eServices

Revenue in the eServices market is projected to reach US$240.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 10.50%, resulting in a projected market volume of US$358.50m by 2028.
The Online Education market is expected to show a revenue growth of 12.6% in 2025.0.
The Online Gambling market has a projected market volume of US$99.68m in 2024.
In global comparison, most revenue will be generated United States (US$149.40bn in 2024).
The average revenue per user (ARPU) in the Online Gambling market is projected to amount to US$337.10 in 2024.
In the Online Education market, the number of users is expected to amount to 5.7m users by 2028.
User penetration in the Online Education market will be at 7.0% in 2024.

Definition:

eServices refer to the delivery of services through electronic means, typically via the internet. eServices offer the convenience of conducting transactions and accessing information online and have become increasingly popular in recent years due to the growth of internet accessibility and the increasing use of digital devices. The eServices market continues to expand as consumers seek efficient and convenient ways to access and purchase various services.

The definition of eServices does not include media content acquired online (see: Digital Media) or the online sale of physical goods (see: eCommerce). Furthermore, no business-to-business segments are included, and neither are revenues from software downloads and services, or price/product comparison site commission fees.

Structure:

eServices includes the event ticketing market, which covers the sale of tickets for sporting events, music concerts, and cinema showings. The dating services market includes online dating platforms, matchmaking services, and casual dating sites. The online education market encompasses the provision of university education, online learning platforms, and professional certification programs. Lastly, the online gambling market which covers online sports betting, online casinos, and online lotteries.

Additional Information

Data includes revenue figures in Gross Merchandise Value (GMV), Users, average revenue per user (ARPU), and user penetration rate. User and revenue figures represent B2C services.

Online booked and digitally issued event tickets for sports events, music events, and cinemas such as Ticketmaster, StubHub, or CTS eventim
Online dating services, including matchmaking, online dating, and casual datings such as Tinder, Bumble, or Badoo
Online Education, including universities, platforms and professional certificates such as Udem, Coursera, or EdX

Offline booking by telephone or through agencies
Online ticket reservations without direct checkout process

Kenya has seen a significant growth in its eServices market in recent years, with a strong demand for digital services across various sectors.

Customer preferences: Customers in Kenya have shown a clear preference for eServices due to their convenience and accessibility. With the increasing penetration of smartphones and internet connectivity, more Kenyans are opting for digital solutions for their everyday needs. Online shopping, digital payments, and e-learning platforms have become increasingly popular among consumers. Additionally, the younger generation, which forms a significant portion of the population, is more tech-savvy and comfortable with using digital platforms for their daily activities.

Trends in the market: One of the key trends in the eServices market in Kenya is the rise of e-commerce. Online shopping platforms have gained traction, offering a wide range of products and services to consumers. This trend is driven by the convenience of shopping from the comfort of one's home, as well as the availability of secure payment options. The growth of e-commerce has also led to the emergence of logistics and delivery services, further fueling the demand for eServices. Another notable trend is the increasing adoption of digital payment solutions. Mobile money services, such as M-Pesa, have revolutionized the way people in Kenya transact. The ease of sending and receiving money through mobile phones has made digital payments a preferred choice for many Kenyans. This trend has also paved the way for the development of other financial technology (fintech) solutions, including mobile banking and digital lending platforms.

Local special circumstances: Kenya has a vibrant startup ecosystem, with numerous tech companies and entrepreneurs driving innovation in the eServices sector. The government has also been supportive of the digital economy, implementing policies and initiatives to promote the growth of eServices. For example, the establishment of the Kenya Tech City has created a conducive environment for tech startups to thrive. Furthermore, Kenya has a large unbanked population, which presents an opportunity for eServices providers to tap into this market. The use of mobile money services has been instrumental in providing financial services to the unbanked, enabling them to access banking services and make digital transactions.

Underlying macroeconomic factors: Kenya's strong economic growth and increasing urbanization have played a significant role in the development of the eServices market. As more people move to urban areas, the demand for convenient and efficient services has grown. Additionally, the government's investment in infrastructure, particularly in improving internet connectivity, has facilitated the growth of the digital economy. In conclusion, the eServices market in Kenya has witnessed significant growth due to customer preferences for convenience and accessibility. The rise of e-commerce, digital payments, and the supportive local ecosystem have contributed to the development of the market. With favorable macroeconomic factors and a growing urban population, the eServices market in Kenya is expected to continue its upward trajectory.

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.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.