Digital Trade & E-Commerce
Digital technologies transform global commerce. Digitally delivered services grow 8% annually as AI, platforms, and cross-border e-commerce reshape trade flows.
Key Digital Trade Insights
Digital Services Surge
Digitally delivered services reached $3.8 trillion in 2024, growing 8% annually—faster than goods trade. Telecommunications, computer services, financial services, and intellectual property licensing drive growth. Now represent 43% of total services trade.
E-Commerce Expands Globally
Cross-border e-commerce reached $1.2 trillion in 2024, representing 26% of global merchandise trade (up from 18% in 2020). Platform-based commerce via Amazon, Alibaba, and social media reshapes retail. Most countries still lack official statistics tracking online transactions.
AI Drives Trade Growth
AI-related goods (semiconductors, servers, networking equipment) drove 50% of 2025 H1 trade expansion with 20% YoY growth. AI services—automation, analytics, generative AI—create new tradeable digital products. Reshapes comparative advantage toward technology leaders.
Data Measurement Gap
Most countries lack statistics capturing online transaction values, cross-border digital trade, and social-media commerce. UNCTAD/WTO developing measurement frameworks for AI, platform business models, remote work, and fully digital services to guide 2026 indicator review.
Digitally Delivered Services Trade Growth (2015-2024)
Annual value in trillions USD
Key Finding: Digital services trade nearly doubled from $2.0T (2015) to $3.8T (2024), growing 8% annually. COVID-19 accelerated digitalization in 2020-2021, with sustained high growth as remote work, cloud services, and streaming became permanent.
Digital Services by Category (2024)
Share of digitally delivered services trade (%)
Key Finding: Telecommunications and computer services lead at 28%, followed by financial services (22%), intellectual property (18%), professional services (15%), and other digitally delivered services. Fastest growth in AI/cloud computing subsectors.
Cross-Border E-Commerce Growth (2018-2024)
Value of international online retail sales ($ billions)
Key Finding: Cross-border e-commerce grew from $530B (2018) to $1,200B (2024), surging during pandemic as consumers shifted online. Now represents 26% of global merchandise trade, up from 18% in 2020. Social commerce via TikTok/Instagram emerging rapidly.
Top Digital Services Exporters (2024)
Value of digitally delivered services exports ($ billions)
Key Finding: USA leads digital services exports at $520B, followed by UK ($280B), Ireland ($245B-tax haven effect), Germany ($220B), and India ($210B). Ireland's outsized share reflects tech companies' EU headquarters; India dominates IT outsourcing.
Understanding Digital Trade
What Is Digital Trade?
Digital trade encompasses: (1) digitally delivered services (software, streaming, cloud computing, consulting delivered online), (2) digitally ordered goods (merchandise purchased online but shipped physically), and (3) data flows enabling commerce.
Measurement Challenges
Traditional trade statistics struggle to capture digital commerce. Cross-border data flows aren't recorded like goods shipments. Platform-based sales obscure seller locations. Intangible digital products challenge customs valuation. UNCTAD/WTO developing new frameworks for AI era.
Trade Rules for Digital Economy
Key issues: data localization requirements, cross-border data flow restrictions, digital taxes, intellectual property in digital goods, e-commerce customs duties moratorium, privacy regulations, and platform regulation. Negotiations ongoing at WTO and in regional agreements (CPTPP, USMCA have digital chapters).