Headless commerce is a relatively new way to approach the structure of an e-commerce platform that implies the separation of the frontend (view layer) and backend (operations layer). This separation allows businesses to deliver more flexible and personalized user experiences across various digital channels. The headless commerce market is also emerging and will grow even more in 2024, adding to the increased demand for more flexibility and personalization across the diverse services of digital commerce.
Headless Commerce Statistics
Headless Commerce Statistics show that the global headless commerce market reached a value of $1.7 billion in 2023, according to a study conducted by Grand View Research. The market is expected to grow at a compound annual growth rate (CAGR) of 22.5% from 2024 to 2035, reaching an estimated value of $13.2 billion by 2035. This rapid growth is attributed to the rising adoption of digital commerce platforms that require flexible and scalable solutions.
However, several challenges are related to headless commerce, such as the complexity and often costly implementation and integration, the high initial investment costs needed to start the services, and finally, the shortage of skilled professionals for managing and maintaining the headless commerce systems. Some of these factors can slow down the pace at which headless commerce solutions are chosen and implemented, especially within medium-sized enterprises (SMEs). Despite these challenges, businesses can benefit greatly from headless commerce development services that provide the necessary expertise to handle both the backend and frontend integrations, leveraging a framework that supports robust API connections to various e-commerce platforms.
Key Players in the Headless Commerce Market
There are numerous main players in the headless commerce market that are the leaders in development and implementation. Some of the leading companies in this space include:
- Shopify Plus
Shopify Plus is recognised for its robust and adaptable commerce solution, and an extensive ecosystem so, it is often applied for headless commerce systems.
- BigCommerce
Promotes omnichannel and cloud-based e-commerce platforms capable of integrating with headless commerce structures.
- Magento (Adobe Commerce)
Offers PCI-compliant full omnichannel solutions with a great focus on Headless solutions.
- Contentful
One of the most popular CMSs that can easily connect to different e-commerce back-shops to realize headless commerce.
- CommerceTools
A purely API-centered and headless commerce vendor whose platform is considered one of the most flexible and scalable.
- Elastic Path
It specializes in providing headless commerce platforms for the proper management of organizational goals and for offering satisfying customer experiences.
- SAP Commerce Cloud
Well-known for deploying large-scale web applications and for headless commerce, particularly in enabling and supporting composable business operations, as well as offering a strong and scalable e-commerce foundation.
- Salesforce
Salesforce, being a popular CRM and covers most enterprises, helps in managing headless commerce through its set of tools that delivers customer personalization and holistic control of digital interfaces.
These companies provide solutions in the headless commerce space, ranging from highly customizable and scalable platforms to content delivery systems compatible with several e-commerce backends.
Factors Driving Market Growth
Several factors are playing a crucial role in the growth of the headless commerce market:
Increasing Demand for Customization
Consumers desire a distinctive product and service that will provide personalized experiences during such purchases. This is made possible by the headless commerce models that enable developers to create bespoke front-end overlays.
Omnichannel Strategies
Furthermore, omnichannel is vital to the development of the headless commerce market since it allows the brand to maintain a consistent and unique experience across online, offline, social media, and in-store interaction points. Headless commerce is best known for enabling business structures to separate the front-end and back-end operations while making it manageable to connect different touchpoints. This capability means that the consumers can engage with the brand with ease, no matter the choice of the platform. This is where business benefits as consumers are offered a more integrated and individual experience which in turn leads to higher engagement and conversion. Consequently, headless commerce solutions remain in high demand, which in turn drives the market.
Technological Advancements
AI and ML improve the effectiveness of headless commerce platforms as they are some of the most advanced technologies. They enable customer engagement at an individual level and provide highly enhanced features. They enhance the chances of deciphering customers’ actual trends and needs, a factor that boosts marketing and guidance on which goods to deliver.
Scalability and Flexibility
Scalability and flexibility are key pillars of growth in headless commerce since they make it easier for businesses to change or grow. Headless commerce platforms are flexible and can easily be integrated into other solutions, which is vital for the businesses that are rapidly expanding or those that see shifts in customer progress. Due to the ever-increasing focus on scalability and flexibility in the commerce practices among firms and organizations, headless commerce solutions are in high demand, which further fuels the growth of the global market.
Improved Performance and Speed
The advancement of performance and speed undoubtedly influence headless commerce growth. Thus, by decoupling the front-end from the back-end, headless commerce solutions improve website performance and loading times, thus increasing customer satisfaction, improving website ranking, and reducing bounce rates.
Key Countries Playing a Role
The headless commerce market is growing globally, but certain countries are expected to play a key role in its expansion:
- United States
As a pioneer in technology and e-business, the U.S. will spearhead the growth of the headless commerce market. Many American firms are now leading users and creators of digital commerce technologies.
- Germany
With a well-developed manufacturing industry and a solid B2C market, Germany is ready to emerge as one of the leaders. Several characteristics of the country make it easy for organizations to adopt Headless Commerce solutions including the strong technology base and commitment to technological advancement.
