Exclusive: By 2026, the global e-commerce market is projected to reach a staggering $8.5 trillion.

The pandemic had a significant impact on the e-commerce landscape, leading to a shift in consumer behavior towards online shopping and digital payments. This change has solidified the growth of e-commerce, particularly benefiting micro, small, and medium-sized enterprises (MSMEs) by improving the ease of doing business.

According to the Global Payments Report 2023 by fintech company FIS, the global e-commerce market is projected to grow at a compound annual growth rate of 9% from 2022 to 2026. The report states that the transaction value in the market is expected to increase from approximately $6 trillion in 2022 to over $8.5 trillion in 2026.

Although the growth rate in global e-commerce transactions slightly slowed in 2022 compared to the initial pandemic period, with a 10% year-on-year growth, the report emphasizes that the forecast for global e-commerce remains optimistic. The report covers 40 markets worldwide and highlights the continued bullish outlook for the e-commerce sector.

In the year 2021-22, all regions, except for Europe, witnessed impressive double-digit growth rates, with the Middle East and Africa experiencing the highest growth rate of 21%. Out of the 40 markets analyzed, 37 markets recorded double-digit year-on-year growth from 2021 to 2022. The markets in Latin America, the Middle East, Africa, and Southeast Asia, except for Thailand, which grew at a rate of 9%, have consistently shown robust growth and are considered high-growth markets. The report further predicts a mid-teens compound annual growth rate (CAGR) in these regions up to the year 2026.

The pandemic played a significant role in shaping the e-commerce landscape, leading to a greater reliance on online shopping and an acceleration in the adoption of digital payments. This shift in consumer behavior towards digital transactions has continued to propel the growth of the e-commerce industry.

The report forecasts substantial double-digit growth across all regions for global e-commerce, particularly in emerging markets, which offers promising prospects for cross-border e-commerce. To capitalize on these high-growth markets, the report advises businesses to cultivate cross-border e-commerce capabilities.

However, there are several challenges that need to be addressed to sustain this growth. The report highlights issues such as inadequate digital infrastructure and limited financial inclusion in certain emerging markets, which can impede e-commerce expansion. Moreover, regulatory obstacles and cross-border trade barriers pose additional challenges for businesses seeking global expansion.