Subscription E-Commerce Platform Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 62.21 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Subscription E-Commerce Platform Market Analysis
The global subscription e-commerce platform market is expected to increase from $72.91 billion in 2021 to $320.04 billion in 2027 at a compound annual growth rate (CAGR) of 62.21%. The change in the subscription e-commerce market growth trend is mainly due to companies' stabilizing their output after catering to the demand that grew exponentially during the pandemic.
- The rapid growth of online shopping will contribute to the development of the subscription e-commerce market going forward. The benefits of online shopping over retail purchases are shifting consumer preferences towards online shopping, especially those who opt for a subscription with additional benefits. Customers prefer to shop online because it increases convenience, reduces reliance on store visits, lowers travel costs, expands market space, lowers overheads, lowers costs, provides detailed information about products and services, and enables price comparisons and availability in a wide range of products, customer satisfaction, and the absence of crowds.
- For instance, in 2021, the US Census Bureau of the Department of Commerce estimated $222.5 billion in US retail e-commerce sales during the second quarter, a 3.3% increase from the previous quarter. In India, the Brand Equity Foundation (IBEF) recorded $12.3 billion in sales during the festive season in 2021, an increase from $4 billion during the 2020 festival season sales. The increasing growth of online shopping will boost the demand for subscription e-commerce platforms.
- Strategic partnerships and collaborations are key trends followed by the companies operating in the subscription e-commerce market. A large number of e-commerce platforms operate in the e-commerce subscription market. Collaboration enables them to extend their market share and gain a competitive edge in the market. For instance, in April 2021, Adobe and FedEx collaborated to drive innovation in e-commerce with the integration of ShopRunner, an e-commerce platform, and a subsidiary of FedEx with Adobe Commerce.
- Companies that offer subscription services often analyze and store vast amounts of customer data. Everything from personally identifiable information (PII) to behavioral data to psychographics can be tracked and applied to provide a smoother, more personalized shopping experience; however, great reward comes great risk. Companies are responsible for protecting data from security leaks and cyber-attacks, complying with multiple data protection laws depending on the operational region.
- The global subscription e-commerce market has witnessed continuous growth, owing to the COVID-19 pandemic in the past few years, due to several new merchants joining the platform. Other enhancing factors, such as the growing use of subscriptions among millennials, the rising popularity of online streaming services, increasing internet penetration, low cost of subscription boxes, etc., have impacted the market positively.
Subscription E-Commerce Platform Market Trends
This section covers the major market trends shaping the Subscription E-Commerce Platform Market according to our research experts:
Rapid Increase In Online Shopping Boosts Subscription E-Commerce Market
- Shopping was perceived as going out, exploring various stores and shops across the town, shifting through myriad options, and finally settling down to purchase a product with complete satisfaction. Now that technology is skillfully trying to make a person think smartly without exerting much physical energy, we see that even shopping has been engulfed under the grip of changing lifestyles. With online shopping spreading its wings gradually, the experience of the 'touch and feel' concept is slowly fading among consumers that strive the demand for a subscription-based e-commerce market.
- The rapid growth of online shopping will contribute to the development of the subscription e-commerce market going forward. The benefits of online shopping over retail purchases are shifting consumer preferences towards online shopping, especially those who opt for a subscription with additional benefits. Customers prefer to shop online because it increases convenience, reduces reliance on store visits, lowers travel costs, expands market space, lowers overheads, lowers costs, provides detailed information about products and services, and enables price comparisons and availability in a wide range of products, customer satisfaction, and the absence of crowds.
- Consumer spending in stores continued to recover with 10 percent year-on-year growth in September, following stable 5 to 6 percent growth in March through August this year. Simultaneously, e-commerce sales also continued to experience strong growth, rising by about 35 percent year over year, and online penetration remains about 30 percent higher than pre-COVID-19 levels. According to research conducted by McKinsey & Company, 15% of online buyers have signed up for one or more subscription services. That's a big number considering the projected number of online shoppers as 2.14 billion by the end of 2022.
- Strategic partnerships and collaborations are key trends followed by the companies operating in the subscription e-commerce market, thereby increasing online penetration. Collaboration enables them to extend their market share and gain a competitive edge in the market. For instance, in April 2021, Adobe and FedEx collaborated to drive innovation in e-commerce with the integration of ShopRunner, an e-commerce platform, and a FedEx subsidiary with Adobe Commerce.
North America to hold the largest Share
- The expanding e-commerce industry primarily drives the market. In addition, the growing influence of social media platforms and celebrity endorsements on consumer lifestyles represents another major growth-inducing factor. Besides this, social media startups are launching subscription services to create brand awareness, maintain consistent revenue, and promote built-in marketing.
- They also collaborate with social media bloggers, vloggers, and influencers to promote their products. Social media startups and the introduction of long-term subscription services by key market players to develop customer loyalty and cater to specific consumer tastes and preferences create a positive market outlook across the region.
- The North American region is dominating the global Subscription e-commerce market share owing to its characteristics. Cloud solutions have contributed significantly to the expansion of digital commerce in North America, mainly attributable to robust information and communications infrastructure, rapid digitization of businesses, and support for innovation in the region.
- The growing consumer inclination toward personalized shopping and curated items, the introduction of free product trials by luxury brands to encourage the adoption of subscription services, and the rising disposable incomes of consumers are some of the other factors expected to propel market growth in the coming years in this region.
