Digital commerce in North America will grow at a compound annual rate of 15 percent to nearly $716 billion in 2020, up from $353 billion in 2015, according to a new report from Aite Group. The Boston-based business consultancy and research firm said online transactions originating from desktops, laptops and mobile devices will also account for a growing share of the total retail pie—11 percent in 2020 compared to only 7 percent in 2015. U.S. companies account for nearly all digital commerce revenue (97 percent) in North America, the report said.
Not surprisingly, Aite found mobile online commerce was growing more than twice as fast (39 percent CAGR) as e-commerce originating from traditional desktop and laptop devices. M-commerce in North America will reach more than $295 billion in annual sales by 2020 compared to nearly $57 billion last year. And, while not showing quite the torrid growth rate as mobile, Aite predicts cross-border e-commerce will grow from $53.6 billion in 2015 to $122.6 billion by 2020.
“With the tripling of internet users in the past decade, the number of possible connections between individuals and companies has grown exponentially, creating new opportunities for commerce and payment,” Aite analysts Talie Baker and Thad Peterson wrote in Digital Commerce in Northern America: Growth and Opportunities. “Ongoing global growth in cross-border remittance is driving the emerging digital/online cross-border remittance business, and with increased connections, digital commerce across borders is growing rapidly as well. Beyond the increased transaction flow and the dramatic growth of connectivity, the increasing dominance of the mobile device is creating new ways to shop, buy, and receive goods and services.”