Video Commerce Trends and Forecast
The future of the global video commerce market looks promising with opportunities in the retail & e-commerce, fashion & beauty, electronic & gadget, home & furniture, food & beverage, and travel & hospitality markets. The global video commerce market is expected to reach an estimated $3909.1 billion by 2030 with a CAGR of 30.3% from 2024 to 2030. The major drivers for this market are rise of live streaming, evolving consumer preferences, and increased online shopping.
• Lucintel forecasts that, within the platform category, social media platform is expected to witness the highest growth over the forecast period.
• Within the end use category, retail & e-commerce is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
A more than 150-page report is developed to help in your business decisions.
Emerging Trends in the Video Commerce Market
Emerging trends, such as those impacting consumer interaction and buying behavior, are constantly shaping the video commerce market. The business world is constantly evolving with technological change and changing the needs of consumers, and these emerging trends will be crucial in helping define future shopping landscapes.
• More Wide Adoption of Streaming: Live streaming has evolved to make video commerce a feature that enables interaction in real-time between brands and consumers. This increases levels of engagement and creates urgency, which boosts conversion rates. Brands are investing in live events for product presentation and tapping into influencer partnerships to drive participation and sales.
• Inclusion of Augmented Reality: Augmented reality provides a futuristic shopping experience as it empowers customers to see how the product will look in a space. This enhances customersÄX%$%X confidence in making their buying decisions. By implementing AR features in their video content, brands are likely to significantly increase engagement rates, satisfaction, and the possibility of conversion while reducing returns.
• AI Personalization: AI-based personalization is gathering pace, enabling brands to personalize video content based on consumer preferences and behavior. This creates a better user experience and allows brands to bond more closely with their consumers. Personalized recommendations and targeted advertising through video can reach higher engagement levels and boost sales outcomes.
• Rising Social Commerce: Social commerce is gaining momentum with the integration of shopping capabilities on platforms like Instagram and TikTok. This smoothens the buying process by enabling direct purchases from video content. As consumers increasingly shop on social media platforms, brands are aligning their video strategies to reach that growing audience.
• User-generated Content: Consumers perceive reviews from their peers as much more authentic than advertisements. User-generated content has emerged as a key driver for video commerce. Brands are encouraging customers to share their experiences on video, establishing a real connection with them. Not only does this enhance brand loyalty, but it also leads to engagement, as it speaks directly to potential buyers.
Video commerce is changing the way consumers shop and connect with brands. Business engagement and conversion are improving through live streaming, shoppable content, influencer collaborations, personalization, and integration with social media. It is building toward a more immersive, interactive shopping experience.
Recent Developments in the Video Commerce Market
Various exciting developments are happening across the video commerce market, changing the way brands interact with consumers. These developments show an upward trajectory, presenting wider possibilities with more insightful experiences and new, innovative uses of technology.
• Shoppable videos: The trend of shoppable videos has left a lasting impact and become a normal feature. It allows viewers to make purchases in real-time within the video. This smoothens the buying process and enhances the consumer experience, leading to a boost in sales. Retailers are increasingly embracing this trend as it aligns with the seamlessness trend of shopping online.
• Live shopping events are the way forward: Live shopping events have been widely followed recently, allowing brands to engage with audiences in real-time. These events create urgency and excitement, which have proven profitable for sales. In many cases, companies are using influencers to host such events, establishing credibility and connecting better with the audience. These events have changed traditional shopping paradigms.
• Better analytics: The core benefits derived from advanced analytics tools in video commerce can be illustrated by the fact that they provide a better understanding of consumer behavior. This enables more effective targeting and personalization, improving marketing strategies. Data is used as an optimization tool for content delivery, significantly improving engagement and conversion.
• Cross-platform integration: Cross-platform integration is evolving, enabling brands to deliver video shopping experiences across multiple social media and e-commerce platforms. This increases reach and engagement since users can interact with brands on more than one medium. Strategies that capture diverse audiences are essential for maximizing sales.
• Investment in technology: Video technology, including AR and VR, is receiving significant investment. Brands are leveraging these technologies to enrich consumer experiences and enhance their brand presence in the competitive market. Immersive shopping experiences help companies grow sales, increase engagement, and build brand loyalty.
Recent video commerce innovations will manifest the changes in shopping behaviors and brand strategies. Companies are enhancing customer engagement and sales through advanced analytics, the adoption of augmented reality, mobile optimization, subscription models, and multi-channel distribution. These changes lead to a more connected and innovative shopping experience.
