The global digital commerce platform market has witnessed spectacular gains, attributed to deepening digital literacy among customers. As the world becomes increasingly digitized, demand for virtual platforms for easy business conduct is driving companies to encourage online commerce platforms.
As the COVID-19 pandemic intensifies, businesses are effectively leveraging on-premise and cloud-based digital commerce solutions to sustain their businesses. Furthermore, growth is likely to perpetuate even in the post-pandemic scenario. According to analysis published in Future Market Insights’ new study, global digital market revenues are set to reach US$ 20 Bn by 2029.
Credible Emphasis on Data Analytics
Over the years, big data analytics have been highly leveraged to streamline business processes. There is exponential growth in data analytics application in the retail and e-commerce industry to ascertain purchases, profits, losses and attract more consumers based on their purchasing behavior.
A major application is in designing recommendation engines. These platforms have proven highly useful in garnering massive customer bases, thus helping retailers and service providers expand their sales and dictate existing trends. Analysis concludes that 75% of Netflix users watch movies based on the recommendations provided by it.
Likewise, over one-third of Amazon’s revenue is a result of its recommendation engine. Additionally, warranty management has emerged as an important big data application area, enabling retailers to maintain a checklist on the quantity of products sold as well as sales returns, allowing them to turn warranty challenges into actionable insights.
Growing Preference for Cloud-Based Solutions
In recent years, cloud hosting has enabled industries to consolidate their e-commerce platforms, ensuring greater scalability and maintenance of operational stability. Furthermore, cloud-based digital commerce platforms helps improve speed in terms of navigation by the customer.
Statistics suggest over two out of five online shoppers are likely to abandon a webpage if it exceeds 3 seconds in terms of loading time while nearly 80% of shoppers who are dissatisfied with webpage performance are less likely to repeat purchases from the same website.
The shift from on-premise to cloud deployment has prompted vendors to offer various platforms, ranging from software-as-a-service (SaaS) e-Commerce platforms, platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS) solutions respectively.
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
Subscription-based Business Models to Attract Credible Opportunities
Subscription commerce is expanding at an exponential rate. Research suggests over 15% of online shoppers opt for subscription-based services. With the global proportion of virtual buyers expected to surpass 2 billion by 2021, it is no surprise such business models are gaining ground.
Currently, over half of e-commerce service subscribers possess multiple active subscriptions, with over two out of five men and nearly three out of ten women having three or more active subscriptions across multiple e-commerce platforms. Furthermore, nearly 70% of US households have multiple streaming subscription services.
Against this backdrop, prominent digital commerce platform players are finding lucrative opportunities to offer various support platforms and support & maintenance and consulting services to potential clients.
Cybersecurity Concerns Overshadow Growth Prospects
Despite the surging popularity of e-commerce, there is heightened skepticism concerning possible data breaches and compromise of customers’ personal information and security by malicious entities. Numerous instances of cyber fraud and identity theft have discouraged many customers to withdraw from the virtual landscape, thus hampering expansion prospects.
Amongst all concerns, privacy has acquired major precedence. In 2015, the U.S Attorney General announced multiple indictments concerning a major international security breach involving 9 major retailers and over 40 million debit and credit card numbers.
Recent statistics point towards a worrying trend across the cybersecurity landscape. For instance, six out of ten companies had to shut down their businesses within six months of a potential cyberattack, with a quarter of these being directed towards final payment of a product.
Digital Commerce Platform Market- Region-wise Analysis
North America Digital Commerce Platform Market
North America is expected to remain a lucrative digital commerce platforms market, accounting for nearly 2 billion unit sales of various digital solutions platforms across multiple end-use industries by 2021.
In 2019, e-commerce constituted over 50% of all retail growth, with online sales expanding by over 15%. Amongst all retailers, Walmart, Target and Kroger topped the list in terms of online grocery sales, with trends further accelerating amidst the pandemic crisis.
Such promising trends are opening new growth avenues for prominent vendors. Magento Commerce is a prominent player, offering the Adobe Commerce Cloud Solution, offering a host of APIs and admin applications for B2C and B2B platforms.
Europe Digital Commerce Platform Market
The European digital commerce platform market is expected to register an incremental opportunity exceeding US$ 3 Bn through 2029, attributed to deepening internet penetration and access to smart devices. Around 85% of European customers rely on the internet to make purchases.
