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Digital Commerce Applications will Reach $4.1B by 2017

The ongoing convergence of digital and physical commerce has become a driving force in the success of today's leading B2B and B2C companies. Savvy senior executives are utilizing channel agnostic business technologies that enable them to give customers what they want -- an exceptional, integrated buying experience.

The digital commerce applications market will grow at an 18.8 percent compound annual growth rate (CAGR) to $4.1 billion through 2017, according to the latest global market study by International Data Corporation (IDC).

Although there are multiple scenarios that could unfold, IDC believes the market will exhibit strong growth over the next five years -- as digital commerce apps are one of the fastest growing segments in the overall enterprise applications software market.

"New commerce offerings and vendors are launched continually, with retail being only one part of the story as organizations across every industry look to add commerce solutions to their products, services, and offerings and tap into new revenue opportunities," said Christine Dover, research director at IDC.


Enterprises are looking to replace aging, custom-developed software with more modern and nimble applications that allow them to move quickly into new markets with pop-up stores and omni-channel solutions.

IDC says that these digital commerce offerings provide consumers and business buyers with a consistent experience regardless of where they research, shop, buy, and return goods -- while online, mobile, in the store, or through the call center.

"The digital commerce applications market is strong and growing rapidly. While much of the current market is focused on North America and Western Europe -- where strong growth is expected to continue -- Asia-Pacific, Latin America, and Central and Eastern Europe, and Africa are also expected to be fast growing throughout the forecast period," added Dover.

Additional findings from the market study include:
  • Market sizing, derived from detailed company-level analysis and top-down IDC analysis, places worldwide digital commerce applications revenue at $1.7 billion in 2012, representing an increase of 18 percent over the $1.5 billion in 2011.
  • The top five vendors in 2012, based on worldwide revenue, were IBM, Oracle, Digital River, hybris, and Demandware, accounting for 45.6 percent of the market total.
  • Cloud solutions are increasingly popular as they provide enterprises with the ability to pop-up a new store, quickly enter a new market, create a new revenue stream, and more.

Read the original blog entry...

More Stories By David H Deans

David H. Deans is the Managing Director at the GeoActive Group. He has more than 25 years of experience in the Technology, Media and Telecom sectors.

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