- With the increased usage of smartphones and internet penetration, the demand for Subscription-based e-commerce has risen in the North American region considering the development of Mobile e-commerce (or m-commerce) software that helps companies sell online and provide better experiences to consumers who prefer to shop using their mobile devices. E-commerce companies such as Newegg Inc., Lowe's, Amazon, Walmart, Alibaba, eBay, Macy's, Wayfair, Best Buy, and Target, amongst several others, use this type of software to create custom mobile apps that are personalized based on their industry or the kinds of consumers they target.
Subscription E-Commerce Platform Industry Overview
The Global Subscription E-Commerce Platform Market is moderately fragmented owing to the increased usage of smartphones and online platforms to review and make purchase decisions. A few players in the subscription e-commerce market are Adobe Commerce, BigCommerce, CommerceTools, OroCommerce, Saleor, Salsita Software, Salesforce Commerce Cloud, WordPress, Drupal, Joomla, etc.
- In March 2022, ChargeBee is helping to fuel that global growth by providing an easy-to-implement software platform that allows these companies to manage their subscription and recurring billing systems specifically for subscription-based SaaS and e-commerce businesses.
- In November 2021, Checkout.com developed a new cloud plug-in. Commercetools customers can now intuitively integrate Checkout payment solutions into their online stores. As a cloud-native headless commerce platform, commercetools offers online merchants an update and edit of the backend at any time without affecting the front-end functions of their online store.
Subscription E-Commerce Platform Market Leaders
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Shopify Inc
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BigCommerce
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Salsita Software
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SAP SE
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OroCommerce
*Disclaimer: Major Players sorted in no particular order
Subscription E-Commerce Platform Market News
- September 2022 - Commercetools expanded its global reach with a new product development hub in Valencia, Spain, for product development because of the city's significant infrastructure and access to top talent from its many prestigious universities and the growing startup ecosystem in the area.
- August 2022 - OroCommerce has planned to release OroCommerce 5.1 LTS, a new Long-Term Support (LTS) version with new features, capabilities, and technology built on PHP 8.2 and NodeJS 18 and removing MySQL and is expected to release by March 2023.
- January 2022 - YesStyle.com, a robust e-commerce platform for fashion, beauty, and lifestyle products owned by YesAsia Holdings Ltd., chose Oracle Fusion Cloud Customer Experience (CX) to automate its marketing platform with flexible and dependable AI-driven technology.
Subscription E-Commerce Platform Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Sizing and Estimates of Global Subscription E-commerce Platform Market
4.3 Industry Attractiveness-Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising inclination of customers towards online buying
5.1.2 Strategic partnerships and collaborations
5.1.3 Big Data analytics integration with e-commerce
5.2 Market Challenges
5.2.1 Upgrades to cybersecurity to protect customer privacy
6. MARKET SEGMENTATION
6.1 By Type (Coverage includes trend analysis and insights, Key benefits and features)
6.1.1 Headless E-Commerce
6.1.2 CMS-based E-Commerce (Non-Headless)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles - Key Vendors of Headless E-commerce Market
7.1.1 Adobe Commerce
7.1.2 BigCommerce
7.1.3 CommerceTools
7.1.4 OroCommerce
7.1.5 Saleor
7.1.6 Salsita Software
7.1.7 Salesforce Commerce Cloud
7.1.8 SAP
7.1.9 Shopify
7.2 Company Profiles - Key Vendors of CMS-based E-commerce Market
7.2.1 WordPress
7.2.2 Drupal
7.2.3 Joomla
7.2.4 Prestashop
7.2.5 OpenCart
7.2.6 HubSpot
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Subscription E-Commerce Platform Industry Segmentation
The Global Subscription E-Commerce Platform market is one of the leading markets involving innovative techniques development and an extremely categorized sector. The market report delivers in-depth information based on the data related to various subscription parameters, along with the company profiles of various firms and ongoing industry trends in the global market.
Global Subscription E-Commerce Platform Market is segmented by Headless E-Commerce and CMS-based E-Commerce (Non-Headless)
| By Type (Coverage includes trend analysis and insights, Key benefits and features) | |
| Headless E-Commerce | |
| CMS-based E-Commerce (Non-Headless) |
Subscription E-Commerce Platform Market Research FAQs
What is the current Global Subscription E-Commerce Platform Market size?
The Global Subscription E-Commerce Platform Market is projected to register a CAGR of 62.21% during the forecast period (2024-2029)
Who are the key players in Global Subscription E-Commerce Platform Market?
Shopify Inc, BigCommerce, Salsita Software, SAP SE and OroCommerce are the major companies operating in the Global Subscription E-Commerce Platform Market.
Which is the fastest growing region in Global Subscription E-Commerce Platform Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Subscription E-Commerce Platform Market?
In 2024, the North America accounts for the largest market share in Global Subscription E-Commerce Platform Market.
What years does this Global Subscription E-Commerce Platform Market cover?
The report covers the Global Subscription E-Commerce Platform Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Subscription E-Commerce Platform Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Global Subscription E-Commerce Platform Industry Report
Statistics for the 2024 Global Subscription E-Commerce Platform market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Subscription E-Commerce Platform analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
