Market Overview

The Taiwan Advanced Connectivity in E‑Commerce & Retail Market is projected to grow from around USD 2.68 billion in 2023 to over USD 2.68 billion by 2032, exhibiting a staggering CAGR of ~25.7% between 2023 and 2032 . This rapid expansion is powered by rising consumer expectations, mobile-first shopping, cross-border retail demand, and emerging technologies like 5G mmWave, AI, IoT, and edge computing. Taiwanese consumers are highly mobile-savvy (penetration ~120%), with platforms like Shopee Taiwan, PChome, and Momo driving e-commerce adoption .

This advanced connectivity landscape supports use cases such as real-time inventory tracking, order fulfillment, personalized recommendations, fraud detection, and supply chain optimization through integrated connectivity and AI analytics.

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Market Segmentation

Connectivity Types

• Cellular (including 5G Standalone, mmWave),

• LPWAN / IoT networks,

• Short‑range wireless,

• Wireline/fixed,

• Optical fiber, and LEO satellite connectivity solutions .

Technology Stack

• Technologies include AI, Machine Learning (ML), Edge Computing, IoT, and others—enabling real-time operational insights and personalization in retail scenarios like inventory forecasting and recommendation engines .

Applications

• Real-time inventory tracking, order fulfillment efficiency, personalized shopping, fraud detection, supply chain integration, and omnichannel data synchronization represent key application segments.

Key Players

Major providers in the Taiwan market include global and local technology leaders such as Ericsson, Qualcomm, Cisco, Huawei, IBM, Oracle, SAP, Microsoft, Samsung, Intel, AT&T, Verizon, NTT, Telstra, Singtel, and more . Local integrators and innovators include companies like Wave-In Communication and Wiwynn, delivering AIoT, 5G edge, and open‑RAN solutions tailored to retail and e-commerce environments .

Some retail–telecom partnerships have emerged—such as collaborations between Chunghwa Telecom and retailers like Carrefour Taiwan—to deploy advanced retail connectivity solutions.

Industry News

• Far EasTone and Ericsson successfully demonstrated differentiated 5G Advanced connectivity at a 40,000-attendee event at Taipei Dome. This trial enabled on-demand connectivity packages—with uplink speeds up 130% and downlink speeds up 198% over best-effort service—which can be extended to high-traffic retail zones and pop-up events.

• Chunghwa Telecom and Ericsson signed an MoU at MWC 2025 to accelerate 5G Advanced, enabling AI-native programmable networks, network APIs, and paving the way toward 6G deployment—positioning Taiwan as a leader in connectivity innovation for retail experiences and XR commerce .

Recent Developments

• ASE’s collaboration with Qualcomm, Asia Pacific Telecom, and National Cheng Kung University led to Taiwan’s first 5G mmWave NR-DC SA smart factory—demonstrating how ultra-high-speed connectivity supports AI analytics and IoT-driven real-time inventory, anomaly detection, and logistics optimization. Such infrastructure reinforces the retail supply chain’s digital backbone .

• The Taiwan Ministry of Economic Affairs has launched a Digital Retail Acceleration Program, offering grants and support for retailers adopting IoT, AI-powered cashierless stores, and smart ecommerce platforms. Shopee Taiwan partnered with telecom providers to launch 5G-powered AR shopping experiences starting early 2024 .

Market Dynamics

Drivers

• Surge in mobile commerce (m‑commerce) driven by smartphones, app-first shopping behaviors, and mobile payments (e.g. JKo Pay, PX Pay) .

• Investment in 5G SA, mmWave, and edge-computing for real-time data connectivity across retail operations.

• Rapid emergence of AI, IoT, ML, and edge analytics to support personalization, forecasting, fraud detection, and supply chain visibility.

• Government incentives and infrastructure programs encouraging digital transformation in retail e-commerce.

Restraints

• Infrastructure investment costs for small and medium retailers may be high.

• Fragmented retail ecosystem and technology compatibility issues can delay unified implementations.

• Data privacy and regulatory compliance (e.g., Taiwan’s PDPA) require strong governance models.

Opportunities

• Innovation in AI-powered cashierless stores, smart shelves, and digital twins to optimize in-store experience.

• Use of network APIs for location-aware promotions, differentiated QoS for premium shopping services (e.g. AR browsing, livestream).

• SMEs and export-oriented merchants leveraging cross-border platforms and integrated logistics for global reach.

• Growth of edge-based inventory automation, real-time analytics, and frictionless omnichannel experiences.

Regional Impact

While the focus is on Taiwan, increasing cross-border e-commerce and exports to ASEAN, Japan, and global markets is a key trend. Taiwan’s retailers are integrating with global platforms (Shopee, Amazon, Rakuten), powered by advanced logistics, warehouse automation, and AI fulfillment systems in partners like EZship and T‑Cat .

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Future Outlook

The Taiwan Advanced Connectivity in E‑Commerce & Retail Market is on track to surpass USD 2.68 billion by 2032, with a compound growth rate of ~25.7% driven by 5G advanced, IoT, AI‑powered personalization, and edge connectivity services .

Boostrapped by government digital retail programs, partnerships between telecoms and retailers (e.g., Chunghwa/Carrefour, Far EasTone/Ericsson), and innovation in AR shopping and smart logistics, Taiwan is positioned to become a leader in hyper-connected retail innovation.

Notable trends ahead:

• Tighter integration between 5G API-delivered services (e.g., differentiated QoS), AI personalization, and XR-based shopping experiences.

• Expansion of smart logistics solutions—real-time supply chain tracking, connected warehouses, and predictive restocking.

• Increased adoption of cashierless, connected retail powered by computer vision and networked sensors.

• Growth in cross-border e-commerce adoption, underpinned by infrastructure seamlessness and global platform integration.

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