Ever wondered which country leads the e-commerce market in terms of value? Or how does your region compete in this digital era against global competitors? A recent comprehensive study by flyers-on-line.com delves deep into these compelling questions by analysing e-commerce markets across the globe.
The study revealed China as the undisputed e-commerce leader, with a market value of US$779.858 billion in 2022, predominantly driven by the electronics sector. This is projected to more than double, soaring to approximately US$1.73 trillion by 2027. Meanwhile, Europe and the United States are also pivotal players in this rapidly expanding field. In 2023, Europe is expected to generate revenues of US$730.3 billion, while the United States is projected to contribute US$917.6 billion.
It’s worth noting that the global e-commerce landscape is poised for significant growth. According to flyers-on-line.com’s projections, global e-commerce revenue is expected to grow by 64.69% from 2023 to 2027, reaching an astonishing US$6.34 trillion. The study analysed multiple sectors, including fashion, electronics and, surprisingly, food. Each sector was evaluated based on global revenues in US$, with particular attention given to high-performing sub-sectors like consumer electronics.
Additionally, the study looked into the dynamics and strategies of major e-commerce contributors. For instance, Amazon has a Global Gross Merchandise Value (GMV) of US$692.8 billion, primarily focusing on electronics and media.
The team at flyers-on-line.com applied a combined top-down and bottom-up methodology to assess global e-commerce markets, assigning individual scores based on specific criteria. These scores were aggregated and weighted to compute each market’s final score. Data for this comprehensive study was collected from industry annual reports, the Premium Statista Global Consumer Survey, flyers-on-line.com’s proprietary surveys and behavioural metrics from platforms like Google Trends and Alibaba Trends, etc.
Key findings
• Fashion topped global revenues at US$989.3 billion, followed closely by electronics at US$914.1 billion
• In 2022, 45% of online shoppers in the US conducted research before purchase
• Largest fashion e-commerce category has revenue projection of US$808.5 billion by 2027
• Furniture e-commerce to reach US$379.5 billion in revenue by 2027
• The toys, hobby and DIY segment shows 15.1% annual average growth rates
• The food segment and beverage segment shows a 25.8% and 21% annual average growth rate respectively
The global e-commerce revenue is expected to grow 64.69% by 2027
The e-commerce sector is projected to reach a staggering US$6,348.8 billion by 2027, driven primarily by growth in the fashion, electronics and furniture segments. These core areas are expected to generate revenues of US$1,495.6 billion, US$1,447.7 billion and US$1,134.1 billion, respectively, by 2027, alongside promising gains in smaller segments like toys, hobby and DIY and media.
China and the US are positioned to grow exponentially than Europe from 2022 to 2027
As we navigate the globe’s e-commerce landscape, China and the US are emerging as dominant growth leaders, overshadowing Europe:
China: With a jaw-dropping growth of over 17%, China’s e-commerce revenue is set to skyrocket from US$779.858 billion to an astonishing US$1,728.654 billion
The US: Not to be outdone, the US is tracking a commendable growth of 11.5%, pushing its revenue from US$1,010.999 billion upwards
Europe: Although trailing behind, Europe is also showing promise with a 10% growth rate, taking its revenue from US$730.329 billion to US$1,068.385 billion
Per-head consumption expenditure: The US averages ten times more than China
In 2023, global per capita consumer spending averaged US$14,236, with Europe exceeding this at US$21,499. The UK and Germany led in Europe, while China reported a more modest US$5,360 per capita spend. The US average was US$52,677.
Average revenue per user is higher in the US than in Europe or China
By 2027, the US is expected to see a slight decline in average revenue per user in electronics and household appliances. Meanwhile, Europe and China show varying but generally stable or growing trends in these sectors. The data underscores differences in consumer purchasing power and preferences across these regions.
Online shoppers do pre-purchase research: US vs China (it’s over 45%)
In both the US and China, consumers heavily research before major purchases, 45% of them trust online reviews and prefer unified online marketplaces. Differences emerge in shipping preferences and mobile shopping habits, with Chinese consumers showing a stronger inclination for express shipping and mobile transactions. Both nations also share a nostalgic yearning for traditional shopping experiences. Eighteen percent of US shoppers and 22% of Chinese shoppers said they miss the shopping experience when they shop online.
An e-commerce expert at Flyers-on-line said: “China’s 17% growth in e-commerce is more than just impressive numbers; it’s a demonstration of agility in a rapidly digitising world. The unexpected reign of fashion over electronics hints at evolving post-pandemic priorities. But it’s the rise in sectors like toys, hobby and DIY that intrigues the most.”
“While Europe needs to race harder in this digital marathon, the US and China exemplify how consumers are combining digital savvy with old-world shopping nostalgia. I foresee a future with a surge in hybrid retail models, blending the digital and the traditional. The e-commerce landscape isn’t just changing; it’s morphing in unexpected ways.”