The two most important market trends now being noticed are social media and unified commerce. The propagation of the COVID-19 pandemic is predicted to present this industry with previously unheard-of opportunities in the near future, while the disruption of fifth-generation wireless technology is anticipated to boost the market growth for commerce cloud. OLA Mobility Institute (OMI) research from April 2020 states that gig workers carry necessary goods and services to homes on behalf of the afflicted regions' residents, assuring their safety. According to the report, platform firms and local governments are collaborating and forming social relationships that are essential to crisis management. This study shows that online distribution is anticipated to have a significant influence and that customers would prefer online glossaries, which is projected to increase market acceptance.
With the help of this cloud-based platform, marketers can create seamless shopping and commerce experiences across a variety of digital platforms, including mobile, web, social media, and others. Businesses can guarantee improved customer experiences for their connected customers by utilizing the commerce cloud. In the next five years, there will be a huge increase in demand for commerce cloud solutions due to the growth of eCommerce businesses globally.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD Billion) |
| Segmentation | By Component, By Organization size, By Application, By Region |
| By Component |
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| By Organization size |
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| By Application |
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| By Region |
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The transition of Fast-Moving Consumer Goods (FMCG) companies from offline to online platforms will accelerate the development of the cloud-based commerce platform. The COVID-19 pandemic has had a significant negative impact on most of the brick-and-mortar retail industry, resulting in decreased product sales and global company losses.
IT, marketing, sales, executives, and other stakeholders in eCommerce can all be consolidated with the aid of cloud-based commerce solutions. These participants in the whole grocery retail process contribute to a satisfying shopping experience for the online shopper.
Additionally, the popularity of online purchasing had been surging quickly. And this new purchasing craze was sparked by the coronavirus outbreak. Thus, a rise in firms using online shopping promotes the use of commerce clouds.
At the moment, commerce cloud installations offer a number of advantages, such as increased flexibility and efficiency as well as reduced time and expenses. It is projected that an increasing number of internet businesses would present huge market opportunities. In order to compete in the rising markets, established companies are developing new products.
The emergence of the COVID-19 pandemic has had a significant impact on almost all industries worldwide. Even so, the pandemic is anticipated to boost online sales because customers are unable to create immediate transactions as a result of lockdowns announced by governments around the world.
Furthermore, organizations anticipate a shift in consumer preferences and, as a result, anticipate that e-grocery will experience the greatest growth, attempting to invest in accelerating the enterprise's digital transformation.
Furthermore, with an increase in demand for digital products and services to replace brick-and-mortar and in-person touchpoints, there is accelerated implementation of digital technologies in the fields of collaboration, supply chain, commerce, cloud, and others.
The Commerce Cloud Market size had crossed USD 8 billion in 2020 and will observe a CAGR of more than 24% up to 2029.
The major drivers of the market include the rising technological advancements, increasing focus of the organizations on optimizing customer experience and operational efficiencies. In addition, an increasing number of businesses shifting to online and growing need to manage multiple storefronts which increases the demand of commerce cloud during the forecast period.
The Commerce Cloud Market key players include IBM, SAP, Salesforce, Apttus, Microsoft, Episerver, Magento, Shopify, BigCommerce, Digital River, Elastic Path, Oracle, Sitecore, VTEX, Kibo, commercetools, HCL.
The region's largest share is in North America. Products manufactured in nations like US and Canada that perform similarly and are inexpensively accessible to the general public have led to the increasing appeal.
The commerce cloud market is being aided by enhanced flexibility and efficiency and decreased time and costs provided by the industry.
The Commerce Cloud Market is segmented based on Component, Organization size, Application and Region, Global trends and forecast.
The market has been divided into two components: platforms and services. Commerce Cloud Salesforce, SAP Commerce Cloud (formerly SAP Hybris), and is multichannel commerce software-as-a-service are some of the cloud platforms offered by market players. Businesses use these platforms to provide a complete shopping experience to customers via various channels such as mobile, web, and social media sites. As a result of the easy and scalable access to information, there is a growing market demand for cloud-based solutions.
Along with solutions, market participants provide services. Companies provide consulting services, integration and deployment services, and support and maintenance services. Salesforce.com int, for example, provides integration services that include integrating commerce cloud solutions with an enterprise's existing product management system, ERP system, or third-party platforms. The services segment is expected to grow significantly in the coming years as it adds value to customer interactions while also lowering costs and increasing loyalty.
