US: 1.917.963.8646 (24x5)
UK: 44.330.808.0580 (24x5)
Worldwide: 91.703.051.960 (24x7)
Report Overview: E-commerce Software MarketThe global e-commerce software market size was valued at USD 5.1 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 15.2% from 2021 to 2027. E-commerce software simplifies complex processes and helps companies manage their inventory, calculate taxes, and manage other business-related functions effectively. Increasing adoption of online shopping among people has led to the demand for e-commerce software among several retailers. For instance, according to the U.S. Department of Commerce, e-commerce sales in the U.S. contributed to around 11.0% of the overall retail sales in 2019. With retailers such as Walmart and The Kroger Co. investing heavily to increase their e-commerce sales, it is expected that the market will witness significant growth over the forecast period 2021-2027. Reduction in additional costs due to the adoption of online platforms combined with the ease of online business is expected to upkeep market growth from 2020 to 2027. Furthermore, e-commerce software automates business processes by eliminating manual processing errors. The software also provides customers with options to customize delivery date and time, which enhances customer experience. Companies such as Shopify are integrating Artificial Intelligence (AI) tools to help retailers analyze the customer’s buying pattern and estimate the future demand for various products. Owing to these advantages, the number of retailers opting for e-commerce software is bound to rise over the coming years, thereby resulting in market growth. Increasing adoption of mobile phones for online shopping has led market players such as Shopify to customize their software and operate on these devices. With the high internet penetration rate and the rising number of mobile users, online shopping over these devices is bound to rise. The GSM Association (GSMA) estimates that the internet penetration rate in mobile devices will rise from 48.9% in 2019 to around 60.5% in 2025. Furthermore, the introduction of high-speed internet technology such as 4G and 5G is anticipated to positively impact the growth of the market for e-commerce software. Rising number of e-tailers is also anticipated to generate huge demand for e-commerce software over the forecast period. E-tailers sell their products and services to customers over online platforms and do not need to own or rent a physical store. Their dependency over e-commerce platforms is high as compared to other retailers. However, data security issues due to the increasing cyber-attacks are expected to pose a challenge for the market for e-commerce software. Market players such as 3dcart are focused on offering solutions that have advanced security features to overcome this challenge. The company provides an e-commerce software platform with additional features that reduce the need of installing insecure modules and plugins. Increasing adoption of e-commerce software in automotive sector is expected to be the additional factor that is driving market growth from 2020 to 2027. Several, automotive brands such as CruiseMaster, JeepPeople, and Awesome GTI are offering various automotive accessories, parts, and other related services online. These brands are engaged in updating their online storefront channels and are also launching multi-channel initiatives to enhance their business. All these factors are expected to generate growth opportunities for the market players. Amid the COVID-19 outbreak, governments of various countries have implemented stringent lockdown regulations to prevent the spread of the virus. Shops, malls, and other retail outlets have shut down, which has resulted in bulk buying over online platforms. Limiting shopping of all but life-essential products are becoming a new normal. Retailers are modifying their business strategies accordingly to meet the sudden changes in demand for these products. This factor is likely to have a positive impact on the growth of the market for e-commerce software over the long term. It is expected that the online shopping trend will continue even after the lockdown regulations are removed. Due to this factor, market players are adopting various strategies to expand their customer base. Companies such as BigCommerce Pty. Ltd. and Shopify are currently offering three months of free trial of their e-commerce software to all the new merchants. Moreover, Shopify is offering discounts, gift cards, free email marketing plans until October 2020, and online support for all the merchants to cater to their requirements effectively.
Deployment Insights: E-commerce Software MarketThe cloud segment held the largest market share of 77.0% in 2019. This is attributed to the increasing adoption of cloud-based technology across various industry verticals. Cloud-based deployment offers several benefits such as high storage capacity, centralized access, high speed, and reliability. Furthermore, prominent market players such as Oracle, SAP SE, and Adobe, are focusing on investing heavily on cloud-based platforms. The on-premise segment is estimated to witness a CAGR of over 5.9% from 2021 to 2027. On-premise deployment limits the total ownership to the user and thus reduces the need for additional security. The deployment method provides the user with complete control of the configuration and the updates of the software. Furthermore, the growth of the segment is expected to be hindered by increasing number of startups that conduct their businesses over the internet and companies that have budget constraints.
