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Social Commerce - Global Market Trajectory & Analytics

  • ID: 5140143
  • Report
  • August 2021
  • Region: Global
  • 372 pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • Alibaba (China) Co., Ltd.
  • Fab.com
  • iQIYI
  • PayPal
  • Reddit, Inc.
  • Tencent - Qzone
  • MORE

Global Social Commerce Market to Reach US$2.9 Trillion by the Year 2026


Social commerce refers to e-commerce companies using social media platforms, including Facebook, Pinterest and Instagram, as a means to market and sell their products and services online. The use of social media in marketing is growing, driven by the enormous potential social media platforms have in digitally promoting, marketing and selling products online and providing companies access to a large audience that they otherwise would not have been able to reach with other means. After over a decade and half after its emergence, social commerce is rampant on social media sites that with their inspirational and entertaining content make a product profitable. The fast changing consumer mobile usage habits continue to foster growth in the electronic commerce, mobile commerce and social commerce markets. Enormous growth in adoption of 4G enabled smartphones, expanding deployment of 4G networks, and subsequent rise in number of people accessing online multimedia content over mobile handsets are also boosting market prospects for online shopping and social commerce. Spiraling global sales of smartphones coupled with widespread consumer acceptance of Mobile value added services (M-VAS), such as, Mobile Internet browsing, mobile games, mobile social networking, mobile music, mobile payments, mobile wallet, mobile learning, and mobile Location-Based-Services (LBS), bode well for social commerce. Social commerce is advancing with the addition of advanced technologies (for instance Augmented Reality) that allows shoppers to visualize themselves wearing the clothing items they wish to purchase and also solicit feedback using social media tools. The rise of e-commerce catalyzed by the pandemic is expected to boost market prospects in the coming years.

Amid the COVID-19 crisis, the global market for Social Commerce estimated at US$559.7 Billion in the year 2020, is projected to reach a revised size of US$2.9 Trillion by 2026, growing at a CAGR of 30.8% over the analysis period. B2C, one of the segments analyzed in the report, is projected to grow at a 31.9% CAGR to reach US$2.2 Trillion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the B2B segment is readjusted to a revised 29.6% CAGR for the next 7-year period. This segment currently accounts for a 32.6% share of the global Social Commerce market.

The U.S. Market is Estimated at $51.2 Billion in 2021, While China is Forecast to Reach $1.5 Trillion by 2026


The Social Commerce market in the U.S. is estimated at US$51.2 Billion in the year 2021. The country currently accounts for a 6.9% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$1.5 Trillion in the year 2026 trailing a CAGR of 34% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 23.2% and 24.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 25.4% CAGR while Rest of European market (as defined in the study) will reach US$1.9 Trillion by the end of the analysis period. E-commerce market witnessed a huge increase in First Time Users (FTUs) in several parts of Asia, Latin America and the Middle East & Africa, and also in North America and Europe as many people embraced the concept of online retail in place of traditional shopping. As social distancing norms remained relevant for almost the entirety of 2020, the online retail stores experienced a huge surge during the year. Widespread roll out of 4G LTE networks, increased penetration of smartphones, and robust promotion of e-commerce on social media platforms have been instrumental in promoting growth in these regions.

C2C Segment to Reach $280.3 Billion by 2026


In the global C2C segment, USA, Canada, Japan, China and Europe will drive the 24.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$46.3 Billion in the year 2020 will reach a projected size of US$257.5 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$34.3 Billion by the year 2026, while Latin America will expand at a 28% CAGR through the analysis period.

