Singapore's E-Commerce Market Landscape and Shopee's Market Share

The e-commerce market is currently valued at around US$5 billion to US$8.5 billion in 2024-2025, with a robust growth rate projected at approximately 10-15% annually and a Compound Annual Growth Rate (CAGR) of about 11% from 2025 to 2033. This growth is driven by increasing smartphone penetration, internet access, rising disposable incomes, and a strong preference for convenient online shopping experiences. Key sectors fueling growth include beauty and personal care, consumer electronics, and fashion.

Regarding market share, Shopee holds the largest share at approximately 28-30%, making it the dominant e-commerce platform ahead of competitors like Lazada and Amazon, which each hold around 11-22% of the market. Shopee's strong position is consistent with regional trends where it ranks among the top platforms in Southeast Asia, supported by its marketplace model and social commerce initiatives.

Additional market dynamics include:

• Increasing user penetration expected to rise from about 59% in 2024 to over 80% by 2029.
• Average Revenue Per User (ARPU) estimated at around US$1,445 in 2024.
• Emerging trends such as social commerce, AI-driven personalised shopping, and sustainable practices shaping future growth.
• Challenges include maintaining customer trust, competitive pricing, efficient logistics, and adapting to evolving consumer preferences.

In summary, the e-commerce landscape is expanding rapidly with Shopee as the leading platform, benefiting from technological adoption and evolving consumer behaviour.