The apparel and fashion segment held the highest share of 32.6% in the market for e-commerce software in 2019. This is attributable to the increasing adoption of online shopping of clothing, bags and accessories, and jewelry. Low digital entry barriers for clothing merchants has led to the adoption of online platforms for expanding their customer base. Furthermore, increase in disposable income in developing economies coupled with comfort benefits such as door-step delivery services, cashless transactions, 24-hour access to products, and discounts with online shopping has led merchants to opt for digital platforms. The healthcare segment is projected to exhibit a considerable CAGR of over 9.9% during the forecast period.E-commerce software provides opportunities for hospitals, clinics, and other health institutes to streamline their purchase of medical equipment and other supplies. The shift of medical device manufacturers towards online platforms has generated growth opportunities for market players. Furthermore, integration of telemedicine with e-commerce software is anticipated to enhance patient experience over the coming years, which in turn will boost market growth.
End-use Insights: E-commerce Software Market
Regional Insights: E-commerce Software MarketNorth America held the largest market share of 37.0% in 2019. This is due to the presence of prominent market players such as Oracle Corporation, Shopify, and Salesforce.com, Inc. Furthermore, rising e-commerce sales in the U.S. is fueling the demand for e-commerce software among various retailers. Retailers are also taking up new initiatives and investing heavily in e-commerce software to gain an advantage in their respective business sectors. For instance, in 2017, The Kroger Co., one of the major retailers in the U.S., announced the launch of its new initiative named “Restock Kroger” that aims to develop its e-commerce and omnichannel businesses. Asia Pacific is projected to witness the fastest CAGR exceeding 16.0% during the forecast period. This upsurge is attributed to the initiatives undertaken by the government of countries such as China and India to promote digitalization in their respective countries. This has resulted in an increase in the number of internet users. According to the World Bank Group, about 34.5% of India’s population had access to the internet in 2017, an increase of around 12.5% from 2016. This high internet penetration rate has created a huge opportunity for the growth of the e-commerce sector and in turn market players to expand their business in this region.
Key Companies & Market Share Insights: E-commerce Software MarketThe market for e-commerce software is moderately fragmented and characterized by intense competitive rivalry as there are several market players conducting their business operations worldwide. The top 5 market players accounted for more than 45.0% of the total market share in 2019. The market for e-commerce software has witnessed various inorganic growth strategies such as acquisitions and mergers, partnerships, and collaboration adopted by companies over the recent past. For instance, in March 2019, Shopify announced the acquisition of Handshake Corp., an e-commerce platform provider for B2B wholesale purchasing. With this acquisition, the company plans to enhance its business in the B2B e-commerce sector. Market players are also focusing on expanding their business by launching various partnership programs across different regions. For instance, in September 2019, SAP SE announced the launch of its “Foundry” program in Germany. According to the program, SAP SE plans to utilize solutions made by start-ups in Munich and integrate them with SAP’s commerce cloud solutions. With this program, the company aims to enhance its customer experience in marketing and commerce cloud solutions. Some of the major players operating in the e-commerce software market are:
Key companies Profiled: E-commerce Software Market Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Trusted Business Insights has segmented the global e-commerce software market report based on deployment, end use, and region:
- BigCommerce Pty. Ltd.
- HCL Technologies Limited
- Intershop Communications AG
- Pitney Bowes Inc.
- Salesforce.com, Inc.
- SAP SE
Deployment Outlook (Revenue, USD Million, 2016 - 2027)
End-use Outlook (Revenue, USD Million, 2016 - 2027)
- Apparel & Fashion
- Food & Beverage
- Home & Electronics
- BFSI & Technology
Table of Contents Chapter 1. Methodology and Scope 1.1. Research Methodology 1.2. Research Scope & Assumptions 1.3. List of Data Sources 1.4. List of AbbreviationsChapter 2. Executive Summary 2.1. E-Commerce Software Market - Industry Snapshot & Key Buying Criteria, 2016 - 2027 2.2. E-Commerce Software Market, 2016 - 2027Chapter 3. E-Commerce Software Industry Outlook 3.1. Market Segmentation 3.2. Value Chain A | read more...