E-Commerce Platform Software solutions primarily enable the efficient functioning of online stores by easing the inventory management process, calculating taxes, and performing other associated tasks vital for a website to function and fulfill client orders. They comprise features such as integrated shopping cart, email marketing, search engine optimization (SEO), shopping cart solution, and online store builder with the only purpose to serve client sell their products and services online.
Rapid technological advancements around the globe have led to an increase in adoption of mobile internet and associated uses such as online shopping, communicating via apps, and others. According to the Groupe Speciale Mobile Association (GSMA), the number of mobile internet users is expected to rise from 3.3 billion in 2017 to 5 billion in 2025. This surge in the number of users switching to mobile internet will translate to an increase in the traffic for e-commerce and create new growth opportunities for the e-commerce platform software market.
The global E-Commerce Platform Software market is expected to grow at CAGR 18% during the forecast period 2019-2026
The global market for E-Commerce Platform Software is segmented by e-commerce platform software type, software platform, business size, industry, and application.
Based on e-commerce platform software type, the market is segmented into on-premise and Software as a Service (SaaS). Several businesses are turning to Software as a Service (SaaS) systems and apps such as Salesforce, Google Apps, and Office 365 for operational activities. The usage of SaaS e-commerce over on-premise or open source results in precise decision-making. Additionally, SaaS platforms are licensed on a subscription basis where users pay monthly, based on the levels of services asked for, which makes them cost-effective for small- and medium-sized enterprises.
On the basis of platform, the market is segmented into hosted E-commerce platforms and self-hosted e-commerce platforms. Self-hosted e-commerce platforms can be set up wherever as the user is at the liberty to choose the preferred hosting service. Additionally, not being attached to a centralized service enables these platforms to be shifted in case of outgrowing supplier chains and superior deals elsewhere.
The e-commerce platform software market, by business size, can be segmented into small, medium, and large. Several government initiatives have been considered across the globe so as to boost small enterprises along with initiatives that promote digitalization. For instance, the Indian government’s ‘Make in India’ and ‘Digital India’ initiatives are directing entrepreneurs to get into the manufacturing business, which would certainly offer growth opportunities for the e-commerce platform software market.
On the basis of industry, the market is segmented into food & beverage, fashion & lifestyle, health & beauty, media & entertainment, automotive, consumer electronics, and others. Advancements in online portals that provide ease of shopping drive the fashion & style segment. Acceptance of different payment modes other than cash, such as net banking and secured app payments, easy return policies, quick deliveries, and transparent competitive pricing are collectively encouraging consumers to resort to e-commerce platforms for purchases.
Based on application, the market is segment into catalog management, inventory management, SEO management, shopping cart, returns management, order management, email marketing, multi-store management, channel management, and others. Stock updates are of vital importance for any business to function; e-commerce helps in ensuring that the right inventory is maintained by providing remarkable inventory management services to operators. Services such as instant stock updates and in-built reporting and analytics surge the demand for inventory management in the e-commerce space.
Geographically, the E-Commerce Platform Software is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America has always been at the forefront for its technological advancements in every industrial vertical as well as its population, which constitutes early adaptors to such advancements. The availability of several e-commerce sites from major manufacturers and service providers such as Amazon, Best Buy, Staples, Ikea, Nike, and others has resulted in an array of choices for customers in the region. According to the U.S. Commerce Department, in 2017, consumers spent an approx. of USD 3.496 trillion on e-commerce purchases, recording a significant rise of 3.8% when compared to the USD 3.369 trillion in 2016. This surge in e-retail purchases widens the e-commerce platform software market’s scope of application in this region.
Europe plays a vital role in the global e-commerce platform software market, backed by a remarkably changing technological landscape with an acceptance for transformation and innovation. The e-commerce wave in Europe has seen rapid adoption among several industrial verticals and end-users, offering several growth opportunities for the e-commerce platform software market. According to the European Union published e-commerce news, E-commerce witnessed remarkable growth in Europe during 2018, marking an 11% increase over the previous year to attain a value of USD 606.91 billion. For the current year, a growth rate of 13% is estimated.
The Asia Pacific e-commerce industry has been on an upward path and is estimated to surpass technologically developed regions such as the U.S. According to the India Brand Equity Foundation (IBEF), India’s e-commerce market is estimated to expand at a CAGR of 44.77% from 2016 to 2020 and reach an approx. value of USD 63.7 billion by 2020. This would certainly widen the scope of e-commerce platform software in the region and direct several small- and medium-sized enterprises to adopt e-commerce and associated software services for the promotion of their business activities.
In Latin America, Brazil – being the largest economy – is constantly on the radar of manufacturers and industry leaders seeking business expansion. Brazil’s retail market is undergoing a fundamental transformation, particularly driven by digitalization. According to the United Nations Industrial Development Organization, a potential growth opportunity exists for the growth of e-commerce software as Brazil’s 204 million-strong population constitutes 75 million internet users and 48 million active consumers for 2016.
The Middle East and Africa region is exposed to digital media and entertainment options such as movies, music, online shopping, and others. Countries such as Saudi Arabia have been observing an increase in the sale of gadgets, apparels, and accessories over the internet via e-commerce, which is paving the way for untapped opportunities in the e-commerce platform software market.
Some of the major players in the market are YoKart, Tictail, IBM Digital, Magneto, Shopify, Big Commerce, VTEX, WooCommerce, Miva, The Winner, Voulsion, PinnacleCart, X-cart cloud, Aabaco, 3dcart, and E-Cart Cloud.
The report provides insights pertaining to the E-Commerce Platform Software market, focusing on recent developments in the market across different regions and key market participants’ development strategies. Moreover, the following sections are specifically covered in the report.