Trade Analytics
Ecommerce

Indian Ecommerce Industry Analysis

Latest update: April, 2018

  • The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest e-commerce market in the world by 2034.
  • The e-commerce market is expected to reach US$ 64 billion by 2020 and US$ 200 billion by 2026 from US$ 38.5 billion as of 2017.
  • With growing internet penetration, internet users in India are expected to increase from 481 million as of December 2017 to 829 million by 2021.
  • Rising internet penetration is expected to lead to growth in ecommerce.
  • India’s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce.
Growth

Notes: CAGR - Compound Annual Growth Rate,. F-forecast
Source: Media sources, Aranca Research

  • Internet penetration in India grew from just 4 per cent in 2007 to 35.03 per cent in 2017, registering a CAGR of 24.23 per cent between 2007 and 2017.
  • As of December 2017, internet penetration in India’s urban areas stood at 64.84 per cent and 20.26 per cent in the rural areas.
  • Urban India with an estimated population of 444 million as per 2011 census, already has 295 million using the internet as of December 2017.
  • Rural India, with an estimated population of 906 million as per 2011 census, has 186 million internet users as of December 2017. There is therefore a great opportunity for increasing penetration in the rural areas.
  • Analysis of ‘Daily Users’ reveal that both in Urban and Rural India, the younger generations are the most prolific users of internet.
  • Rising internet penetration is expected to drive ecommerce growth in India.
Growth

Source: Economic Times, Live Mint, Aranca Research

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