Online Retail Market Report 2026

The online retail market size has grown rapidly in recent years. It will grow from $7.86 trillion in 2025 to $8.66 trillion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to rise of e-commerce platforms, increasing internet penetration, growth of smartphone usage, shift from offline to online retail, expansion of payment gateway infrastructure.

The online retail market size is expected to see strong growth in the next few years. It will grow to $12.61 trillion in 2030 at a compound annual growth rate (CAGR) of 9.9%. The growth in the forecast period can be attributed to advancement in AI-driven personalization, growth of AR/VR shopping experiences, expansion of drone and autonomous delivery, adoption of blockchain for secure transactions, rise of sustainable and eco-friendly product offerings. Major trends in the forecast period include mobile commerce expansion, personalized shopping experience, social commerce growth, subscription-based retail models, fast and flexible delivery options.

The increasing use of digital payment systems is driving the expansion of the online retail market due to improved transaction convenience and security. Digital payment systems involve electronic methods for conducting financial transactions via the internet, mobile applications, or contactless technologies. Their rising adoption is mainly attributed to the widespread availability of smartphones, which make digital transactions more accessible and user-friendly. These systems benefit online retail by enabling fast, secure, and seamless transactions, thereby enhancing customer satisfaction. Additionally, they streamline the checkout process, reduce cart abandonment, and increase sales efficiency for retailers. For example, according to the European Central Bank in January 2024, the number of contactless card payments in Germany during the first half of 2023 grew by 24.3% compared to the same period in 2022, reaching 20.9 billion transactions, with the total value increasing by 25.9% to €0.5 trillion ($545.27 billion). Consequently, the rising adoption of digital payment systems is fueling growth in the online retail market.

Leading companies in the online retail market are concentrating on developing sophisticated solutions such as AI-powered personalized shopping tools to enhance product discovery and improve customer experience. These AI-driven tools analyze user behavior, preferences, and shopping patterns to deliver more relevant product recommendations, boosting customer engagement. For instance, in March 2025, Amazon.com Inc., a US-based e-commerce company, introduced Interests, an AI-powered shopping feature currently in beta. This feature improves personalization, increases the time users spend on the platform, and aims to make online shopping more intuitive and enjoyable. Interests continuously scan Amazon’s product catalog and proactively suggest items that match users’ tastes, hobbies, and shopping history, allowing customers to follow specific interests and receive tailored recommendations through a Pinterest-style visual feed.

In April 2024, Huddled Group, a UK-based e-commerce retail company, acquired Food Circle Supermarket Limited for £0.3 million ($0.35 million). This acquisition is intended to expand Huddled Group’s e-commerce presence in the health and surplus food market by utilizing operational synergies and accelerating growth. Food Circle Supermarket Limited is a UK-based online retail service provider.

Major companies operating in the online retail market are Walmart Inc., Amazon.com Inc., Apple Inc., Costco Wholesale Corporation, JD.Com Inc., The Kroger Co., Alibaba Group Holding Ltd., Albertsons Companies Inc., Best Buy Co. Inc., Adidas AG, Coupang Inc., Rakuten Group Inc., Zalando SE, eBay Inc., PUMA SE, Shopify Inc., Flipkart Internet Private Limited, Etsy Inc., Groupon Inc., Bata Limited.

Asia-Pacific was the largest region in the online retail market in 2025. The regions covered in the online retail market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the online retail market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

The online retail market includes revenues earned by entities through order placement and tracking, multiple payment options, home delivery, customer support, and return and refund services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

This product will be delivered within 1-3 business days.