Report Overview

India E-commerce Market - Industry Trends & Forecast Report, 2030

The India E-commerce Market size was estimated to be worth USD 225.32 billion in 2023. During the forecast period between 2024 and 2030, the India E-commerce Market size is projected to grow at a CAGR of 11.38%, reaching a value of USD 303.11 billion by 2030. Major growth factors for the India e-commerce Market include the increasing penetration of smartphones and the Internet and the increasing number of e-commerce platforms in the country. The e-commerce platform offers a wide range of products and services as well as heavy discounts to grab a share in a price-sensitive market such as India, which contributes to its market growth.

E-commerce – Overview

Electronic commerce, or e-commerce, is the online purchasing and selling of products and services. Through the e-commerce sector, users may buy their goods and services without physically visiting the business. The digital channel-based sale of physical goods to individual end users is included in the e-commerce sector (B2C). This definition covers purchases done with desktop, notebook, and laptop computers as well as mobile devices (e.g., smartphones and tablets). The eCommerce market (eCommerce and C2C) does not include digitally distributed services (see instead: eServices), media downloads or streaming, digitally delivered products in B2B marketplaces, or the digital purchase or resale of used, damaged, or repaired goods.

India E-commerce Market

Growth Drivers

Favorable Government Regulations and Policies

According to the India Brand Equity Foundation, India permits 100% FDI in B2B e-commerce. India is now the third-largest consumer market in the world, and the country's e-commerce market is largely driven by these advantageous government laws and policies, according to a Deloitte India report. Furthermore, the country's internet and smartphone usage has increased dramatically as a result of initiatives like "Digital India." The e-commerce sector is registering significant growth in tier-2 and tier-3 cities as a result of growing internet usage and the adoption of 4G and 5G technologies.

Challenges

Lack of Data Security and Privacy

Data security and privacy are two of eCommerce's primary drawbacks. Despite the presence of sophisticated data encryption security technologies, most individuals are reluctant to provide their personal and financial information. Furthermore, some websites lack the tools and functionality necessary for transaction authentication. Therefore, there are cases of dishonest behavior. eCommerce expansion is impeded by the fear of disclosing financial information, such as credit card numbers.

Impact of Escalating Geopolitical Tensions on India E-commerce Market

Intensifying geopolitical tensions negatively impact the growth of India E-commerce Market. For instance, China is India’s biggest trading partner, with an estimated USD 103 billion in bilateral commerce between April 2019 and February 2020; the primary imports are consumer products, including toys, furniture, textiles, and shoes. However, violent clashes between the two countries in 2020 resulted in trade retaliation from India, under which several Chinese apps were banned. India banned several Chinese e-commerce platforms as well, including Alibaba and Zhejiang-based Chinese e-commerce portal Club Factory, Shein, which affected the growth of the India E-commerce Market.

India E-commerce Market

Segmental Coverage

India E-commerce Market – By Type

Based on type, the India E-commerce Market is segmented into B2C and B2B. The B2C segment accounts for a larger market share. This segment is further classified into clothing & footwear, beauty & personal care, food & grocery, appliances & electronics, home improvement, and others. The clothing & footwear segment holds the largest share of the market owing to the convenience e-commerce platforms offer in accessing trendy products and providing their customers with heavy discounts. However, the beauty & personal care segment is also registering a high growth rate during the forecast period owing to the increasing popularity of platforms such as Nykaa and Purple in the country.

India E-commerce Market – By Payment

Based on payment, the India E-commerce Market is segmented into cash on delivery (COD), credit card, debit card, bank transfer, prepaid card, digital & mobile wallet, and other digital payment methods. The cash-on-delivery (COD) segment holds the largest share of the India e-commerce market. The lack of trust on online payment and hesitance to share sensitive financial information over the internet contribute to the growth of the COD segment. However, the digital & mobile wallet segment is anticipated to register a CAGR during the forecast owing to the increasing popularity of online payment platforms, such as Google Pay and PhonePe.

India E-commerce Market – By Sales Channel

Based on the sales channel, the India E-commerce Market is segmented into online and offline. The online segment accounts for a larger market share. The growth of the market is attributed to various factors, including flexibility for customers, customized user experience, and the ability to allow users to review before making a purchase. Online platforms are available around the clock and will enable customers to browse through a wide range of products. In addition, companies are also providing customized user experience through the integration of advanced technologies, such as big data, which is propelling the online segment’s market growth.

