The global e-commerce market size was valued at around USD 13 Trillion in 2021 and is estimated to expand at a CAGR of around 27% during the forecast period, 2022-2030. The growth of the market is attributed to the rising penetration of internet and smartphones.
Electronic commerce, commonly known as e-commerce, refers to commercial transactions conducted over the internet. It includes buying and selling of goods and services, costumer support and marketplace services, payment gateways, online auctions, internet banking, and others. There are several benefits of e-commerce such as minimal transaction cost, global reach, higher margins of profit for sellers, quick delivery of goods and services, and direct communication between buyers and sellers.
The global e-commerce market is expanding continuously, owing to urbanization, penetration of the internet and smart devices, technological advancement, new payment modes, e-commerce automation, increasing importance of online marketing tools such as Facebook ads and Google ads, and others. For example, in 2021, the market in Latin America registered around USD 85 billion worth of sales. In 2020, the e-commerce market in India registered around USD 46 billion worth of sales. In 2021, China registers around USD 2 trillion worth of sale in the e-commerce market.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing urbanization across the globe is projected to drive the market during the forecast period.
- Growing effects of social networking platforms on shopping habits of consumers is expected to spur the market.
- Increasing disposable wealth among consumers is anticipated to drive the market.
- Language localization of online retail platforms is projected to drive the market.
- Online retail channels provide hassle-free shopping experiences and a variety of product choices, which is expected to boost the market.
- Rising shift of consumers towards online shopping platforms, due to the lockdown and social distancing measures taken during the COVID-19 pandemic situation, is anticipated to drive the market.
- Shift of large enterprises and established organizations towards online platforms to minimize infrastructure, communication, and overhead expenditure is projected to propel the market.
- Lack of technical infrastructure in rural areas of countries such as China, Brazil, and India is anticipated to hinder the growth of the market.
- Online frauds and issues with cybersecurity are anticipated to restrain the growth of the market.
- Trends such as interactive shopping, implementation of augmented and virtual reality into shopping experience, innovative payment methods and strategies such as Buy Now, Pay Later are expected to boost the market during the forecast period.
E-commerce market Scope
The report on the global e-commerce market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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E-commerce Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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Types (Vertical and Horizontal), Business Models (Business-to-Business, Business-to-Consumer, Consumer-to-Consumer, and Others), Product Types (Beauty & Fashion, Electronics, Household, Food & Beverages, Pharmaceutical, and Others), Browsing Mediums (Desktops & Laptops, Smartphones & Tablets, and Others), Modes of Payment (Digital Wallets, Credit/Debit Cards, Gift Cards, Pre-paid Cards, Cash, Unified Payment Interface (UPI), and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Amazon.com, Inc.; Best Buy Co., Inc.; Walmart, Inc.; Rakuten, Inc.; Alibaba Group Holding Limited; eBay, Inc.; Flipkart India Private Limited; Tesco PLC; B2W Digital; Inter IKEA Systems B. V.; Otto GmbH & Co KG; The Home Depot, Inc.; Wayfair, Inc.; Apple, Inc.; Costco Wholesale Corporation; Groupon, Inc.; Zalando SE; and Others
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E-commerce Market Segment Insights
Horizontal e-commerce is expected to dominate the market
According to types, the market is bifurcated into vertical and horizontal. The horizontal e-commerce segment holds a large share of the market, due to increasing shift in preferences of consumers towards one-stop-shops on e-commerce platforms. Additionally, the vertical market is gradually gaining popularity, due to less time required to shop from vertical e-commerce, dedicated e-commerce portals, and personalized merchandising.
Business-to-consumer business model is anticipated to drive the market
Based on business models, the market is divided into business-to-business, business-to-consumer, consumer-to-consumer, and others. The business-to-consumer segment is expected to expand at a significant CAGR during the forecast period, owing to rising middle-class population with disposable income, and increasing influence of social media on purchasing habits of consumers. Market players and banks are incorporating changes in e-commerce to enable sellers and consumers to make transactions online securely.
