India E-commerce Market: Industry Analysis and Forecast (2022-2029), Key Trends

India E-commerce Market size was valued at US$ 39.33 Bn. in 2021 and the total revenue is expected to grow at a CAGR of 31.13% through 2021 to 2029, reaching nearly US$ 343.90 Bn.
India E-commerce Market Overview:
E-commerce stands for Electronic commerce and it is a type of business model that allows people and companies to purchase and sell services and products through the Internet. It is conducted over computers, smartphones, tablets, and other types of smart devices. Flipkart, Amazon India, Snapdeal, Myntra, IndiaMart, Book My Show, Nykaa, Alibaba, First Cry, and 1mg are the top ten E-commerce sites in India. E-travel, E-Retail, Online financial services, Online consumer services, and Digital content are the operation types of India E-commerce. BFSI, Cloud service providers, Social media platforms, Content owners, Logistics providers, IoT devices, and Advertisers Search engines are some of the end-users of India E-commerce.


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India E-commerce Market Dynamics:
India is quickly transforming into a digitally empowered society. The market is being driven by a number of factors, including the push for e-governance, the proliferation of smartphones, increased Internet access, digital payment, favourable demographics, and legislative reforms. Furthermore, the e-commerce market is expected to increase, whether it is in e-Retail, travel, consumer services, or online financial services, due to improving data affordability, consumption growth, and novel financial products.

Digital India, Skill India, Start-up India, and Make in India are all government initiatives that are helping to boost the e-commerce industry. Beyond tier I cities, e-commerce has grown the first wave of metro consumers in India. Millions of people from tier II and tier III cities are now using it. E-commerce is supervised by a number of regulatory agencies and rules. The Reserve Bank of India recently issued new guidelines for internet banking. E-commerce was also recognised under the IT Act by the Ministry of Electronics, Information, and Technology (MeitY), which introduced intermediary guidelines. Prescriptive regulatory frameworks based on an understanding of present business models stifle the development of more innovative models.

Business to Business (B2B) refers to e-commerce transactions between companies. Suppliers, distributors, and agents are all possible partners for an e-commerce business. Electronic Data Interchange is commonly used to carry out these transactions. B2Bs, on average, have more security requirements than B2Cs. Manufacturers and wholesalers, for example, are B2B businesses.

Companies can improve the efficiency of various typical business tasks with the help of B2B e-commerce, including supplier management, inventory management, and payment administration. Companies are capable to control their supplier costs by minimizing purchase order processing prices and cycle times with the use of e-commerce applications of the businesses. This factor provides the advantages of being capable to process many purchasing orders at a lower price in an equal amount of time. By connecting business partners with the company to give faster data access, e-commerce technology can also help to shorten the order-ship-bill cycle of inventory management. Businesses can improve their inventory auditing skills by electronically tracking order shipments, which reduces inventory levels and enhances the company's ability to provide "just-in-time" service.

This e-commerce technology is also being utilised to boost the efficiency of coordinating payments between a company's partners and distributors. Companies can reduce the number of clerical errors and increase the speed with which invoices are processed by processing payments online, resulting in lower transaction fees.

The increasing use of Digital Payment drives the growth of the India E-commerce Market

One of the most major benefits of digital payments is that they give customers a seamless experience. Online payments are favoured because of their reduced dependence on cash, rapid transfer speeds, and convenience of use. Risk, steps, and physical presence are all considerations that traditional payment methods like cash and checks add to. With digital payment, people may send and receive money instantly from anywhere in the globe.

When customers see how easy, convenient, and secure online payments are, they transact more online. Due to this factor, an increasing number of people are comfortable purchasing products online, investing digitally, and transferring money via electronic means. The advancement of the economy is driven by a rise in money flow and online business. This is why new online businesses are started every day, and many more are profitable.

Increasing Internet Access boosts the growth of the Indian E-commerce Market

People can purchase from online stores, to browse through and place orders for products or services using their own devices, for that they need an internet connection. In 2021, the investments of the education and technology sector in India in the e-commerce and consumer internet was reached US$ 1,833 Million, whereas, the HyperLocal sector investments in India e-commerce and consumer internet was reached US$ 1642 Million in 2021. These are the key factors that are expected to boost the growth of the India E-commerce Market during the forecast period 2021-2029.
India E-commerce Market Segment Analysis:
The India E-commerce Market is segmented by End-Users, Operation, and Category.

