E-commerce Market Size, Share, and Trends 2024 to 2034

E-commerce Market Size and Forecast 2024 to 2034

The global E-commerce market size accounted for USD 18.77 trillion in 2024 and is expected to be worth around USD 75.12 trillion by 2034, at a CAGR of 14.9% from 2024 to 2034.

E-commerce Market Key Takeaways

• Asia Pacific contributed more than 57% of revenue share in 2023.
• By Model Type, the Business to Business (B2B) segment captured more than 65% of revenue share in 2023.
• By application, the home appliances segment is expected to garner a significant market share over the forecast period.

Asia Pacific E-commerce Market Size and Growth 2024 to 2034

The Asia Pacific E-commerce market size was estimated at USD 9.29 trillion in 2023 and is predicted to be worth around USD 42.82 trillion by 2034, at a CAGR of 15.1% from 2024 to 2034.

Asia Pacific is expected to dominate the market over the forecast period. The market growth in the region is attributed to the growing urbanization and increasing investment in network infrastructure especially in the countries like India, China and Japan. For instance, as per United Nations Human Settlements Program, in Asia-Pacific area, urbanization is still a defining megatrend. Asia is home to more than 2.2 billion people or 54% of the world's metropolitan population.

Additionally, according to the latest report published by GSMA “Mobile Economy Asia Pacific” in 2022, more than 400 million 5G connections, or slightly over 14% of all mobile connections, will exist by 2025. In addition, according to IBEF, the majority of the industry's growth has been driven by internet and smartphone use. The 'Digital India' program caused a dramatic increase in internet connections, reaching 850 million in 2022 in India. Furthermore, the rising government initiative is also one of the important factors that propel the market expansion in the region during the forecast period.

North America is expected to hold a prominent market share over the forecast period. The market growth in the region is driven by the well-established digital infrastructures and the presence of major e-commerce companies including Amazon, Walmart, eBay and others. Amazon, in particular, has a substantial share of the market and offers a wide range of products, including its Amazon Prime subscription service. Amazon continues to be the industry leader in retail e-commerce with a market share of 37.8%.

Moreover, the COVID-19 pandemic is one of the major reciprocating factors that has influenced the market growth in the region. For instance, E-commerce sales rose from $571.2 billion in 2019 to $815.4 billion in 2020, the first year of the pandemic, according to the most recent 2020 ARTS release, a surge of $244.2 billion or 43%. Therefore, the aforementioned facts drive the market growth in the region over the forecast period.

Market Overview

The advent of the internet and digital technologies has revolutionized the way business is conducted, giving rise to the booming phenomenon known as e-commerce. E-commerce, or electronic commerce, includes the online buying or selling of goods. The e-commerce services hold the capacity to transform the global marketplace in profound ways. This virtual marketplace eliminates the constraints of physical distance and opens up new avenues for businesses to connect with consumers, making it an essential aspect of modern commerce.

E-commerce has evolved from a novel concept into a multi-trillion-dollar industry, reshaping the traditional retail landscape and redefining consumer behavior. The ease of access, convenience, and a limitless variety of products and services available on e-commerce platforms have attracted a massive number of customers, fundamentally altering the way people shop and interact with businesses. The e-commerce landscape is characterized by its constant evolution, driven by innovations in payment systems, logistics, user experience, and data analytics.

• According to the GSMA, a third of the world's population, or around 1.2 billion connections, will be covered by 5G networks by 2025.

E-commerce Market Growth Factors

The rise of mobile devices and apps has extended the reach of e-commerce, enabling customers to shop on the go. Moreover, emerging technologies like artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) are transforming how products are showcased and experienced online. The global e-commerce market is driven by the increasing integration of advanced technologies such as AI, VR and AR, the growing inclination of consumers towards online shopping, rising investment, growing collaboration and increasing government initiatives.

Market Scope

Market Dynamics

Driver

Rising penetration of the internet

The widespread availability of the internet, along with increased access through smartphones and other devices, has enabled a larger portion of the global population to connect and shop online. As more people gain internet access, the potential customer base for e-commerce continues to expand. For instance, according to the Internet in India Report 2022, in India, the number of internet active users is around 759 million and is expected to reach around 900 million by 2025. Out of 759 million, about 399 million are from rural areas and 360 million from urban areas. Therefore, the growing number of internet users across the globe is expected to flourish the e-commerce industry over the projected year.

