Asia-Pacific E-commerce Market by Business Model (Horizontal E-commerce and Vertical E-commerce), Browsing Medium, Payment Mode (Card Payments, Digital Wallets, Bank Transfers, Cash Payments), Operating Channel, and Offering - Forecast to 2030

The Asia-Pacific E-commerce market is projected to reach $13,209.2 billion by 2030, at a CAGR of 17.6% from 2024 to 2030. 

The growth of this market is driven by rising internet and smartphone penetration, the growing usage of social media and social commerce, and increasing consumer interest in convenient shopping solutions. Furthermore, E-commerce automation and the expansion of cross-border E-commerce are expected to create market growth opportunities during the forecast period.

However, online fraud and cybersecurity issues and local laws and regulations for international E-commerce restrain the growth of this market. Also, high internet prices and increasing security & privacy concerns are major challenges for the players in this market. Furthermore, the rising adoption of AI and the growing use of AR and VR technologies in E-commerce are key trends in the Asia-Pacific E-commerce market.

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Growing Use of Social Media and Social Commerce

Social commerce is the sale and purchase of goods or services directly within a social media platform. Social commerce integrates the entire e-commerce purchasing process into social media. As a result, users can make purchases directly from their social media feeds. Social commerce is the way forward as it understands and caters to consumers’ changing preferences. Several studies have indicated that users spend considerable time researching products and brands on social media. This has elevated the significance of E-commerce on social media platforms. E-commerce broadly encompasses the process of buying and selling goods online. It includes selling products through various digital channels, including online marketplaces, websites, and dedicated retailer apps. Social commerce involves selling products & services directly through a social media platform. Since social media is an online channel, social commerce is a subset of E-commerce.

Furthermore, the growth of the social commerce industry has been partly fueled by innovative start-ups, making it simpler for individuals and businesses to drive sales through social channels. These start-ups have also attracted global venture capital and private equity funds, driving multi-million-dollar investments into their business operations. Additionally, various key players in this market are launching initiatives in social commerce, which is expected to boost the growth of the E-commerce market in Asia-Pacific. For instance, in December 2022, SariSuki, a social commerce start-up in the Philippines, announced that the firm had raised $12.7 million in a capital round led by Kickstart Ventures. The community selling platform operates in the grocery segment and has also entered the quick commerce space by launching a new service called Supah. The firm has recorded strong growth over the last 12 months, and through Supah, it is taking the competition to market leaders in the quick commerce space, such as Grab. In September 2022, respond.io, a Malaysian social commerce start-up, announced raising $7 million in its Series A round. The capital round was led by Headline and included participation from Calendula Ventures and AltalR Capital, among others. The firm has made it easier for brands, such as Roche, Abenson, Klook, and Yoho, to integrate social messaging apps with their customer relationship management platforms, allowing them to leverage social commerce capabilities to drive sales. Such factors are driving the use of social media and social commerce in Asia-Pacific countries, supporting the growth of the Asia-Pacific E-commerce market.

Key Findings in the Asia-Pacific E-commerce Market Study:

The Vertical E-commerce Segment to Register the Higher CAGR During the Forecast Period

Based on business model, the Asia-Pacific E-commerce market is segmented into horizontal E-commerce and vertical E-commerce. The vertical E-commerce segment is projected to register the higher CAGR during the forecast period. The growth of this segment is driven by the growing popularity of dedicated E-commerce portals, the shorter timespans required for shopping from vertical E-commerce, and the availability of personalized merchandising. The vertical E-commerce model allows businesses to offer customers a specialized and tailored shopping experience within specific product categories or industries. By focusing on a specific niche, businesses can differentiate themselves from larger, more generalized E-commerce platforms and establish a strong brand identity.

The Mobile/Tablet Segment to Register the Higher CAGR During the Forecast Period

Based on browsing medium, the Asia-Pacific E-commerce market is segmented into desktop/laptop and mobile/tablet. The mobile/tablet segment is subsegmented into application-based and browser-based. The mobile/tablet segment is projected to register the higher CAGR during the forecast period. The growth of this segment is driven by the higher sales of mobile/tablet devices compared to laptop/desktop devices and growing internet penetration across the globe. The pocket-friendly size of smartphones is the main reason for the higher use of smartphones for E-commerce.

The Digital Wallets Segment to Register the Highest CAGR During the Forecast Period

Based on payment mode, the Asia-Pacific E-commerce market is segmented into card payments, digital wallets, bank transfers, cash payments, and other payment modes. The digital wallets segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the convenience and security of digital wallets and E-commerce portals’ encouragement to use digital wallets.

The Omni-channel E-commerce Segment to Register the Higher CAGR During the Forecast Period

Based on operating channel, the Asia-Pacific E-commerce market is segmented into pure play E-commerce and omni-channel E-commerce. The omni-channel E-commerce segment is projected to register the higher CAGR during the forecast period. The growth of this segment is driven by the benefits of omni-channel E-commerce, such as enhanced customer experience, increased sales & consumer traffic, better customer loyalty, and better data collection for optimum customer and resource management.

The Beauty & Fashion Products Segment to Register the Highest CAGR During the Forecast Period

Based on offering, the Asia-Pacific E-commerce market is segmented into beauty & fashion products, travel & tourism, electronic products, household products, pharmaceutical products, food & beverage, and other offerings. The beauty & fashion products segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by various factors, such as rapidly changing customer behaviors and preferences in online shopping, high demand for cosmetics and clothing, and the rising popularity of mobile wallets. Also, the increasing use of smartphones, the incorporation of advanced technologies in online platforms, and the high availability of various beauty & fashion goods for comparison on E-commerce platforms support this segment's growth.

India to Be the Fastest-growing Country-level Market

Based on geography, the Asia-Pacific E-commerce market is segmented into China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Thailand, Vietnam, Singapore, Malaysia, and the Rest of Asia-Pacific. India is slated to register the highest CAGR during the forecast period. The rapid growth of this market is driven by the increasing internet and smartphone penetration, ongoing digital transformation, the launch of 5G networks, and rising disposable incomes in the country. These factors have helped India emerge as the fastest-growing E-commerce market in Asia-Pacific.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the key players. The leading players in the Asia-Pacific E-commerce market are Amazon.com, Inc. (U.S.), Alibaba Group Holding Limited (China), eBay Inc. (U.S.), JD.com, Inc. (China), Rakuten, Inc. (Japan), The Home Depot, Inc. (U.S.), ChinaAseanTrade.com (China), Otto GmbH & Co KG (Germany), Priceline.com (U.S.), B2W Digital Company (Brazil), Groupon, Inc. (U.S.), Walmart Inc. (U.S.), Inter IKEA Systems B.V. (Netherlands), Costco Wholesale Corporation (U.S.), Shopify Inc. (Canada), DIYTrade.com (China), Ali Express (China), and Tesco plc (U.K.).

Scope of the Report:

Asia-Pacific E-commerce Market Assessment, by Business Model

• Horizontal E-commerce
• Vertical E-commerce

Asia-Pacific E-commerce Market Assessment, by Browsing Medium

• Desktop/Laptop
• Mobile/Tablet
  • Application-based
  • Browser-based

Asia-Pacific E-commerce Market Assessment, by Payment Mode

• Card Payments
• Digital Wallets
• Bank Transfers
• Cash Payments
• Other Payment Modes

Asia-Pacific E-commerce Market Assessment, by Operating Channel

• Pure Play E-commerce
• Omni-channel E-commerce

Asia-Pacific E-commerce Market Assessment, by Offering

• Beauty & Fashion Products
• Travel & Tourism
• Electronic Products
• Household Products
• Pharmaceutical Products
• Food & Beverage
• Other Offerings

Asia-Pacific E-commerce Market Assessment, by Geography

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Thailand
• Vietnam
• Singapore
• Malaysia
• Rest of Asia-Pacific

Key Questions Answered in the Report: