Commerce Cloud Market Overview
Commerce Cloud Market Size was valued at USD 11.2 Billion in 2022. The Commerce Cloud market industry is projected to grow from USD 13.5856 Billion in 2023 to USD 63.67445412 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.30% during the forecast period (2023 - 2032).Increased Al adoption in all commercial ventures and Increasing Adoption of Unified Commerce Platforms are key factors that drives the market are fueling the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Commerce Cloud Market Trends
The increasing adoption of unified commerce platforms is driving market growth.
Most retailers are familiar with omnichannel commerce, where customer information is extracted from several channels such as inventory management software, point-of-sale platforms, customer relationship management platforms, etc. Unified commerce is an upgraded version of omnichannel commerce, which creates a single comprehensive interface of customer profiles in real-time across the web, mobile, and other retailers' operations. Additionally, unified commerce solutions require an end-to-end integration of software solutions within a centralized e-commerce platform. It provides comprehensive customer profiles to promote more actionable and insightful sales initiatives. It also enables consolidating many servers, operating systems, and other applications in omnichannel sales solutions. Moreover, it bridges the gap between customers and retailers and creates a connected network of business processes to serve digital commerce services. Such implementation of unified commerce is positively impacting commerce-related cloud applications in the market. This factor drives the market CAGR.
Additionally, as smartphones and other connected devices such as tablets/laptops have emerged as the most efficient channel to run applications such as payments, online retailing, and other e-commerce activities, there is an increasing demand for seamless connectivity. 5G wireless technology will make the internet more accessible to all mobile devices. Real-time information feeds and high-quality video streaming would enrich the customer experience by providing instant personalized recommendations.
5G, with its low latency and network virtualization capabilities, is likely to enable safe and automated payment practices, which would positively influence the adoption of cloud commerce platforms in the coming years. Further, Internet of Things (IoT) connected applications such as smart wallets, mobile payments, and other digital banking services are likely to leverage 5G for a faster and safe banking experience. Thus, the above factors show that 5G wireless networks would drive the adoption of cloud commerce platforms.
Advanced technologies like Blockchain and Artificial Intelligence (AI) are revolutionizing the landscape of online commerce. These disruptive innovations, including the Internet of Things (IoT) and Big Data, reshape the business ecosystem by enabling improved data collection, streamlined transaction costs, and enhanced targeted advertising. Many online retailing companies are using these technologies in their e-commerce activities. For instance, Rakuten Inc., an online retailing and electronic commerce company based in Japan, integrates Machine Learning (ML) and Al capabilities for image recognition. The company uses image recognition for its customer-to-customer (C2C) platform that recognizes and categorizes objects visually, allowing the retailer to sell products easily. Thus, driving the Commerce Cloud market revenue.
Commerce Cloud Market Segment Insights
Commerce Cloud Component Insights
Based on Component, the global Commerce Cloud market segmentation includes B2B Commerce Cloud and B2C Commerce Cloud. The B2B commerce cloud segment dominated the market, and B2B e-commerce has been accelerating in recent years. The transformation is occurring as businesses replace inefficient and expensive legacy systems with advanced systems such as electronic data interchange. Also, efficient cloud processing capabilities and cost optimization influence businesses to adopt commerce cloud solutions.
Figure1: Global Commerce Cloud Market, by Component, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Commerce Cloud Service Insights
Based on service, the global Commerce Cloud market segmentation includes training and consulting, integration and deployment, support and maintenance. The market was largely controlled by the training and consulting division, which provides enterprises with services to enhance their utilization of the solution, address the unique requirements of individual organizations, and deliver tangible business outcomes. The service streamlines the learning process and eliminates the frustrating trial-and-error phase.
Commerce Cloud Installation Platform Insights
Based on the Installation Platform, the global Commerce Cloud market segmentation includes desktop and mobile. The desktop segment dominated the market due to the long-standing popularity and widespread use of desktop computers or laptops for online shopping and e-commerce activities. Desktop devices offer a larger screen size, enhanced user interface, and a familiar browsing experience, making them a preferred choice for many consumers when purchasing online. The larger screen size allows for better visibility and easier navigation, enabling users to browse through products, compare prices, and make informed purchase decisions.
Commerce Cloud Enterprise Size Insights
Based on Enterprise Size, the global Commerce Cloud market segmentation includes SMEs, Large Enterprises. The large enterprise segment holds the most influence due to their ongoing investments in advanced IT systems. This segment is expected to have a significant market share.