The market has been divided into small and medium-sized (SMEs) enterprises and large enterprises based on enterprise size. Large enterprises are likely to account for a sizable market share as they continue to invest in sophisticated enterprise IT systems. During the forecast period, the small and mid-sized segment is expected to have the highest CAGR. Small and medium-sized businesses are likely to increase their technology spending on customer relationship management systems, security systems, and financial software, among other things, according to Salesforce's Small & Medium Business Trends Report 2017.
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The market has been segmented by application into grocery and pharmaceuticals, fashion and apparel, travel and hospitality, electronics, furniture and bookstore, and others. Cosmetics and restaurant services are included in the others segment. The fashion and apparel segment are expected to have the largest market share, while the travel and hospitality segment is expected to have the highest CAGR.
These solutions enable fashion and apparel brands to deliver personalized content, targeted advertisements and campaigns, recommendations and offers based on browsing history, purchasing patterns, and online channels like social media or the web. These capabilities enable brands to increase digital engagement while also unifying the customer experience across all touchpoints.
Furthermore, cloud-based solutions enable retailers to meet customer demands for omnichannel shopping and delivery experiences. Cloud commerce in grocery addresses specific consumer needs such as weight-based pricing, local delivery, and route optimization, among others. It also includes payment and customer loyalty processes specific to grocery stores. For example, SAP SE provides Grocery Commerce Cloud, which is designed specifically for grocers. Similarly, the pharmaceutical industry is expected to see widespread adoption of cloud-based solutions to improve automation processes.
Because of technological advancements and fluctuating customer demand, the travel and hospitality industry require dynamic computing solutions and services that can support fluctuating customer demands. In recent years, the travel industry has seen widespread adoption of cloud computing solutions, such as discounts on online purchases that can be shared with customers via social media or mobile apps. Implementing advanced commerce solutions enables the travel and hospitality industries to gain actionable insights through the use of business intelligence solutions and improved multichannel management. These factors will almost certainly drive the adoption of cloud start-up solutions across industries.
Furthermore, software-as-a-service platforms are expected to be widely adopted in the furniture and bookstore industries. Some of the factors driving the need for cloud-based commerce services within a bookstore include real-time visibility, increasing demands to eliminate manual processes, and unified platforms. Cosmetics and restaurant services such as quick service restaurants, café chains, and casual dining use cloud commerce platforms to analyze sales and strengthen customer databases. As a result, these factors are likely to contribute to market growth.
The Commerce Cloud Market by region includes North America, Asia-Pacific (APAC), Europe, South America, and Middle East & Africa (MEA).
North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America are the five major regions of the global commerce cloud market. Countries are formed from the regions. North America is expected to take the lead in this market, while Asia-Pacific is expected to grow rapidly.
The availability of digital infrastructure and services, the adoption of digital platforms, a robust innovation ecosystem, and advances in the Internet of Things are all factors driving market growth in North America. According to CipherCloud's Cloud Adoption & Risk Report 2014, North American businesses used 68 analytics cloud applications on average. This data shows that there are significant investments and infrastructure available in North America for the adoption of cloud-based commerce applications. These factors will undoubtedly drive market growth throughout the region.
During the forecast period, the Asia-Pacific market is expected to grow faster, with China playing a significant role in driving regional market growth. Because of the availability of in-country infrastructure provided by established cloud providers such as Amazon Web Services (AWS), IBM Corporation cloud services, and others, Japan has a significant lead in cloud adoption. Government initiatives such as the "Digital India Initiative," which focuses on digitization and cloud infrastructure development, are expected to create unprecedented market opportunities throughout the region.
E-commerce services in Europe are primarily determined by four factors: e-regulations, digital transactions, and Innovations & Ecommerce Trustmark. According to the European E-commerce Report 2019, the percentage of European customers who shop online ranges from 22% to 88%. According to the report, B2C e-commerce growth in the region is expected to increase by 13% in 2019. According to the statistics, the region's market growth has been fueled by the early adoption of cloud-based solutions.
Aside from that, the Middle East and Africa market for this is expected to grow moderately over the forecast period. According to GSMA Intelligence's 2019 mobile internet connectivity report, mobile social media penetration in the Middle East and Africa region was 44% in 2018.
This demonstrates that mobile internet adoption and social media usage are increasing across the region. This will almost certainly result in lucrative market opportunities for the key players. Significant investments by telecom operators have also accelerated 4G coverage, supporting regional market growth. The Latin American market is expected to grow slowly due to inefficiencies in the administrative and ICT infrastructure.
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