Growth of spending is expected to be of 66% by 2024
According to Juniper Research, global spending on digital commerce will reach $18.7 trillion by 2024, comparing $11.2 trillion in 2019. It demonstrates an increase of 66% over the 5-year period.
By the end of 2019, the remote purchase of physical goods will have driven just under 27% of all digital commerce spend.
The e-commerce market is being accelerated by digital-native merchants, offering renewed and differentiated experiences to secure future income sources. Users describe their experience via digital channels as the crucial next battleground for retailers. It means that reduced friction in the checkout process is an essential requirement for future success.
The data says that digital money transfer tends to be one of the main drivers for increasing digital commerce spend. What is more, it is expected to grow by 85% over the next 5 years.
According to the study, by 2024, the payments from connected devices, primarily in the smart home and via connected vehicles, will reach over 32 billion transactions. This compares with just under 1.8 billion transactions in 2019, as the new channels achieve customer recognition.
Yet, these new channels won’t represent new consumer spending. It means they will largely be driven by migration from traditional card spend or will cannibalize other digital channels.