Restraint

Cybersecurity concerns

As e-commerce transactions involve the exchange of sensitive personal and financial information, the risk of cyberattacks, data breaches, and identity theft is a major concern. Businesses must invest in robust cybersecurity measures to protect customer data and maintain trust. For instance, according to secondary analysis, Account Take Over (ATO), which increased by 131% in the second half of 2022 compared to H1 in 2021, continues to be an e-commerce fraud issue in 2023. Thus, the growing cybersecurity concern is expected to hamper the market growth over the forecast period.

Opportunity

Increasing government initiatives

The increasing government initiatives are expected to provide a lucrative opportunity for market growth over the forecast period. For instance, the Union Ministry of India launched Bharat Craft, an Indian e-commerce website patterned after Alibaba. Multiple governments across the globe are penetrating online services to boost the sales of locally-produced goods to improve businesses. All these elements along with a substantial focus on cyber regulations by government authorities will present opportunities for the market to grow.

Model Type Insights

Based on the model type, the global E-commerce market is segmented into Business to Business (B2B) and Business to Consumer (B2C). The Business to Business (B2B) segment is expected to hold the largest market share over the forecast period. B2B e-commerce encompasses a wide range of industries, products, and services, from industrial machinery and raw materials to software solutions and professional services. It involves various online platforms, websites, and marketplaces that facilitate these transactions. B2B e-commerce transactions can include bulk orders, ongoing supply agreements, subscription-based services, and more. The increasing propensity of businesses to sell and purchase products and services online is credited with the segment's rise.

Furthermore, it is predicted that during the period of the projection year, the B2B e-commerce market would be driven by rising smartphone adoption and internet usage. For instance, according to secondary analysis, In 2022, 84 percent of all mobile connections will be in North America, which will have the greatest adoption rate of smartphones. By 2030, 90 percent of smartphones will be in use in North America, with the CIS and Asia Pacific predicted to have the fastest growth. Therefore, the aforementioned fact drives the segment growth during the forecast period.

Application Insights

Based on the application, the global e-commerce market is segmented into home appliances, fashion products, groceries, books, and others. The home appliances segment is expected to garner a significant market share over the forecast period. Home appliances available in the e-commerce websites encompass a wide range of products that are essential for daily living, such as kitchen appliances, laundry machines, air conditioning units, and more. The convenience, variety, and competitive pricing offered by e-commerce platforms have contributed to the expansion of online sales in the home appliances sector.

On the other hand, the fashion products segment is expected to grow at the highest CAGR over the forecast period. Fashion e-commerce encompasses a wide range of products, including clothing, footwear, accessories, and beauty products. The convenience, extensive product range, and trends-driven nature of fashion have contributed to the rapid growth of online fashion retail. For instance, Myntra predicts that in the following five years, the Indian fashion eCommerce market would reach $30 billion. This indicates that during the next five years, about one-third of India's fashion will be marketed online or via digital channels.

E-commerce Market Companies

• Apple Inc.
• Amazon.com Inc.
• Flipkart Internet Pvt. Ltd.
• Costco Wholesale Corp.
• Ebates Performance Marketing Inc.
• eBay Inc.
• Best Buy Co. Inc.
• Groupon Inc.
• Inter IKEA Systems B.V.
• JD.com Inc.
• Otto GmbH & Co. KG
• Lojas Americanas S.A.
• priceline.com LLC
• Shopify Inc.
• The Home Depot Inc.

Recent Development

• In April 2022, ANS Commerce was purchased by Bengaluru-based Flipkart. The acquisition will improve Flipkart's marketplace for online shopping. An Indian company called ANS Commerce offers e-commerce services.
• In February 2023, Swaven, a prominent provider of eCommerce enablement and analytics software throughout EMEA, APAC, and LATAM, will be acquired by MikMak, the premier eCommerce acceleration platform for multichannel companies. The two businesses' merger opens the way for MikMak 3.0, the most cutting-edge eCommerce analytics platform in the world.

Segments Covered in the Report

By Model Type

• Business to Business (B2B)
• Business to Consumer (B2C)

By Application

• Home Appliances
• Fashion Products
• Groceries
• Books
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa