eServices - Madagascar

Madagascar

The eServices market in Madagascar is projected to reach a revenue of US$28.66m in 2024.
With an annual growth rate (CAGR 2024-2029) of 15.45%, the market volume is expected to reach US$58.77m by 2029.
In the Online Food Delivery market, there is an expected revenue growth of 29.4% in 2025.
Meanwhile, the Online Food Delivery market in Madagascar is projected to have a market volume of US$21.79m in 2024.
In global comparison, China is expected to generate the highest revenue, with US$495.50bn in 2024.
The average revenue per user (ARPU) in the Online Food Delivery market is projected to be US$8.50 in 2024.
Furthermore, the number of users in the Online Food Delivery market is expected to reach 4.7m users by 2029.
The user penetration in the Online Food Delivery market is estimated to be 8.3% in 2024.
Madagascar's eServices market is experiencing a surge in demand for online education platforms due to the limited access to traditional schools in remote areas.

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Region comparison

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Analyst Opinion

The eServices market in Madagascar is experiencing significant growth and development.

Customer preferences: Customers in Madagascar are increasingly turning to eServices for convenience and efficiency. With the rise of internet penetration and the widespread use of smartphones, consumers are embracing digital platforms for various services such as online shopping, banking, and entertainment. The convenience of accessing these services from anywhere and at any time is a major driver for customer preference.

Trends in the market: One of the key trends in the eServices market in Madagascar is the growth of e-commerce. Online shopping platforms are gaining popularity, allowing consumers to browse and purchase a wide range of products with ease. This trend is driven by the convenience of doorstep delivery and the availability of a diverse range of products. Additionally, the COVID-19 pandemic has further accelerated the growth of e-commerce as consumers turned to online shopping to meet their needs while adhering to social distancing measures. Another trend in the market is the increasing adoption of mobile banking services. With limited physical bank branches in remote areas, many people in Madagascar are turning to mobile banking to access financial services. Mobile banking offers convenience and accessibility, allowing users to perform transactions, check balances, and access other banking services through their smartphones. This trend is supported by the government's efforts to promote financial inclusion and the development of digital payment infrastructure.

Local special circumstances: Madagascar's geography and infrastructure present unique challenges for the eServices market. The country's vast size and scattered population make it difficult to reach remote areas with traditional brick-and-mortar services. As a result, eServices are becoming a vital means to bridge the gap and provide access to essential services to those in remote locations. The development of eServices is also helping to overcome logistical challenges, such as transportation and distribution, by offering delivery services directly to customers' doorsteps.

Underlying macroeconomic factors: The growth of the eServices market in Madagascar is supported by several macroeconomic factors. The country's improving internet infrastructure and expanding mobile network coverage have enabled more people to access online services. Additionally, the government's efforts to promote digital transformation and improve the business environment have created a favorable ecosystem for eServices providers. The increasing disposable income and changing consumer behavior are also contributing to the growth of the market. In conclusion, the eServices market in Madagascar is experiencing significant growth and development driven by customer preferences for convenience and efficiency. The rise of e-commerce and mobile banking services are key trends in the market, supported by the unique circumstances of Madagascar's geography and infrastructure. The growth of the market is further supported by underlying macroeconomic factors such as improving internet infrastructure, government initiatives, and changing consumer behavior.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.