As of 2020, online business transactions across Europe accounted for € 717 billion. According to Eurostat, 32% of European consumers shopped online at least twice in the past three months, while 17% made at least 6 to 7 such purchases in the same time period.
Bulk of these transactions occur across Western Europe (70%), with Germany and the U.K. accounting for maximum e-commerce activities. Consequently, demand for software maintenance, design and implementation services is increasing, generating green spaces for key vendors.
East Asia Digital Commerce Platform Market
The East Asian digital commerce platform market is likely to be led by China, the world’s largest manufacturing hub. According to United Nations, manufacturing contributes nearly 30% of the East Asian giant’s economic output. Naturally, a strong e-commerce industry has come into existence in recent years.
With over 600 million internet users, China is the fastest expanding e-commerce market in the world. Estimates suggest that e-commerce constitutes 3.2% of domestic GDP, which is much higher than other countries such as the United States. By 2020, figures are expected to reach US$ 840 billion.
Alibaba is the largest e-commerce company, specializing in B2B, B2C and C2C markets respectively. Numerous other websites such as Taobao, JD.com, Tmall, Suning.com and Xiohongshu dominate the regional e-commerce landscape, generate progressive expansion opportunities.
Design & Implementation Services Retain Lucrativeness
By component, digital commerce design & implementation services are likely to reign supreme, maintaining a double-digit Y-o-Y growth across the forthcoming decade. Simultaneously, demand for support & maintenance services is equally surging, as organizations look towards reducing service downtime and enhance scale of operations.
Owing to the pandemic crisis, e-Commerce transactions have witnessed a prolific increase, thereby necessitating heightened investments in digital commerce platforms and e-Commerce APIs in recent months. This is broadening scope of digital commerce solutions, generating over two-fifths of the total revenue share in forthcoming years.
Small & Medium Enterprises Solutions Flourishing
As governments worldwide look to promote small-scale businesses, small & medium enterprises (SMEs) are penetrating various industrial verticals, generating credible revenue pools. Emerging economies are especially dependent on SMEs to further trade volumes. Consequently, internet security and service solutions sales for the same is gaining momentum.
The SMEs segment is likely to register Y-o-Y growth of over 10% through 2029. Prominent digital commerce software for SMEs include Wix eCommerce, Shopify, Ecwid, Weebly eCommerce, Volusion, Square Online Store, BigCommerce, Squarespace Commerce, WooCommerce and GoDaddy eCommerce to name a few.
Electronics and Apparel Remain Primary Revenue Engines
By end-use, consumer electronics registered maximum sales until 2019, amounting to 1.2 billion units. Deepening internet penetration is a primary growth factor in enhancing sales figures. Moreover, work from home directives have prompted users to rely more on smartphones, laptops and other devices to continue business operations.
Fashion & apparel is yet another emerging category, expected to generate over 20% of total e-commerce revenue in the next two years. According to eShopWorld, global apparel and footwear sales surged by over 120% in early June. Reluctance to visit traditional brick and mortar stores is driving online apparel sales.
COVID-19’s Impact on Digital Commerce Platform Market
The coronavirus pandemic has undoubtedly altered global purchasing behavior, with traditional retailing taking a backseat. A paradigm shift towards a more digitized world is overt, with triggered changes in shopping habits likely to have long-lasting ramifications.
According to a study undertaken by UNCTAD, digital commerce sales have witnessed prolific expansion across emerging economies such as China, Brazil, South Africa, Russia and Turkey. The study concludes that online purchases climbed from 6% to 10% across most product categories.
Maximum consumer expenditure is recorded across the ICT/electronics segment, pharmaceuticals, household products, education and cosmetics/personal care. Consequently, numerous e-commerce platforms are finding significant grounds for expansion. The India Brand Equity Foundation (IBEF) projects online commerce opportunities to reach US$ 200 billion by 2026.
People will need to continue observing social distancing protocols. Thus, consumers will need to rely on e-commerce platforms to make their purchases, signaling a positive growth trajectory for the digital commerce platform market in the short-run.
Digital Commerce Platform Market- Competition Analysis
Prominent digital commerce platform providers profiled in this report include, but are not restricted to*:
- Shopify Inc.
- SAP SE
- Oracle Corporation
- Magento Commerce
- Salesforce.com Inc.
- Apttus, Intershop Communications AG
- Kentico Software
- Unilog Content Solutions Pvt Ltd.
*This list is indicative- full details about prominent digital commerce platform providers is available upon request.
