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Global E-commerce Industry

 

Thanks to convenience and increasing internet penetration, consumers are readily turning to online shopping, which has been fuelling the overall retail market in developed countries. There were over 2 billion internet users worldwide in 2011, and it is forecast this number will exceed 3 billion by 2015. Profit from B2C e-commerce represents less than 10% of overall retail revenue in established markets like the UK and France, which are expected to rise above the 10% mark in coming years. This figure falls to under 3% in less well-established B2C e-commerce markets.

 

Social media continues to fuel the B2B e-commerce market, which aims to boost electronic business process efficiency, reports T Systems. E-commerce is being considered as a separate, profitable field of business, and intermediary actors are updating their B2B business models, while embracing aspects of social media. 

 

 

Key Market Segments

 

The world online retail market expanded by almost 18% in 2010 to reach close to $435 billion reports MarketLine. The market is expected to record 90% growth by 2015 to exceed $827 billion. Electronics represent the leading market segment, with almost a 24% share in terms of value. The Americas hold a 41% stake in the world online retail market.

 

The online grocery market continues to expand as consumers subscribing to home-shopping extend their online activity to a growing number of areas, including the convenience of grocery shopping on the internet. The trend toward online grocery shopping is particularly strong in developed nations like the US and the UK. According to research from private firm Key Note, the UK internet grocery market will record high yearly growth until 2013, and the overall market will at least double by then as compared to 2008.

 

Online grocery shopping is one of the fastest-growing segments within the grocery market, allowing shoppers to access a huge array of products online, compare product prices and schedule home delivery. Online outfits are rolling out this segment of their business by developing their websites, boosting stock availability and elaborating their distribution networks. Within the context of the economic downturn, online grocers are forced to compete on price as consumers can compare prices with the click of a button.

 

The world B2C e-commerce industry generated between $400 billion and $600 billion in 2010, according to yStats.com, which estimates the market will generate somewhere from $700 billion and $950 billion in 2015.

 

 

Regional Market Share

 

  • The US online retail market generated almost $153 billion in revenue in 2010, reports MarketLine. The market is expected to record yearly growth of close to 11% between 2010 and 2015, when it is expected to reach almost $252 billion. Electronics is the leading market segment, generating almost $36 billion in 2010, which represents more than 23% of the overall market in terms of value.

 

  • The EU online retail market generated close to $163 billion 2010, reports MarketLine. Market growth is expected to slow to a yearly rate of just over 14% between 2010 and 2015 to exceed $316 billion by the end of that five-year period. Electronics is the leading market segment, generating just over $41 billion in 2010, which represents more than 25% of the overall market in terms of value.

 

  • The online retail market in the Asia-Pacific region generated almost $81 billion in 2010, reports MarketLine. Market growth is expected to slow to a yearly rate of over 15% between 2010 and 2015, when it should exceed $170 billion. Electronics is the leading market segment, generating almost $17 billion in 2010, or close to 21% of the overall market in terms of value.

 

 

Industry Leaders

 

  • Leading players operating in the global e-commerce industry include: Groupon, eBay and Amazon. There are hundreds of actors within the B2B and B2C e-commerce market.

 

 

Market Outlook

 

The global e-commerce market is set to continue showing strong growth due to the convenience factor. With widespread internet penetration and a growing trend toward reliance on online options, consumers are increasingly in the habit of carrying out a growing number of activities online, from social networking to shopping.

 

The growing consumer base for mobile devices means that people are more and more accustomed to accessing the internet from anywhere and at any time, be it to purchase goods and services or to use online content. Making consumers aware of the safety of mobile payment will be an important factor for e-commerce market growth moving forward.

 

 

Leading Industry Associations

 

 

 

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