GCC E-commerce Market Outlook (2018 to 2032)
Synopsis
The above chart is GCC E-commerce Market Outlook (2018 to 2032)
Market Dynamics
The e-commerce market in the gcc (gulf cooperation council) countries is anticipated to be one of the fastest growing in the world over the 2018 to 2032 forecast period. the industry is expected to benefit from a number of favourable factors, including increased consumer spending, rapid population growth, and better infrastructure. additionally, governments are encouraging e-commerce by providing incentives and increasing investment. according to reports, the gcc e-commerce market was estimated at around usd 35 billion in 2017 and is predicted to grow at a compound annual growth rate (cagr) of 18.6 per cent over the forecast period to reach over usd 250 billion in 2032. online non-food retail sales are expected to have the highest growth potential during this period, since these categories are currently the most underpenetrated e-commerce segments in the region. the penetration of e-commerce in this part of the world is still significantly lower than other parts of the world, however, this is expected to change as more people learn and become comfortable with online purchases, and as more companies enter the market. the majority of current e-commerce users across the region are male, urban and from higher-income backgrounds; however, there is likely to be more opportunity and growth for e-commerce users, as those from lower-income backgrounds, female users, and rural consumers become more aware of the opportunities e-commerce presents in the region. the growth of e-commerce channels in the gcc is also being fuelled by the fact that customers in the region are highly aware of the latest trends in global fashion and technology and are increasingly attracted to online option to access these. in addition, there is a trend towards mobile shopping amongst younger customers. retailers are also increasingly recognizing the potential of online sales in the region and are adapting their strategies to take advantage of the opportunities presented. it is expected that retail companies will increase their presence in the gcc’s e-commerce market over the forecast period, as increased consumer spending creates the opportunity to tap into a larger customer base and increase profits. furthermore, as the infrastructure continues to improve, better access to e-commerce services will further facilitate growth. a number of key companies in the e-commerce space are expected to capitalize on growth opportunities in the region over the forecast period, including amazon, jd.com, and alibaba.
