A new ITC report finds that digital trade is growing at twice the pace of global commerce, reshaping rules, supply chains, technology, and opportunities for small businesses worldwide.
When a shopper in São Paulo orders a dress from Shein, a teacher in Nairobi signs up for an online coding course, or a gamer in Berlin downloads the latest update, they are part of a vast shift in how the world trades. Once measured in shipping containers and customs declarations, global commerce is increasingly taking place on screens.
A new report by the International Trade Centre (ITC) and the office of the Global Digital Trade Expo Organizing Committee, anchored in the statistical frameworks of the International Monetary Fund, the Organisation for Economic Co-operation and Development, UN Trade and Development, and the World Trade Organization, tracks this transformation by combining official statistics, platform data, and quantitative estimation.
The value of digital trade leapt to $7.23 trillion from $4.59 trillion in 2020–2024. That growth, averaging 12% a year, outpaced traditional trade, which expanded at a slower clip of 9.7%. Digitally delivered services such as finance and software grew steadily, too.
Yet digital transactions still account for just 22% of international trade. This paradox – rapid growth but modest share – lies at the heart of ITC’s Global Digital Trade Development Report 2025. Its conclusion: digital trade is no longer a side story.
‘As digital channels become essential to the way economies function, digital trade is no longer just a complement to international trade – it is a key driver of innovation, competitiveness, and inclusive global growth,’ said ITC Executive Director Pamela Coke-Hamilton.
The race to regulate cross-border e-commerce
While the United States, the European Union, and the United Kingdom remain dominant, India, China, and Brazil are clocking the fastest gains. For many emerging economies, digital trade offers a chance to leapfrog into global markets, the report says.
Governments are scrambling to set the rules. The United States has tightened data controls and taxation, the European Union has introduced sweeping artificial intelligence regulation, and China has eased cross-border data flows. Regional accords are multiplying, from the Association of Southeast Asian Nations’ Digital Economy Framework to the African Union’s digital trade protocol. On the global level, the World Trade Organization e-commerce talks remain slow, while the UN Trade and Development works on common measures.
The next phase of digital trade
Artificial intelligence is the new frontier, the report says. Advances in open-source models such as DeepSeek are lowering barriers for small firms and revamping supply chains, pricing, and customer service. The United States pushes commercialization, Europe prioritizes regulation, and China bets on scale – approaches that will shape the future landscape.
The report highlights opportunities for women entrepreneurs and small and medium-sized enterprises, especially in Africa and Southeast Asia, where digital adoption boosts innovation and customer engagement. But gaps in finance, infrastructure, and compliance persist. Inclusive customs, procurement, and training are essential for broad-based gains, the report says.
The study distils five lessons: digital trade is outpacing traditional trade; regulation is diverging; artificial intelligence is transforming commerce; e-commerce drives innovation; and inclusion is critical.
Its conclusion is stark: digital trade is not just a footnote but a defining force of globalization’s next phase. The question is whether it will deepen divides – or build new bridges.
The report is being released at the Fourth Global Digital Trade Expo in Hangzhou, China, on 25 September 2025.