As the global virtual space expands, business entities are scrambling to incorporate the most sophisticated digital commerce solutions within their scope of operations. This is compelling solution providers to constantly launch new products equipped with contemporary advancements.
In November 2020, for instance, Shopify Inc. announced a partnership with Alipay in order to support merchants with cross-border payments. This new platform is likely to permit Shopify merchants to accept payments through Alipay from over 1 billion active users across China alone.
Business entities are also leveraging digital commerce platforms to further virtual learning programs to better equip employees for future uncertainties. In December 2020, BT Group implemented SAP SE’s SuccessFactors Learning solution with access to LinkedIn Learning to improve efficiency and performance.
Oracle Corporation is yet another prominent player with respect to offering cloud-based B2B e-Commerce platforms. Its CX Commerce platform is a cloud-native, fully featured, extensible SaaS commerce solution, delivered in the Oracle Cloud, supporting B2B and B2C models. The system is highly flexible with simplified integrations.
Digital Commerce Platform Market- Report Scope
Historical Data Available for
US$ Mn for Value & Units for Volume
Key Regions Covered
North America, Latin America, Europe, South Asia, East Asia, Oceania and Middle East & Africa
Key Countries Covered
U.S., Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, BENELUX, Russia, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Australia, New Zealand, GCC, Turkey, Northern Africa & South Africa
Key Segments Covered
Component, Enterprise Size & End-Use Industry
Key Companies Profiled
Shopify, Inc., SAP SE, Oracle Corporation, Magento Commerce, Salesforce.com, Inc., Apttus, Intershop Communications AG, BigCommerce, WooCommerce, Sitecore, Episerver, Kentico Software and Unilog Content Solutions Pvt. Ltd.
Market Overview, Key Market Trends, Key Success Factors, Demand Analysis, Market Background, COVID-19 Impact Analysis, Segmental Analysis, Regional Profiling, Market Structure Analysis & Competition Analysis
Customization & Pricing
Key questions answered in the report
- How will the global digital commerce platform market expand in the future?
According to Future Market Insights, the global digital commerce platform market was valued at US$ 4.7 Bn in 2018, and is expected to reach US$ 20 Bn by 2029. Growth is primarily driven by increasing preference for cloud-based platforms
- Which is the most promising digital commerce platform market?
North America is expected to remain the lucrative digital commerce platform market, attributed to surging e-commerce business volumes and growing numbers of start-ups. However, East Asia is expected to emerge as the fastest growing market, with China at the forefront
- How is COVID-19 impacting the said growth projections?
The COVID-19 pandemic has only served to uplift the digital commerce platforms market growth, as consumers increasingly rely on e-commerce websites such as Amazon and Alibaba to make their purchases. Prolific increases have been registered across emerging economies, owing to surging business volumes
- Which is the primary end-use industry for digital commerce platforms?
The electronics segment is expected to generate significant expansion opportunities, as social distancing protocols amid the pandemic crisis is compelling organizations to extend work from home arrangements, bolstering demand for gadgets such as laptops and smartphones. Moreover, increased reliance on media and entertainment is also propelling their demand
- Which prominent players operate in the digital commerce platforms market?
Some prominent players active in the global digital commerce platforms market include Shopify, Inc., SAP SE, Oracle Corporation, Magento Commerce, Salesforce.com, Inc., Apttus, Intershop Communications AG, BigCommerce, WooCommerce, Sitecore, Episerver, Kentico Software and Unilog Content Solutions Pvt. Ltd.
Enquiry before Buying
- Is the digital commerce platform research conducted by Future Market Insights?
Yes, the digital commerce platform report has been compiled by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst.
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
- Is a sample of this report available for evaluation?
Yes, you can request a sample and it will be sent to you through an email.
- How can I buy this report?
FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.
- Digital Commerce Platform
- E-Commerce API
- Design & Implementation
- Support & Maintenance
- Small & Medium Enterprises
- Large Enterprises
- Food & Beverages
- Fashion & Apparel
- Health & Beauty
- Home & Furniture
- Media & Entertainment
- North America (U.S & Canada)
- Latin America (Brazil, Mexico & Rest of Latin America)
- Europe (Germany, Italy, France, U.K., Spain, BENELUX, Russia & Rest of Europe)
- East Asia (China, Japan & South Korea)
- South Asia (India, Thailand, Indonesia & Malaysia)
- Oceania (Australia & New Zealand)
- Middle East & Africa (GCC, Turkey, Northern Africa, South Africa & Rest of MEA)