Please Wait.....
Report
Middle East E-Commerce Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
Market Report I 2023-01-23 I 120 Pages I Mordor Intelligence
The Middle-East E-commerce markets are expected to grow at a CAGR of above 11.5% in 2022-2027. The market in this region is primarily driven by high internet penetration, rising urbanization, and an increase in mobile shopping, among others. Furthermore, e-commerce automation provides enormous growth prospects for participants in the e-commerce industry.
The Middle East has one of the world's youngest populations. As the area's smartphone prevalence grows, several e-commerce sites have switched to mobile applications to retain interest.
Furthermore, the growing integration of e-commerce platforms with AI, predictive analytics, and cloud computing boosts industry growth. In addition, an increasing number of foreign enterprises are expanding in the region, giving the industry a good outlook.
The market is expected to maintain its strong growth over the forecast period. However, consumers in the Middle East have not fully integrated online buying into their shopping habits. They are less likely to shop online than they are in stores.
With the spread of the coronavirus disease (COVID-19) and the increased use of social distancing measures, a large portion of the population in the region is moving away from brick-and-mortar establishments and toward internet stores. The total market is driven by these retailers, providing a hassle-free shopping experience.
MEA E-commerce Market Trends
Increase in the Adoption of Latest Technology
As the number of digital channels grows, so does the number of people who use them. According to a Standard Chartered survey, nearly half of the region's consumers now prefer online purchases to use in-person cards or cash, signaling a significant departure from the previous transaction practices.
Increased ICT usage is thought to increase financial inclusion, whereas more financial sector participation is necessary for e-commerce growth. Advanced mobile phone adoption, combined with enhanced internet access, has undoubtedly contributed to the rapid growth.
A rising number of African SMEs are attempting to establish their own digital identity by creating websites and having their e-mail addresses to develop e-commerce and increase export capacity.
B2B e-commerce market was slower to take off than its retail counterpart and is expected to grow more than twice as fast as the B2C sector through 2030. The rapid growth of digital payments plays an important role in this growth.
While two-thirds of customers in the Middle East now expect access to digital services when shopping or doing business, 67% of the region's SMEs offer no online sales at all, according to a survey by logistics firm UPS. Gartner, meanwhile, reported that only 15% of businesses in the region have an online presence.
Increase in the Usage of Smartphones
The growing significance of mobile in digital commerce is fueled by high connectivity and smartphone ownership levels, increased spending power, and affluent lifestyles, notably in the Gulf.
In South Africa, introducing low-cost smartphones and feature phones with smart functions has led to a significant shift in customer behavior from PC to mobile for digital commerce. Influential elements include mobile retailing, banking, social media, and offers received via cell phones.
Consumers can now pay with their phones thanks to partnerships with major digital wallet providers and a wide selection of local retailers. Over the projected period, proximity payment will allow the movement that began as financial inclusion for the unbanked population in rural regions of Africa and is now associated with convenience in the Gulf region to take off.
Android smartphones have also recently caught up to Artificial intelligence and virtual assistance software with google assistants that allow the user to pass voice command and gives equal coemption to Siri in iPhones. With such features, android is becoming increasingly sophisticated over time as it seeks to integrate after elements with different versions that help refine the products. ?
The region is witnessing increased product innovations due to increased competition between players to introduce the latest features and capture the market. Many regional states are increasingly investing in expanding the scope of commercial 5G networks. With commercial launches in mind, Etisalat and Ooredoo have been undertaking live 5G trials on speed, equipment, latency, and beam steering (for signal distance).
MEA E-commerce Market Competitor Analysis
Many competitors are present in the Middle-East e-commerce business, leading to high competition. In the e-commerce business, many local and worldwide firms have expanded, resulting in fierce competition. Some key players are Amazon.com Inc., Alibaba Group Holding Limited, Walmart Inc., Airbnb Inc., and Shopify Inc., among others. Product launches, high expense on research and development, partnerships and acquisitions, etc., are the prime growth strategies these companies adopt to sustain the intense competition.
May 2022 - The Africa Alliance for E-Commerce (AAEC) has renewed its partnership with the West African Economic and Monetary Union (WAEMU) through additional 10 million CFA Francs this year to support the joint project between WAEMU-AAEC-AfDB. The support will improve the performance of the Africa e-Trade Hub platform to cater for the exchange of electronic certificates of origin, consolidate ongoing initiatives, and further support Member States.
May 2022 - The South Africa Chinese Culture and International Exchange Center has launched a program combining Chinese and e-commerce education, the first time the two countries have carried out an e-commerce training program together.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness- Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of e-commerce of total Retail sector
4.4 Impact of COVID-19 on the e-commerce sales
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in the Adoption of Latest Technology
5.1.2 Increasing Consumer Interest towards Convenient Shopping solutions
5.2 Market Challenges
5.2.1 Low Internet Penetration
5.2.2 Increasing Security and Privacy Concerns
6 Market Segmentation
6.1 By B2C ecommerce
6.1.1 Market size (GMV) for the period of 2017-2027
6.1.2 Market Segmentation - by Application
6.1.2.1 Beauty & Personal Care
6.1.2.2 Consumer Electronics
6.1.2.3 Fashion & Apparel
6.1.2.4 Food & Beverage
6.1.2.5 Furniture & Home
6.1.2.6 Others (Toys, DIY, Media, etc.)
6.2 By B2B ecommerce
6.2.1 Market size for the period of 2017-2027
6.3 Geography
6.3.1 UAE
6.3.2 Saudi Arabia
6.3.3 South Africa
6.3.4 Rest of Middle-East
7 Competitive Landscape
7.1 Company Profiles
7.1.1 Amazon.com Inc.
7.1.2 Alibaba Group Holding Limited
7.1.3 Airbnb, Inc.
7.1.4 Walmart Inc.
7.1.5 Inter Ikea Systems B.V.
7.1.6 Costco Wholesale Corporation
7.1.7 Shopify Inc.
7.1.8 Best Buy Co. Inc.
7.1.9 eBay Inc.
7.1.10 AliExpress
8 Investment Analysis
9 Future Outlook of the Market
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security