E-Commerce Global Market Report 2024

The e-commerce market size has grown rapidly in recent years. It will grow from $3774.71 billion in 2023 to $4223.44 billion in 2024 at a compound annual growth rate (CAGR) of 11.9%. The observed growth in the historic period can be credited to several factors, including increased internet penetration, evolving consumer preferences and behaviors, the implementation of secure payment solutions, widespread adoption of mobile technology and apps, as well as the expansion of globalization and cross-border trade.

The e-commerce market size is expected to see rapid growth in the next few years. It will grow to $6656.29 billion in 2028 at a compound annual growth rate (CAGR) of 12.0%. Forecasted growth is driven by marketplace diversification, subscription economy expansion, evolving payment solutions, sustainable consumerism, and increased integration of AR and VR. Major trends include social commerce, mobile commerce dominance, personalized shopping, subscription models, and omnichannel retailing.

The growth of the e-commerce market is anticipated to be driven by the increasing penetration of the internet and the widespread adoption of smartphones. The surge in internet usage and smartphone prevalence is reshaping consumer preferences, steering them towards online shopping experiences. For example, as of February 2023, Uswitch Limited, a UK-based price comparison and switching service company, reported a total of 71.8 million mobile connections in the UK, indicating a 3.8% growth (approximately 2.6 million) from 2021. Furthermore, it is anticipated that by 2025, 95% of the UK's population, equivalent to 65 million individuals, will own smartphones.

The growth of the e-commerce market is expected to be fueled by the increasing adoption of digital payments. Digital payments encompass financial transactions conducted through digital or online channels, eliminating the need for physical cash transactions. E-commerce platforms leverage electronic payment methods, facilitating paperless monetary transactions. As of August 2023, Forbes Media LLC., a US-based media company, reported that more than half (53%) of individuals prefer digital wallets over traditional payment methods. Furthermore, nearly half (47%) of Americans acknowledge spending more money when using digital wallets compared to traditional payment options. The majority (over 70%) expressed an intention to make digital wallets their primary choice for shopping, with an additional 62% indicating a similar preference for travel. Therefore, the increasing prevalence of digital payments is expected to drive the growth of the e-commerce market.

The growth of the e-commerce industry is anticipated to face limitations due to stringent regulations and vertical restraints imposed on the sector. Vertical restraints, including platform parity agreements (APPA), geo-blocking, most favored nation (MFN), geo-filtering, and advertising restrictions, are poised to present significant challenges for e-commerce players. For instance, regulations outlined in the USA Chapter of the Digital Business Laws and Regulations Report for 2023 cover various aspects, such as e-commerce regulations, data protection, cybersecurity, cultural norms, brand enforcement, data centers and the cloud, trade and customs, and tax treatment. These regulatory and vertical restraint challenges may hinder the growth of the e-commerce industry in the foreseeable future.

A prominent trend in the e-commerce market is the increasing focus on promoting sales through government and corporate initiatives. As reported by Entracker's news in April 2022, the Indian government initiated the pilot phase of the Open Network for Digital Commerce (ONDC) to democratize the e-commerce sector and facilitate the participation of small retailers. This strategic move is expected to catalyze growth in the country's e-commerce sector.

Major companies in the e-commerce market are driving innovation by introducing advanced technologies such as Amazon Aurora Serverless v2 to enhance their market profitability. Amazon Aurora Serverless v2 represents a dynamic configuration for Amazon Aurora, providing on-demand and automated scaling of database resources based on user-defined minimum and maximum capacity parameters. For example, in April 2022, Amazon Web Services Inc., a US-based e-commerce company, announced the general availability of Amazon Aurora Serverless v2, the next generation of Aurora Serverless. This solution offers instantaneous scalability to meet the demands of the most challenging applications, finely adjusting capacity in small increments to precisely match the necessary database resources required by the application.

In April 2022, Flipkart, an e-commerce company based in Bengaluru, India, successfully acquired ANS Commerce for an undisclosed sum. This strategic acquisition is aimed at bolstering Flipkart's online retail ecosystem. ANS Commerce, the acquired entity, is an e-commerce services provider based in India.

Major companies operating in the e-commerce market report are Walmart Inc., Amazon.com Inc., Apple Inc., Google LLC, JD.com Inc., Target Brands Inc., Dell Technologies Inc., PayPal Holdings Inc., Macy’s Inc., Pinduoduo Inc., Vipshop Holdings Ltd., Carvana Co., Wayfair LLC, Zalando SE, MercadoLibre Inc., Suning Commerce Group Co. Ltd., eBay Inc., Chewy Inc., Flipkart Private Limited, Shopify Inc., Etsy Inc., Best Buy Canada Ltd., Gome Electrical Appliances Holding Ltd., Farfetch Limited, Otto Group, Myntra Fashion Technologies Private Limited, BigCommerce Pty. Ltd., Lenskart Solutions Private Limited, Alibaba Group, Snapdeal Limited, VTEX Commerce, Magento Commerce Inc., PrestaShop S.A., Big Cartel LLC, Volusion LLC, Squarespace Inc., Weebly Inc., Shift4Shop Inc., Miva Inc. North America was the largest region in the e-commerce market in 2023. Asia-Pacific was the second largest region in the global e-commerce market share. The regions covered in the e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Key e-commerce models include Business-to-Business (B2B) and Business-to-Consumer (B2C) transactions. B2B involves trade between businesses, such as manufacturer-wholesaler or wholesaler-retailer interactions. Payment methods commonly used include card payments, bank transfers, digital wallets, cash transactions, and other modes. Various product applications within e-commerce span home appliances, clothing, books, cosmetics, baby products, groceries, and more.

The e-commerce market research report is one of a series of new reports that provides e-commerce market statistics, including e-commerce industry global market size, regional shares, competitors with an e-commerce market share, detailed e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the e-commerce industry. This e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

The countries covered in the e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The e-commerce market consists of revenues earned by entities by providing e-commerce services such as drop shipping, crowdfunding, and subscription. The market value includes the value of related goods sold by the service provider or included within the service offering. The e-commerce market also includes sales of as apparel, electronics, furniture, books, grocery and cosmetics. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.