Philippines E-commerce Market Size (2024 - 2029)

Philippines E-commerce Market Analysis

The Philippines E-commerce Market size is estimated at USD 15.51 billion in 2024, and is expected to reach USD 29.57 billion by 2029, growing at a CAGR of 13.78% during the forecast period (2024-2029).

The market has grown in recent years, boosted by evolving consumer preferences for online shopping and increasing internet penetration in the region. The COVID-19 pandemic further accelerated this trend, attracting more sellers to utilize the reach and other benefits offered by the E-commerce platforms in the Philippines.

• With a vibrant economy and a large population savvy in digital technology, the Philippines is a fast-growing E-commerce market in Southeast Asia. Some websites and digital applications are competing for market share with global, regional, and domestic players. Increasing connectivity in the Philippines and rapidly overcoming Filipino infrastructure problems has made more and more of the large population access the Internet. Connected Filipinos access the country's E-commerce market primarily through mobile devices and computers.
• Every year, the need for speedy delivery services and E-commerce sales grows in the Philippines. Some of the most well-known businesses in the region and the surrounding area are opting for Quadx, which deploys new solutions to deliver products on time. For instance, in June 2022, using FarEye's Intelligent Delivery platform, QuadX has seen a significant increase in successful on-time, accurate deliveries and significant productivity gains in delivery. Since adopting FarEyein 2018, QuadXhas created an extremely competitive, unique delivery platform with FarEye that can fulfill 307% more orders.
• Among the 132 economies in the Global Innovation Index 2021, the Philippines is ranked 51st. Technologies like Augmented Reality (AR) are improving the shopping experience, focusing on customer experience. For instance, Shopify AR from Shopify allows the users to add AR functionality to their online store, allowing them to experience the product through AER. Some of the brands utilizing the technology include Spoikeball, allbirds, BioLite, etc.
• Despite the Philippines' rapid development rate, it has yet to make more efficient and usable technology and management available to a larger audience. The lack of action by government leaders and local organizations to improve the country's technology and online industries through defining infrastructural projects has also hampered advances in E-commerce. Regarding internet speeds, carriers and governments need improvements in the country to handle the increasing traffic in the region.
• Due to the COVID-19 pandemic, the demand for E-commerce in the Philippines is increasing, as the country's economy still relies on E-commerce for recovery from the outbreak. According to data from the Philippine Department of Trade and Industry (DTI), E-commerce increased the nation's GDP by 3.4%, or USD 12 billion, in 2020. In addition, the DTI wants to see a growth in E-commerce businesses from 500,000 in 2020 to 750,000 by 2021 and 1 million by 2022. The fast-growing middle class, high consumer spending, and an emerging technical population all contribute to the growth of E-commerce.

Philippines E-commerce Industry Segmentation

E-commerce is the buying and selling of goods and services over the internet through online shopping. However, this term is often used to describe all the seller's efforts in selling products directly to consumers. It begins when potential customers learn about a product, buy it, use it, and ideally maintain lasting customer loyalty.

The scope of the study is limited to tracking the revenue generated through the e-commerce market in the Philippines. The study also tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for market estimates and growth rates in the Philippines e-commerce market throughout the anticipated period. The study looks at Covid-19's overall influence on the ecosystem. The report's scope includes market size and forecasting for B2B and B2C segments, with the qualitative analysis of the B2C channel being further split by application.