Select Competitors (Total 123 Featured) -

  • Alibaba (China) Co., Ltd.
  • Etsy, Inc.
  • Fab.com
  • Facebook, Inc.
  • iQIYI
  • LinkedIn Corporation
  • PayPal
  • Pinterest
  • Reddit, Inc.
  • Renren, Inc.
  • Tencent - Qzone
  • Tencent Holdings Ltd.
  • Tumblr, Inc.
  • Twitter, Inc.
  • Weibo Corporation
  • Yahoo!, Inc.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Alibaba (China) Co., Ltd.
  • Fab.com
  • iQIYI
  • PayPal
  • Reddit, Inc.
  • Tencent - Qzone
  • MORE
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • The Growing Role of Social Media in Marketing Opens the Pathway for Social Commerce
  • Exhibit 1: Social Media Platforms Are the Cheapest Among Advertising Platforms: Average Cost Incurred to Reach 2000 Audience (In US$) by Type of Advertising Medium As of the Year 2021
  • Exhibit 2: Social Media Marketing Gains Higher Grounds in the World of Digital Advertising: Social Network Ad Spending in the U.S. Presented as a % of Total Digital Ad Spending for the Years 2016, 2018, 2020 and 2022
  • The Race Between the Virus & Vaccines Intensifies. Amidst this Chaotic Battle, Where is the World Economy Headed in 2021?
  • These are Times When Questions Abound & Answers Are Few
  • So How Fast Or Slow Are We Moving?
  • Exhibit 3: How Fast the World is Vaccinated Will Determine How Soon the Pandemic Will End: Global Percentage (%) of Population Administered With Vaccines in Advanced Economies, Emerging Markets, and Low-Income Countries As of July 2021
  • Exhibit 4: How & When Will the World Be Vaccinated? Global Number of Annual COVID-19 Vaccine Doses (In Million) for Years 2020 through 2025 by Geographic Region/Country
  • Split Scenarios Unfold: The Great Vaccine Divide Emerges
  • Exhibit 5: Time is of Essence! What We Know So Far - “Vaccine Efficiency Against New Strains is Decreasing”
  • Progress on Vaccinations, Why Should Businesses Care?
  • With IMF's Upward Revision of Global GDP Forecasts for 2021, Most Companies Are Bullish About an Economic Comeback Despite a Continuing Pandemic
  • Exhibit 6: A Strong Yet Exceedingly Patchy & Uncertain Recovery Shaped by New Variants, Comes as a Relief for Suffering Industries & Markets: World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • Exhibit 7: Easing Unemployment Levels in 2021 Although Moderate Will Infuse Hope for Industries Reliant on Consumer Discretionary Incomes: Global Number of Unemployed People (In Million) for Years 2019, 2020, 2021, and 2022
  • Overview of Social Commerce, Its Benefits and Significance
  • Recent Market Activity
  • Innovations
  • World Brands
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Internet Infrastructure, the Catalyst for Digitalizing Consumer Lifestyles Including Digital Social Presence
  • Exhibit 8: Households With Fiber Connectivity Are No Strangers to Social Media Networking: Global Market for Fiber-to-the-Home/Building (FTTH/B) (In US$ Million) for Years 2021, 2023, 2025, and 2027
  • Mobile Computing Devices Are a Ubiquitous Indicator of Modern Digital Life
  • Changing Consumer Mobile Usage Habits Beyond Just Voice Communication Encourage the Social Commerce Concept
  • Exhibit 9: Smartphones, Tablets & Laptops Enable Social Networking On the Move, Making Social Commerce More Pervasive, Omnipresent & Hard to Beat: Global Annual Sales of Smartphones, Tablets, Laptops & Desktop PCs (In Million Units) for Years 2010, 2015, 2020 and 2025
  • Spiraling Mobile Broadband Subscriptions Bode Well for Social Commerce
  • Exhibit 10: With Mobility On the Rise, Social Commerce is Set to Explode: Global Number of Mobile Subscribers (In Billion) for Years 2018 Through 2023
  • Exhibit 11: The Future of 5G is Unquestioned: 5G Contribution to GDP in Select Countries by 2030 (In US$ Billion)
  • As a Powerful Communication Medium, Here's Why Vendors & Advertisers Cannot Ignore Social Media
  • Exhibit 12: With a Powerful Global Presence & Reach, Social Media Platforms Are Vital for Brands to Ensure Consistent Audience Growth: Global Number of Social Media Users (In Billion) for Years 2017, 2019, 2021, 2023, 2025
  • Exhibit 13: This Is Why Vendors Should Care About Social Commerce: % of Social Media Users by Use Frequency as of the Year 2021
  • The Rise of e-Commerce Catalyzed by the Pandemic Shifts Growth Into High Gear in the Social Commerce Market
  • Exhibit 14: Global B2C E-Commerce Sales in US$ Trillion for the Years 2019, 2020, 2021, 2022, 2023, 2024 and 2025
  • Exhibit 15: Retail M-Commerce Sales as % of Retail E-commerce Sales Worldwide for the Years 2016, 2018, 2020 & 2022
  • Pandemic Fast Forwards eCommerce Growth
  • Vital Role of Social Commerce in an eCommerce Strategy
  • Artificial Intelligence Emerges to Revolutionize Digital & Social Commerce
  • Augmented Reality & Virtual Reality Emerge to Revolutionize Social Commerce
  • Blockchain Benefits in Social Media & Social Commerce
  • Security & Privacy Concerns & Legal Issues: The Biggest Challenges for Social Commerce
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

UNITED STATES

CANADA

JAPAN

CHINA

EUROPE

FRANCE

GERMANY

ITALY

UNITED KINGDOM

SPAIN

RUSSIA

REST OF EUROPE

ASIA-PACIFIC
  • AUSTRALIA
  • INDIA
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • ARGENTINA
  • BRAZIL
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • UNITED ARAB EMIRATES
  • REST OF MIDDLE EAST
  • AFRICA
IV. COMPETITION
  • Total Companies Profiled: 123
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Alibaba (China) Co., Ltd.
  • Etsy, Inc.
  • Fab.com
  • Facebook, Inc.
  • iQIYI
  • LinkedIn Corporation
  • PayPal
  • Pinterest
  • Reddit, Inc.
  • Renren, Inc.
  • Tencent - Qzone
  • Tencent Holdings Ltd.
  • Tumblr, Inc.
  • Twitter, Inc.
  • Weibo Corporation
  • Yahoo!, Inc.
Note: Product cover images may vary from those shown
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