Market Trends of E-commerce App Industry
This section covers the major market trends shaping the E-commerce App Market according to our research experts:
Use of Emerging Technologies Aids Market Growth
- Mobile apps will continue to exist for a very long time. For e-commerce apps to be competitive, they need to be digitally agile. Shopping and e-commerce apps created for these relatively new technologies are gaining ground in the mobile app market. Many businesses have embraced several emerging technologies to offer seamless experiences to their customers across all channels to keep up with the always-changing consumer behavior.
- Sales from smartphones would lead in the current year, which is not surprising given the growth of mobile shopping. Using apps, consumers aren't only surfing but also making purchases. A mobile app offers orders with an average order value of USD 102, compared to an average order value of a mobile website of USD 92. Also, numerous gadgets can access mobile websites and apps. In general, mobile devices can be divided into two groups, smartphones and tablets.
- The use of Artificial Intelligence (AI) has pushed voice assistants such as Siri and Alexa into the e-commerce app market. The consumer now uses voice search for product reviews, add them to their shopping list, track the package, provide ratings, contact the chatbot assistant, and so on. The e-commerce market has now been successfully penetrated by voice search. By this year, voice shopping is predicted to generate approximately USD 40 billion. That's a rise of 1,900% in just four years from a modest USD 2 billion in 2018.
- Meanwhile, Augmented Reality (AR) is already being used by mobile shopping apps to enhance user experience. There are countless potential applications for this kind of technology. For instance, a company that sells furniture online can utilize augmented reality to show potential customers how a product will look in their house. This technology allows people to select a color and see whether an item will truly fit in the required place. The AR and VR market is predicted to grow to USD 35 billion by 2025.
- Android users have 3.55 million apps to pick from during the third quarter of the last year, making Google Play the app store with the largest selection. With almost 1.6 million iOS apps available, the Apple App Store was the second-largest app store. Even though Apple and Google frequently remove poor-quality content from their app stores, the precise number of apps is increasing over time.
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Significant Market Growth is Expected in Asia Pacific.
- The Asia-Pacific (APAC) area is experiencing rapid growth in e-commerce firms. This pattern will persist through 2023 and beyond. A major portion of all e-commerce sales worldwide comes from Japan, China, and South Korea, three of the region's top e-commerce marketplaces. Moreover, during the projection period, growth is anticipated to persist. Taobao, Pinduoduo, JD, Taote, and VIPshop are the top e-commerce applications on the basis of monthly active users.
- With its Taobao and Tmall apps, Alibaba has stepped into the shoes of both Amazon and eBay in China, where Amazon is banned. JD.com, which had approximately 569 million active accounts in 2021, is another tough rival. China is also at the forefront of emerging forms of e-commerce, such as social commerce, invented by Pinduoduo and directly links producers and farmers with consumers.
- Asia Pacific has experienced a rapid increase in internet accessibility and penetration, which has sparked the region's following digitization. The rising use of mobile devices in Asia is likely the biggest driver of internet consumption, with device prices falling and internet plan subscription costs falling. With the escalating mobile phone usage, E-commerce applications are now getting more frequently downloaded and used.
- The top three regional e-commerce applications used monthly in the Asia-Pacific region are Lazada, Shopee, and Meesho. Also, the three apps had outpaced Amazon globally in total downloads. With 211 million downloads in 2021, Shopee has the most users, and a significant portion came from Southeast Asia. Indian e-commerce app Meesho, with 162 million downloads, came in third. Meesho received almost all his downloads from India.
- Notably, the Asia-Pacific region's e-commerce apps market has expanded dramatically on the back of a huge technology-driven young population in the countries of China, Indonesia, Singapore, and Japan. Local e-commerce platforms in some APAC markets, such as Flipkart for India, Coupang for South Korea, and Taobao for Hong Kong, are ranked first. Amazon, a major online retailer, took the top spot in the APAC regions of Australia and Japan.
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