Strategic Growth Opportunities for Video Commerce Market
Video commerce offers significant strategic growth opportunities in key applications. This reflects the various benefits that brands can accrue by using video content to enhance the consumer experience while selling products, creating a dynamic and engaging shopping environment.
• E-commerce integration: Adding video content to e-commerce sites presents a growth opportunity in itself. Brands can make products more visible and engaging through tutorials, reviews, and live demos. This fosters a richer shopping experience, brings people closer to making confident purchases, and leads to higher conversion rates.
• Influencer collaborations: Influencer collaborations are another excellent strategy that drives video commerce growth. Through attractive video content, influencers can authentically promote products, significantly increasing brand visibility. These collaborations help brands reach new audiences through influencersÄX%$%X trust and credibility, driving consumer engagement and sales.
• Live streaming sales events: Live streaming sales events create a sense of urgency and real-time interaction, boosting sales. With proper promotion, these events can engage audiences, build community, and encourage immediate purchasing decisions.
• Tailored shopping experience: Product videos provide unique, personal shopping experiences. Data analytics allows content to be customized for individuals, raising consumer engagement levels. Personalization leads to stronger relationships between customers and brands, fostering trust and loyalty, and increasing repeat purchases.
• Entering emerging markets: Emerging markets present critical growth opportunities for video commerce. Brands can target newly connected consumers by leveraging increased internet connectivity and smartphone usage. In untapped markets, adoption and sales can be driven by adapting content to local preferences.
This strategic growth opportunity in video commerce can be capitalized on to build brand recognition and engagement. By running brand awareness campaigns and offering educational content, businesses using these applications are likely to increase customer loyalty and sales. This proactive approach is driving success in the constantly changing video commerce landscape.
Video Commerce Market Driver and Challenges
Several technological, economic, and regulatory factors significantly affect the video commerce market. These drivers augment the growth prospects of the market; however, challenges could adversely impact such growth. Understanding these factors is critical for stakeholders to navigate the shifting landscape efficiently.
The factors driving the video commerce market include:
• Technological advancements: With high-speed internet and smartphones, video content is now more accessible than ever. This stimulates innovation in streaming technologies and video production tools, empowering brands to create high-quality content that is interesting and appealing to consumers. As a result, the consumer experience improves, leading to higher conversion rates and making video commerce a preferred shopping method.
• Social media integration: Adoption of shopping features based on video content by platforms like Instagram, TikTok, and Facebook has opened doors for brands to reach wider audiences and directly engage with potential customers through authentic and relatable video experiences. The viral nature of social media also increases exposure, helping brands grow their visibility quickly.
• Consumer preference for visual content: Video commerce aligns with the shift in consumer behavior toward more visual and rich experience solutions. Studies have shown that shoppers exhibit greater purchase intent after seeing video content of products. As a result, video is becoming increasingly integral to marketing strategies, playing a crucial role in both engagement and conversion.
• Personalization and targeting: Advanced analytics help brands deliver highly personalized video content to targeted audience segments. Personalized recommendations based on user behavior increase the relevance of content, deepening emotional connections with consumers. Personalization directly improves both engagement and conversion rates.
• Emergence of influencer marketing: Influencers play a key role in video commerce through authentic endorsements and reviews. Their relatability builds trust and credibility with followers, amplifying the brand message and driving traffic and sales. The calls-to-action from influencers resonate with their followers, increasing engagement and conversion.
Challenges in the video commerce market are:
• Saturation of content: As the number of videos increases, the marketplace may eventually reach saturation, making it difficult for brands to differentiate themselves. This could overwhelm consumers with too many options, diluting the effectiveness of individual videos. Brands will need to focus on quality, originality, and storytelling to capture attention and maintain interest.
• Compliance with the regulatory environment: Video commerce evolves alongside regulatory challenges, including advertising standards and data privacy. Breaching these regulations can result in hefty fines or damage to a brand’s reputation. Brands must remain aware of and compliant with legal requirements, periodically auditing their video marketing strategies to ensure adherence.
• Technical barriers: While technology presents opportunities for video commerce, it also creates challenges, particularly for small businesses with limited resources. The production of high-quality videos can be costly, and technical issues such as bandwidth limitations or inadequate infrastructure may prevent some companies from competing effectively.
