Live Commerce Platforms Market

Market Overview

The global live commerce platforms market size was valued at USD 1.1 billion in 2023 and is projected to reach USD 6.3 billion by 2032, registering a CAGR of 21.5% during the forecast period (2024-2032). Live Commerce platform market growth is predicted to be driven by factors such as the expansion of e-commerce and live commerce, the adoption of social media, and the rise of influencer culture.

Live commerce platforms are digital platforms that allow real-time interactions between sellers and buyers via live streaming. These platforms combine e-commerce and live video broadcasting to offer consumers immersive shopping experiences. Sellers showcase their products or services in real-time, allowing viewers to ask questions, interact with the host, and purchase directly from the live stream.

Factors such as rising demand for online shopping and more engaging and interactive shopping experiences are projected to fuel market expansion. An exponential increase in smartphone users and high-speed internet access also helps to drive industry expansion. Furthermore, the availability of first-party data for e-commerce companies to create personalized buying experiences, as well as the growing involvement of the Gen Z generation with live commerce platforms, help to drive industry growth.

Highlights

• Apparel and Fashion contribute significantly to the market by Category.

Market Dynamics

Global Live Commerce Platforms Market Drivers:

Rise of E-Commerce

The rise of e-commerce has significantly aided the growth of live commerce platforms as businesses look for new ways to engage with customers in a competitive online marketplace. Online retailers like fashion brands and beauty companies increasingly use live commerce platforms to showcase their products and drive sales. For example, a clothing brand may host a live fashion show where models showcase the latest collection, and viewers can purchase the featured items during the broadcast. Global e-commerce sales are expected to reach USD 5.8 trillion in 2023 and increase to USD 8 trillion by 2027. This is a 39% increase over 2023 and is expected to account for 21.2% of total retail sales by 2024. 

In China, livestreaming commerce is expected to account for 19.2% of retail e-commerce sales in 2023, with total sales increasing from USD 562.62 billion in 2023 to USD 843.93 billion in 2025. The exponential growth of e-commerce has created a competitive environment where businesses must differentiate themselves and offer unique shopping experiences to stand out.

 Furthermore, live commerce platforms provide a solution that combines the convenience of online shopping with the interactivity of in-person interactions, resulting in increased engagement and conversion rates. As more people shop online, businesses that embrace live commerce can gain a competitive advantage and capitalize on the growing trend of interactive shopping experiences. 

Global Live Commerce Platforms Market Restraints:

Content Quality and Production Cost

Live commerce can be expensive because it frequently requires high-quality equipment such as cameras, lighting, microphones, skilled hosts, and production personnel. For example, a single-camera live stream can cost between USD 700 and USD 2,500, whereas a multi-camera live stream can cost between USD 1,800 and USD 6,000 or more. Live commerce can be expensive because it frequently requires high-quality equipment such as cameras, lighting, microphones, skilled hosts, and production personnel. For example, a single-camera live stream can cost between USD 700 and USD 2,500, whereas a multi-camera live stream can cost between USD 1,800 and USD 6,000 or more.

Furthermore, according to a 2021 Livestream and New York Magazine survey, 80% of respondents prefer watching a brand's live video over reading a blog post, and 82% prefer live video over social media posts. The survey received responses from over 1,000 professionals, including marketers, educators, government employees, and church leaders. 

As a result of the challenges associated with content quality and production costs, businesses must balance creativity, resource allocation, and scalability to compete in the live commerce platform landscape. 

Global Live Commerce Platforms Market Opportunity:

Emergence of Influencer Marketing

Influencer marketing has emerged as a powerful strategy for brands to connect with their target audience and increase sales. Social media influencers with large followings and established credibility in specific niches can effectively promote products and services to their targeted audience. Live commerce platforms provide an ideal environment for influencers to showcase products in real time, engage with their followers, and increase sales through authentic and interactive content.

