DIGITAL COMMERCE PLATFORM MARKET ANALYSIS

The global digital commerce platform market size was valued at US$ 8.9 Bn in 2022, exhibiting a Compound Annual Growth Rate (CAGR) of 10.3% from 2023 to 2030.

Digital commerce platform is also referred to as e-commerce platform, and it is a service that is used for the buying and selling of goods and services over mobile networks or the internet. Digital commerce platforms allow merchants to maintain and build a digital storefront related to a specific set of services or products. A wide range of offerings are available on such platforms which are traded on different models like Business to Business (B2B), Business to Consumer (B2C), and others. The digital commerce platform offers can also be referred to as home-shopping platforms that allow the users to carry out their shopping activities from their home without the need of visiting a physical marketplace. The scope of goods offered on such digital commerce platforms include, categories like consumer electronics, grocery, apparel, and fashion accessories. The users of digital commerce platforms require internet connection to avail the service. These platforms are available in the form of web-based as well as mobile applications. These digital commerce platforms provide the users with the convenience of carrying out the purchasing activities without having to visit the physical marketplaces and at the same time browse through several options and compare related offerings before making a buying decision. The increasing internet penetration in the developing countries across the world, growth in the smartphone users, and growing inclination towards online shopping are expected to boost the growth of global digital commerce platform market during the forecast period.            

Global Digital Commerce Platform Market- Regional Analysis

North America held a dominant position in the global digital commerce platform market in 2022, followed by Asia Pacific and Europe.

Figure 1. Global Digital Commerce Platform Market Share (%), By Region, 2022

To learn more about this report, Request sample copy

North America held a dominant position in the global digital commerce platform market in 2022, owing to factors like robust internet infrastructure, high number of smartphone users, and high per capita income in the region, thus driving the growth of the North America digital commerce platform market. The population in countries like the U.S. and Canada have shown a high degree of adoption of digital commerce platforms. The region has a presence of huge global corporations operating in the digital commerce platform market as well as domestic merchants make use of the technology on the regional level by selling goods online in the specific geographic region they operate in. These factors have resulted in the dominant position of North America in the global digital commerce platform market.

Asia Pacific is the most rapidly growing market in the global digital commerce platform market. The factors including high population in countries like India and China, the rapidly expanding technological infrastructure, and growing internet penetration are expanding the digital commerce platform market. The rise of digital payments infrastructure has provided an easy and efficient option for carrying out digital commerce transactions, which has further resulted in the increased adoption of these services in the Asia Pacific region. These factors are expected to boost the growth of the global digital commerce platform market in the Asia Pacific region during the forecast period.

Global Digital Commerce Platform Market- Drivers:

Growing adoption of digital commerce platforms by commercial users:

Enterprises are investing in innovative digital business models as a result of the growing demand for digital commerce, which will improve consumer experience. Companies are taking advantage of social media platforms to learn more about their customers and better serve them by identifying their customers' satisfaction and dissatisfaction levels. The accessibility and visibility of the consumer experience has changed due to digital commerce. For instance, according to data from IBEF, a trust established by the Department of Commerce, Government of India, on July 4, 2023, India Post and Canada Post, the government operated postal service companies in India and Canada respectively, have partnered together to develop an online portal for the e-commerce companies to effective track the packages. This shows that the adoption of various services related to e-commerce is increasing among public corporations as well as private companies. This is expected to boost the market growth of the global digital commerce platform market during the forecast period.

Increasing demand for cloud services:

Cloud computing has greatly developed over the years, and as a result, it currently offers significant savings to its users by reducing the overall cost incurred by the organizations due to improved efficiency. As a result, numerous suppliers have begun to provide cloud services to clients. Large organizations are gaining from this trend, thus in recent years, sectors like e-mail marketing service providers (iContact, Mailchimp), CRM (salesforce.com), support (Zendesk), and customer engagement (Hybris, Marketo) have almost entirely shifted to the cloud. Furthermore, the emergence of hybrid clouds has elevated cloud services to the status of a cutting-edge technology. A cloud computing infrastructure known as a hybrid cloud combines private cloud, on-premises cloud, and public cloud services. For instance, according a blog published on January 31, 2023 by Appinventiv, a global software development company, the adoption of cloud services in the e-commerce industry has a shown a significant growing trend pertaining to benefits like scalability, increased speed of activities, and cost optimization.  This is expected to expand the global digital commerce platform market during the forecast period.

