Global E-commerce Analytics Market - Forecasts from 2021 to 2026

Global E-commerce Analytics Market - Forecasts from 2021 to 2026

The global e-commerce analytics market is projected to witness a compound annual growth rate of 18.40% to grow to US$32,792.594 million by 2026, from US$10,054.983 million in 2019. E-commerce analytics is the process of interpreting and communicating the data generated by online retail stores. It helps in facilitating the proper and informed decisions by analyzing and sorting the large amount of data that is generated through online e-commerce channels. Rising disposable income has increased the purchasing power of the people globally. Consumers prefer to order products online through e-commerce platforms and retail stores as online shopping is the most convenient and time-saving process which is expected to generate a large amount of data and hence will drive the market growth during the forecast period. The United States Census Bureau of Commerce had stated that retail e-commerce sales for the third quarter in the country, in 2021, was $214.6 billion, the third quarter 2021 e-commerce estimate increased 6.6 percent (±0.9%) from the third quarter of 2020. Increasing sales of products and online orders placed by the customers are leading to an increase in the complex data being generated like customer address, order tracking, and logistic service information such as shipping date or delivery date of the product, inventory, and stock information is projected to increase the demand for e-commerce analytics and bolster the market growth.

COVID-19 impact on the E-commerce analytics market

The outbreak of the SARS-COVID-19 virus had a positive impact on the market growth in the year 2020. With the government announcing the introduction of pandemic restrictions, there had been a significant surge in e-commerce sales in 2020. According to the data given by UNCTAD, global online retail sales had been around US2.495 trillion in 2020, with a significant surge from US$2.038 trillion in 2019. China and the United States registered significant growth in online sales in 2020. As shoppers and consumers turned towards the internet, due to the rise in the pandemic, the adoption of e-commerce analytical services had surged at a significant rate. Major online retail outlets and firms had been adopting the use of advanced and novel cloud-related services, that had been provided by several major firms, such as Microsoft and others. Moreover, the increasing management of big data has also played an important role in the market growth, in 2020.

Growing e-commerce channels

One of the prime reasons supporting the e-commerce analytics market is the continuous growth in the e-commerce industry that has generated a large amount of data has further raised the growth of e-commerce analytics as well. Additionally, with the growing adoption of e-commerce retailing along with the increase in digitization, the volume of delivery items has also increased with time owing to the evolving customer expectations for faster and flexible delivery. To achieve this, companies are evolving their current delivery models and are using advanced technologies like advanced analytics, dynamic route optimization, and artificial intelligence for providing a greater and efficient delivery speed and flexibility. Data analytics in the e-commerce industry are helping businesses to catch and even create new opportunities in the future. The presence of tech-savvy customers, with high penetration of mobile devices like a smartphone, has further raised the chances of enhanced market growth with growing e-commerce. E-commerce shipping firm Shiprocket announced that it has committed to acquire a 75 percent stake in customer data platform (CDP) Wigzo Tech. IQLECT announced the launch of their analytics solution ShopIQ, for online businesses that are affordable and offer machine learning capabilities.

Pricing application to register significant growth

E-Commerce Pricing Analytics is an automated tool that collects all competitor pricing data for the whole competitive range and generates strategic insights from it. Pricing is one of the crucial points for sales and revenue generation, especially for a price-sensitive customer base. Even the slightest of change can impact significantly. E-commerce pricing analytics tools help to prevent client churning and keep the pricing in a competitive range at any point in time. These tools also look into the customer behavior to better perceive and interpret the prices. Such tools can also be used to identify further sales opportunities.

Prisync, Competera Limited, Pricestack, Leaflet, Listinguish, Price 2spy, Mindsrest, and Skuuudle are leading E-Commerce Pricing Analytics software and service providers. In July 2021, Prisync, an Istanbul-based pricing analytics software acquired its competitor Marguard. Prisync, also acquired United Kingdom-based competitor PriceWatch, a leading player in the price tracking industry, in May 2020. Competera Limited, a Ukrain based AI-powered pricing platform, secured $1.5 million from seed funding. The company will be using the fund to venture into the US market.

Increasing demand in China

The prime reason driving the market growth of e-commerce analytics in China is booming growth in the e-commerce industry, which has created a demand for e-commerce analytics tools. Furthermore, the rising penetration of the internet, coupled with the increasing adoption of advanced 5G technology in the country is also expected to drive notable demand. The E-Commerce industry is a key factor that is expected to drive robust growth in the e-commerce analytics market in China. Rapid development in the e-commerce sector is predicted to increase the adoption of e-commerce analytics in the industry for better market insights. Data from e-commerce shows that the E-Commerce industry in China has been growing at a lucrative rate over the past decade. E-Commerce sales have increased from US$1.3 trillion in 2020 to US$2.1 trillion in 2021. Growing internet penetration is another key factor that is forecasted to increase the market adoption of e-commerce, and hence drive industry demand for e-commerce analytics. Data from World Bank shows that the proportion of the population using the internet in the country increased from 50.3% in 2015 to 70.642% in 2020. Moreover, the introduction of 5G technology is further expected to expand the market prospects. The country was one of the prime nations that introduced 5G technology at an early stage. The government, under its 5-year plan for 2016 to 2020, laid out projects to implement 5G technology. The country has successfully established mega 5G plans. China Mobile, a significant 5G network provider, reached 374.38 million 5G subscribers in December 2021, up from 147.38 million in November 2020.

Segmentation:

By Offering

Software
Services

By Application

Pricing
Inventory Analysis
Customer Management
Others

By Geography

North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
France
Germany
Italy
Netherlands
Spain
UK
Others
Middle East and Africa
Saudi Arabia
Israel
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Australia
Thailand
Others