Commerce as a Service Market Analysis

Commerce as a Service (CaaS) Market Overview

Commerce as a Service (CaaS) Market Size was valued at USD 2.1 Billion in 2022. The Commerce as a Service (CaaS) market Deployment Type is projected to grow from USD 2.8 Billion in 2023 to USD 26.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 32.50% during the forecast period (2023 - 2032). The increasing use of smartphones, mobile devices, and internet services, as well as the growth of electronic commerce and the ensuing increase in the number of online shoppers, particularly in emerging economies, are the key market drivers enhancing the market growth.

Figure 1: Commerce as a Service (CaaS) Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commerce as a Service (CaaS) Market Trends

• 
  

  The proliferation of electronic commerce is driving the market growth

  
  

The proliferation of electronic commerce and the resulting rise in online shoppers, particularly in emerging countries, are expected to fuel market growth. Through fulfilment service centres, online merchants can outsource functions including bundling, warehousing, shipping, and other value-added services like return handling and urgent parcel service. The ideal choice for retailers who lack the internal resources to maintain inventory and do not want to spend extra time on shipping is a fulfilment centre.

The online store also has the option of running Commerce as a Service internally. Many individuals prefer online ordering to in-store shopping because of the convenience, low cost, large selection, and quick response times that it offers. E-commerce businesses largely rely on the storage and shipping capabilities to move products from manufacturing plants/retailers to end consumers in a shorter lead time. In the past, warehousing required a lot of manual labour; but, in recent years, firms have begun automating procedures in the aisles of modern warehouses to reduce the need for human interaction, boost efficiency, and hasten the delivery of orders.

For instance, to assist employees with jobs and expedite delivery, Amazon.com, Inc. uses robots in its fulfilment centres. The success of e-commerce enterprises depends on the location of a fulfilment centre because most online transactions take place in urban areas and because consumers want faster product delivery. By having facilities adjacent to important cities that not only store items but also conduct extra Commerce as a Service chores like sorting, packing, labelling, and shipping, players may deliver goods more rapidly and earn the trust of their customers.

Quick access, a wider variety of goods and services, accessibility, and a global reach are just a few advantages of e-commerce. Inadequate customer service, the inability to touch or see an item before purchasing, and the obligatory delivery wait time are occasionally perceived downsides. Businesses must authenticate commercial transactions, monitor registered or authorised users' access to resources like web pages, encrypt communications, and deploy security technologies like the Secure Sockets Layer in order to maintain the security, privacy, and effectiveness of e-commerce. Thus, driving the Commerce as a Service (CaaS) market revenue.

Commerce as a Service (CaaS) Market Segment Insights

Commerce as a Service (CaaS) Component Insights

The Commerce as a Service (CaaS) Market segmentation, based on component, includes solutions and services. Services segment dominated the global market in 2022. Customers' increased desire to improve the overall performance of data discovery solutions that have already been deployed and an increase in the use of IoT devices for greater customization are fueling the expansion of the services segment and, in turn, the worldwide market for commerce technology and services.

Commerce as a Service (CaaS) Solution Type Insights

The Commerce as a Service (CaaS) Market segmentation, based on solution type, includes content & site management, product information management, experience management, inventory & order management, payment process management, and multi-site management. Content & site management segment dominated the Commerce as a Service (CaaS) Market in 2022. The increase is due to the rising consumer electronics demand as well as the requirement for delicate electronics product handling.

Commerce as a Service (CaaS) Delivery Model Insights

The Commerce as a Service (CaaS) Market segmentation, based on delivery model, includes B2B, B2C, and machine-2-machine commerce. B2B segment dominated the Commerce as a Service (CaaS) Market in 2022. Delivery of goods from one business to another is part of B2B Commerce as a Service. In other words, they distribute substantial supplies in bulk to a target business. These services allow firms to pre-store the supplies they need to run their regular operations. Furthermore, a company's capacity to fulfil orders on time depends on its use of B2B Commerce as a Service.

Commerce as a Service (CaaS) Deployment Type Insights

The Commerce as a Service (CaaS) Market segmentation, based on deployment type, includes public, private, and hybrid. Public segment dominated the global market in 2022. The rising desire for commerce as a service is to blame for this.

Figure 2: Commerce as a Service (CaaS) Market, by Deployment Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commerce as a Service (CaaS) Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Commerce as a Service (CaaS) market dominated this market in 2022 (45.80%). The increased internet penetration and growth opportunities provided by the region's largely unexplored markets (rural areas and second-tier cities) are expected to help the region maintain its dominance during the projection period. A significant part of worldwide internet sales are also made by nations like China, Japan, and South Korea, who are among the top 10 exporters of goods. Moreover, China’s Commerce as a Service (CaaS) market held the largest market share, and the Indian Commerce as a Service (CaaS) market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure3: COMMERCE AS A SERVICE (CAAS) MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Commerce as a Service (CaaS) Market is expected to register significant growth from 2023 to 2032. The rise is primarily attributed to the existence of significant market players in the area, including Red Stag Fulfilment, Shipfusion Inc., and Amazon.com, Inc. Further, the U.S. Commerce as a Service (CaaS) market held the largest market share, and the Canada Commerce as a Service (CaaS) market was the fastest growing market in the North America region.