Global Digital Commerce Platform Market- Restraint

Lack of digital marketing skills and nascent stage of the market:

The digital commerce platform is has emerged as a result of the significant pace of technological development in the recent past. As the concept is relatively new, majority of the players operating in the market are still working towards gaining the knowledge of the market. Especially, in the developing countries, the advent of technology is a new concept and the technology infrastructure is still in its development phase. The merchants using the digital commerce platform usually, tend to have lesser knowledge regarding the digital marketing practices that are essential to make the optimum use of the software platform and gain maximum returns. This tends to decrease the effectiveness of the market and the merchants tend to stop using the services after a specific time period. This may affect the growth prospects of the global digital commerce platform market during the forecast period.

Counterbalance: To cater to this challenge, the companies providing digital commerce suites or software can integrate with the companies which provide online learning and development services to incorporate certain digital marketing related learning tools on the platform. The concepts like social media marketing and search engine optimization can be taught to the merchants using the digital commerce platforms to ensure their continued loyalty.

Concerns associated with safety and security of user data:

Owing to unsafe transactions, security concerns, and lack of confidence, the nature of online transactions is unstable. There are rules in place that include the technological and legal criteria for data protection and security. Additionally, a sharp rise in spyware incursions, the theft of personal information, and phishing assaults may cause internet users to limit their online shopping. For instance, according to a report published by University of Michigan, a public university in the U.S., there is a rising concern among the users with respect to the privacy of their personal and financial data with e-commerce platforms. According to the report, around 41% of the respondents agreed to have taken down their personal information from e-commerce websites, citing concerns regarding the misuse of data. If the trend continues, increasing number of customers would limit the usage of e-commerce platforms which would adversely affect the growth rate of the global digital commerce platform market.

Counterbalance: To cater to the challenge of issues related with data security and privacy, the companies operating in digital commerce platform market need to ensure that they set-up stringent privacy policy while handling user data. The companies should take a holistic approach and promote these poliies with the third parties with which they interact to ensure complete security and adherence to organizational policies.

Global Digital Commerce Platform Market- Opportunity

Growing demand for universal purchasing platform to present lucrative growth opportunities:

Digital commerce platforms provide users the access to virtual marketplace. This virtual market place is an abstract phenomenon referring to the market place over the internet. This virtual marketplace is away from the limitations of the traditional marketplace with respect to limited space and offerings. The concept of universal purchasing refers to the platform where a variety of commodities are available for buying and selling online. This concept allows users to satisfy their varied demands with one solution. For instance, according to a research report published on European Payment Institutions Federation, an international non-profit association established to monitor the adoption of Payment Service Directive (PSD), points out the factors that are leading to the growing demand for universal e-commerce platforms which include virtual wallet and universal account management. This increased demand for universal purchasing platform would provide an opportunity for the global digital commerce platform to grow during the forecast period.

Global Digital Commerce Platform Market- Trends

Digital commerce personalization tool:

Currently, the majority of businesses place a strong priority on client happiness, which involves offering fresh, unique experiences. The self-service, co-creation, and personalization important strategic developments all describe the present digital customer. In light of these trends, Infosys digital commerce delivers end-to-end capabilities that eliminate the need for middlemen in transaction processing, warehousing, inventory management, and channels. A complete set of digital commerce personalization solutions, including automatic behavioral warnings, product recommendations for email and the web, behavioral ranking, and actions that boost conversions and average order value, are also available through Episerver's intelligent personalization platform. For instance, In July 2023, E-bay, a global e-commerce company, announced the integration of new AI tools on its platform to provide personalized suggestions to the users based on the data related to the in-app activity. This would provide a better way for the digital commerce platform companies to target their users in an efficient manner.

Integration of digital commerce platform with other technologies:

An integrated digital platform interacts with other related systems such as enterprise resource planning (ERP), logistics and order fulfillment systems. This platform was created to cater to all the requirements in one platform. Furthermore, functionalities such as newsletters and marketing strategies were considered to be outside the purview of the platform. However, integrating it with other technologies has incorporated these systems into the digital commerce platforms. For instance, Elastic Path’s digital commerce platforms are often used for enterprise-wide capabilities and provide various fulfillment, licensing inventory, and post-transaction support. Elastic Path commerce integration platforms are also used to generate unified business APIs that power these applications in real-time. For instance, on July 25, 2023, QAD, an India based provider of cloud-based enterprise resource software, announced the launch of its new solution for e-commerce industry named ‘ QAD Digital Commerce’. The new software is an ERP (Enterprise Resource Planning) solution for the companies providing digital commerce services to manage all the resources of an organization effectively.