Furthermore, the influencer marketing industry is expected to grow to around USD 24 billion by the end of 2024. According to an Influencer Marketing Hub survey, 63% of marketers plan to increase their marketing budgets in the coming year, demonstrating the growing importance of influencer collaborations in marketing strategies. According to Forbes, traditional advertising is losing ground to this approach as younger generations increasingly rely on social media to inform their purchasing decisions. Furthermore, consumers are increasingly skeptical of traditional advertising: Sixty-one percent of consumers trust recommendations from family, friends, or influencers on social media, compared to 38% who trust recommendations from brands.

In 2023, fashion and beauty brands will work with influencers to create product reviews, tutorials, and endorsements. Influencers can demonstrate how to use a product, share their experiences, and give honest feedback on the brand. Influencers can help fashion brands promote their products, raise brand awareness, and increase sales. Influencers can help beauty brands with product reviews, tutorials, and endorsements. 

Thus, live commerce platforms can improve their offerings by including features tailored to influencers, such as dedicated influencer channels, built-in affiliate marketing tools, and analytics dashboards for tracking performance metrics. Brands can use influencer partnerships on live commerce platforms to reach new audiences, promote product discovery, and increase sales by creating authentic and engaging content. 

Regional Analysis

Asia-Pacific Dominates the Global Market

The global live commerce platforms market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global live commerce platforms market shareholder and is estimated to grow at a CAGR of 21.8% over the forecast period. Asia-Pacific dominated the market, accounting for 45% in 2023. Several favorable factors contribute to the regional market's growth. The region has a high internet penetration rate and widespread smartphone use, which creates numerous potential customers. Social media platforms have become integral to daily life, providing live commerce platforms with a direct channel to reach their intended audience.

Furthermore, consumers in this region increasingly seek convenient and engaging shopping experiences, which live commerce platforms successfully provide. Live commerce platforms successfully promote their products and services using influencer marketing, a popular regional strategy. The Internet Telecommunication Union (ITU) estimates that 1.24 billion people in Eastern Asia will use the Internet daily by 2023. In 2023, 5.4 billion people will use the Internet, accounting for 67% of the global population. This is a 45% increase from 2018, when 1.7 billion people went online. However, 2.6 billion people remain offline.

North America is anticipated to exhibit a CAGR of 21.3% over the forecast period, driven by widespread e-commerce adoption and increased mobile and internet connectivity. Businesses in the United States and Canada use these platforms to actively engage with customers, providing interactive displays and personalized shopping experiences. The seamless integration with established e-commerce structures and the desire for genuine connections drive the significant growth of live commerce. Furthermore, integration with popular social media platforms improves the visibility of live commerce events. The increased adoption of e-commerce and the ease with which it is enabled have made live commerce platforms favorable for growth. The United States has been a significant hub for e-commerce and technology, laying a solid foundation for the development of live commerce. 

Moreover, live shopping is becoming increasingly popular due to the presence of influential social media platforms and many content creators. According to the Census Bureau, e-commerce sales in the United States in 2023 were USD 1,118.7 billion, a 7.6% increase over 2022. This represents 15.4% of total sales in 2023, up from 14.7% in 2022. Although online sales decreased in 2022, consumers grew accustomed to the convenience of online shopping, as evidenced by the positive growth trendline. E-commerce generated USD 4,284 billion in revenue in 2023 and is expected to increase steadily.

Europe holds a significant market share. Live commerce platforms have gained considerable traction in Europe, transforming how consumers interact with brands and purchases. These platforms provide real-time interactive experiences that enable brands to engage with their audience, showcase products, and drive sales via live streaming sessions. Europe's diverse market landscape offers numerous opportunities for live commerce platforms to expand their presence and meet the changing needs of consumers. According to a McKinsey and Company survey, 72% of European consumers have participated in live commerce activities, demonstrating the region's preference for this shopping format. According to Euromonitor International, the fashion and beauty industries are driving the growth of live commerce in Europe, with consumers increasingly using live-streaming platforms for product discovery and shopping inspiration.

