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 Select Competitors (Total 123 Featured)
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.
- Alibaba (China) Co., Ltd.
- Etsy, Inc.
- Facebook, Inc.
- LinkedIn Corporation
- Reddit, Inc.
- Renren, Inc.
- Tencent Holdings Ltd.
- Tumblr, Inc.
- Twitter, Inc.
- Weibo Corporation
- Yahoo!, Inc.