Mobile Commerce Market Size - By Payment mode (Near Field Communication, Premium SMS, Wireless Application Protocol), Type of User (Smart Device Users, Feature Phone Users), Transaction Type (M-Retailing, M-Ticketing, M-Billing) & Forecast, 2024 - 2032

Mobile Commerce Market Size - By Payment mode (Near Field Communication, Premium SMS, Wireless Application Protocol), Type of User (Smart Device Users, Feature Phone Users), Transaction Type (M-Retailing, M-Ticketing, M-Billing) & Forecast, 2024 - 2032

Mobile Commerce Market Size

Mobile Commerce Market size was valued at USD 611.6 billion in 2023 and is anticipated to register a CAGR of over 25.5% between 2024 and 2032. The proliferation of high-speed mobile internet including 4G and 5G networks has revolutionized mobile commerce. Faster & more reliable internet connections enable seamless access to online platforms, ensuring swift loading times and smooth navigation for users. The enhanced connectivity not only improves the overall user experience but also encourages consumers to engage in mobile commerce activities. This leads to increased transactions and revenue for businesses operating in the digital marketplace.

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The advent of robust and encrypted mobile payment systems has bolstered consumer confidence. Technologies such as tokenization & biometric authentication ensure secure transactions, mitigating concerns about data breaches and fraud. As consumers perceive mobile payments as safe, they are more inclined to make purchases via mobile devices. This increased consumer trust is propelling the market growth, fostering a conducive environment for businesses and consumers to engage in secure transactions.
 

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Payment gateways are a crucial part of mobile transactions. Technical glitches, server downtimes, or incompatible interfaces can result in transaction failures, frustrating users and causing revenue loss for businesses. Moreover, complicated checkout processes or limited payment options can discourage customers. To prevent such challenges, streamlining payment gateways, ensuring compatibility with various systems, and offering diverse payment methods are pivotal. Overcoming these challenges is also crucial to providing a seamless & reliable payment experience for mobile commerce users.
 

COVID-19 Impact

The COVID-19 pandemic significantly accelerated the mobile commerce market. With lockdowns and social distancing measures in place, consumers turned to mobile platforms for shopping, leading to a surge in online transactions. Businesses adapted by enhancing mobile apps, offering contactless payments, and optimizing websites for mobile devices. This shift fostered a new level of convenience, driving user engagement. Moreover, it encouraged many traditional businesses to embrace mobile commerce, expanding their reach and diversifying revenue streams during the pandemic.

Mobile Commerce Market Trends

Technological advancements are driving the mobile commerce market forward. Innovations, such as 5G connectivity, Augmented Reality (AR), and Artificial Intelligence (AI), are enhancing user experiences. Faster internet speeds enable seamless transactions, while AR provides immersive product visualization.

For instance, in July 2022, Walmart, a retail corporation headquartered in the U.S., enhanced the AR capabilities of its consumer app by introducing new features. App users can now access an extended range of over 7,000 AR-enabled home products, spanning categories such as indoor/outdoor furniture, electronics, lighting, and more, thus providing immersive viewing experiences directly through the app. Such advancements are collectively propelling the industry growth by creating convenient, secure & engaging shopping environments.

Mobile Commerce Market Analysis

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Based on transaction type, the market is divided into m-retailing, m-ticketing, m-billing, and others. The m-retailing segment held a dominant share in the market in 2023. The emphasis on enhancing the shopping experience is a key factor driving segment growth. User-friendly mobile apps, personalized product recommendations, seamless checkouts, and convenient payment options contribute to customer satisfaction. For instance, in December 2022, Walmart launched Text to Shop, a mobile app aimed at enhancing customer shopping experiences. Through this app, customers can create shopping lists for in-store visits or shop online for products available on Walmart Pickup & Delivery. They can conveniently schedule the collection of their items at the nearest Walmart Supercenter.

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Based on payment mode, the Near Field Communication (NFC) segment held over 38% of the mobile commerce market share in 2023 and is projected to grow by 2032. NFC technology is thriving due to its unparalleled convenience and safety. NFC enables swift, contactless transactions by simply tapping devices, fostering a seamless payment experience.

Moreover, as hygiene and safety became of utmost importance during the pandemic, NFC-enabled touchless payments gained significant traction, becoming a preferred choice. The acceptance of NFC-enabled payment terminals in retail spaces and their integration into popular mobile wallets, such as Apple Pay & Google Pay, have further bolstered its adoption. This has made NFC a cornerstone technology for modern, secure, and convenient mobile payments.

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North America mobile commerce market accounted for 37% of the revenue share in 2023. The emerging educational STEM toy startups are driving regional market growth. In North America, the market is thriving due to its advanced digital infrastructure and the strong consumer preference for convenience. With a well-developed internet backbone, users experience seamless mobile transactions, fostering widespread adoption. Additionally, the population's high reliance on smartphones and the growing trend of online shopping have created a natural synergy with mobile commerce. This convenience-driven culture, coupled with a tech-savvy population, is fueling market growth, making mobile commerce a pivotal aspect of the modern retail landscape in North America.

Mobile Commerce Market Share

Major companies operating in the mobile commerce industry are

• Amazon.com Inc.
• eBay Inc.
• Gemalto (Thales Group)
• GPShopper
• International Business Machines (IBM) Corporation
• Kony Mobility Platform
• Mastercard Inc.
• PayPal Holdings Inc.
• Visa Inc.

Dominating players in the market continually innovate, focusing on user experience, security, and seamless integration. The intense competition fosters advancements, benefiting consumers with diverse, user-friendly options.

Mobile Commerce Industry News

• In September 2023, Bajaj Finance Ltd. partnered with Flipkart, an e-commerce platform, to transform the mobile shopping experience during festive seasons. Through this partnership, customers can enjoy a wide array of exclusive offers, appealing pricing, and no-cost EMI financing options, enhancing their festive shopping endeavors.

The mobile commerce market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Payment mode

• Near Field Communication (NFC)
• Premium SMS
• Wireless Application Protocol (WAP)
• Others

Market, By Type of User

• Feature Phone Users
• Smart Device Users

Market, By Transaction Type

• M-Retailing
• M-Ticketing
• M-Billing
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Nordics
• Asia Pacific
  • China
  • India
  • ANZ
  • Japan
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the mobile commerce market?

The market size of mobile commerce reached USD 611.6 billion in 2023 and is set to witness 25.5% CAGR from 2024 to 2032, backed by the proliferation of high-speed mobile internet including 4G and 5G networks.

Why is m-retailing transaction gaining traction is mobile commerce industry?

The m-retailing segment is slated to grow notable through 2032, owing to the emphasis on enhancing the shopping experience through user-friendly mobile apps, personalized product recommendations, seamless checkouts, and convenient payment options.

What factors are fueling the growth of North America mobile commerce market?

North America market held around 37% revenue share in 2023, favored by the emerging educational STEM toy startups, along with the region’s advanced digital infrastructure and the strong consumer preference for convenience.

Which companies define the competitive landscape of mobile commerce industry?

Amazon.com Inc., eBay Inc., Gemalto (Thales Group), GPShopper, International Business Machines (IBM) Corporation, Kony Mobility Platform, Mastercard Inc., PayPal Holdings Inc., and Visa Inc.