Digital Commerce Platform Market

Digital Commerce Platform Market Outlook

Expanding at an impressive CAGR of 18.2%, the global digital commerce platform market is projected to surge from a valuation of US$ 9.61 billion in 2023 to US$ 51.16 billion by 2033.

The digital commerce platform market has grown significantly over the past few years as a result of an increase in the use of these platforms by businesses in different industry verticals. This growth is expected to continue in the foreseeable future, driven by several factors such as the rising penetration of e-commerce, the proliferation of mobile devices, and the rising popularity of the omnichannel sales method. The convergence of technology and consumer behavior has resulted in a shift toward online shopping, which has been driving the adoption of digital commerce platforms.

As companies want to improve their online presence and take advantage of the expanding e-commerce sector, they are one of the principal elements driving demand for these platforms. Therefore, digital commerce platform vendors are ramping up their efforts to provide innovative and customizable digital commerce solutions that cater to the specific needs of different businesses.

Another key driver of the market is the growing trend of digital commerce consulting. Businesses are increasingly turning to digital commerce consultants for guidance as they try to make their way through the industry’s complicated terrain and find the platform that perfectly suits their specific requirements. This trend is anticipated to persist as more companies look to optimize their digital commerce strategies and stay one step ahead of the competition.

Regarding trends, headless commerce is becoming more popular in the market which enables companies to separate the front-end user experience from the back-end setup. This strategy gives organizations flexibility in terms of technology stack and interaction with other systems. At the same time, it enables them to create a consistent experience across different channels. The introduction of AI-powered chatbots is another trend. They are employed to increase customer engagement and offer personalized recommendations.

B2B e-commerce is also growing significantly in the industry as more companies turn to B2B digital commerce as a means of fostering growth and expanding their customer base. The demand for digital commerce platforms that are tailored particularly to the requirements of B2B firms is further fueled by this trend. The requirements include the capacity to handle the complex sales process, manage large volumes of transactions, and support diverse payment and pricing models.

Businesses in various sectors, including retail, healthcare, and finance, can take advantage of the market’s numerous potential. The integration of digital commerce platforms with existing systems has the potential to increase operational efficacy, save expenses, and advance consumer engagement. Furthermore, new business models like peer-to-peer marketplaces and subscription-based services have made it possible for businesses to utilize digital commerce platforms in new and innovative ways.

Looking ahead, digital commerce platform vendors have various future opportunities to capitalize on. For example, the rising popularity of social commerce and the increasing usage of artificial intelligence and machine learning in digital commerce is likely to fuel the demand for innovative and advanced digital commerce solutions. Moreover, the growing adoption of mobile devices and cloud computing is anticipated to open up new opportunities for digital commerce platform market players to diversify their product portfolios and attract new customers.

How The Market Progressed Till 2022?

According to Future Market Insights, the adoption of virtual platforms for seamless business transactions encourages companies to implement online commerce platforms. The global digital commerce platform market has grown dramatically, owing to increased customer digital literacy.

Digital commerce platforms have proven to be extremely effective in acquiring large customer bases, allowing service providers and retailers to increase sales and influence existing trends.

According to FMI analysis, the variation between the BPS values observed in the digital commerce platform market in H1, 2022 - Outlook over H1, 2022 Projected reflects a spike of 40 units. Moreover, compared to H1, 2021, the market is expected to propel by 27 BPS in H1 -2022. Businesses are effectively leveraging cloud-based and on premise digital commerce solutions to sustain their businesses as the COVID-19 pandemic intensifies.

Big data analytics has been widely used to streamline business processes over the years. In the retail and e-Commerce industries, data analytics applications are growing at an exponential rate to ascertain profits, losses, purchases, and to attract large number of customers based on their purchasing behavior.

However, numerous instances of cyber fraud and identity theft have discouraged many customers from using the virtual landscape, limiting future growth prospects.

Digital Commerce Platform Demand Analysis (2017 to 2022) Vs. Market Forecast Outlook (2023 to 2033)

Credible Emphasis on Data Analytics Driving Market Expansion

During the historical period of 2017 to 2022, the digital commerce platform market expanded at a CAGR of 8%.

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.

Over the years, big data analytics have been highly leveraged to streamline business processes. There is exponential growth in data analytics applications in the retail and e-Commerce industry to ascertain purchases, profits, losses and attract more consumers based on their purchasing behavior.

