Published on September 7th, 2022.

Kenneth Research released a report on E commerce Market that consists of detailed analysis and industry insights for the forecast period, i.e. 2022-2031 . Based on the analysis of the market value and calculation of the CAGR during the forecast period, the latest trends and business opportunities in the market are discussed in the report.

U.S. Market recovers fast; In a release on May 4th 2021, the U.S. Bureau and Economic Analysis and U.S. Census Bureau mentions the recovery in the U.S. International trade in March 2021. Exports in the country reached $200 billion, up by $12.4 billion in Feb 2021. Following the continuous incremental trend, imports tallied at $274.5 billion, picked up by $16.4 billion in Feb 2021. However, as COVID19 still haunts the economies across the globe, year-over-year (y-o-y) average exports in the U.S. declined by $7.0 billion from March 2020 till March 2021 whilst imports increased by $20.7 billion during the same time. This definitely shows how the market is trying to recover back and this will have a direct impact on the Healthcare/ICT/Chemical industries, creating a huge demand for E commerce Market Products.

In the statistics by Eurostat, the total value of the ICT sector including manufacturing and services of ICT in Europe, was estimated to be more than EUR 475 billion in the year 2017. Out of these, the ICT services sector accounted for the largest share. Moreover, the ICT services sector is predicted to be ten times larger than that of ICT manufacturing. On the other hand, the ICT services consist of computer programming, consultancy and related activities, along with telecommunication activities, out of which the former held about 49.1% share while the latter held around 30.3% share in the year 2017. These factors are estimated to impact positively towards the growth of the market in the next few years.

The e-commerce market in India was valued at INR 4,947.60 Bn in 2019 and is expected to reach INR 8,641.10 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~14.42% during the 2020–2025 period. Affordable smartphones, increased penetration of the internet, and effective payment channels such as mobile wallets, coupled with streamlined logistics infrastructure are the key factors propelling the growth of the e-commerce market. The Indian government leverages e-commerce digital platforms to transform and organize traditional offline markets.

Market segment insights:

Based on product categories, the e-commerce market can be segmented into online travel, retail, financial services, matrimony and classified, and other services.

In 2019, the online travel segment held the largest market share (~44.88%), followed by the retail, financial, other services, and matrimonial and classified segments. Improved air and rail connectivity between tier I and tier II cities has increased domestic travel bookings, primarily through online platforms. However, in the wake of the pandemic, countries across the world have been compelled to close their international borders; domestic and international flights were canceled to curb the spread of the virus. Online travel aggregators reported no business in the first quarter of FY 2021. After travel restrictions were eased and economic activities picked up pace, e-travel aggregators began focusing on domestic offering such as 'staycations' and 'workcations'. This is expected to compensate for the losses in the travel business.

By 2025, the online retail segment is expected to dominate the e-commerce market and reach a value of INR 3,083.22 Bn, expanding at a CAGR of ~7.50%. The segment is being driven by the increased penetration of Internet-enabled devices, ease of online shopping, innovative payment options, cashbacks, and discounts, as well as the rapidly evolving needs of customers.

COVID-19 impact assessment

The pandemic and the subsequent lockdown have dealt a severe blow to the e-commerce market. However, the market is likely to bounce back, following an initial loss, since there are significant long-term growth opportunities in all its business segments. Since March 22, 2020, the e-commerce industry in the country has been experiencing disruption and incurred losses of more than INR 27.67 Bn in a week. The sector has been affected on the demand and supply sides due to a halt in all the economic activities. Online shopping experienced a setback due to the restrictions on physical movement and the shutdown of businesses, thus severely impacting the supply chain. About 8% of the modern retail trade could function since the sale of non-essential goods was prohibited across the country. Therefore, there had been a steady decline in the sale of FMCGs. However, the e-grocery segment has experienced rapid development amid the pandemic. Moreover, the personal hygiene and care segment may experience steady growth; it accounts for ~4.5% of the total GMV of the e-commerce platforms.

Competitive insights

E-commerce companies are incorporating various technologies such as voice recognition, virtual and augmented reality (VR and AR), fintech, artificial intelligence (AI) and machine learning (ML) to attract customers and compete with other players. Companies such as Amazon, Flipkart, Goibibo, Ola, Zomato and Ixigo have incorporated voice assistants for assisting customers with their queries, thereby improving customers' satisfaction. E-commerce companies have also incorporated fintech-based payment platforms such as PayPal, Apple Pay, Google Pay, and Amazon Pay to offer secure and efficient online payment methods to consumers.

Companies covered

• Infibeam Avenues Ltd.

• Info Edge (India) Ltd.

• Thomas Cook (India) Ltd.

• BigTree Entertainment Pvt. Ltd.

• Flipkart Internet Pvt. Ltd.

• Jasper Infotech Pvt. Ltd.

• MakeMyTrip (India) Pvt. Ltd.

• One97 Communications Ltd.

• People Interactive (India) Pvt. Ltd.

• Amazon India Ltd.

The Market report answers the following questions:

What is the aim of the report?

The market report presents the estimated market size of E commerce Market by the end of forecast period. Additionally, the historical and current market size is also examined in the report.

Based on various indicators, the Year-on-Year growth (%) and compound annual growth rate (CAGR) for the given forecast period is offered.

An overview of the Market based on geographical scope, market segmentation and financial performance of key players is presented in the report.

The report presents current trends in the industry and future scope of the Market in North America, Asia Pacific, Europe, Latin America and Middle East and Africa.

The various parameters accelerating the growth of Market are incorporated in the research report.

The report analyzes growth rate, market size and valuation of the Market during the forecast period.

What aspects regarding the regional analysis Market are included in this report?

Geographical regions covered in the report include North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.

The report consists of detailed region-wise analysis of current and future market trends, providing information on product usage and consumption.

The growth rate of the market in every region, including their countries over the forecast period is included in the market report.

Based on what factors are the key market players assessed in this report?

The report offers detailed analysis of leading companies in the market across the globe.

It provides details of the major vendors involved in the Market including Key Players

A comprehensive overview of each company including the company profile, generated revenue, pricing of goods and the manufactured products is incorporated in the report.

The facts and figures about market competitors along with standpoints of leading market players are presented in the report.

The recent developments, mergers and acquisitions related to mentioned key players are provided in the market report.

What is the key information extracted from the report?

Extensive information on factors estimated to affect the Market growth and market share during the forecast period is presented in the report.

The report offers the present scenario and future growth prospects Market in various geographical regions.

The competitive landscape analysis on the market as well as the qualitative and quantitative information is delivered.

The SWOT analysis is conducted along with Porter's Five Force analysis.

The in-depth analysis provides an insight into the Market, underlining the growth rate and opportunities offered in the business.

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