The Global Digital Commerce Platform Market was valued at USD 6.8 Bn in 2020 and is expected to reach USD 18.0 Bn by 2027, with a growing CAGR of 15.2% during the forecast period.
The Digital Commerce Platform Market Definition:
Digital Commerce Platform is the buying and selling of goods and services by providing an interactive and self-service experience digital platform. Digital Commerce Platform market integrates the processes, people, and technologies to execute the offering of analytics, development content, promotion, customer acquisition and retention, pricing, and customer experience at all touchpoints during the customer buying journey. Therefore, Digital Commerce Platform platform is widely used by companies to improve their business performance.
The Digital Commerce Platform Market Dynamics:
Higher smartphone penetration along with the rising number of mobile internet users are the most prominent factors blooming the growth in the Digital Commerce Platform market. According to a report “The Mobile Economy 2020” published by GSM Association, an industry organization that represents the interests of mobile network operators worldwide, the number of mobile internet users stood at 3.8 Bn in 2019 and is expected to 5.0 Bn in 2025. Smartphones have helped in increasing the convenience for customers by providing them with easy access to information relating to products, delivery status, and shipping status. Apart from enhancing customer experience, smartphones have also helped organizations to reach more customers that are located in rural and remote areas. In addition, an increase in smartphone usage has enabled many digital-commerce industry enterprises to considerably bridge the gap in the services by sending service updates via their SMS, mobile app, and e-mails. It has also helped the companies in getting valuable customer information that is useful for analytics to improve their sales and services. Therefore, the increasing adoption of smartphones is playing a major role in influencing the growth of the Digital Commerce Platform market.
Moreover, the Digital Commerce Platform website platform offers several advantages over traditional mortar stores, thus driving the Digital Commerce Platform industry. These websites provide customers with 24/7 shopping facilities, a greater variety of products, the ability to compare prices, and time-savings from physical visiting of stores. Along with this, it also helps customers to avoid checkout lanes and crowds so that products can be purchased without any physical barrier. Additionally, affordable advertising, marketing, and product and price comparison features provided by the Digital Commerce Platform platform are also positively driving the Digital Commerce Platform industry. Further, the Digital Commerce Platform market helps in creating markets for niche products such as obsolete parts. Buyers and sellers of niche products often find it difficult to locate each other in the physical world. Digital Commerce Platform websites help in overcoming these challenges by locating these products with a simple online search operation. All these aforementioned factors are propelling the Digital Commerce Platform market demand across the globe.
The Global Digital Commerce Platform Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the Digital Commerce Platform market are:
Based on deployment, the cloud-based segment is expected to attain the fastest growth in the Digital Commerce Platform platform model during the forecast period due to increased return on investments along with lower storage and infrastructure cost
Based on deployment, the Digital Commerce Platform market is segmented into on-premises, hybrid, and cloud-based deployment models. Among these, the cloud-based segment is expected to attain the fastest growth in the Digital Commerce Platform platform model during the forecast period. Increased return on investments along with lower storage and infrastructure cost is the most prominent factor driving the growth of cloud-based deployment models across the globe. The global economic situation and rising competition have increased the adoption of more cost-effective strategies to restructure business models which is thereby increasing the demand for cloud-based Digital Commerce Platform platforms. Cloud-based deployment provides several benefits such as access to a broader network, on-demand services, resource pooling, business agility, cost-cutting, rapid elasticity, and many others.
Additionally, the model offers the advantage of the pay-as-you-go model to the organizations, which is enabling them to pay as per their usage of cloud services that in turn leads to reduced costs. Owing to the factors discussed above, many large enterprises as well SMEs are rapidly adopting cloud computing services to improve their business efficiency. Therefore, the increasing adoption of cloud-based deployment is expected to propel the Digital Commerce Platform industry growth.
