Market Trends of Mobile Commerce Industry
Growth of Smartphones And Internet Penetration Is Anticipated To Drive The M-commerce Market
- Smartphones have become more advanced, offering features such as high-quality cameras, larger storage capacity, and longer battery life. Further, with the introduction of budget smartphones, the prices have become more affordable for a more significant percentage of the population. Such factors are contributing to the increasing global penetration of smartphones. For instance, by the end of 2023, the total number of mobile subscriptions globally was expected to reach around 1.6 billion and is poised to increase further, according to Ericsson forecasts.
- The commercialization of 5G boosts global trends in the market studied. For instance, the transition toward 5G accelerates the demand for advanced mobile devices. According to the Ericsson Mobility Report 5G mobile subscriptions were anticipated to reach around 5 billion by 2028. Further, during the same period, the 5G population coverage is estimated to be 85%, while 5G networks are anticipated to carry around 70% of mobile traffic.
- Moreover, according to the China Academy of Information and Communications Technology (CAICT), Chinese 5G mobile phone shipments reached nearly 19.52 million, accounting for 80.1% of the country's total mobile phone shipments. Further, 20 new 5G mobile phone models were released in the country, up 25% year-on-year during the month. The increasing penetration of 5G is anticipated to boost the smartphone industry's growth, enhancing the demand for the studied market.
- Additionally, the increasing internet penetration significantly impacts the mobile commerce market. With more people accessing the internet, mainly through mobile devices, there has been a surge in online shopping and mobile transactions. According to Great Works Internet, as of April 2023, Northern Europe ranked first by the internet penetration rate, with approximately 97% of its population using the internet. Western Europe followed, with 93.5%. Overall, the global average internet penetration rate was around 64.6%.
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North America Is Anticipated To Hold The Largest Market Share
- In the United States, the rising smartphone penetration and mobile internet usage are driving the growth of mobile commerce. Also, personalized marketing and the availability of multichannel & mobile commerce options have encouraged consumers to make purchases using their mobile devices.
- According to GSMA, in North America, the number of smartphone subscribers is estimated to reach 328 million by the year 2025. Further, by 2025, the region is expected to witness an increase in Internet penetration rates (80%) and mobile subscribers (86%). The increasing demand for mobile phones is likely to provide lucrative opportunities for the growth of the studied market.
- Further, according to Great Works Internet, as of 2023, approximately 92% of individuals in the United States accessed the Internet. The United States is one of the biggest online markets worldwide, and in 2022, there were over 299 million internet users in the country.
- The region is also witnessing an upsurge in the adoption of E-commerce owing to several factors like the increasing dominance of e-commerce giants like Amazon & eBay, the ability of e-commerce to provide a wider selection of products than brick-and-mortar stores, and offers competitive pricing due to lower overhead costs. The ease of finding and comparing products online and the advances in technology, like improved website design and faster shipping options, are also contributing to the development of E-commerce in the region.
- For instance, according to the US Census Bureau, in the first quarter of 2023, the share of e-commerce in total U.S. retail sales stood at 15.1%, an increase from the previous quarter (14.8%). From January to March 2023, retail e-commerce sales in the United States reached approximately USD 273 billion, the highest quarterly revenue in history.
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