Singapore e-commerce market set to grow to $33.3B by 2028

SINGAPORE: Singapore’s e-commerce sector is poised for significant growth, with a compound annual growth rate (CAGR) of 8.9% projected to propel the market to $33.3 billion by 2028, according to a report by GlobalData.

This expansion is underpinned by several factors, including Singapore’s robust technology infrastructure, widespread availability of high-speed internet, and a tech-savvy consumer base that continues to drive online shopping adoption.

The sector has already seen remarkable growth in recent years, with the e-commerce market surging at a CAGR of 25.3% between 2020 and 2023, reaching a valuation of $21.2 billion.

This rapid expansion is expected to moderate slightly but remains strong, with an anticipated 11.7% growth in 2024, pushing the market size to $23.7 billion.

In terms of payment preferences, traditional payment cards continue to dominate the landscape, largely due to benefits such as cashback, rewards programs, and instalment options.

However, alternative digital payment tools like Apple Pay, PayPal, and Google Pay are increasingly gaining traction, reflecting evolving consumer behaviour and preferences.

The outlook for Singapore’s e-commerce industry highlights its pivotal role in its digital economy, with continued innovation in payments and infrastructure expected to sustain its upward trajectory in the coming years.