Trends and Growth Forecasts in the E-Commerce Market

The e-commerce market is experiencing strong growth with positive forecasts through 2025 and beyond. Key trends driving this growth include the rise of live commerce, augmented reality (AR), and alternative payment methods such as buy now, pay later (BNPL). The market is also benefiting from increased internet and social media usage, as well as innovations in convenience and product offerings.

Key points on trends and growth forecasts:

• Market Size and Growth: The e-commerce market's gross merchandise value (GMV) was $8 billion in 2023 and is projected to exceed $10 billion by 2025. Revenue is expected to reach around US$5.04 billion in 2024, with user penetration growing from 58.8% in 2024 to an estimated 80.4% by 2029.

• Live Commerce: This trend leverages high social media engagement, with 71% of consumers using live commerce to find deals and 66% watching for product reviews, making it a significant driver of sales growth.

• Augmented Reality (AR): Enabled by advancements like 5G, AR enhances the shopping experience by blending real-world visuals with digital information. Products featuring AR have shown a 94% higher conversion rate, and major platforms are integrating AR to boost engagement and sales.

• Payment Innovations: Adoption of BNPL is growing rapidly, with a 13.5% annual increase expected, reaching $1.19 billion in 2024. Alternative payment methods like Apple Pay also contribute to smoother transactions and higher consumer convenience.

• Convenience and Product Expansion: New services expanding beyond traditional food delivery into health, pharmacy, and beauty products are emerging, reflecting consumer demand for broader online shopping options.

• Infrastructure and Logistics: Continued government support for high-speed internet and smart logistics solutions are critical enablers of e-commerce growth. However, challenges remain in supply chain coordination and urban delivery logistics, which require tailored strategies to maintain competitive advantage.

Overall, the e-commerce market is poised for sustained expansion, driven by technological innovation, evolving consumer preferences, and improved digital infrastructure.