Digital Commerce Market Statistics: 2030
The digital commerce market size was valued at $ 4.21 Trillion in 2020, and is projected to reach $ 17.53 Trillion by 2030, growing at a CAGR of 15.1% from 2021 to 2030.
Digital commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, basically on the internet. Digital-commerce is powered by the internet, where customers can access an online store to browse through, and place orders for products or services via their own devices .These business transactions operate as business-to-consumer (B2C), business-to-business (B2B), consumer-to-business, or consumer-to-consumer. The terms e-commerce and e-business are often used interchangeably. The term e-tail is sometimes used in reference to the transactional processes that make up online retail shopping.
On the basis of business type, the business to business segment dominated the global market in 2020, and is expected to continue this trend during the forecast period, owing to increase in adoption of digital commerce software which is expected to integrate with existing software and inventory management solution to provide valuable insights for digital commerce market growth. However, the business to consumer segment is expected to grow at the highest CAGR during the forecast period, owing to surge in adoption of digital commerce and e commerce solution in consumers, as it provides cost-effective and efficient mode of shopping for retail customer.
As per digital commerce market trends on the basis of business type, the automotive segment generated highest revenue in 2020, and is projected to maintain its dominance during the forecast period due to rise in adoption of digital commerce solution among automotive manufacturers to gain competitive advantage, which is owing to rise in competition between e-commerce and omni channel players. However, retail and consumer goods segment is expected to witness the highest growing during the forecast period. It is due to adoption of digital technology in the sales and marketing of product. Moreover, increase in use of smart phone fuels the growth of the market.
The report focuses on the growth prospects, digital commerce market forecast, restraints, and digital commerce market analysis. The study provides Porter’s five forces analysis of the digital commerce industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the E commerce market trends.
The digital commerce industry is segmented on the basis of component, browsing method, payment method, business type, industry vertical, and region. By component, it is bifurcated into solution and service. By browsing method, it is divided into desktop/laptop and mobile/ tablets. By payment method, it is categorized into card payment, bank transfer, wallet payment, cash payment and crypto currency. By business type, it is classified into business-to-business, business-to-consumer. By industry vertical, it is categorized into BFSI, automotive, manufacturing, retail household goods, healthcare and pharmaceuticals, media & entertainment and others.
Impact of COVID-19 on Digital Commerce Service Market
Digital commerce market share the current estimation of 2021 is projected to be higher than pre-COVID-19 estimates. This is attributed to the rapid growth in demand for digital commerce due to supply chain disruptions triggered by the COVID-19 pandemic. In addition, there is huge demand for online shopping in several areas, which requires food & beverage, manufacturing, and logistics companies to increase their investments in automation, including the automation of supply chains, thus, fueling the growth of the market.
With this outbreak, many industries were affected and maintaining the complex trading networks became difficult for them, which helped to drive the demand for digital commerce market. For instance, in October 2021, leading digital commerce company Dialogue, launched app version of its cutting-edge, AI-based e-commerce solution on the Shopify platform. This is expected to help organizations to tackle the effect of the COVID-19 pandemic. With this move, small e-commerce businesses on the Shopify platform are anticipated to be able to leverage the same innovative personalization technology as large corporations and enterprises, to create a better CX experience and boost retention and sales.
By Browsing Medium
Mobile/Tablet segment is projected as one of the most lucrative segments.
Top impacting factors
Factors such as rise in penetration of the internet and smart phones, growth in usage of social media & social commerce, and advancement of multiple payment modes drive the market of the digital commerce. However, online frauds & cyber security issues and lack of trust of consumer on online shopping restrain the market globally. Furthermore, the expansion of cross-border ecommerce and automation in digital commerce create lucrative opportunities in the market.
Rising Penetration of the Internet and Smart phones
The emergence of affordable smart phones and internet connections is a key factor resulting in the rise in demand for retail digital commerce packaging. Owing to technological advancements, the number of people who can afford electronics such as smart phones has increased considerably over the past few years. Moreover, access to internet has surged in the past few years, which is why a larger number of people are able to shop online. This has further led to the expansion of digital industries, including e-commerce, which, in turn, drives the demand for packaging solutions. The digital commerce market is being driven by the change in consumer preferences, rise in population, and surge in affordability of internet connections &mobile phones across the globe.
Asia-Pacific is projected as one of the most significant region.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the digital commerce market along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the digital commerce market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the digital commerce market.
- The quantitative analysis from 2020 to 2030 is provided to determine the digital commerce market potential.
Digital Commerce Market Report Highlights
By browsing method
By Payment Mode
By Business Type
By Industry Vertical
Key Market Players
eBay, Inc., Otto GmbH & Co, Shopify, Inc., Best Buy, Rakuten, Inc., Walmart, Inc., JD.com, Inc., The Home Depot, Amazon.com, Inc., Alibaba Group Holding Limited
According to the insights of CXOs of the leading companies, rise in need to improve digital commerce visibility and the desire for better transparency of inventory, orders, and shipment information drive the growth of the digital commerce software market. Increase in impact of digital commerce is anticipated to drive the investment in e commerce and surge in need for faster decision-making & eliminating inefficiencies boost the investment in smart devices, AI, and the associated digital commerce software, which is expected to provide lucrative opportunities for the market. For instance in 2020, E-commerce major player amazon.com and the Confederation of Indian Industry (CII) signed a memorandum of understanding (MoU) to bring the benefits of e-commerce to micro, small, and medium enterprises (MSMEs) in 10 states across India, which is anticipated to help spread digital commerce in small scale business. Owing to major shift toward SaaS delivery model, small & medium-sized businesses and organizations from the emerging markets heavily invest in the market, which in turn has increased the overall spending and boosted the market growth.
Furthermore, ongoing modernization of digital commerce network in number of organizations offers lucrative opportunities for the market. Modern business operations are under pressure to adopt new business models & technologies to excel in an increasingly complex and volatile world due to which, the key market players are innovating and investing in new processes and technologies to help their companies remain relevant in their markets. The companies that invest and innovate ensure that they remain competitive in the future.
The presence of a large number of providers in the global digital commerce market has increased the competitive rivalry among the key players. Therefore, digital commerce providers differentiate themselves from competitors and drive revenue growth by incorporating new digital business technologies such as block chain, machine learning, in-memory technologies, and multi-enterprise visibility into their offerings to gain a competitive edge & retain their market positions. The digital commerce market is concentrated with major players adopting 50%-60% of the market share. The degree of concentration is expected to remain the same during the forecast period. Strategic partnerships among market participants such as logistics service providers, warehouse service providers, and transportation service providers offer digital commerce software vendors with more opportunities for introduction of new products and expansion of their market foothold. Although the accelerating market growth momentum is expected to offer immense opportunities to the vendors operating in the market, the high initial cost and availability of open-source software are anticipated to challenge the growth of the market.