A key application is in designing recommendation engines. Digital commerce platforms have proven highly useful in garnering massive customer bases, thus helping retailers and service providers expand their sales and dictate existing trends.

Sustained growth is anticipated across all horizons as businesses embrace digital transformation and leverage emerging technologies to drive innovation and growth.

The global digital commerce platform market is anticipated to rise at a CAGR of 18.2% from 2023 to 2033.

Sudip Saha

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Which Factors are Driving Digital Commerce Platform Market Growth?

Continuous Development of e-Commerce Channels Augmenting Market Growth

• 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 help improve speed in terms of navigation by the customer.

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.

• Subscription-based Business Models to Attract Credible Opportunities

Subscription commerce is expanding at an exponential rate. 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.

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.

What are the Challenging Factors for Market Expansion?

Cybersecurity Concerns Overshadowing Growth Prospects

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 key precedence. 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 the final payment of a product.

Which Region is Set to Lead the Digital Commerce Platform Market?

Rising Adoption of Advanced Technologies Driving Market Expansion in East Asia

East Asia is expected to account 23.9% share of the digital commerce platform market in 2022. 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. Growing preference for advanced technologies such as AI, AR is driving the market growth in East Asia.

Alibaba is the leading 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, generating progressive expansion opportunities.

Digital Commerce Platform Market Goes Global: A Comprehensive Analysis of the Market by Country

Can the United States Digital Commerce Platforms Market Show Consistent Growth?

Increasing Internet Penetration Supporting Market Expansion

North America is expected to remain a lucrative digital commerce platform market, attributed to deepening internet penetration and access to smart devices. Around 70% of households have multiple streaming subscription services in the United States.

Demand for software maintenance, design and implementation services is increasing, generating green spaces for key vendors in the United States. The market expansion in the United States is being driven by a large existing base of digital media users, growing usage of smartphones and high-speed data networks and internet services.

The burgeoning United States digital commerce platform market is a dynamic and rapidly evolving space, characterized by a constellation of technological solutions and service providers that cater to a diverse array of e-commerce needs. The nation is economically advanced and investing more in new technology. For this reason, businesses are integrating technology into their online sales channel. For instance, Design Holding S.p.A. recently acquired YDesign Group, a San Francisco-based e-commerce platform, and lighting retailer, to strengthen its digital capabilities. This was the company's first acquisition in the United States. It plans to make technology investments to enhance its online commerce activities.

Businesses are introducing additional features like the use of AI and ML in their product portfolio to improve the shopping experience for customers. The Yes, an AI-powered fashion retail site that enables customers to browse a customized feed centered on their active input on brand, style, and size, is one instance. Based in the United States, Pinterest is planning to buy The Yes. The Yes team has developed a thorough fashion taxonomy that blends decision-making and machine learning to power a full fashion algorithm.

In order to boost their market share, e-commerce businesses are also using native marketing strategies. For instance, the media company Kojiki purchased the e-commerce news and resource website TodaysEcommerce.com. The purchase is one of several actions the company is taking as part of its expansion goals until 2022. The acquired subsidiaries have grown significantly under the parent business since their acquisitions. The Kojiki-affiliated Today's E-commerce has obtained a large financial allocation for its expansion, which involves bolstering the website's global reach and digital infrastructure. In order to develop into new foreign markets, modern e-commerce plans to penetrate the United States market.

How are Traditional Businesses Embracing Digital Transformation in the United Kingdom?

The Digital Commerce Platform Market in the United Kingdom is Primed for Additional Expansion as more Traditional Businesses Move Online

The modern environment of the United Kingdom has led to the emergence of the digital commerce platform market as a booming industry. This market is distinguished by its dynamic and fluid nature and serves a wide range of commercial interests in many industries. The realm of digital commerce platforms in this country has undergone a transformation, evolving from a simple structure into a complex ecosystem rich in advanced features and functions.

The proliferation of these platforms has been felicitated by a host of factors including the growing prevalence of e-commerce, the widespread adoption of mobile devices, and the increasing demand for personalized and on-demand services. Hootsuite estimates that in 2021, more than 85% of citizens in the United Kingdom are already making online purchases. The United Kingdom has been embracing e-commerce like never before. The convenience of using alternative payment methods in addition to traditional cash transactions is fueling the country's growing e-commerce industry.

