E-commerce Market Expected to Reach $63800.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “E-commerce Market," The e-commerce market was valued at $15.7 trillion in 2022, and is estimated to reach $63800.2 billion by 2032, growing at a CAGR of 15.3% from 2023 to 2032.

E-commerce is the process of conducting commercial transactions electronically over the internet. It involves the exchange of goods, services, and information between buyers and sellers using digital platforms and technologies. It encompasses both business-to-consumer (B2C) and business-to-business (B2B) transactions, as well as other forms such as consumer-to-consumer (C2C) and mobile commerce (m-commerce).

Furthermore, e-commerce relies on online platforms that serve as virtual marketplaces, connecting buyers and sellers. These platforms can be dedicated to e-commerce websites (such as Amazon, and eBay) or sections within larger websites (such as Walmart's online store). Moreover, it provides digital catalogs that showcase products and services. These catalogs include detailed descriptions, images, specifications, and pricing information, allowing customers to browse and select items of interest.

As internet penetration continues to increase globally, more individuals have access to online shopping platforms, leading to a larger customer base for e-commerce businesses. Furthermore, the ease of mobile browsing and the availability of dedicated shopping apps have played a significant role in driving e-commerce market growth.

Moreover, the pandemic forced many traditional businesses to rapidly adopt or expand their e-commerce presence, contributing to the overall growth of the industry. In addition, social media platforms have become powerful marketing channels, allowing the e-commerce industry to reach a broader audience and engage with potential customers. Influencer marketing, where social media influencers promote products and brands, has proven to be an effective strategy to drive e-commerce growth by leveraging the trust and influence of popular personalities. For instance, in June 2022, Walmart and Roku, Inc. announced a partnership to make TV streaming the next e-commerce shopping destination. Walmart has become the exclusive retailer to enable streamers to purchase featured products fulfilled by Walmart directly on Roku, America’s number one TV streaming platform.

However, trust and security issues are significant barriers to e-commerce market growth. Further, e-commerce relies on an efficient logistics network to deliver products to customers. Thus, inadequate infrastructure and logistical challenges can limit the growth of the e-commerce market, particularly in geographically dispersed or remote areas. On the contrary, the advancement of technology, especially in terms of mobile devices and internet connectivity, and cross-border e-commerce are expected to create lucrative opportunities for the growth of the e-commerce market in the upcoming years.

By offering, the consumer electronics segment acquired a major share in 2022. E-commerce platforms provide an extensive selection of consumer electronics products, giving consumers access to a wide range of brands, models, and features. This vast product variety, coupled with the ability to check availability and compare options, appeals to consumers who have specific preferences or are looking for niche products. Thus, this factor propels the growth of the consumer electronics segment during the forecast period.

However, the household products segment is attributed to be the fastest-growing segment during the forecast period. E-commerce offers the convenience of doorstep delivery. Customers can have their purchased household products delivered to their homes, saving them the effort of transporting heavy or bulky items. Improvements in logistics and shipping networks have made deliveries faster and more reliable. Therefore, these factors propel the growth of the household products segment in the e-commerce market during the forecast period.

Region wise, Asia-Pacific dominated the market in 2022. This was attributed to the result of the rising adoption of smartphones, growing middle class and disposable income, and cross-border trade and globalization. Furthermore, the widespread adoption of smartphones has played a crucial role in the growth of the e-commerce market in Asia-Pacific. Smartphones offer convenient access to online shopping platforms, allowing consumers to shop anytime and anywhere. However, LAMEA is considered to be the fastest-growing region during the forecast period. The LAMEA region has witnessed significant urbanization, with people moving from rural areas to cities. Urban dwellers have easier access to the internet and tend to adopt new technologies and shopping habits more quickly. This shift in consumer behavior towards online shopping has fueled the growth of the e-commerce market trends.

The COVID-19 pandemic has had a positive impact on the e-commerce market size. With lockdowns and social distancing measures in place, consumers turned to online platforms to fulfill their shopping needs. This resulted in a surge in online shopping across various product categories, including groceries, electronics, and apparel. Furthermore, COVID-19 acted as a catalyst for digital transformation across industries. Both large and small businesses recognized the importance of having a robust online presence and the ability to sell products and services online. This led to increased investment in e-commerce infrastructure, technology, and digital marketing. Therefore, these factors accelerated the growth of the e-commerce market size during the pandemic.     

Key Findings of the Study

• On the basis of model type, the business-to-business (B2B) segment accounted for the highest e-commerce market share, in terms of revenue in 2022.
• On the basis of offering, the consumer electronics segment is expected to exhibit the fastest growth rate during the forecast period.
• On the basis of region, Asia-Pacific generated the highest revenue in 2022. 

The key players operating in the E-commerce market analysis include Amazon.com, Inc., JD.com, Inc., Flipkart.com, Alibaba Group Holding Limited, Walmart Inc., Shein, Wayfair LLC, eBay Inc., Shopify, and pinduoduo.com. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.