Digital commerce is predicted to grow from its current estimated value of US$ 5.58 trillion in 2022 to US$ 22.76 trillion by 2032, growing at a CAGR of 15.1% throughout that time.
The global Digital Commerce market has grown abundantly over the last few decades and continues to evolve and experience high growth in both developed and developing markets. Increasing preference of consumers towards online shopping is propelling the demand for digital commerce globally.
Digital commerce is inclusive of several features such as transaction that involves transfer of information across Internet, participation in online marketplaces that process third-party business-to-consumer or consumer-to-consumer sales, trading of products or services using internet, online shopping web sites for retailers for direct selling of products to consumers, collection of demographic data through web contacts and social media, marketing to prospective and established customers by e-mail etc.
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Digital commerce helps organizations to generate revenue through digital channels by incorporating mobile commerce and mobile payments. In Addition, organizations can utilize social commerce through social media platforms such as Facebook and they can also use local commerce to deliver personalized deals to consumers based on their location by utilizing GPS technology.
Global Digital Commerce Market: Drivers Restraints
Various factors such as consumers desire to shop from the comfort of their homes and offices, rapidly increasing computer and internet penetration, change in consumer preferences along with the availability of cheap and dependable technology for secure transactions has led to a significant growth in online sales around the world.
The growth of digital commerce is majorly fuelled by the increasing number of smartphones, broadband connections and tablets.
However, the industry is facing few challenges because e-commerce is a relatively new industry and the majority of online retailers still lack in digital marketing skills. Also, online retailers do not have proper governance structure in place.
Moreover, Security remains prime concern for consumers as the complexity of online fraud attacks continue to increase. Despite these all issues and challenges the global digital market is growing at a rapid pace and is expected to grow at a double digit CAGR between 2016 and 2026
Global Digital Commerce Market: Regional Outlook
Depending on geographic regions, global digital commerce market is segmented into seven key regions: North America, South America, Eastern Europe, Western Europe, Asia Pacific, Japan, and Middle East Africa.
As of 2015 North America dominated the global digital commerce market in terms of market revenue followed by Asia Pacific. Latin America is also estimated to show effective growth in near future due to millennials gaining internet access.
China and the US are the leading players in the global e-commerce market. They are anticipated to account for majority of the market share in global digital market share by 2025. According to E-marketer, there were 148 million online shoppers in China in 2010.
The shoppers accounted for 11% of the population and 32% of the total Internet users in the country. Asia is expected to become the biggest e-commerce market in the world in the future.
Global Digital Commerce Market: Market Players
Some of the major players operating in global digital market are Amazon.com, JD.com, Alibaba, eBay, Rakuten, Groupon, ASOS.com and others.
Regional analysis includes
- North America (U.S., Canada)
- Latin America (Mexico. Brazil)
- Western Europe (Germany, Italy, France, U.K, Spain, Nordic countries, Belgium, Netherlands, Luxembourg)
- Eastern Europe (Poland, Russia)
- Asia Pacific (China, India, ASEAN, Australia New Zealand)
- Middle East and Africa (GCC, S. Africa, N. Africa)
Global Digital Commerce Market: Market Segmentation
The global digital commerce market is broadly classified into four segments on the basis of business model
- Business to Business
- Business to Customer
- Customer to Customer
- Business to government
The global digital commerce market is broadly classified into four segments on the basis of types of e-commerce software
- Software as a service Software
- Open Source software
- North America
- Latin America
- East Asia
- South Asia Pacific
- Middle East Africa