Published on : Oct 27, 2016
The potential of ecommerce was first tested out by the consumer electronics industry. Since it is relatively simple to pack and transport consumer electronics, including smartphones, tablets, and laptops, ecommerce has become a key aspect of the modern consumer electronics industry. Online-only sales models are also being employed by some players, as this means they don’t need to construct expensive brick-and-mortar stores.
According to Transparency Market Research (TMR), the total annual revenue of the global retail digital transformation market is expected to reach US$2,411.9 bn by the end of 2016 and further rise to close to US$4,920 bn by the end of 2020.
Consumer Electronics Industry to Retain Dominance in Retail Digital Transformation Market
The consumer electronics and appliances sector held a dominant 37.3% share in the global retail digital transformation market in 2013. Even though the industry is expected to suffer a slight decline in its market share over the 2014-2020 forecast period, it is expected to remain the leading revenue generator for the retail digital transformation market in the coming years. On the other hand, the apparel and footwear sector is likely to exhibit rapid growth in the 2014-2020 forecast period. The market share of the apparel and footwear segment is expected to rise to 26.5% by the end of 2020.
Geographically, North America is the prime revenue generator in the global retail digital transformation market. However, the difference between the market shares of Europe, North America, and Asia Pacific is minimal. The easy access to online shopping websites and mobile apps in North America, owing to the early establishment of advances in telecommunications technologies, is the key driver for the North America retail digital transformation market.
Nevertheless, the Asia Pacific retail digital transformation market is expected to exhibit a robust 30.2% CAGR in the 2014-2020 forecast period on the back of the steady rise in the adoption of telecommunication and Internet advances in China and India. Asia Pacific is expected to hold 39.7% of the global retail digital transformation market by the end of 2020.
Increasing Use of Smartphones Vital for Sustained Development of Retail Digital Transformation Market
The rising ownership of smartphones is a key driver for the global retail digital transformation market. Even though retail digital transformation began by shifting the sales site from brick-and-mortar stores to websites, it has now centered on mobile apps due to the increased convenience they offer to the user. The rising implementation of 4G/5G infrastructure across the world is thus a crucial driver for the retail digital transformation market in the coming years.