Technological advancements, consumer preferences, and social media integration are key drivers for the video commerce market. The main challenges include overcoming content saturation and regulatory hurdles. Brands that can navigate these challenges through innovation and compliance will thrive in this dynamic market.
List of Video Commerce Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies video commerce companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the video commerce companies profiled in this report include-
• Alibaba
• Shopify
• Amazon.com
• Alphabet
• Wayfair
• Bambuser
• Channelize.io
• Firework
• LiSA Social Commerce
• BuyWith
Video Commerce by Segment
The study includes a forecast for the global video commerce by platform, end use, and region.
Video Commerce Market by Platform [Analysis by Value from 2018 to 2030]:
• Social Media Platforms
• E-commerce Platforms
• Video Streaming Platforms
• Live Streaming Platforms
Video Commerce Market by End Use [Analysis by Value from 2018 to 2030]:
• Retail & E-Commerce
• Fashion & Beauty
• Electronics & Gadgets
• Home & Furniture
• Food & Beverage
• Travel & Hospitality
• Others
Video Commerce Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Video Commerce Market
Video content integration is rising across the video commerce market, with companies across regions incorporating video content to offer better online shopping experiences and boost sales.
• United States: Live shopping events have become increasingly popular in the U.S., with more retailers, including Walmart and Target, hosting interactive sessions. Brand-influencer collaborations are growing more common. Shoppable videos on TikTok are gaining popularity, transforming basic marketing into a shopper experience.
• China: Video commerce through Douyin, Kuaishou, and live shopping is developing rapidly in China. This cultural phenomenon has boosted sales, and brands are using AI to differentiate their personalizations. Influencer marketing continues to play a key role, as consumer trust and involvement with products remain paramount.
• Germany: Video commerce in Germany focuses on sustainability and authenticity. This has led to an increase in video content across brandsÄX%$%X online channels, with a continuous communication of product information. Influencer collaborations build credibility, while user-generated content has become increasingly important in reaching environmentally conscious consumers.
• India: Video commerce is growing significantly in India, especially among younger consumers. E-commerce companies like Flipkart and Amazon are investing in live shopping features. The rise of local content is making video shopping more accessible to a wide range of linguistic and cultural groups, supporting market penetration.
• Japan: Technology remains the driving force behind video commerce in Japan. Brands are leveraging augmented reality (AR) and virtual reality (VR) to enhance customer experiences. Live shopping is rapidly growing, and companies are focusing on integrating video content effectively across social media platforms to cater to digitally-savvy consumers.
Features of the Global Video Commerce Market
Market Size Estimates: Video commerce market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Video commerce market size by platform, end use, and region in terms of value ($B).
Regional Analysis: Video commerce market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different platform, end use, and regions for the video commerce market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the video commerce market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the video commerce market size?
Answer: The global video commerce market is expected to reach an estimated $3909.1 billion by 2030.
Q2. What is the growth forecast for video commerce market?
Answer: The global video commerce market is expected to grow with a CAGR of 30.3% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the video commerce market?
Answer: The major drivers for this market are rise of live streaming, evolving consumer preferences and increased online shopping.
Q4. What are the major segments for video commerce market?
Answer: The future of the video commerce market looks promising with opportunities in the retail & e-commerce, fashion & beauty, electronic & gadget, home & furniture, food & beverage, and travel & hospitality markets.
Q5. Who are the key video commerce market companies?
Answer: Some of the key video commerce companies are as follows:
• Alibaba
• Shopify
• Amazon.com
• Alphabet
• Wayfair
• Bambuser
• Channelize.io
• Firework
• LiSA Social Commerce
• BuyWith
Q6. Which video commerce market segment will be the largest in future?
Answer: Lucintel forecasts that social media platform is expected to witness the highest growth over the forecast period.
Q7. In video commerce market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness highest growth over the forecast period.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the video commerce market by platform (social media platforms, e-commerce platforms, video streaming platforms, live streaming platforms, , and), end use (retail & e-commerce, fashion & beauty, electronics & gadgets, home & furniture, food & beverage, travel & hospitality, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Video Commerce Market, Video Commerce Market Size, Video Commerce Market Growth, Video Commerce Market Analysis, Video Commerce Market Report, Video Commerce Market Share, Video Commerce Market Trends, Video Commerce Market Forecast, Video Commerce Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.