In addition, Statista research shows that the number of live commerce viewers in Europe is steadily increasing, with a projected total of over 260 million viewers by 2025. The growing use of live commerce platforms opens up lucrative opportunities for brands to connect with European consumers, raise brand awareness, and drive sales through immersive and interactive shopping experiences.

Segmental Analysis

The global live commerce platform market is segmented based on category.

The market is further segmented by Category into Apparel and Fashion, Cosmetics and Personal Care, Consumer Electronics, Furnishing, and Entertainment.

The apparel and fashion category segment dominated the market because of live commerce's appealing attributes and interactive nature, accounting for 45% of the total in 2023. This Category includes clothing, footwear, and accessories, such as dresses, shirts, shoes, and handbags. Live commerce platforms allow fashion influencers and brands to showcase the latest trends, host virtual fashion shows, and provide viewers with styling tips. Viewers can interact with the hosts, ask questions about sizing, materials, and styling, and make purchases right from the live stream. Fashion brands can use live commerce to drive product discovery, interact with their audience in real time, and create immersive shopping experiences that rival the excitement of traditional brick-and-mortar stores.

Additionally, collaborations with fashion influencers and industry experts greatly expanded the reach and impact of live commerce events. Influencers' credibility and popularity appeal to a larger audience and improve brand perception. Key Opinion Leaders (KOLs) are influential social media personalities who promote e-commerce live streaming. Their participation in e-commerce live-streaming benefits businesses by allowing them to promote products and services to their followers. According to a report published by the China Internet Network Information Center (CNNIC), China had over one billion influencers in June 2021. 

The cosmetics and personal care category is expected to grow at the fastest CAGR over the forecast period. This Category includes beauty and skincare products, makeup, fragrances, and grooming supplies. Live commerce platforms enable beauty influencers and brands to demonstrate product application techniques, share skincare routines, and make personalized recommendations to viewers. Live streaming allows viewers to see the results of products in real time, ask questions about ingredients and suitability for their skin type, and make informed purchasing decisions. Beauty brands can use live commerce to promote new product launches and limited-time offers and create a sense of community among beauty fans.

Visual appeal, real-time interaction between hosts and viewers, live demonstrations, convenient purchasing options, and influencer marketing contribute to the segment's growth. Live commerce frequently incorporates entertainment elements, such as live tutorials and QandA sessions, making the experience educational and entertaining. The majority of customers or viewers are Generation Z and millennials. The recommendation strongly influences young consumers and prefers to buy live-streaming programs.

In 2022, Gen-Z and millennials accelerated the growth of luxury goods, and by 2030, they are expected to account for one-third of the market. 66% of this demographic has used new digital touchpoints like virtual try-ons, live streaming commerce, and social commerce.

The consumer electronics segment includes electronic devices and gadgets like smartphones, laptops, cameras, and smart home appliances. Live commerce platforms allow tech influencers and brands to show off product features, demonstrate functionality, and answer common customer questions in real time. Viewers can watch product demonstrations, ask technical questions, and compare different models or brands before purchasing. Tech companies can use live commerce to launch new products, highlight key features, and provide after-sales support, improving the overall customer experience and driving sales.

Recent Developments

• January 2024- Treasure Global Inc. announced its latest milestone in live commerce via ZCITY, a unique e-commerce subsidiary. Choosing Meta as the platform for its upcoming live commerce event demonstrates the company's commitment to pushing the boundaries of innovation in the digital age. By leveraging platforms such as Meta and TikTok, ZCITY's live commerce events are positioned to provide engaging experiences and new revenue potential for the organization.
• March 2024- CommentSold, the leading video commerce platform, appointed industry veteran Filip Vítek as the EVP of AI and Data. With Vítek at the helm, CommentSold will integrate advanced AI solutions into its full-stack video commerce ecosystem. This will enable retailers to quickly create new visuals based on existing content, augment their live sales, and shorten the time to market for new products.