New research reveals UAE has the fastest growing e-commerce market in 2022


Global retail e-commerce sales are forecast to grow 50% over the next four years – but with so much competition, where should investors and entrepreneurs start?

To better understand the state of the rapidly growing global e-commerce market and the opportunities available, Merchant Machine has researched the most and least saturated sectors to identify valuable market gaps for entrepreneurs and investors.

The top 10 countries with the fastest growing e-commerce markets in 2022

To uncover the fastest growing e-commerce countries in the world, Merchant Machine analyzed 25 regions across a range of growth metrics to find where customers are most likely to be spending their money in 2022. The five metrics analyzed were:

  • The total online population of each country
  • Annual change in e-commerce spending as % of GDP from 2021 to 2022
  • E-commerce as % of total retail in 2022
  • The forecast percentage change in the eCommerce market size from 2022 to 2023
  • The projected change in e-commerce spending per capita (US$) from 2022 to 2023

Each country was then given a final score out of 10 on the Rising E-Commerce Index.

rank

country

online population

Annual change in e-commerce spending as % of GDP

Ecommerce % of total retail in 2022

Predicted percentage change in e-commerce market size from 2022 to 2023

Projected change in e-commerce spending per capita (US$) from 2022 to 2023

Overall rising ecommerce score

(out of 10)

1

United Arab Emirates

1,448,471,400

1.10%

7%

23.11%

22.32%

7.23

2

South Korea

215.353.593

1.20%

25%

20.38%

20.29%

6.36

3

Argentina

46.010.234

10%

27.27%

26.15%

6.20

4

Brazil

1,406,631,776

0.40%

5%

18.94%

18.94%

5.98

5

Thailand

65,584,518

2.10%

11%

18.00%

17.67%

5.51

6

Vietnam

38,388,419

0.60%

6%

23.66%

22.87%

5.17

7

Indonesia

51,512,762

0.30%

10%

22.26%

20.91%

4.96

8th

China

5,554,960

0.50%

33%

12.06%

11.87%

4.67

9

Norway

279.134.505

0.40%

18%

14.89%

14.17%

4.55

10

Spain

125.584.838

0.40%

13%

15.63%

15.23%

4.23

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With the UAE’s 1,448,471,400 online population expected to increase their e-commerce spending by another 22.32%, it’s clear why this country ranks number one in the analysis.

As of last year alone, the country’s e-commerce spending as a percentage of GDP has increased by 1.10%, and in 2022, e-commerce accounted for 7% of total retail spending.

South Korea and Argentina are the second and third fastest growing e-commerce markets for 2022.

70% of e-commerce in the Philippines is done on a mobile device

Over the years, mobile devices have become an increasingly popular medium for online shopping. While e-commerce describes online shopping through a computer, m-commerce specifically refers to online shopping through a mobile device, which can be much more convenient for customers and provide an improved overall shopping experience.

M-Commerce: Top 10 countries using mobile devices for e-commerce payments:

rank

country

Ecommerce completed on a mobile device

1

Philippines

70%

2

China

69%

3

South Korea

66%

4

Indonesia

63%

5

Thailand

62%

6

Vietnam

61%

7

India

58%

8th

Singapore

57%

9

Malaysia

56%

10

United Kingdom

55%

The Philippines ranks number one on the list of the top 10 countries using mobile devices for shopping, with 70% of all e-commerce being conducted on a mobile device.

Closely followed by China in second place with 69% and South Korea in third place with 66%. With the exception of the UK, all of the top 10 countries are in Asia, showing the importance of this continent for the growth of m-commerce and e-commerce overall.

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The automotive industry attracted $57.3 billion in 2021, making it the most heavily invested startup sector

Using data from Crunchbase, Merchant Machine analyzed the top startups in the fastest growing e-commerce industries to determine where the opportunities lie for businesses and investors in 2022.

startups

Total number of leading startups

Total number of leading investment firms and individual investors

Total number of investment firms and individual investors

Total number of funding rounds

Total funding amount collected across all funding rounds

investment gap

(the number of startups vs. lead investors)

Lead Investor to Startup Ratio

grocery store

252

312

1,240

648

$15.8 billion

-60

1.24

furniture

238

263

814

555

$3.6 billion

-25

1.11

eLearning

1,607

1,573

5,054

3.214

$23.9 billion

34

0.98

Grocery Delivery Service

722

695

2,448

1,663

$16.2 billion

27

0.96

automobile

2.146

1,948

6,620

4,675

$57.3 billion

198

0.91

infant

150

136

530

349

$1.8 billion

14

0.91

personal health

935

845

3.227

2.163

$10.1 billion

90

0.90

electronics

1,798

1,469

4,796

3,811

$24.3 billion

329

0.82

beauty

809

613

2.317

1,470

$5.8 billion

196

0.76

domestic animal

410

309

1,091

845

$3.2 billion

101

0.75

video games

889

653

2,669

1664

$8.3 billion

236

0.73

children

418

305

1,190

809

$3.8 billion

113

0.73

Media & Entertainment

2.227

1,547

6.166

4,078

$18.2 billion

680

0.69

Travel

2079

1,434

5.208

4206

$26.2 billion

645

0.69

Fashion

2,230

1,488

5,965

4,225

$24.7 billion

742

0.67

Digital media

1,287

858

3,647

2,616

$10.5 billion

429

0.67

toys

134

78

366

275

$521.1M

56

0.58

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Merchant Machine research found that auto startups will receive the highest funding at $57.3 billion in 2021. After that, travel and fashion received the second-highest and third-highest funding at $26.2 billion and $24.7 billion, respectively.

-End-

About Merchant Machine

Merchant Machine was founded with the sole purpose of making it easier to learn more about UK payment processing options.

methodology

To uncover the fastest growing e-commerce countries in the world, Merchant Machine analyzed 25 emerging markets across a range of growth and purchase metrics to see where customers are most likely to be spending their money in 2022.

The five metrics included:

  • The entire online population
  • Annual change in e-commerce spending as % of GDP from 2021 to 2022
  • E-commerce as % of total retail in 2022
  • The forecast percentage change in the eCommerce market size from 2022 to 2023
  • The projected change in e-commerce spending per capita (US$) from 2022 to 2023

The metrics were all scored and averaged to give each country a final Rising E-Commerce Index score of 10.

To find out where the opportunities lie for both companies and e-commerce investors, the number of leading startups, the number of lead and total investments, and the total amount of funding for each of the fastest-growing e-commerce Industries compared show investment gaps.



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