The global digital commerce software market is estimated to reach at a high CAGR during the forecast period 2022-2029.
Digital commerce software aids in the operation of online stores, supporting owners in inventory management, product customization, tax computation, payment processing, and order fulfillment. It provides all of the features needed to run a successful online business and makes managing an online store a breeze.
An online store has a lot of moving parts and processes that digital commerce software simplifies with an easy-to-use interface that even non-techies can utilize. The system's ability to interact with other platforms and services, such as CRM, CMS, ERP, payment gateways, email marketing tools, accounting software, fulfillment services, and social media networks, makes things even easier.
While there are many different types of e-commerce software, the most important function is to make the consumer experience as simple as possible. Customers must be able to browse products, add them to their shopping carts, and check out as quickly as feasible. We can observe extreme shifts in customer behaviors and expectations as the influence of digitalization continue in both B2B and B2C, from the way they study a product/service, contemplate and complete a purchase, or exhibit devotion to a brand, to the way they communicate all of this to their peers.
In response to growing concerns about product and customer safety, the market is expected to expand. Other reasons such as technological developments and rising digitalization are likely to enhance the digital commerce software market.
The market is predicted to rise due to the shifting of companies towards digital platforms for their business.
With increased competition, technology has advanced dramatically in the media and entertainment, retail, financial services and banking, travel and tourism, and insurance industries during the previous decades. Product landscapes and business structures that cater to a digitally savvy consumer base have grown dramatically.
Various organizations are increasingly investing in digital apps and software to boost curated commerce and utilize customers' purchase histories to provide customized product groupings and develop new revenue streams. Technology firms, such as SAP SE and e-commerce firms, concentrate on providing end-to-end solutions, which helps to attract a large consumer base to digital commerce platforms.
PayPal, for example, announced its new digital commerce product in 2019 that can assist businesses of all kinds to expand online. The new Commerce Platform integrates various leading services to give businesses a comprehensive offering to help them grow both domestically and internationally. It will enable vendors to accept transactions in more than 100 currencies and streamline agreement requirements across more than 200 markets.
Increasing customer engagement on digital commerce platforms.
Because of the growing popularity of mobile phones for online shopping, companies like Shopify have customized their software to work on these devices. With such a high rate of internet penetration and a growing number of mobile users, online shopping on these devices is only going to become more popular. According to the GSM Association (GSMA), internet penetration on mobile devices will climb from 48.9% in 2019 to roughly 60.5 percent in 2025. Furthermore, the advent of high-speed internet technology like as 4G and 5G is expected to boost the e-commerce software market's growth.
Increasing cyber-security issues to hinder the market growth
Despite the growing popularity of digital commerce software, there is increased caution about possible data breaches and malevolent groups compromising customers' personal information and security. Many clients have withdrawn from the virtual landscape due to numerous cyber fraud and identity theft incidents, hampering expansion potential.
Privacy has taken precedence above all other issues. The US Attorney General announced multiple indictments in 2015 in connection with a large international security breach involving 9 major retailers and over 40 million debit and credit card details.
COVID-19 Impact Analysis
The global purchasing habit has surely changed due to the coronavirus epidemic, with traditional retailing taking a backseat. A paradigm shift toward a more computerized world is well underway, resulting in shifting buying habits likely to have long-term consequences.
According to a UNCTAD report, digital commerce sales have increased dramatically in rising economies such as China, Brazil, South Africa, Russia, and Turkey. According to the report, internet purchases increased from 6% to 10% in most product categories.
By deployment model, the digital commerce software market is classified into On-Premise, Cloud-based, and Hybrid.
The cloud-based deployment model is expected to be the dominant segment.
The increased usage of cloud-based technologies across numerous industry sectors is credited with supremacy. High storage capacity, centralized access, high speed, and reliability are all advantages of cloud-based deployment. Furthermore, major industry companies like Oracle, SAP SE, and Adobe are putting a lot of money into cloud-based platforms.