Commerce Cloud Application Insights
Based on Application, the global Commerce Cloud market segmentation includes fashion and apparel, quick service restaurants, grocery and pharmaceuticals, and others. The fashion and apparel segment dominated the market; fashion and apparel brands deliver unique content, targeted advertisements, campaigns, recommendations, and offers based on browsing history, buying patterns, and online channels such as social media or the web. These capabilities help the brands to grow their digital engagement and unify the customer experience across all touchpoints. For instance, In March 2018, Salesforce.com Inc. announced that NYDJ, a denim and apparel brand has leveraged the Salesforce commerce and marketing cloud to increase its direct-to-consumer online networks and seamlessly deliver personalized shopping experiences to its customers.
Commerce Cloud Regional Insights
The research offers market insights into regions such as North America, Europe, Asia-Pacific, and the Rest of the World. The North American Commerce Cloud market area will dominate this market, with the presence of many major players. The commerce cloud market has successfully gained a foothold in all regional business enterprises.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: GLOBAL COMMERCE CLOUD MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe Commerce Cloud market accounts for the second-largest market share due to the percolation of this technology to the SMEs operating within the region boosted by an increase in e-tailing. Further, the German Commerce Cloud market held the largest market share, and the UK Commerce Cloud market was the highest-growing market in the European region.
The Asia-Pacific Commerce Cloud Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to strong economic growth in the region; Asia-Pacific businesses are increasingly looking to cloud technology to further enhance their enterprises. Moreover, China’s Commerce Cloud market held the largest market share, and the Indian Commerce Cloud market was the highest-growing market in the Asia-Pacific region.
Commerce Cloud Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Commerce Cloud market, grow even more. Market players are also engaging in various strategic initiatives to broaden their global presence, with significant market advancements encompassing the introduction of new products, contractual arrangements, mergers and acquisitions, increased investments, and partnerships with other entities. In order to thrive and expand in an increasingly competitive and growing market environment, the Commerce Cloud sector is compelled to provide cost-efficient offerings.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s uses in the global Commerce Cloud industry to benefit clients and increase the market sector. In recent years, the Commerce Cloud industry has offered some of the most significant advantages to medicine. Major players in the Commerce Cloud market, including 2Checkout Apttus Corporation BigCommerce Pty. Ltd commerce tools GmbH Episerver Digital River, Inc. Elastic Path Software Inc Verve Industrial Protection IBM Corporation Kibo Commerce Adobe Incorporated (Magento) Oracle Corporation Salesforce SAP SE Shopify Infosys (SKAVA) Unilog Content Solutions Pvt. Ltd VTEX., and others, are attempting to increase market demand by investing in research and development operations.
The American multinational technology corporation known as Big Blue, or the International Business Machines Corporation (IBM), is based in Armonk, New York, and operates in more than 175 countries. IBM recently launched Al Now, a platform designed for connected commerce. Al Now provides advanced features, including Al-optimized compound order and inventory management, intelligent order management to support omnichannel commerce, and enhanced personalization to increase customer lifetime value.
BigCommerce is a NASDAQ-listed e-commerce platform that provides software as a service to retailers. The company's platform includes online store creation, search engine optimization, hosting, and marketing and security for small to Enterprise sized businesses. BigCommerce partnered with Deity, a microservice-oriented platform. Deity launched Deity Falcon, its progressive web app (PWA) for BigCommerce. The PWA will enable enterprises to deliver seamless selling experiences across many channels, reducing time-to-market and development costs.
Key Companies in the Commerce Cloud market include
Commerce Cloud Industry Developments
June 2019: IBM Corporation introduced Al Now for connected commerce. Al Now offers enhanced capabilities such as Al-optimized compound order and inventory management, omnichannel commerce supported by intelligent order management, and improved personalization to maximize customer lifetime value.
April 2018: Magento Commerce partnered with Deutsche Post DHL Group to drive commerce innovation by providing merchants with enhanced and flexible shipping options to enrich end-to-end customer experience.
Commerce Cloud Market Segmentation
Commerce Cloud Component Outlook
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B2B Commerce Cloud
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B2C Commerce Cloud
Commerce Cloud Service Outlook
Commerce Cloud Installation Platform Outlook
Commerce Cloud Enterprise Size Outlook
Commerce Cloud Application Outlook
Commerce Cloud Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
Commerce Cloud Market Highlights:
