The monthly smartphone data traffic per smartphone in the Middle East and North Africa is projected to amount to 26.84 exabytes (EB) per active device by 2030. In 2025, the average data traffic per active smartphone amounted to 10.81 EB per month.

The United Arab Emirates appeared to be the most enthusiastic Middle East and North African country in terms of e-commerce adoption, with 16 percent of its total retail sales owing to e-commerce in 2022. Contrastingly, e-commerce accounted for just three percent of the total retail sales in Egypt during the same year.

The Middle East and Africa E-Commerce Market Report is Segmented by Business Model (B2B, and B2C), Device Type for B2C E-Commerce (Smartphone/Mobile, Desktop, and More), Payment Method for B2C E-Commerce (Cards, Digital Wallets, BNPL, and More), Product Category for B2C E-Commerce (Beauty, Electronics, Fashion, Food, Furniture, and More), and Geography. Market Forecasts are in Value (USD).

In May 2022, the Turkey-based platform Trendyol was the leading e-commerce website in the Middle East region, with over 101 million average monthly visits. Hepsiburada, also Turkey based platform, was the second most visited with around 68 average monthly visits.

Unlock data-backed intelligence on Middle East & Africa E-Commerce Market, size at USD 129 billion in 2023, highlighting growth opportunities and industry trends.

In May 2022, 44.3 percent of e-commerce traffic in the Middle East region was generated through direct visits. Traffic generated through search witnessed a growth in the region in the years 2020 and 2021.

The size of the Middle East and Africa E-Commerce Apparel Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 8.72% during the forecast period. E-commerce apparel refers to the buying and selling of clothing and fashion accessories through online platforms. This sector has rapidly evolved, offering consumers a vast array of options ranging from everyday wear to high-end fashion, all accessible via websites and mobile apps. E-commerce apparel allows shoppers to browse, compare, and purchase items from the comfort of their homes, often benefiting from features like detailed product descriptions, customer reviews, and virtual try-ons. The convenience of online shopping, coupled with the ability to access a global market, has transformed the apparel industry. Retailers, from established brands to new startups, leverage digital platforms to reach a wider audience and streamline the shopping experience. Advanced technologies, such as AI-driven recommendations and augmented reality fitting rooms, enhance personalization and customer satisfaction. Additionally, e-commerce apparel often includes various services like free shipping, easy returns, and exclusive online discounts, further attracting consumers.However, the e-commerce apparel market also faces challenges such as managing inventory, ensuring quality control, and addressing environmental concerns related to packaging and returns. Despite these hurdles, the continued growth of online shopping underscores the dynamic nature of the fashion industry and its increasing reliance on digital solutions to meet consumer demands. Recent developments include: March 2023: H&M announced the launch of its Limited Edition 2023 collection for Ramadan. The products were launched in three unique capsules. The H&M Limited Edition 2023 collection prices ranged from DHS 139 in different sizes XS-XL. The first 'Ramadan Ready capsule went on sale online and in a few select stores on March 2, 2023. The second one went on sale on March 16 of that same year, and the last one went on sale on April 6 of that same year., February 2023: H&M South Africa announced their plans to expand their online presence across South Africa in partnership with e-commerce retailer Superbalist. The partnership was intended to allow customers across the region to have access to H&M fashion products for women, men, teens, and kids., March 2022: H&M announced the launch of its new collection, 'H&M Ramadan & Eid Statements 2022 collection'. The new apparel collection was launched in a few selected stores and a few e-commerce platforms, including 'qa.hm.com' and the H&M App.. Key drivers for this market are: Rising Internet Penetration and Increased Social Media Usage Boosting the Market, Seasonal Demand Surge & Discounts in Online Stores Driving the Market. Potential restraints include: Availability of Counterfeit Products Restricting the Market Growth. Notable trends are: Rising Internet Penetration & Increased Social Media Usage Boosting the Market.

This timeline shows the year-on-year B2C e-commerce sales growth rates in Middle East and Africa from 2010 to 2012, with a forecast for the years 2013 to 2017. In 2012, B2C e-commerce sales in Middle East and Africa grew by ** percent compared to the previous year.

As of February 2025, Asia was home to the highest percentage of global internet users, with almost a quarter of worldwide internet users being based in Eastern Asia. Southern Asia ranked second, representing 20.1 percent of the global online users. Furthermore, the internet users in South-Eastern Asia were almost ten percent of the overall internet users worldwide.

