How Will Social Commerce Industry Revenue Grow In The Coming Years?
Are you ready to discover the future of social commerce revenue? Look no further, as our latest forecast delves into the latest trends and predictions for the industry.
From the rise of influencer marketing to the integration of AI and VR, we’ll dive deep into what’s driving growth and what companies need to know to stay ahead of the game.
So keep reading the blog as we explore the exciting world of social commerce revenue forecasting!
Social Commerce – Global Market Trajectory & Analytics
Global Social Commerce Market
The global market for Social Commerce, estimated at $559.7 billion in 2020, is expected to grow to $3.7 trillion by 2027, growing at a CAGR of 30.8% between 2020 and 2027.
One of the report’s segments, B2C, is expected to grow at a 31.9% CAGR and reach US$2.2 trillion by the end of the analysis period.
Considering the ongoing post-pandemic recovery, the B2B segment’s growth is revised to a 29.6% CAGR over the next seven years.
U.S. Social Commerce Market
The social commerce market in the United States is expected to be worth $40 billion by 2020. China, the world’s second-largest economy, is expected to reach a market size of US$1.9 trillion by 2027, with a CAGR of 34% from 2020 to 2027.
Other notable geographic markets include Japan and Canada, which are expected to grow at 23.2% and 24.6%, respectively, between 2020 and 2027.
Germany is expected to grow at a CAGR of approximately 25.4% in Europe. The Asia-Pacific market is expected to reach US$454.2 billion by 2027, led by countries such as Australia, India, and South Korea.
C2C Segment Growth
The US, Canada, Japan, China, and Europe are expected to drive the global C2C segment’s 28% CAGR.
These regional markets, which had a combined market size of US$46.3 billion in 2020, are expected to grow to US$257.5 billion by the end of the analysis period.
China will continue to be one of the fastest-growing markets in this cluster of regional markets. Latin America will grow at a 28.2% CAGR during the study period.
Social Commerce Market Driving Factors
Mobile commerce
The growing use of smartphones and tablets has made it easier for consumers to shop online, leading to increased mobile commerce. This has been a major driver for the growth of social commerce, as many social media platforms are optimized for mobile devices.
Influencer marketing
Social media influencers have become a powerful force in e-commerce, with many consumers turning to them for product recommendations. This has led to an increase in the use of influencer marketing by brands, which has, in turn, driven growth in the social commerce market.
Social media advertising
Social media platforms have become an increasingly popular brand advertising channel, allowing for targeted advertising to specific demographics. This has led to increased social media advertising spending, which has driven growth in the social commerce market.
Integration of AI and VR
Artificial intelligence and virtual reality technology advancements have led to the integration of these technologies into social commerce. This allows for personalized shopping experiences, virtual try-on of products, and more efficient customer service, driving more sales and customer loyalty.
Increase in consumer trust
As more and more consumers become comfortable buying products online, trust in e-commerce has grown. This has led to increased social commerce, as consumers are more likely to purchase if they trust the platform or the influencer making the recommendation.
Easy Payment options
With the integration of various payment options like UPI, credit/debit cards, net banking, and e-wallets, it has become easier for consumers to make purchases online. This has increased social commerce as it has made the purchase process more convenient for consumers.
Social Commerce Market Restraining Factors
Security and privacy concerns
Security breaches and data privacy concerns can discourage consumers from making purchases through social media platforms. This can be a major restraint to the growth of the social commerce market.
Lack of standardization
Social media platforms have different policies and procedures for e-commerce transactions, making it difficult for brands to navigate the market. This lack of standardization can restrain the growth of the social commerce market.
Limited product selection
Social media platforms may have limited product selection compared to traditional e-commerce platforms. This can restrain the growth of the social commerce market, as consumers may not be able to find the products they are looking for.
Dependence on third-party platforms
Social commerce heavily depends on third-party platforms like social media, which can limit the control brands have over the customer experience. This can be a restraint to the growth of the social commerce market.
Return and refund policy
Some social media platforms may have a different return and refund policy than traditional e-commerce platforms, which can discourage consumers from making purchases. This can be a restraint to the growth of the social commerce market.
Limited geographic reach
Some social media platforms may have a limited geographic reach, which can limit the potential customer base for brands. This can restrain the growth of the social commerce market in certain regions.
Wrapping Up!
In conclusion, the social commerce market is projected to continue growing in the coming years, driven by factors such as the increasing use of mobile devices, influencer marketing, and AI and VR technology advancements.
However, security and privacy concerns, lack of standardization, and limited product selection may be restraints to the market’s growth.
Companies operating in the social commerce space should keep a close eye on these trends and adapt their strategies accordingly to stay ahead of the competition.
With the right approach and a keen understanding of the market, businesses can tap into the vast potential of social commerce to drive revenue and growth.
