New data has found that the digital commerce market is set to increase from $4.9 Trillion in 2015, to just over $8 trillion by 2020. In perspective, the GDP of Japan (the world’s 3rd largest economy in terms of nominal GDP) was estimated to be $4.6 trillion in 2014.
The research, Digital Commerce: Key Trends, Sectors & Forecasts 2016-2020, found that the digital
Digital commerce to reach $8 trillion
commerce market is to see significant growth in transaction values as a result of the contributions from three major commerce segments.
Commerce Revenues to be driven by the ‘Big Three’
The digital commerce market will see strong contributions from three key sectors:
- Digital Banking
- Remote Digital Goods
- Remote Physical Goods
Research author Lauren Foye says: “The digital commerce market as a whole is seeing an ever increasing propensity towards an omni-channel approach, and this extends to eCommerce where the mobile and tablet platform is seeing increased use towards the purchasing of physical goods, either for delivery or collection. In addition, global online banking users as a proportion of banked individuals are forecast to cross the 50% mark in 2016.”
Online retail events such as Cyber Monday have been credited with boosting online platform incomes, and 2015 was no exception, with many retailers turning record profits. China’s own Black Friday event known as ‘Singles’ Day’ reportedly saw eCommerce giant Alibaba sell 91.2 billion yuan ($14.3 billion) in goods. The research also observed that digital transaction volumes would be further bolstered with the continued transition to digital formats, and the rise in streamed subscription services.
Commerce Revenues to be driven by the ‘Big Three’
In terms of the volume of individual transactions, the use of mobile devices to make monetary transfers, such as international remittances, is expected to have a considerable lead over other market sectors by 2020. The research found that in China, both WeChat and Alipay saw astonishing spikes in P2P (Person to Person) traffic during February 2015. WeChat registered more than 3.3 billion P2P ‘red envelope’ transactions in just 6 days over the Chinese New Year period.
The digital commerce market will see strong contributions from three key sectors:
- The value of Mobile NFC POS (Point of Sale) payments will display significant growth, increasing by over 400% between 2016 and 2020.
- The total volume of Mobile & Online Money transfer transactions will surpass those seen from remote physical goods by the end of 2016.
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