The digital commerce software market was valued at USD 5733.44 million in 2019Ęand is expected to reach a market value of USD 10397.24 million by 2025, registering a CAGR of 12.64% during the forecast period (2020 - 2025). With the increase in need of unified commerce, customers use an increasing number of channels throughout both the buying and owning stages which makes their entire process smooth.
- As the organizations are moving towards a subscription business model, sellers benefit from repeatable, predictable revenue and customers like the convenience, cost savings and personalized curation which in return will create a market for digital commerce.
- Further, with the increase in demand for the internet of things (IoT), smart home appliances can make purchases on behalf of customers. It will reduce the efforts customers need to take for purchasing. This digital commerce trend is creating new interactive channels and business opportunities.
- However, on the flip cybersecurity issues and raising privacy concerns are the major restraints for the market during the forecasted period.
Scope of the Report
Digital commerce (D-commerce) is a type of e-commerce used by an organization that delivers and sells products online. D-commerce is used by companies that sell news, subscriptions, documents or any form of electronic content, and the digital commerce company collects payments, handles customer refunds and billing and manages other accounting functions for online publisher clients.
Key Market Trends
Entertainment and Media to Have Significant Share
- Technology has grown exponentially over the past decades within media and entertainment, bombarding the film, TV, publishing and music industries with new competition, business models and product landscapes that benefit a digitally sophisticated consumer base.
- With 2.71 billion smartphone users globally, content consumption across media channels, devices and demographics are on the rise. Due to unprecedented Internet usage and adoption of Internet-enabled devices, consumers are now in a digital ecosystem in which they actively create, distribute and consume content.
- Moreover, according to Open Society Foundations, the United Kingdom has one of the highest levels of digital television uptake in Europe and it is witnessing more customer-focused options in the digital market.
- With the increasing demand for entertainment and media market in the United Kingdom, it can be inferred that globally this market will also see significant growth. With the increased willingness among consumers to pay for content online rather than consume ad-funded content is driving the entertainment and media market.
Asia- Pacific to Witness the Fastest Growth
- Asia is the fastest-growing region in the global marketplace, accounting for the largest share of the worldŐs business-to-consumer market. Along with that, companies are spending on digital channels. This is supported by the increasing smartphone users and high-speed internet connectivity.
- According to the association for the video industry and ecosystem in Asia- Pacific, China has been the single top contributor to IPTV subscriber growth, with state-owned China Telecom and China Unicom signing up more than 39 million customers during the year and India trails China as the second-largest pay TV market globally, with 155.4 million subscribers. Such a huge customer base creates a market for the digital commerce software market in this region.
- The above factors are expected to help the digital commerce software market to grow at the fastest rate during the forecast period.
The digital commerce software market is highly fragmented and competitive in nature. Some of the key players are SAP SE, IBM Corporation, Oracle Corporation, Demandware Inc., NetSuite Inc., Sappi Limited, Intershop, Volusion Inc., eBay enterprise, TCS Ltd, Cleverbridge Inc., MarketLive Inc., and Shopify Inc., among others. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition.
- December 2018 - IBM and HCL Technologies (HCL) announced a definitive agreement under which HCL had planned to select IBM software products for USD 1.8 billion. Some of those software products are Commerce (on-premise) for omnichannel eCommerce, Portal (on-premise) for digital experience, etc.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growth in Adoption of Cloud-Based Services
4.3.2 Growing Development in Wired and Wireless Communications Networks
4.4 Market Restraints
4.4.1 Increasing Security and Privacy Concerns
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5 TECHNOLOGY SNAPSHOT
6 MARKET SEGMENTATION
6.1 By Deployment Model
6.2 By Industry
6.2.3 Travel & Tourism
6.2.4 IT & Communications
6.2.5 Entertainment & Media
6.3.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
6.3.4 Rest of the World
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 SAP SE
7.1.2 Oracle Corporation
7.1.3 Demandware Inc (Salesforce)
7.1.4 Digital River Inc
7.1.5 Sappi Limited
7.1.6 Intershop Communications AG
7.1.7 Volusion Inc
7.1.8 eBay Enterprise
7.1.9 TCS Ltd
7.1.10 Cleverbridge Inc
7.1.11 MarketLive, Inc ( Kibo Software)
7.1.12 Shopify Inc
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.