The United Kingdom digital commerce platform market is characterized by a fast-changing regulatory environment, with the regulatory bodies attempting to find a balance between promoting innovation and defending the interests of consumers. The market players are also cognizant of the need to comply with the regulatory framework, while also ensuring the security and privacy of their customer’s personal information.

How is Germany’s Mobile-first Market Driving Demand for Mobile-friendly Digital Commerce Platforms?

E-commerce and M-commerce Lead the Way in Germany’s Digital Commerce Platform Sector

For merchants looking to expand their online presence globally, Germany is a desirable market. The market is replete with a plethora of advanced platforms that enable seamless and secure transactions between buyers and sellers across a range of industries and domains. The flourishing economy and robust digital infrastructure have contributed significantly to the proliferation of digital commerce activities. In this context, digital commerce platforms have arisen as a fundamental enabler of the country’s digital economy.

The Germany digital commerce platform market has witnessed a veritable surge in demand. Germany has emerged as a fertile ground for the growth of digital commerce platforms, with the proliferation of diverse e-commerce channels and the growing adoption of mobile devices. Given the large percentage of people who own smartphones, the e-commerce market in Germany has been expanding. Also, Germany's mobile commerce business is expanding as a result of the country's increasing m-commerce usage. It is anticipated that this development could continue as businesses enhance their mobile websites and offer even more practical ways to shop on mobile devices.

How is the Government of India Regulating the Digital Commerce Platform Sector to Ensure Fair Competition?

Indian Government Introduces New Policies to Boost E-commerce and Digital Commerce Platform Industry Growth

The increasing availability of high-speed internet and the growing number of digital payment solutions have further boosted the prospects of the India digital commerce platform market. The number of internet connections increased substantially to 830 million in 2021 as a result of the "Digital India" initiative. 55% of internet connections were made in urban areas, and 97% of those connections were wireless.

The Indian government's Digital India initiative, according to the India Brand Equity Foundation (IBEF), intends to transform the country into a trillion-dollar internet economy by 2025. It has resulted in the creation of a fresh advisory council to examine and assess the creation of a government e-commerce platform. Also, a new committee has been established by the Commerce Ministry to assess the Open Network for Digital Commerce (ONDC) plan. The government is funding ONDC, an e-commerce platform that intends to offer the infrastructure for the final store, which could mirror Flipkart and Amazon. These improvements are anticipated to propel the market in India.

During the pandemic, the Directorate for Promotion of Industry and Internal Trade (DPIIT) collaborated with tech industry professionals and startup business owners to launch the ONDC, a non-profit project. According to its proponents, India has the chance to demonstrate to the rest of the world how to democratize and unify all digital commerce on a single platform for the benefit of customers and other stakeholders, much like how UPI (Unified Payments Interface) has dismantled the monopolies of banks and financial institutions.

Why is Demand for Digital Commerce Platforms Surging in China?

Increasing Consumer Disposable Income Supporting Demand for Digital Commerce Platforms

The East Asia digital commerce platform market is likely to be led by China, the world’s leading manufacturing hub. With over 600 million internet users, China is the significantly expanding e-Commerce market in the world.

Because of shifting customer preferences and an easier path to buy due to the increased use of digital commerce platforms by the urban population, the digital commerce platform market in China is growing at a rapid pace. Rising government initiatives to promote digitalization and rising disposable income are driving the market growth in China.

The China digital commerce platform market is a burgeoning ecosystem that has witnessed exponential growth in recent times, catalyzed by rapid advancements in technology and the proliferation of e-commerce.

In less than five years, digital commerce in China has revolutionized the retail sector and grown to become a significant sales channel. While merchants altogether in the West are far behind China in the quest for digital commerce, early movers are also trying to rack up significant revenues. The top E-commerce market in the world is China given its massive population. During the past several years, the e-commerce business in China has grown quickly, typically due to the country's high internet and smartphone penetration rates, rising consumer trust in online buying, the rise of e-commerce platforms, and the availability of numerous alternative payment options.

How is Digital Commerce Platform Market in Japan Unique Compared to Other Countries?

