Global E-Commerce Market Poised to Reach $11 Trillion by 2028

According to a report published on Friday the global e-commerce market is expected to grow significantly until it reaches $11 trillion by 2028.

Technology breakthroughs improved logistics systems and growing internet accessibility worldwide are all contributing to this quick expansion. For e-commerce transactions GlobalData a well-known data and analytics company predicts a compound annual growth rate (CAGR) of 11. 1 percent from 2023 to 2028.

While companies around the world are putting an emphasis on innovation data-centric strategies and adherence to environmental social and governance (ESG) standards to maintain a competitive edge in the changing marketplace the United States continues to dominate the industry.

The social and governance aspects of ESG also issue to consumers said Aisha U-K Umaru GlobalDatas Strategic Intelligence Analyst. Umaru underlined that in order to meet customer expectations and regulatory requirements e-commerce companies continue to place a high premium on ESG considerations.

In order to reduce legal risks the report also emphasized how crucial it is becoming to follow environmental regulations. Since terms like carbon neutral and environmentally friendly are now being scrutinized more closely it is imperative that e-commerce companies adhere to global sustainability standards.

Furthermore a defining trend in the e-commerce industry is the use of subscription-based business models. The industrys growth is also leading to increased regulatory scrutiny of sustainability claims.

Programs like the Fifteen Percent Pledge which calls on US retailers to give Black-owned companies at least 15 percent of their shelf space demonstrate the growing focus on social equity in the e-commerce industry Umaru said. Additionally brands are trying to match their operations with the evolving ESG priorities of Gen Z and Millennial consumers making supply chain diversity and transparency crucial focal points.