Mobile Commerce Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The mobile commerce market is expected to register a CAGR of 27% by 2021-2026. According to a study of over 45,000 shoppers conducted by the Harvard Bussiness Review, only 7% were online-only shoppers,73% of shoppers used multiple channels to shop. This shows that customer experience is consistent across channels such as M-commerce, desktop commerce, and brick and mortar store.

Key Highlights

• Many of the payments have been mobile compatible and applications for the various kinds of activities such as funds transfer, bill payments have been deployed, which further aids to the growth of mobile commerce globally.
• Advancements in integrated electronics enable the availability of many kinds of technologies, like broadband internet, in Handsets and the supporting service networks. All these developments open up the possibility of offering the user many services of unprecedented nature.
• The goal of all the services in one way or the other has to be the generation of revenues. This represents an ever-increasing scope of Mobile Commerce or m-commerce as a subset of the more generic Electronic Commerce or e-commerce, which in general to has been booming with the increasing popularity of the Internet.
• The factors that are driving the M-Commerce market are increasing adoption of smart devices, better broadband connectivity, cheaper services, socially adoption of M-Commerce services, etc. However, there are certain challenges in terms of dependency on internet networks, monetization of the user base, and fierce competition.

Key Market Trends

Growth of Smartphones and Internet Penetration Drive the M-commerce Market

• The overall structure of the IT industry is being reorganized, and competition in the industry is being expanded and diversified. The introduction of smartphones has spurred the creation of limitless IT-related markets such as the e-book, tablet PC, and notebook markets.
• The growing internet penetration among many developing countries is also one of the prime factors for the growth of the market. Many developing nations have now adopted the use of m-payments services online wallets etc. services, such as m-wallets have been popularized by many governmental programs, such as demonetization as an example. This has increased the revenue traffic in the market for e-commerce.
• Moreover, in the next five-year smartphone market across the world will burgeon due to the adaption of smartphone and penetration of the internet. However, North America will lead the market followed by Europe and the Asia - Pacific but Asia- Pacific will be the fastest growing market .

North America Holds the Largest Share

• M-Commerce is thought to be the next big phase in technology involvement following the E-commerce era. However, its adoption and level of use are high in the United States compared to other nations such as Sweden and Japan.
• Many major players are also present in the United States and the region has high internet penetration rates, which aid to the growth of this trend. The growth of smartphones and other technology, such as wearables has also been a contributing factor to the growth of smartphones in the region.
• On the contrary, there has been a growth in the number of cyber-attacks in the region, which could slow the growth of e-commerce in the region.
• Moreover, the tech-savvy environment in the region will boost the growth of M-commerce market in North America.

Competitive Landscape

The mobile commerce market is fragmented due to the growing adoption of digitization, e-commerce, and m-commerce making people use these medium more often that gives the wide scope for the players to penetrate the market with technological innovation and developments. Some of the key players include Ericsson, Gemalto (Thales Company), Google Inc., IBM Corporation, Mastercard Inc., Paypal Holding, SAP SE, Visa Inc., among others.

• April 2019 - Ericsson and ABB, the technology leader focused on digital industries, strengthened their collaboration to accelerate the industrial ecosystem for flexible wireless automation. The partnership will enable enhanced connected services, Industrial IoT and artificial intelligence technologies in the future.
• March 2019 - Mastercard announced it has entered into an agreement to acquire Ethoca, a global provider of technology solutions that help merchants and card issuers collaborate in real-time to quickly identify and resolve fraud in digital commerce. The Ethoca suite of products adds to Mastercard’s commitment to drive greater protection in the digital space, integrating with its robust suite of fraud management and security products.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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