become an essential channel for businesses to reach and engage with customers, transforming the retail industry.

By Payment Mode

Based on payment mode, the m-commerce market is divided into near field communication (NFC), premium SMS, wireless application protocol (WAP), direct carrier billing, and others. The near field communication (NFC) segment accumulated the largest market share in 2022. Near field communication (NFC) technology in mobile commerce is being widely used due to its seamless integration and enhanced user experience. With NFC-enabled devices, customers can make secure and contactless payments with a simple tap, eliminating the need for physical cards or cash. This convenience has led to its widespread adoption in mobile payment solutions like Apple Pay and Google Pay. NFC also allows for quick and easy information exchange between devices, enabling businesses to provide tailored offers and personalized experiences. The secure and efficient nature of NFC in mobile commerce has made it a popular choice for businesses and consumers, which is driving its growth and acceptance.

Mobile Commerce Market Regional Analysis

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

North America held the largest market in 2022, driven by the increasing acceptance of emerging technologies, which creates opportunities for expansion. The North American region, with its substantial funding and investments, serves as the base for major firms like MasterCard, Google, and others. This presence of key players is expected to further propel regional mobile commerce market development.

As a strategic move, Amazon, headquartered in the U.S., has integrated its m-commerce and e-commerce operations. This strategic integration has the potential to enhance mobile conversions by delivering an enhanced customer experience compared to a company's mobile site alone. The adoption of innovative business tactics by prominent companies is anticipated to unlock a multitude of opportunities for the mobile commerce market.

Competitive Landscape

The global mobile 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 and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

List of Key Companies in Mobile Commerce Market

• Telefonaktiebolaget LM Ericsson
• Google LLC
• Thales Group (Gemalto NV)
• IBM Corporation
• Mastercard Inc.
• Mopay AG
• Oxygen8
• Paypal Holdings Inc.
• Visa Inc.
• SAP SE
• SAMSUNG

Key Industry Developments 

• November 2021 (Investment): Airtel Money, in collaboration with Mastercard, introduced the Airtel Money Mastercard virtual payment solution in Zambia. This innovative solution enables all Airtel Money customers in the country, including those without a bank account, to securely and conveniently make global e-commerce payments. This initiative aligns with Airtel Africa's strategic partnership with Mastercard, aiming to provide over 100 million Airtel Africa mobile phone users in 14 African countries with access to Mastercard's extensive global network.

The Global Mobile Commerce Market is segmented as:

By Transaction

• M-Retailing
• M-Ticketing/Booking
• M-Billing
• Others

By Payment Mode

• Near Field Communication (NFC)
• Premium SMS
• Wireless Application Protocol (WAP)
• Direct Carrier Billing
• 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