Japan’s Digital Commerce Platform Sector Poised for Further Expansion as more Consumers Embrace Online Shopping

Japan's digital commerce sector is undergoing a huge revolution as a result of the country's population moving away from traditional brick-and-mortar retailers and towards online retailers. High urban density, tech-savvy clientele, and a sophisticated economy all assist e-commerce businesses in the area, which also draws in more e-commerce businesses. The market in the nation is being further driven by digital advertising in the region. Prominent E-commerce firms like Rakuten, Yahoo! Auction Shopping, and Amazon Japan typically integrate product feeds and shopping advertisements alongside search and display ads, which are predominantly utilized by brands and advertising agencies.

The sector has witnessed a significant surge in demand, primarily driven by the widespread adoption of e-commerce in Japan. The Japan digital commerce market, as a result, is projected to experience continued growth during the forecast period. The development of social commerce is also accelerating the expansion of the regional e-commerce market. In Japan, e-commerce enterprises advertise their goods and services on social media, work with influencers and celebrities, and employ sponsored material. Despite having access to international social media sites like Twitter and Facebook, Line, a multi-featured program comparable to WhatsApp, is the widely used social media network in Japan.

Digital Commerce Platform Market: Unveiling Market Dynamics through Segment-wise Analysis

Which Enterprise Size is a Dominant User of Digital Commerce Platforms?

Small & Medium Enterprises Flourishing Due to Expanding Consumer Base

As governments worldwide look to promote small-scale businesses, small and 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 are gaining momentum.

Platforms for digital commerce provide SMEs with an affordable option to grow their customer base. This makes it easy for SMEs to enter the market since these platforms often have cheaper setup and maintenance expenses than conventional stores. These platforms provide businesses freedom in how they can market and sell their goods and services. Digital commerce platforms provide these enterprises the freedom to select their chosen delivery choices, payment options, and sales channels, enabling them to better cater to their target audience.

Being early adopters of advanced technology like AI and VR, digital commerce platforms help SMEs to stay competitive and provide their customers with a more engaging shopping experience. 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.

Which End-use Industry Emerges as Key Market Contributor?

Electronic Industry to Remain Primary Revenue Generator Because of Rapid Deployment of Online Platforms

The electronics industry is a rapidly growing industry that has been increasingly adopting digital commerce platforms to reach new customers and expand its sales channels. With the growth in population, urbanization, and technical breakthroughs, demand for electronic goods is always rising. More firms have entered the electronics market as a consequence, developing the necessity to reach out to new customers through digital commerce platforms.

The electronic sector has a global presence owing to its numerous suppliers and manufacturers. Digital commerce platforms help these businesses to expand their reach beyond the conventional retail store and tap into new markets. Technology is advancing rapidly in the electronic industry, as well as new products and features are regularly introduced. By swiftly releasing new products, monitoring customer preferences, and adapting to shifting market trends, digital commerce platforms help businesses stay ahead of the curve.

Race of Dominance: Competitive Landscape Analysis of Digital Commerce Platform Market

Business entities are leveraging digital commerce platforms to further virtual learning programs to better equip employees for future uncertainties. As the global virtual space expands, business entities are scrambling to incorporate the highly advanced digital commerce software within their scope of operations. Compelling solution providers to constantly launch new products equipped with contemporary advancements.

Top Market Players and their Recent Developments in Digital Commerce Platform Market

Shopify Inc. (Shopify): It is a supplier of multi-channel, cloud-based digital commerce platforms. The company's software enables retailers to create, manage, and sell their goods across a variety of sales channels, including social media, physical retail locations, pop-up shops, marketplaces, web and mobile storefronts, and physical retail locations. Moreover, it helps retailers to handle orders, payments, shipping, customer relations, analytics, and reporting all from the back office while also managing items and inventories. The firm sells its services to small and medium-sized business merchants and operates under the Shopify brand.

• In January 2023, by reimagining business retail, Shopify ushered in its next phase of development. The company launched Commerce Components by Shopify which is a contemporary and modular stack for business retail. Retailers can use it to interface with their own systems.
• In May 2022, for independent retailers, Shopify introduced Shopify Audiences, a marketing tool. Shopify Audiences leverages its own platform to assist retailers in locating potential clients who are highly motivated to buy their goods. Moreover, it was claimed that Shopify Plus merchants could sync Shopify Audiences with Facebook and Instagram at launch and that this capability might subsequently be extended to other platforms including Snap, Criteo, Pinterest, TikTok, Microsoft Advertising, and others.
• In August 2021, to assist retailers in meeting shifting consumer demands, Shopify introduced Integrated Retail Hardware and Payments to Germany. As the bulk of consumers plans to buy at physical stores after the pandemic, retailers could gain from integrating the online and offline shopping experiences.
• In November 2020, 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.

