Digital Commerce Market Size To Increase USD 19.2 Trillion By 2030

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Table of Content

The global digital commerce market size was reached at USD 5.39 trillion in 2022 and it is expected to touch around USD 19.2 trillion by 2030, growing at a compound annual growth rate (CAGR) of 17.21% from 2022 to 2030.

The global digital commerce business has expanded greatly and is still evolving and experiencing rapid development in both established and emerging economies. The preference of customers for online purchasing is driving an increase in the demand for digital commerce worldwide. Customers now browse internet websites before going to stores and compare the goods and pricing while relaxing at home. This is a key justification for shops stepping up their online presence.

Digital commerce includes a variety of features, including transactions involving the transfer of information over the Internet, participation in online marketplaces that handle third-party company or consumer-to-consumer sales, trading of goods or services via the internet, online shopping websites for retailers to directly sell goods to consumers, the gathering of demographic information through web contacts and social media, and advertising to prospective and established customers. 

Mobile ecommerce and mobile payments are two components of digital commerce that assist businesses in generating income through digital channels. Additionally, businesses may employ social commerce via social media sites like Facebook and local commerce to provide customers customised offers depending on their location by leveraging GPS technology.

Report Highlights

• Government initiatives for the digital economy, rising mobile traffic, and an increase in social media expenditure are some of the drivers propelling the worldwide digital commerce industry.
• The bulk of the market share for payment methods in 2021—roughly two-fifths of the global digital commerce market—belonged to digital wallets, and this proportion is predicted to increase at the same rate during the projection period.
• The browsing medium category's mobile/table sector, which accounts for more than three-fifths of the worldwide digital commerce industry, held the greatest market share in 2020.
• A number of cybersecurity risks and online scams somewhat impede growth. However, industry experts anticipate that automation in digital commerce and the growth of cross-border digital commerce will lead to attractive business prospects.
• The need for digital commerce was increased by significant supply chain disruptions, particularly during the pandemic's early stages. The demand for online shopping also rose dramatically at the same time, prompting the food and beverage, manufacturing, and logistics industries to boost their investments in automation, especially supply chain automation. The worldwide market for digital commerce was positively benefited by this aspect.
• In terms of revenue, North America accounted for more than two-fifths of the worldwide market for digital commerce in 2020. However, the market in Asia-Pacific is anticipated to see the quickest CAGR of 17.87% during the course of the projected period.

Digital Commerce Market Report Scope

Regional Snapshots

In terms of revenue, North America accounted for more than two-fifths of the worldwide market for digital commerce in 2020. However, the market in Asia-Pacific is anticipated to see the quickest CAGR of 17.87% during the course of the projected period. 

The other nations included by the research are Europe and LAMEA. The two biggest nations in the world's digital commerce sector are China and the US. By 2025, it is expected that they would own the bulk of the global digital market share.

Market Dynamics

Drivers

The growth in demand for retail digital commerce packaging is mostly due to the availability of inexpensive smartphones and internet access. The number of individuals who can buy technology like smartphones has significantly expanded over the past several years thanks to technical developments. Additionally, the number of individuals who have access to the internet has increased recently, which has allowed more people to purchase online. 

The growth of digital sectors, especially digital commerce, as a result, has increased the demand for packaging solutions. The global increase in population, shifts in consumer tastes, and explosion in the cost-effectiveness of mobile phones and internet connections all contribute to the growth of the digital commerce business.

Restraints

The digital commerce industry's development is anticipated to be constrained in the near future by strict rules and vertical limitations put on the sector. For digital commerce firms, vertical limits such as MFN known as the most favored nation, APPA known as across platforms parity agreements, geo-blocking, and geo-filtering will pose a significant problem. 

For instance, the CCI has the authority to investigate any contract relating to the digital commerce sector that has a "Appreciable Adverse Effect on Competition" (AAEC), as defined by Section 3 of the Indian Competition Act, according to the SSC Online article on the topic- Vertical Restraints in the Indian digital commerce market which was published in August 2019. 

As a result, the strict regulations placed on operating and advertising make it challenging for digital commerce businesses to manage their operations, which will negatively affect the expansion of the digital commerce industry in the years to come.

Opportunities

Technology is becoming more widely accepted, which makes the digital commerce industry more effective and accessible. The expansion of the middle class and the widespread use of social media are also escalating the demand for online sales of a variety of goods and services, which is helping the Business to Consumer (B2C) segment flourish. 

The way individuals market and purchase goods and services has changed as a result of the internet. Customers' purchasing experiences are altering as a result of digital commerce or internet retail. Banks and other participants in the digital commerce sector provide simple payment gateway use on a safe and secure online platform. 

In order to allow sellers and buyers to conduct business online, market players are concentrating on specialised adjustments to their business models. The market's top retailers are working to bolster their traditional retailing with online trade and alliances with other significant digital commerce businesses.

Challenges

During the projection period, the market for digital commerce will face challenges related to data privacy and security. The adoption of digital commerce is hampered by a number of security threats and privacy issues related to the implementation of retail digital commerce. To increase the safety and security of retail digital commerce, end users must invest more in cybersecurity procedures and technologies. Due to this, digital commerce now has higher ownership and implementation expenses. 

The information may consist of contact information, orders and contracts for the future, shipment information, and specifics about other vendor partners. Therefore, every security breach has a high risk of financial loss, customer loss, and damage to the reputation of the company. Because of these possible cybersecurity threats, end consumers are apprehensive to adopt digital commerce. Consequently, it is anticipated that worries about data security and privacy would impede the expansion of the worldwide digital commerce industry.

Recent Developments

• On the Shopify platform, the industry-leading digital commerce business Dialogue debuted the app version of its cutting-edge, AI-based digital commerce solution in October 2021. This should aid organisations in combating the COVID-19 pandemic's effects. With this change, it is predicted that small digital commerce companies using the Shopify platform would be able to use the same cutting-edge personalisation technologies as major corporations and enterprises, improving the CX experience and increasing retention and sales.
• In September 2018, Flipkart finished acquiring Upstream Commerce, an Israeli analytics start-up. Flipkart Pvt. Ltd. should be able to price and position its items more profitably as a result of this purchase. Strategic alliances, mergers, and acquisitions are still the top methods of business development used by participants in the digital commerce market.

Major Key Players

• Alibaba Group Holding Limited
• Amazon.com, Inc.
• Best Buy
• eBay, Inc.
• JD.com, Inc.
• Otto GmbH & Co
• Rakuten, Inc.
• Shopify, Inc.
• The Home Depot
• Walmart, Inc.

Segments covered in the report

By Payment

• Card Payments
• Digital Wallets
• Bank Transfers
• Cash Payments
• Crypto Currency

By Component

• Solution
• Services

By Browsing Medium

• Desktop/laptop
• Mobile and Tablets

By Business Type

• Business to Business (B2B)
• Business to Consumer (B2C)

By Industry Vertical

• BFSI
• Manufacturing
• Automotive
• Healthcare and pharmaceuticals
• Retail Household goods
• Media & entertainment
• Others

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