Singapore e-commerce market to reach $10.7b by 2025
The growth of e-commerce will also give the e-payments market a boost.
Singapore’s e-commerce market is projected to grow at a compound annual growth rate of 16.2% through 2025 to be worth $14.2b (US$10.7b), forecasts GlobalData.
Strong growth will reportedly be supported by rising consumer spending, government support and growing preference for online shopping, according to an analysis by the data and analytics firm.
The easing of COVID-19 restrictions and revival of the economy will support e-commerce sales’ growth in 2022, when it is estimated to grow by 18.3% to reach $9.2b (US$7b), according to Nikhil Reddy, payments senior analyst at GlobalData.
“Although COVID-19 impacted e-commerce growth, the social distancing measures and lockdown restrictions pushed consumers to online channels even for day-to-day purchases. The shift in consumer buying behaviour now continues despite [the] opening of physical stores,” Reddy said.
The growth in online shopping is, in turn, expected to benefit electronic payments growth in Singapore. GlobalData’s 2021 Financial Services Consumer Survey for online purchases found that payment cards accounted for 43% of all the e-commerce sales in Singapore.
GlobalData also noted that alternative digital payment solutions such as PayPal, Apple Pay, Grab Pay, and Google Pay have gained prominence in the country and collectively account for 30.6% market share, up from 27.6% in 2020.
“Although e-commerce market growth was derailed by the pandemic mainly due to decline in consumer spending, it also brought a shift in consumer buying behaviour towards online channels. This along with the government’s conducive initiatives will support e-commerce growth in the country over the next few years,” Reddy said.