Cloud-based computing has changed and will continue to change the way technology services are delivered. Innovative services have been enabled by capabilities such as broad network access, measurable service, multi-tenancy, quick flexibility and scalability, and resource sharing. Workloads are placed in a cloud-based computing environment using cloud deployment tools. They lay the groundwork for applications and services to run smoothly. These technologies span from bare metal to serverless computing and allow businesses to use cloud computing's advantages.
North America holds the largest market share of global digital commerce software.
North America is predicted to continue to be a lucrative market for the digital commerce software market. Walmart, Target, and Kroger topped the list among all merchants regarding online grocery sales, with trends rising amidst the pandemic crisis.
The presence of important market companies such as Oracle Corporation, Shopify, and Salesforce.com, Inc. has contributed to the region's growth. In addition, increased e-commerce sales in the United States are driving up demand for e-commerce software among a variety of businesses. Retailers are also launching new initiatives and actively investing in e-commerce software in order to get a competitive advantage in their various industries. For example, in 2017, The Kroger Co., one of the country's largest retailers, announced the introduction of "Restock Kroger," a new effort aimed at growing the company's e-commerce and omnichannel businesses.
Around 85% of European clients make purchases through the internet. According to Eurostat, 32 percent of European consumers shopped online at least twice in the previous three months, while 17 percent made at least six to seven such purchases. As a result, demand for software maintenance, design, and implementation services is growing, creating new opportunities for important providers.
China, the world's largest manufacturing hub, is anticipated to lead the East Asian digital commerce platform market. According to the United Nations, manufacturing accounts for over 30% of the East Asian giant's economic output. Naturally, in recent years, a robust e-commerce industry has emerged.
China is the world's fastest-growing e-commerce market, with over 600 million internet users. Alibaba is the world's largest e-commerce corporation, focusing on B2B, B2C, and C2C markets. Other websites that dominate the regional e-commerce market, like as Taobao, JD.com, Tmall, Suning.com, and Xiohongshu, generate progressive expansion prospects.
The worldwide digital commerce software market is highly competitive. Key players operating in the global market for digital commerce software include HCL Technologies Limited, Oracle Corporation, Salesforce, Digital River Inc., Sappi Limited, SAP SE, Volusion Inc., Dordan Manufacturing Company, TCS Ltd., and UFP Technologies, Inc.
HCL Technologies Limited
Overview: HCL Technologies is a next-generation multinational technology firm that assists organizations in reimagining their operations for the digital age. Our technological products and services are built on four decades of innovation with a world-renowned management philosophy, a strong culture of creativity and risk-taking, and a relentless focus on customer interactions.
HCL is also proud of its numerous diversity, social responsibility, environmental, and education programs. HCL provides holistic services across industry verticals to major companies, including 250 of the Fortune 500 and 650 of the Global 2000 through its global network of R&D facilities and co-innovation laboratories, global delivery capabilities, and over 176,000+ ‘Ideapreneurs' across 50 countries.
Product Portfolio: Through three business units, HCL provides an integrated spectrum of products and services. IT and Business Services (ITBS), Engineering and R&D Services (ERS), and Products and Platforms (P&P) are the three categories (P&P).
Digital Foundation, a modernized infrastructure stack built around hybrid cloud, software-defined networks, the digital workplace, and other elements; Digital Business, a combination of our application services and consulting capabilities; and Digital Operations, a three-pronged setup for modernized and efficient operations at an enterprise level, are just some of the ways ITBS helps global enterprises transform their businesses.
In all elements of product development and platform engineering, ERS provides engineering services and solutions. HCL's P&P division provides global clients with modernized software products to meet their technological and industry-specific needs.
Recent Development: In June 2020, HCL Technologies and Google Cloud announced that their strategic alliance would be expanded to provide HCL's software products to Google Cloud, beginning with HCL Commerce. HCL Commerce's chosen cloud platform will be Google Cloud, which will provide global, secure, and adaptable infrastructure to fuel organizations' eCommerce strategy. HCL wants to use Anthos as part of this cooperation to enable multi-cloud and hybrid-cloud deployments of HCL Commerce.
The global digital commerce software report would provide access to an approx. 60 market data table, 54 figures and 230 pages.
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