Based on the end-use industry, the automotive segment is projected to attain a high growth rate in the Digital Commerce Platform market due to expanding customer base and increasing customer convenience offered by Digital Commerce Platform websites
Based on the end-use industry, the Digital Commerce Platform market is segmented into BFSI, IT & Telecomm, retail, airline & travel, electronics, food & beverages, automotive, media & entertainment, and others. Among these, the automotive segment is projected to attain a high growth rate during the forecast period. This growth is majorly due to expanding customer base and increasing customer convenience offered by Digital Commerce Platform websites. The Digital Commerce Platform industry has enabled the customer to order their choice of automotive from any part of the world. It has helped automotive organizations to expand into new markets and segments, offering parts and automotive products in multiple currencies, different languages, and location-specific payment options. It has further helped several automotive companies to cut costs and streamline their business operations.
For instance, in August 2021, Ford announced to shift its auto retailing operations to a build-to-order model. This model aims at shifting the focus of people to custom-order straight from the factory online and pick up their order at the nearest dealership. This model is expected to help the company and its dealers to cut inventory costs and deliver more vehicles that customers specifically want. Owing to these benefits, there has been increasing adoption of Digital Commerce Platform platforms in the automotive industry, which is thereby impacting the growth of the Digital Commerce Platform industry across the globe.
Based on region, Asia Pacific has dominated the Digital Commerce Platform market due to increasing consumer disposable income in several developing countries in the region
Based on region, the Digital Commerce Platform market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, Asia Pacific has dominated the Digital Commerce Platform market. This growth is mainly attributed to the increasing consumer disposable income in several developing countries such as China, India, Indonesia, and South Korea among others.
In addition, the favorable FDI policies along with several government schemes in the region such as Made in China 2025, Make in India, Start-up India, Industrial Value Chain Initiative in Japan, and Industry 4.0 are intensively expected to increase the demand for Digital Commerce Platform across the various industrial sector. Moreover, the opening of data centers across the region by major providers such as Google Cloud and Amazon Web Services has removed concerns associated with data offshoring and thereby increasing the adoption of Digital Commerce Platform platforms for buying and selling. Further, the increasing adoption of advanced technologies such as AI, AR is also contributing to increasing the demand for Digital Commerce Platform platforms in the region.
The report also provides an in-depth analysis of market dynamics such as drivers, restraints opportunities, and challenges
Note: Challenges along with in-depth market dynamics analysis are mentioned in the report.
COVID-19 Impact on the Digital Commerce Platform Market Analysis
The COVID-19 pandemic has positively impacted the Digital Commerce Platform market and has accelerated digital transformation. Due to lockdown in many nations, several businesses and consumers rapidly shifted to digital platforms, providing and purchasing more goods and services online. The pandemic has accelerated an expansion of digital commerce towards new firms, customers and types of products. Digital Commerce Platform market has also not only enabled firms to continue operation but also improve business performance. For instance, Mercado Libre, Latin America’s one of the largest online commerce and payments ecosystem sold twice as many items per day in the second quarter of 2020 compared with the same period the previous year. Similarly, Jumia, an African digital-commerce platform reported a 50% hike in transactions during the first six months of 2020.
The report also provides an in-depth analysis of key market trends in the Digital Commerce Platform industry
|1||The increasing deployment of AI in retail across the supply chain is helping e-commerce operators to focus on enhancing operational efficiencies and improving shopping experiences globally. Advanced technologies such as chatbots are facilitating customers to look for the correct products, check availability, and connect with the appropriate service personnel in case of any queries.||Positive|
|2||Digital-commerce organizations are also integrating with secured payment platforms such as Apple Pay, PayPal, Amazon Pay, and Google Pay to provide efficient and secure online payment methods to consumers. This is helping in increasing customer confidence in Digital Commerce Platform platforms.||Positive|
|3||Rapid penetration of the Internet of Things (IoT) has had a major impact on the cross-border Digital Commerce Platform sector. Further, globalization and tech-savvy people are contributing to the growing demand for cross-border digital commerce.||Positive|
The report also provides an in-depth analysis of recent News Developments and Investments in Digital Commerce Platform industry
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