- China
Given that China has a vast population and high penetration of digital technology in the population’s daily life, headless commerce should evolve significantly in the coming years. Chinese e-commerce and its platforms are using headless architecture more and more in order to be more competitive and satisfy the expectations of their sophisticated Customer.
- United Kingdom
Surveys reveal that British firms are eager to implement new technologies to improve their online presence and customer relations. A report by Grand View Research highlights that the UK digital transformation market is expected to grow at a compound annual growth rate (CAGR) of 27.7% from 2023 to 2030, driven by investments in cloud computing, IoT, and modernizing IT infrastructure. This enthusiasm for digital transformation positions the UK as a key player in the adoption and growth of headless commerce solutions​.
Market Segmentation
Headless commerce is segmented by platform, deployment mode, organization size, and industry.
Platform Type
Commerce Platforms
There are platforms that offer a strong back end and support the headless approach, such as Shopify Plus and BigCommerce. These platforms provide many features and options that can be customized to suit any company, from small to midsize to large.
Content Management Systems (CMS)
Solutions like Contentful are adaptive Content Management systems designed specifically for companies that use the headless commerce approach. Successful promotion and delivery of content can, therefore, be made easily through CMS, which is a platform that helps businesses deal with different channels.
Custom Solutions
In-house solutions are created by companies to meet certain requirements while using open-source software and components. As for the specifics of the e-commerce environment, custom solutions give the greatest level of freedom and management, meaning that adjustments can be made to match the nature of the business most accurately.
Deployment Mode
Cloud-Based
Headless commerce offered by third parties on the cloud has been on the rise because of factors such as cost-effectiveness, flexibility, and expansibility. These solutions can enable business organizations to easily introduce new products, expand rapidly, and change directions in response to new opportunities because they do not require huge investments in physical infrastructure.
On-Premises
Although this is not as common as cloud deployment, some businesses opt for on-premises solutions since they provide them with more control and security. On-premises has the tendency to be complicated and expensive but offers better control of data and compliance.
Organization Size
Large Enterprises
These organizations use headless commerce because of its relative flexibility and the ability to deploy changes as required. Another advantage that large enterprises can leverage is the opportunity to set up sophisticated and, at the same time, rather individualized m-commerce systems to cover all the requirements of multiple customers.
SME stands for Small and Medium-Sized Enterprises
On the one hand, implementation costs may be an issue for SMEs; on the other, headless commerce’s advantages encourage gradual integration. SMEs can use headless solutions to counter their more considerable rivals by providing new and versatile customer experiences.
Industry Vertical
Retail and E-commerce
The first sector that is most likely to adopt headless commerce solutions is the one that demands constant adaptations to shoppers’ preferences. Companies opting for the headless commerce model ensure that the customer gets the same engagement experience, whether on a website or an app.
Healthcare
Headless commerce becoming more integrated in telehealth and Digital Health services. Marketing messages can be delivered to the exact people who need them, and healthcare providers have the ability to offer specific content and/or services to patients.
Finance
Financial institutions apply headless commerce as a method to deliver convenient digital experiences. Some of the benefits include the achievement of improved customer satisfaction and, therefore, retention achieved through the provision of products and services that are customized for the institutions’ targeted clients by using various access points.
Media and Entertainment
It can be used to adopt M2M content, manage digital content, and enhance client interaction. Media companies may target users with specific content and reach consumers through multiple devices with improved experience and various monetization methods.
Global Trends in the Headless Commerce Market
Integration of Artificial Intelligence and Machine Learning
AI and ML are being increasingly integrated into headless commerce platforms to enhance personalization, automate processes, and provide deeper insights into consumer behavior. These technologies enable businesses to deliver more targeted and efficient shopping experiences. For example, AI can analyze customer data to recommend products, predict trends, and optimize pricing strategies.
Use of Blockchain
Blockchain technology is being explored to enhance security, transparency, and traceability in headless commerce transactions. It provides a decentralized way to handle payments and manage supply chains, which can be particularly beneficial for e-commerce. Blockchain can also be used to verify the authenticity of products, ensuring that consumers receive genuine items.
Conclusion
The headless commerce market overview also emphasizes that this industry’s growth will constantly grow between 2024 and 2035 due to the key factors below. According to headless commerce statistics, despite some challenges, including high implementation costs and increased complexity, the market is backed by key players and elastic trends like AI and blockchain. Promising players by experts’ forecasts are countries such as the USA and Germany, China, and the UK, which will testify to the market development perspective. With businesses constantly searching for extended and reliable scalable solutions that will be optimal for the future, headless commerce appears to be a winning strategy for companies ready to opt for digital transformation.
In conclusion, the headless commerce market is vast and poised to reshape business environments by providing companies with the tools necessary to compete in today’s digital-first world. Headless commerce will remain a significant aspect of evolving digital strategies, with technology companies backing it and the integration of modern technologies to build convenient solutions being the prime factors in its growth.