Key trends:

• The global e-commerce sector is estimated to reach $71.0TN by 2028, witnessing a CAGR of 27.4% during 2023-28, driven by the increasing preference for online shopping, representing a significant market opportunity for marketplace enablers
• Marketplace enablers are expanding offerings including in areas such as marketplace listing management, digital shelf monitoring, increased customer services (pre and post-purchase), upgraded supply chain and logistics management, and personalized marketing efforts
• Year-to-date, investor interest in the marketplace enablers sector has been notable:
  • The sector has reduced M&A activity, witnessing only 43 M&A deals in 2023 so far, showing an overall decline in volume by about 63% YoY during the quarter ended Sep’23
  • Private placements within the sector have shown a deal value surge by 70% in 2023 vs 2022. However, the deal count has decreased with 43 private placements taking place in the first three quarters of 2023 against 81 private placements taking place in the first three quarters of 2022

Key themes for various sub-sectors include:

• AI & ML have become a crucial part of PIM with personalized marketing, customer support, smart search, and automation. AI & ML has transitioned from being a niche to a crucial and indispensable tool, centralizing and refining data for high-quality, consistent messaging and brand credibility across channels
• Image-based searching is projected to be the next major catalyst in the industry with some players in the market already introducing image search features on their websites. Image search is expected to offer merchants with higher returns while making shopping easier for customers
• Conversational commerce is gaining momentum as a large number of customers are currently looking for a better buying experience and engaging with chatbots, thereby increasing revenue and decreasing customer service costs