SAP SE (SAP): It sells enterprise application software and services associated with the software. Enterprise resource planning and financial management, intelligent technologies, analytics, digital platforms, digital supply chains, networks, speed management, and customer experience are just a few of the many solutions it offers. The firm provides a wide selection of corporate software and business applications that are made for technology operations, analytics, cloud, mobile, and database applications.

• In March 2023, SAP SE announced that Swarovski decided to shift its whole SAP software-based digital backbone and e-commerce landscape to the cloud. The aim is to save costs and increase productivity. Swarovski selected the RISE with SAP solution and the SAP Commerce Cloud solution for the operation.
• In March 2023, the current version of its data management portfolio, the SAP Datasphere solution, was introduced by SAP. Customers can easily access data that is fit for business throughout the whole data environment owing to this. Moreover, SAP announced strategic alliances with market-leading data and AI firms Collibra NV, Confluent Inc., Databricks Inc., and DataRobot Inc. to enhance SAP Datasphere and enable businesses to build unified data architectures that safely integrate SAP software data with non-SAP data.
• In May 2022, SAP SE unveiled new technologies at the SAP Sapphire conference in Florida that provide clients with business value in four crucial areas: supply chain resilience, sustainability, business process transformation, and no-code application development. With cloud-based solutions that offer the end-to-end business process support clients primarily require, it is likely to help SAP customers speed up their transformation journey.
• In December 2020, BT Group implemented SAP SE’s SuccessFactors Learning solution with access to LinkedIn Learning to improve efficiency and performance.

Oracle Corp (Oracle): It is a supplier of cloud-based business solutions. The business sells hardware systems, software for databases and middleware, applications, and cloud infrastructure. Moreover, it provides integrated cloud solutions, including IaaS and SaaS. Oracle sells licenses for new on-premises software, upgrades licenses, and provides solutions for associated support. System integrators, resellers, and independent software and hardware suppliers are how the firm advertises its solutions. Hardware, servers, storage, networking, and industry-specific solutions are among the on-site services and products it provides.

• In March 2023, to cut costs and speed up the development of new service offerings, Vivo stated that it's going to move critical data and business activities from its data center in Campinas, So Paulo, to Oracle Cloud Infrastructure. Since OCI can help Vivo satisfy customer demand and cut IT expenses without losing operational concerns, Vivo selected OCI as the ideal cloud provider.
• In February 2023, KDDI Company stated that it has selected Oracle Database to update its customer loyalty program, au Ponta Points Program, and au PAY, its online payment brand. Through collaboration with Oracle, the processing of au Pay payments is now five times faster than it was previously, and the processing speed of the au Ponta Points Program has increased by 200%. Oracle further enables KDDI to create new services and apps 30% faster, assisting KDDI in meeting changing client demands.

Key Players

• Shopify Inc.
• SAP SE
• Oracle Corporation
• Magento Commerce
• Salesforce.com Inc.
• BigCommerce
• WooCommerce
• Sitecore
• Kentico Software
• Unilog Content Solutions Pvt Ltd.

Key Segments of Digital Commerce Platform Industry Survey

By Component:

• Digital Commerce Platform Solutions
  • Digital Commerce Platforms
  • e-Commerce APIs
• Digital Commerce Platform Services
  • Design & Implementation
  • Consulting
  • Support & Maintenance

By Enterprise Size:

• Small and Medium Enterprises (SMEs)
• Large Enterprises

By End-use Industry:

• Food & Beverages
• Fashion & Apparels
• Health & Beauty
• Electronics
• Automotive
• Home & Furniture
• Media & Entertainment
• Others

By Region:

• North America Digital Commerce Platform Market
• Latin America Digital Commerce Platform Market
• Europe Digital Commerce Platform Market
• East Asia Digital Commerce Platform Market
• South Asia & Pacific Digital Commerce Platform Market
• Middle East & Africa (MEA) Digital Commerce Platform Market