According to Future Market Insights, the commerce cloud market valuation is expected to reach US$ 12.96 billion in 2023. As per the market analysis report, this market size is expected to grow at an annual rate of 17% between 2023 and 2033. By the end of this forecast period, the overall size of the market is projected to reach US$ 62.5 billion.
A rising tide of technological advancement, and an increase in the focus of organizations on improving their customer experience and operational efficiency to grow the market for commerce cloud. As the industry continues to provide enhanced flexibility and efficiency, the commerce cloud market is set to benefit in the market.
A number of initiatives have also been initiated by the government, such as Digital India, aimed at digitizing the Indian economy and developing a cloud-based infrastructure, which is expected to provide ample market opportunities across the country and contribute significantly to the growth of revenue within this region.
The market is supported by:
Commerce cloud solutions will increase significantly in demand in the next few years as the e-commerce business grows worldwide. Cloud-based commerce platforms are designed to help brands, create seamless shopping experiences on multiple digital channels such as mobile, web, e-commerce, and other channels to grow their business.
Rapid growth and increasing popularity have been observed in the online pharmaceutical industry over the past few years. Commerce cloud solutions assist the pharmaceutical industry in achieving regulatory compliance, dealing with restrictions on products, and maintaining traceability. Trading strategies can be executed more efficiently by large enterprises using commerce cloud platforms in the market.
Statistical projections indicate that North America will hold the largest market share owing to improvements in AI, big data analytics, and IoT technology. With Europe's retail sector contributing substantially to the economy, countries such as Germany, the United Kingdom, and France are leading the overall e-commerce sales, accounting for nearly 84% of all online purchases in 2023.
In 2023, Asia Pacific is expected to hold the second-largest revenue share and display the fastest growth rate at 8%. Among the countries within this region, Japan is a leader in terms of cloud adoption, and there is an increasing trend toward the use of more sophisticated public cloud computing programs. An online survey conducted in 2020 found that 42.3% of Japanese companies believe that cloud services have become more relevant over the past few years.
Several manufacturers are working on the implementation of commerce cloud platforms to gain a greater market share in the coming years. It is anticipated that the commerce cloud market is going to experience heightened competition in the upcoming years due to the entry of new players into the market and the expansion of product offerings by existing players.
Due to rising demand, several market participants are offering innovative products, and government initiatives are expected to further boost the market's growth. In addition to new players entering the market, existing players are expanding their product offerings, increasing the complexity of the competitive landscape. To enhance quality and efficacy, players will also invest in research and development.
Across industries, Salesforce is introducing new commerce innovations that are designed to boost revenue, enhance customer loyalty, and streamline operations. The use of Salesforce has enabled companies such as Advanced Turf Solutions and Newell to accelerate digital commerce, minimize costs, and enhance customer relationships.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | US$ 12 billion |
| Expected Market Value (2023) | US$ 12.96 bllion |
| Anticipated Forecast Value (2033) | US$ 62.5 billion |
| Projected Growth Rate (2023 to 2033) | 17% CAGR |
This is a cloud-based commerce platform that enables the brands to build seamless commerce and buying experience across multiple digital channels such as mobile, web, social media and others.
With the use of commerce cloud, the enterprises can ensure enhanced customer experience for their connected shoppers. Due to the rise in eCommerce business worldwide, the demand for commerce cloud solutions will grow at a significant rate, in the next 5 years.
In recent days, the most efficient platform to perform activities like online payment, online retailing, online e-commerce activities, and many more are possible with the help of portable devices like smartphones, tablets, and laptops.
According to statistics, almost 80% of smartphone users have made a purchase online using their smartphone devices in 2019 which goes to show how much online shopping has had an impact globally. Such device increases flexibility and performance, and reduced time and cost of online business which drives the adoption of commerce cloud platforms.
In addition, 5G wireless technology will enhance the performance of the applications like smart wallets, mobile payments, and digital bank services. 5G networks are the key to unlocking larger and more engaging shopping experiences and virtual environments.
The technology help retailers benefit from using VR to introduce products in virtual stores because consumers can then see them more clearly. Thus the 5G wireless networks drives the commerce cloud demand, in the coming years.
The shift from the offline commerce business of Fast Moving Consumer Goods (FMCG) businesses to online platform will enhances the growth of the commerce cloud platform. Much of the brick and mortar retail world has taken a serious hit from the COVID-19 pandemic, with low product sales, and business loss worldwide.
Commerce cloud solutions helps to consolidate various stakeholders of eCommerce like executives, IT, marketing, sales etc. These stakeholders involve in the overall groceries retail process and helps to provide a positive buying experience for the connected shopper.
Moreover, the customer’s interest in online shopping had been rising at an alarming rate. And the coronavirus pandemic acted as a catalyst to this new trend of shopping. Thus, increase in businesses moving to online commerce helps to augment commerce cloud adoption.
The USA eCommerce market grew significantly by 44% year-on-year from 2019 to 2020, with online sales representing nearly 21% of total retail sales. Canada currently is the 9th largest eCommerce market with revenue of over US$ 30 Billion in 2020, and has the potential to develop further in the worldwide digital commerce marketplace.
Major retailers in the USA & Canada region includes Amazon, Walmart, Home Depot, Target, Best Buy and others, which are currently dominating the digital commerce sales in the North America region.
Also, major commerce cloud solution vendors are also present in North America region such as Salesforce, Oracle, SAP, Microsoft and others. This further accelerates the growth in the USA and Canada region, for commerce cloud deployments.
The retail sector significantly contributes to the European economy, with Western European countries like Germany, United Kingdom, France leading the overall eCommerce sales in 2020, which is nearly 83% of overall Europe online sales.
These regions have higher eCommerce penetration rates and brands and retailers are adopting multiple online channels like mobile and web platforms for enhanced customer experiences. Amazon lead the market in Europe, with nearly 1/4th of the eCommerce market, followed by eBay, AliExpress and other retailers. Such developments and boost in the eCommerce sector in Europe would drive the demand for commerce cloud platforms.
Some of the leading vendors of Commerce cloud include
These vendors are adopting various key strategies, to increase their customer base and market shares. They are also partnering with local retailers and brands to digitalize the online shopping experience of the customers
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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