In a recently released study, research company International Data Corporation (IDC) forecasts that the digital commerce applications market will grow at an 18.8% compound annual growth rate (CAGR) to $4.1 billion through 2017.
IDC experts expects the market to exhibit strong growth over the next five years as digital commerce applications are one of the fastest growing segments in the overall enterprise applications software market.
“New commerce offerings and vendors are launched continually, with retail being only one part of the story as organizations across every industry look to add commerce solutions to their products, services, and offerings and tap into new revenue opportunities,” said Christine Dover, Research Director, Enterprise Applications and Digital Commerce. “Enterprises are looking to replace aging, custom-developed applications with more modern and nimble applications that allow them to move quickly into new markets with pop-up stores and omni-channel solutions that provide consumers and business buyers with a consistent experience regardless of where they research, shop, buy, and return goods and services – online, mobile, in the store, through the call center, and more.”
Additional findings from IDC’s forecast include the following:
- Market sizing, derived from detailed company-level analysis and top-down IDC analysis, places worldwide digital commerce applications revenue at $1.7 billion in 2012, representing an increase of 18% over the $1.5 billion in 2011.
- The top 5 vendors in 2012, based on worldwide revenue, were IBM, Oracle, DigitalRiver, hybris, and Demandware, accounting for 45.6% of the market total.
- Cloud solutions are increasingly popular as they provide enterprises with the ability to pop-up a new store, quickly enter a new market, create a new revenue stream, and more.
“The digital commerce applications market is strong and growing rapidly. While much of the current market is focused on North America and Western Europe, where strong growth is expected to continue, Asia/Pacific, Latin America, and Central and Eastern Europe, and Africa are also expected to be fast growing throughout the forecast period,” added Dover.