Competitive Landscape

Major players operating in the India E-commerce Market include Amazon India, Flipkart, Nykaa, IndiaMART, Meesho, FirstCry, BookMyShow, OLX, MakeMyTrip, and AJIO.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 – Google invested USD 350 million in Flipkart, a major e-commerce platform in India, and agreed to offer cloud services as part of the deal.

Scope of the Report

By Type

• B2C

1. Clothing & Footwear

2. Beauty & Personal Care

3. Food & Grocery

4. Appliances & Electronics

5. Home Improvement

6. Others

• B2B

By Payment

• Cash on Delivery (COD)

• Credit Card

• Debit Card

• Bank Transfer

• Prepaid Card

• Digital & Mobile Wallet

• Other Digital Payment

By Sales Channel

• Online

• Offline

By Device

• Mobile

• Desktop

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India E-commerce Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Widespread Use of Smartphones
         2. Deepening Internet Penetration
      2. Restraints
         1. intense Competition
         2. Lack of Trust with Payment and Consumer Data
      3. Opportunities
         1. Development of 4G and 5G Technology
         2. Growing Utilization of AI and ML Algorithms
      4. Challenges
         1. Lack of Security of Business Information
   3. Technological Advancement/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India E-commerce Market: Marketing Strategies
5. India E-commerce Market: Pricing Analysis
6. India E-commerce Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. B2C
            1. Clothing & Footwear
            2. Beauty and Personal Care
            3. Food & Grocery
            4. Appliances and Electronics
            5. Home Improvement
            6. Others
         2. B2B
      2. By Payment
         1. Cash on Delivery (COD)
         2. Credit Card
         3. Debit Card
         4. Bank Transfer
         5. Prepaid Card
         6. Digital & Mobile Wallet
         7. Other Digital Payment
      3. By Sales Channel
         1. Online
         2. Offline
      4. By Device
         1. Mobile
         2. Desktop
7. Competitive Landscape
   1. List of Key Players and Their Products
   2. India E-commerce Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Expanding Geopolitical Tensions on India E-commerce Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, and SWOT Analysis)
   1. Amazon India
   2. Flipkart
   3. Nykaa
   4. IndiaMART
   5. Meesho
   6. FirstCry
   7. BookMyShow
   8. OLX
   9. MakeMyTrip
   10. AJIO
   11. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India E-commerce Market Segmentation

Figure 2       India E-commerce Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India E-commerce Market Size, By Value (USD Billion), 2019–2030

Figure 5       India E-commerce Market Share, By Type, By Value (USD Billion) 2019–2030

Figure 6       India E-commerce Market Share, By Payment, By Value (USD Billion) 2019–2030

Figure 7       India E-commerce Market Share, By Sales Channel, By Value (USD Billion) 2019–2030

Figure 7       India E-commerce Market Share, By Device, By Value (USD Billion) 2019–2030

List of Tables      

Table 1        India E-commerce Market Size, By Value (USD Billion), 2019–2030

Table 2        India E-commerce Market Share, By Type, By Value (USD Billion) 2019–2030

Table 3        India E-commerce Market Share, By Payment, By Value (USD Billion) 2019–2030

Table 4        India E-commerce Market Share, By Sales Channel, By Value (USD Billion) 2019–2030

Table 5        India E-commerce Market Share, By Device, By Value (USD Billion), 2019–2030

Table 6        Amazon India Company Overview

Table 7        Amazon India Financial Overview

Table 8        Flipkart Company Overview

Table 9        Flipkart Financial Overview

Table 10      Nykaa Company Overview

Table 11      Nykaa Financial Overview

Table 12      IndiaMART Company Overview

Table 13      IndiaMART Financial Overview

Table 14      Meesho Company Overview

Table 15      Meesho Financial Overview

Table 16      FirstCry Company Overview

Table 17      FirstCry Financial Overview

Table 18      BookMyShow Company Overview

Table 19      BookMyShow Financial Overview

Table 20      OLX Company Overview

Table 21      OLX Financial Overview

Table 22      MakeMyTrip Company Overview

Table 23      MakeMyTrip Financial Overview

Table 24      AJIO Company Overview

Table 25      AJIO Financial Overview