Global Digital Commerce Platform Market- Segmentation

The Global Digital Commerce Platform market is classified into the following segments based on business model, deployment model, verticals and regions.

Based on business model, the Business to Consumer (B2C) segment in the global digital commerce platform market held the dominant position in 2022. The B2C segment is characterized with a rapid increase in the customer base. The number of digital commerce transactions in the B2C segment has witnessed an astounding growth in the past few decades. Individual customers are showing increasing inclination towards the adoption of e-commerce platforms as the service is evolving and incorporating aspects that provide greater convenience to the users in terms of cash on delivery, online payment models, discounts and offers, and better customer service policies. Due to these factors, the B2C segment is expected to retain its dominant position in the global digital commerce platform market during the forecast period.

Based on the deployment type, the on-premises segment in the global digital commerce platform market held a dominant position in 2022. The on-premises digital commerce platform refers to the solutions that are installed locally on the company’s hardware systems and supported by the IT infrastructure of the company. This segment typically involves huge upfront investments to purchase the infrastructure including the servers and related facilities that are essential to maintain the digital platform. Due, to the increasing inclination of organizations to offer digital commerce services to stay updated with the changing market trends and boost the revenue, the segment is expected to hold a dominant position as compared to other deployment types.

Figure 2. Global Digital Commerce Platform Market Share (%) Analysis and Forecast,

To learn more about this report, Request sample copy

The global digital commerce platform market was valued at US$ 8.9 Bn in 2022 and is expected to reach US$ 19.57 Bn by 2030, exhibiting a CAGR of 10.3% between 2023 and 2030.

Global Digital Commerce Platform Market- Key Competitors

The major players operating in the global digital commerce platform market include Magento, Inc., Elastic Path Software Inc., IBM Corporation, NetSuite Inc., Oracle Corporation, Apttus Corporation, Adobe, Inc., Hybris AG, CloudCraze Software LLC, Demandware, Inc., Salesforce.com, Inc., and Digital River, Inc.

Global Digital Commerce Platform Market- Recent Developments

• On May 3, 2023, Oracle, a global technology corporation, announced a collaboration with Steeda Autosports, a partner of Ford Motor Company, a global automobile manufacturer. The new digital commerce platform designed by Oracle NetSuite, Steeda will be able to have access to the real-time, consolidated view across inventory, order management, point-of-sale, and e-commerce processes.
• On June 29, 2023, Salesforce, a U.S.-based software company, announced a partnership with Deloitte, a U.K.-based multinational professional service provider, to deploy trusted Artificial Intelligence (AI) program for Customer Relationship Management (CRM)-related activities in serving the customers using their digital commerce platform.
• On May 11, 2023, Indian Government, announced the expansion of ONDC, a private non-profit digital commerce services providing company, to serve 236 new cities in India. This expansion would lead to the addition of 36,000 new merchants on the platform.
• On July 1, 2023, The Indian Government announced the collaboration with Google LLC, a global technology company, to develop google cloud powered digital commerce app for the co-operative organizations. The application was launched at the 17^th Indian Co-operative Congress (ICC) in New Delhi.

Global Digital Commerce Platform Market- Impact of COVID-19:

The COVID-19 pandemic had a major influence on the operations of the majority of the industries such as manufacturing, information technology, etc. The impact of the COVID-19 pandemic on the global digital commerce platform market was rather interesting. The non-essential activities were halted during the pandemic period, but the individual customers continued to carry out online transactions related to consumer electronics which majorly drove the growth of the market during the pandemic. Additionally, there was a rising tendency to purchase groceries online to ensure the adherence to social distancing norms. Hence, the B2C segment in the global digital commerce market did not witness a severe negative impact. Moreover, the market players started providing additional services like contactless delivery to the customers that attracted more users to the global digital commerce platform market.

*Definition: Digital commerce platform refers to the buying and selling of goods or transmission of funds or data over the internet. These transactions are classified on the basis of the parties involved in the transaction such as, Business to Business (B2B), Business to Consumer (B2C), and Consumer to Business (C2B). Digital commerce provides a virtual marketplace for the customers to browse through vast inventories of goods and carry out the purchasing activities without visiting the physical market.