From the selected regions, the ranking by revenue in the e-commerce market is led by the United States with 1.2 trillion U.S. dollars and is followed by China (1.1 trillion U.S. dollars). In contrast, the ranking is trailed by Indonesia with 47.99 billion U.S. dollars, recording a difference of 1.1 trillion U.S. dollars to the United States. Find other insights concerning similar markets and segments, such as a ranking by country regarding revenue in the toys, hobby & DIY segment of the e-commerce market and a ranking by country regarding revenue in the electronics segment of the e-commerce market.The Statista Market Insights cover a broad range of additional markets.

According to the survey conducted in the Middle East, ** percent of respondents believed that e-commerce marketplaces had the most effective enablers for small and medium merchants. The same percentage of respondents considered specialist fintechs helpful in that matter.

The value of e-commerce in the Middle East in 2020 amounted around ** billion U.S. dollars, of which *** billion U.S. dollars was in the Saudi Arabia, and *** billion U.S. dollars was in the United Arab Emirates market. The value of e-commerce in the Middle East was expected to exceed ** billion U.S. dollars by 2025.

This statistic presents the e-commerce penetration as a percentage of total retail in the Middle East and North Africa (MENA) in 2017, ranked by selected country and region. In 2017, the e-commerce penetration in the United Arab Emirates was around *** percent. The given data indicates that e-commerce has an opportunity for growth in the Middle East and North Africa as the penetration remains low compared to other countries.

The United States is leading the ranking by revenue in the fashion e-commerce market, recording 209 billion U.S. dollars. Following closely behind is China with 194.8 billion U.S. dollars, while Spain is trailing the ranking with 9.6 billion U.S. dollars, resulting in a difference of 199.4 billion U.S. dollars to the ranking leader, the U.S. Find other insights concerning similar markets and segments, such as a ranking of subsegments in the United Kingdom regarding share in the e-commerce market as a whole and a ranking by country regarding revenue in the e-commerce market.The Statista Market Insights cover a broad range of additional markets.

According to a survey conducted across the Middle East and North Africa region, around 90 percent of respondents in 2022 purchased products or services online. This indicated a growth from 50 percent reported in 2018.

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E-Commerce Market Size 2023-2027

The e-commerce market size is forecast to increase by USD12.95 billion at a CAGR of 27.15% between 2022 and 2027.

The market is experiencing significant growth, driven by several key factors. Firstly, the advantages of e-commerce platforms, such as convenience, accessibility, and a wider product selection, continue to attract consumers. Secondly, technological advancements, including AI and machine learning, are enhancing the consumer experience by providing personalized recommendations and seamless transactions. However, regulatory issues pose challenges to market growth. Governments around the world are implementing stricter regulations on data privacy and security, which can increase compliance costs for e-commerce businesses. As the market continues to evolve, it is essential for businesses to stay informed of these trends and adapt to the changing regulatory landscape to remain competitive.

What will be the Size of the E-Commerce Market During the Forecast Period?

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The market in the United States continues to experience robust growth, fueled by the increasing adoption of smartphones among the smartphone-using population and their subsequent use for browsing digital content. This trend is particularly prominent in sectors such as travel and leisure, financial services, and e-tailing. Technological awareness and connectivity have become essential drivers of consumer behavior, leading to the widespread use of online marketing tools like Google Ads and Facebook Ads, as well as social media applications for communication and buying and selling goods and services. Established organizations and large enterprises have responded by investing in infrastructure to improve user experience, reduce operational costs through inventory management systems, and cater to the growing demand for vertical and specialized marketplaces.Overall, the market is poised for continued expansion, driven by consumer wealth, the convenience of online shopping, and the ongoing evolution of digital technology.

How is this E-Commerce Industry segmented and which is the largest segment?

The e-commerce industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2023-2027, as well as historical data from 2017-2021 for the following segments.ApplicationHome appliancesFashion productsGroceriesBooksOthersTypeB2BB2CGeographyAPACChinaJapanNorth AmericaUSEuropeGermanyUKSouth AmericaMiddle East and Africa

By Application Insights

The Home appliances segment is estimated to witness significant growth during the forecast period.

The market encompasses various retail sectors, with home appliances being a significant segment. This matured segment, which includes consumer electronics, houseware, and kitchen appliances, is experiencing a decelerating growth rate. A major challenge in this sector is the absence of a comprehensive logistics platform for the delivery of home appliances bought online. This issue arises due to the supply side constraints, particularly in developing countries, where logistical barriers pose significant challenges. Despite these hurdles, the home appliances segment is projected to remain the largest revenue generator within the market throughout the forecast period. The increasing standard of living and the resulting influence on the global online home appliance market are key drivers for this segment's growth.

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The Home appliances segment accounted for USD 1099.73 billion in 2017 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia Pacific (APAC) region is projected to lead The market growth due to the expanding internet population and rising adoption of digital technology. With countries like Pakistan, Bangladesh, and Indonesia exhibiting significant potential, the e-commerce sector in these late-adopter nations is anticipated to experience substantial expansion. The increasing purchasing power of the middle class in APAC is another key factor fueling market growth. China, a significant contributor to the e-commerce industry, hosts prominent global companies such as Alibaba and JD. The region's the market is expected to continue its upward trajectory, making APAC a significant influence on the global market landscape.

Market Dynamics

Our e-commerce market researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of driver

The size of the United Arab Emirates Ecommerce Market was valued at USD 11.01 Million in 2023 and is projected to reach USD 23.62 Million by 2032, with an expected CAGR of 11.52% during the forecast period. The United Arab Emirates (UAE) e-commerce market has seen amazing growth over the past years and positioned it at a key destination point within the Middle East region as a high performer in the country's digital economy. With an extremely technology-savvy population and high internet penetration, coupled with strong smartphone penetration, the UAE is an online shopping destination that welcomes regional and international e-commerce players. The shift in consumer behavior and preference toward convenience offered by most of the players in the market has led to the growth of the market. The increasing number of digital payments plays an instrumental role in making online shopping more hassle-free and secure. Among all such sectors, electronics, fashion, beauty products, and grocery items are essential components of the e-commerce sector in the UAE dominated by Amazon.ae, Noon, and Carrefour. It is a new trend wherein more and more consumers desire to shop through their mobile phones. Mobile commerce, or m-commerce, refers to a rising trend whereby more and more consumers wish to shop through their mobile phones. Strategically located as a business hub in the Middle East, and boasting a highly developed infrastructure and logistics capabilities, it enables the UAE to become an e-commerce hub for the region, welcoming international brands to expand their market reach. Recent developments include: May 2023: UAE Mastercard launched Click to Pay with payment service provider (PSP) Foloosi, who has rolled out the revolutionary payment mechanism across its entire merchant base. The cooperation makes the embedded Click to Pay solution the recommended payment method for guest checkout for Foloosi'sretailers and consumers. As part of the rollout, over 6,000 shops will provide Click to Pay to their customers., February 2023: Etisalat UAE, branded as Etisalat by e&, completed the acquisition of Service Souk DMCC "ServiceMarket. This acquisition is consistent with the Group's aim of empowering consumers, strengthening Smiles' online marketplace presence, and driving company diversification.. Key drivers for this market are: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Potential restraints include: Lack of Awareness About Intellectual Property Outsourcing. Notable trends are: Food Industry to Witness Significant Growth.

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Digital Commerce Software Market Size 2024-2028

The digital commerce software market size is forecast to increase by USD 4.82 billion at a CAGR of 10.03% between 2023 and 2028.

The market is experiencing significant growth due to the expanding e-commerce industry. Social media's increasing role in online sales is another key trend, as businesses leverage these platforms to reach larger customer bases. Data privacy and security concerns, however, pose challenges for market growth. As more consumers shop online, ensuring their personal information is protected becomes a top priority for businesses. Market growth is further fueled by advancements in technology, such as AI and machine learning, which enhance the customer experience and streamline operations. The market is expected to continue its growth trajectory, with these trends and challenges shaping its future development.

What will be the Size of the Digital Commerce Software Market During the Forecast Period?

Request Free SampleThe market is experiencing robust growth, driven by the increasing prevalence of online shopping and the proliferation of e-commerce platforms. With the widespread adoption of high-speed internet and the growing number of mobile users, m-commerce, or mobile commerce, has become a significant segment of the e-commerce industry. Smartphones have emerged as the preferred device for online shopping, particularly in sectors such as electronics, healthcare, and retail. Cloud-based deployment models have gained traction due to their flexibility and cost-effectiveness, enabling small and medium-sized businesses to establish an online presence. Manual processing errors are being replaced by advanced AI technologies, enhancing efficiency and accuracy.The e-commerce business landscape is diverse, encompassing e-commerce website builders, hosting services, and payment gateways. Big data analytics and AI are transforming the industry by providing valuable insights into consumer behavior and market trends. The automotive sector is also embracing e-commerce, with online platforms offering vehicle sales, servicing, and financing. The internet penetration rate continues to increase, fueling the growth of the e-commerce industry and creating new opportunities for businesses.

How is this Digital Commerce Software Industry segmented and which is the largest segment?

The digital commerce software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. DeploymentOn-premisesCloudGeographyNorth AmericaUSAPACChinaJapanEuropeGermanyUKSouth AmericaMiddle East and Africa

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period.

Digital commerce software enables businesses to establish an online presence and facilitate transactions through e-commerce platforms, mobile commerce (m-commerce), and online marketplaces. The market encompasses various sectors, including electronics, healthcare, automotive, and retail. High-speed internet and smartphones have fueled the growth of this industry, with increasing internet penetration rates and mobile users. E-commerce software caters to both B2B and B2C businesses, offering cloud-based deployment and omni-channel strategies. On-premises digital commerce software is installed on a business's native IT infrastructure, providing physical control over the system. However, integration with existing business management software like ERP can pose challenges, such as duplicate data entries, interface issues, and customization expenses.Despite these challenges, on-premises solutions offer benefits like increased control and security. Other digital commerce trends include advanced security features, AI integration, and IoT applications. The e-commerce market continues to evolve, with cloud computing, big data analytics, and blockchain technology shaping the industry's future.

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The On-premises segment was valued at USD 3.44 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 41% to the growth of the global market during the forecast period.

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The e-commerce software market in North America is experiencing substantial growth due to the rising number of online shopping transactions. Major digital commerce software companies, including Adobe, Oracle, Salesforce, IBM, Blue Yonder, Shopify, and Pitney Bowes, headquartered In the region, fac

AI in E-Commerce Market Outlook

According to our latest research, the AI in E-Commerce market size reached USD 8.93 billion in 2024 on a global scale, reflecting robust adoption across diverse retail and online platforms. The market is projected to grow at a compelling CAGR of 18.7% from 2025 to 2033, which would bring the market value to approximately USD 44.46 billion by 2033. This impressive growth is primarily driven by the increasing integration of artificial intelligence for personalized shopping experiences, enhanced operational efficiency, and data-driven decision-making. As per our latest research, the demand for AI-powered solutions is rapidly gaining momentum due to the need for real-time analytics, customer engagement, and automation in the e-commerce sector.

A significant growth factor for the AI in E-Commerce market is the rising customer expectation for personalized experiences. Modern consumers expect tailored product recommendations, dynamic pricing, and contextual marketing, all of which are made possible through advanced AI algorithms. By analyzing massive datasets on customer behavior, preferences, and purchase histories, AI enables e-commerce platforms to deliver highly targeted and relevant experiences. This not only increases conversion rates but also boosts customer loyalty and lifetime value. The ability to provide a seamless, personalized journey at every touchpoint has become a key differentiator, compelling e-commerce businesses to invest heavily in AI technologies.

Another major driver of growth in the AI in E-Commerce market is the operational efficiency and cost reduction achieved through automation and predictive analytics. AI-powered inventory management systems, for instance, help retailers optimize stock levels, reduce waste, and prevent stockouts by predicting demand trends with high accuracy. Similarly, AI-driven supply chain management tools streamline logistics, minimize delivery times, and reduce operational costs. Fraud detection and prevention are also enhanced through AI, as machine learning algorithms can quickly identify suspicious transactions and patterns, thereby safeguarding both businesses and customers from financial losses. These efficiency gains not only improve profitability but also enhance the overall customer experience.

The rapid proliferation of digital payment systems and omnichannel commerce further accelerates the adoption of AI in e-commerce. As retailers expand their online presence and integrate multiple sales channels, managing and analyzing vast amounts of data becomes increasingly complex. AI solutions offer the scalability and intelligence required to unify data from various sources, enabling businesses to make informed decisions in real time. Additionally, advancements in natural language processing and computer vision are transforming customer service, with AI-powered chatbots and virtual assistants providing instant support and resolving queries efficiently. These technological advancements are expected to continue fueling the growth of the AI in E-Commerce market over the forecast period.

Regionally, North America leads the global AI in E-Commerce market, accounting for the largest revenue share in 2024. The region's dominance is attributed to the presence of major e-commerce giants, a highly developed digital infrastructure, and significant investments in AI research and development. Europe follows closely, with a strong emphasis on data privacy and ethical AI deployment. Meanwhile, the Asia Pacific region is witnessing the fastest growth, driven by the rapid expansion of e-commerce platforms, increasing smartphone penetration, and a burgeoning middle-class population. Latin America and the Middle East & Africa are also experiencing steady growth, albeit at a slower pace, as digital transformation initiatives gain traction in these regions.

Component Analysis

The component segment of the AI in E-Commerce market is categorized into Softwar