Europe Commerce as a Service (CaaS) market accounted for the healthy market share in 2022. Increased implementation of automation technology for effective management of fulfilment services has gained the confidence of regional e-commerce businesses, fueling market expansion. Further, the German Commerce as a Service (CaaS) market held the largest market share, and the U.K Commerce as a Service (CaaS) market was the fastest growing market in the European region

Commerce as a Service (CaaS) Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Commerce as a Service (CaaS) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Commerce as a Service (CaaS) Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Commerce as a Service (CaaS) Industry to benefit clients and increase the market sector. In recent years, the Commerce as a Service (CaaS) Industry has offered some of the most significant advantages to medicine. Major players in the Commerce as a Service (CaaS) market, including Microsoft Corporation, Rackspace Hosting, Inc., Amazon Web Services, Inc., Alibaba Cloud, Cisco System, Inc., Google LLC, Dell Technologies Inc., Oracle Corporation, Hewlett Packard Enterprise Development LP, and International Business Machine (IBM) Corporation, are attempting to increase market demand by investing in research and development operations.

United Parcel Service Inc. (UPS) provides package delivery services. It provides contract logistical, distributional, and transportation services. The company offers residential ground services in the US as well as same-day, time-definite, next-day, two-day and three-day delivery choices for ground and air package transportation services. In Africa, the Middle East, Latin America, and Asia-Pacific, it offers international shipping services. The company also offers freight forwarding, logistics, truckload brokerage, customs brokerage, and financing for cargo-related insurance. Value-added services are provided by UPS through its UPS shops, authorised shipping sites, business counters, customer centres, and drop boxes. Some of its well-known trademarks include Express Plus, UPS Express, Worldwide Express Freight, and Express Saver. UPS is based in Atlanta, Georgia, in the US. United Parcel Service of America, Inc. unveiled a new e-fulfillment platform in February 2019. Thanks to this new platform, the company's fulfilment service centres are now linked to small and medium-sized businesses on 21 online marketplaces, including Amazon.com, Inc., eBay, Inc., and Etsy, Inc.

Oracle Financial Services Software Ltd (OFSS), an Oracle Corporation subsidiary, offers IT services to the financial services industry. The company provides banking software, cloud-based solutions for banking payment, revenue management, cloud infrastructure, and financial services analytical apps. Additionally, it offers services including prime sourcing, consulting, business process outsourcing, application development, and technology. Its primary products are banking branches, banking APIs, virtual account management, process management tools for banking credit facilities, and FLEXCUBE, which also offers universal banking. Risk and compliance, corporate banking, payments, retail banking, wealth management, and capital markets are all areas in which the company provides services. It operates throughout the Americas, Europe, Asia-Pacific, Middle East, and Africa. OFSS's headquarters are in Mumbai, Maharashtra, India. Oracle Autonomous Database, the industry's first self-driving, self-securing, and self-repairing database, was released by Oracle India in February 2019. It aids in enhancing and accelerating business decisions.

Key Companies in the Commerce as a Service (CaaS) market include

• Microsoft Corporation


• Rackspace Hosting, Inc.


• Cisco System, Inc.


• Amazon Web Services, Inc.


• Google LLC


• Alibaba Cloud


• Dell Technologies Inc.


• Oracle Corporation


• Hewlett Packard Enterprise Development LP


• International Business Machine (IBM) Corporation

Commerce as a Service (CaaS) Industry Developments

January 2018: Adobe introduced micro services centred on commerce across its clouds. The 20 micro services are anticipated to be portable, adaptable, and small applications with features like a shopping cart, wish list, and inventory enquiry.

Commerce as a Service (CaaS) Market Segmentation

Commerce as a Service (CaaS) Component Outlook

• Solutions


• Services

Commerce as a Service (CaaS) Solution Type Outlook

• Content & Site Management


• Product Information Management


• Experience Management


• Inventory & Order Management


• Payment Process Management


• Multi-site Management

Commerce as a Service (CaaS) Delivery Model Outlook

• B2B


• B2C


• Machine-2-machine Commerce

Commerce as a Service (CaaS) Deployment Type Outlook

• Public


• Private


• Hybrid

Commerce as a Service (CaaS) Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • 
    

    Middle East

    
    
  
  
  • 
    

    Africa

    
    
  
  
  • 
    

    Latin America