DUBLIN, Oct. 9, 2023 /PRNewswire/ — The “Global E-Commerce Market (by Product Categories, Model Type, & Region: Insights and Forecast with Potential Impact of COVID-19 (2022-2027)” report has been added to ResearchAndMarkets.com’s offering.
The global e-commerce market is poised for remarkable growth and is expected to reach a valuation of US$20.30 trillion in 2023, exhibiting a strong compound annual growth rate (CAGR) of 26.55% during the forecasted period.
In recent years, e-commerce sales have experienced rapid expansion, evolving significantly with advancements in technology and internet infrastructure. The last decade has witnessed tremendous progress in both technology hardware and internet access, closely associated with the growth of e-commerce. E-commerce has become a significant rival to traditional shopping, with the internet emerging as the preferred medium for marketing, advertising, and purchasing products, goods, and services.
E-commerce platforms provide a digital marketplace where buyers and sellers can engage in online transactions for products and services, accessible through mobile phones, laptops, or computers via the internet. The continued proliferation of mobile devices and widespread internet access indicates further expansion for e-commerce, with traditional brick-and-mortar sectors transitioning to the online sphere.
By Product Categories: The global e-commerce market is segmented into six distinct product categories: fashion, toys, hobby and DIY, electronics & media, food & personal care, furniture & appliances, and others. The fashion segment holds the largest market share, driven by digital innovation, increased online accessibility, smartphone penetration, and the emergence of a global middle class with disposable income.
By Model Type: The market is categorized into two primary segments based on application: business to business (B2B) and business to consumers (B2C). The Business to Business (B2B) segment is experiencing the highest growth rate with the highest CAGR during the forecast period. This is attributed to the growing significance of technologies such as AI, AR, and VR in influencing consumer purchasing decisions.
The global e-commerce market is divided into four major regions: Asia Pacific, North America, Europe, and the Rest of the World (ROW). Key countries within these regions include China, India, Japan, South Korea, the US, Canada, Mexico, the UK, Germany, France, Spain, Brazil, Argentina, and others.
Asia Pacific dominates the global e-commerce market as the largest region, characterized by significant growth driven by a rising middle class, increased disposable income, higher levels of internet access, and smartphone ownership. The region has experienced substantial e-commerce sector growth in recent years, with China leading the way as one of the world’s largest e-commerce marketplaces and digital technology users, featuring high sales volumes, extensive innovation, and a thriving ecosystem of social and mobile commerce.
Key Drivers and Challenges
- Increasing Internet Connectivity
- Surging Gen Z and Millennial Population
- Increasing Adoption of M-Commerce (Mobile Commerce)
- Growing Acceptance of Digital Transactions
- Rising Malware Applications
- Ambiguity with Cross-Border Trade
- Increase in Mobile 5G Subscriptions
- Growing Influence of Social Media
- Expansion of E-commerce Share in Total Retail Sales
- Rising Popularity of Self-Service Platforms
Increasing Internet Connectivity
The internet serves as both a technical infrastructure and a medium to drive business sales. Widespread internet access has led to increased internet usage for finding information about products and services and supporting the expansion of the e-commerce market. As a vast network connecting people and information, the internet enables e-commerce by allowing businesses to showcase and sell their products and services online, providing potential customers, prospects, and business partners with access to information that encourages purchases. The growing number of internet users is expected to drive e-commerce market growth in the coming years.
Rising Malware Applications
The e-commerce industry faces significant cybersecurity vulnerabilities and is highly susceptible to malware attacks. Despite effective marketing strategies and impressive website designs, a simple cyber threat can devastate an entire website and business. Malware attacks compromise a user’s system, web server, and confidential data, demanding a ransom in exchange for restoring access to the user’s data. Malware poses a significant threat to e-commerce websites, eroding customer trust and potentially damaging a business’s reputation. Consequently, the rising prevalence of malware applications presents a negative impact on the e-commerce market’s growth.
Growing Influence of Social Media
Social media plays a pivotal role in the e-commerce landscape, enhancing interactions between clients and e-commerce businesses. Rather than solely promoting deals and new product launches, social media platforms focus on improving customer engagement and facilitating direct selling through social groups and communities. By fostering two-way communication within specific communities, social media platforms enhance customer retention. The influence of social media continues to expand within the e-commerce industry.
The COVID-19 Analysis
The COVID-19 pandemic brought about significant changes in global digital transformation, with rapid shifts towards online, mobile-first, and omnichannel commerce. The pandemic compelled consumers to limit their shopping to essential goods and services while startups increasingly entered the online business sphere. Notable surges in hardware and sporting goods purchases, as well as greater reliance on real-time and digital payments, were observed. These changes, including the rapid shift to online platforms, mobile-first strategies, and omnichannel approaches, are expected to have a lasting impact in the post-COVID era.
Analysis of Key Players
The e-commerce market is highly competitive, with strong rivalry among participants, and is considered fragmented. Many companies are employing various strategies to maintain their positions in the market. Key players in the global e-commerce market include Amazon.com, Inc., The Home Depot, Inc., Walmart Inc., Zalando SE, Alibaba Group Holding Limited, eBay Inc., Shopify Inc., Apple Inc., Wayfair Inc., Rakuten Group, Inc., Meituan, and JD.com, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/hv62lu
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