Beauty & fashion holds a large share in the market
On the basis of product types, the market is segregated into beauty & fashion, electronics, household, food & beverages, pharmaceutical, and others. The beauty & fashion segment is projected to dominate the market during the forecast period. Changing fashion trends are raising the demand for apparels, footwears, accessories, and cosmetics by consumers. Incorporation of advanced technologies such as augmented and virtual reality and availability of a wide-range of products for comparison online are expected to expand the segment further during the forecast period.
Smartphones & tablets segment is projected to expand at a rapid pace
On the basis of browsing mediums, the market is divided into desktops & laptops, smartphones & tablets, and others. The smartphones & tablets segment is expected to surge at a rapid pace during the forecast period, owing to growing internet penetration and increased usage of smartphones and tablets among consumers. Applications designed for smartphones and tablets aid consumers to shop online seamlessly.
Credit/debit card payment method dominates the market
Based on payment methods, the market is segmented into digital wallets, credit/debit cards, gift cards, pre-paid cards, cash, Unified Payment Interface (UPI), and others. The credit/debit card segment holds a large share of the global e-commerce market, as it provides convenience and security to consumers while shopping online. Moreover, with increasing usage of smartphone for online shopping, digital wallet and Unified Payment Interface (UPI) payment method segments are expected to expand during the forecast period as well.
Market in Asia Pacific is expected to expand significantly
On the basis of regions, the market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is anticipated to register significant growth during the forecast period, due to rising technological advancements in the region. Surging number of internet and smartphone users, developing infrastructure facilities, increasing awareness of consumers regarding benefits of online shopping, and growing preferences of retailers to carryout businesses through the e-commerce platform are key factors that drive the market.
Segments
The global e-commerce market has been segmented on the basis of
Types
Business Models
- Business-to-Business
- Business-to-Consumer
- Consumer-to-Consumer
- Others
Product Types
- Beauty & Fashion
- Electronics, Household
- Food & Beverages
- Pharmaceutical
- Others
Browsing Mediums
- Desktops & Laptops
- Smartphones & Tablets
- Others
Modes of Payment
- Digital Wallets
- Credit/Debit Cards
- Gift Cards
- Pre-paid Cards
- Cash
- Unified Payment Interface (UPI)
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Apple, Inc.
- Amazon.com, Inc.
- Best Buy Co., Inc.
- eBay, Inc.
- Walmart, Inc.
- Rakuten, Inc.
- Alibaba Group Holding Limited
- Flipkart India Private Limited
- Tesco PLC
- B2W Digital
- Inter IKEA Systems B. V.
- Otto GmbH & Co KG
- The Home Depot, Inc.
- Wayfair, Inc.
- Costco Wholesale Corporation
- Groupon, Inc.
- Zalando SE
- Others
Competitive Landscape
The global e-commerce market is highly competitive with key players such as Amazon.com, Inc.; Best Buy Co., Inc.; Walmart, Inc.; Rakuten, Inc.; Alibaba Group Holding Limited; eBay, Inc.; Flipkart India Private Limited; Tesco PLC; B2W Digital; Inter IKEA Systems B. V.; Otto GmbH & Co KG; The Home Depot, Inc.; Wayfair, Inc.; Apple, Inc.; Costco Wholesale Corporation; Groupon, Inc.; Zalando SE; and others, as they use various business strategies such as mergers, collaborations, acquisitions, partnerships, and product launches to dominate the market.
In September 2019, Alibaba Group Holding Limited acquired NetEase, Inc., which gives it a competitive edge in the market. In 2022, Walmart, Inc. plans to offer incentives and discounts to sellers who sell their products on the website of the company. In April 2022, Rakuten, Inc. collaborated with Uber Eats to offer an additional payment method, Rakuten Pay, to Uber Eats users.
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