Based on the End-Users, the market is segmented into BFSI, Cloud service providers, Social media platforms, Content owners, Logistics providers, IoT devices, Advertisers Search engines, Internet service providers, and MSMEs. The Internet service providers segment is expected to grow rapidly at a CAGR of xx% during the forecast period 2021-2029. The number of people using the internet in India is growing by leaps and bounds. Almost every home, individual, and business now has access to the internet. In India, a number of public and private sector telecom behemoths have emerged, each offering specialised internet solutions. In India, internet service providers have a long history of providing high-quality internet services that meet the needs and budgets of their customers. The Internet and WWW provide the opportunity to expand E-commerce activity throughout the contract cycle, allowing new providers to electronically service new clients. Business-to-business and business-to-consumer transactions are both possible on the WWW. These are the key factor that drives the growth of this segment in the India E-commerce market during the forecast period 2021-2029.



Based on the Operation, the market is segmented into E-travel, E-Retail, Online financial services, Online consumer services, and Digital content. The E-Retail segment is expected to hold the largest market share of xx% by 2029. During the forecast period, e-retail sales in India are expected to grow by 32%, headed by Flipkart, Amazon India, and Paytm Mall. With a stake of 48%, electronics is the most popular online shopping category, followed by clothes with a share of 29%.

Electronic tailing, commonly known as e-retailing, is the business of selling retail items through the Internet. E retailing allows customers to buy goods or services directly from a seller via the internet using a web browser. Customers can find products online by comparing prices, product descriptions, and other characteristics on a variety of websites. Customers can search for products on retailer websites or other electronic shopping outlets. These are the key drivers that boost the growth of this segment in the India E-commerce market during the forecast period 2021-2029.
India E-commerce Market Regional Insights:
North India dominates the India E-commerce market during the forecast period 2021-2029. North India is expected to hold the largest market share of xx% by 2029. Snapdeal, Amazon, Flipkart, Bluestone, First Cry, Myntra, FashionandYou, and ShopClues are among the online retailers that cater to this region and have seen a significant surge in revenue from the region.

The people of the northeast have always been known for their unique and elegant sense of style. Rock culture, which is renowned in a number of towns in this region, including Shillong, Guwahati, Gangtok, Aizwal, and others, has instilled strong fashion sensibilities in the people of these states, just as it does in any other metropolitan and urban Indian metropolis. That's why branded fashion accessories and apparel sell out so rapidly on the internet. These are the key factor that is expected to drive the growth of the North India region in the India E-commerce market during the forecast period 2021-2029.

The objective of the report is to present a comprehensive analysis of the India E-commerce Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also helps in understanding the India E-commerce Market dynamic, structure by analyzing the market segments and project the India E-commerce Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the India E-commerce Market make the report investor’s guide.
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India E-commerce Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2021-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 39.33 Bn.


Forecast Period 2021 to 2029 CAGR:
31.13%
Market Size in 2029:
US $ 343.90 Bn.


 Segments Covered:
by End-Users
• BFSI
• Cloud service providers
• Social media platforms
• Content owners
• Logistics providers
• IoT devices
• Advertisers Search engines
• Internet service providers
• MSMEs


by Operation
• E-travel
• E-Retail
• Online financial services
• Online consumer services
• Digital content


by Category
• Domestic
• cross-border
• B2B and B2C
• Inventory based



India E-commerce Market, by Region
• East India
• West India
• North India
• South India
India E-commerce Market Key Players
• eBay
• Amazon
• Phone pay
• Google
• Flipkart
• Snapdeal
• Jabong
• Myntra
• Paytm
• MakeMy Trip
• Infibeam
• Nykaa
• Limeroad
• Shopclues
• Naaptol Online Shopping Pvt. Ltd
• Yepme -Vas Data Services Pvt Ltd
• Tata Cliq
• Cleartrip.com
Frequently Asked Questions:
1] What segments are covered in India E-commerce Market report?
Ans. The segments covered in India E-commerce Market report are based on End-Users, Operation, and Category.

2] Which region is expected to hold the highest share in the India E-commerce Market?
Ans. North India is expected to hold the highest share in the India E-commerce Market.

3] Who are the top key players in the India E-commerce Market?
Ans. eBay, Amazon, Phone pay, Google, Flipkart, and Snapdeal are the top key players in the India E-commerce Market.

4] Which segment holds the largest market share in the India E-commerce market by 2029?
Ans. E-Retail segment hold the largest market share in the India E-commerce market by 2029.

5] What is the market size of the India E-commerce market by 2029?
Ans. The market size of the India E-commerce market is US $ 343.90 Bn. by 2029.

6] What was the market size of the India E-commerce market in 2021?
Ans. The market size of the India E-commerce market was worth US $ 39.33 Bn. in 2021.