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What Is the Expected CAGR for the E-Commerce Market Through 2025?
In the past few years, there has been a swift expansion in the e-commerce market size. It is projected to increase from $3932.01 billion in 2024 to $4408.14 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 12.1%. The development witnessed during the historic period can be credited to factors such as increased internet connectivity, changing consumer patterns, trustworthy payment methods, the rise of mobile utilization and applications, along with globalization and international trade.
What’s the Projected Size of the Global E-Commerce Market by 2029?
In the coming years, the e-commerce market size is projected to experience swift expansion. The market is set to burgeon to a value of $7034.7 billion by 2029, with a compound annual growth rate (CAGR) of 12.4%. The anticipated growth during the forecast period can be tied to factors such as diversification in the marketplace, a growing subscription economy, progress in payment solutions, and a focus on sustainable and ethical consumerism, coupled with the broadening integration of Augmented Reality (AR) and Virtual Reality (VR). Key trends to watch out for during the forecast period comprise social commerce integration, the predominance of mobile commerce, personalization in shopping experiences, subscription-based models, and omnichannel retailing.
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Top Growth Drivers in the E-Commerce Industry: What’s Accelerating the Market?
The surge in internet accessibility and the escalating popularity of smartphones are anticipated to fuel the expansion of the e-commerce market. The escalating use of the internet and smartphones is altering consumer inclination towards e-commerce. As an illustration, Uswitch Limited, a UK-based price comparison and switching service company, revealed in February 2023 that in 2022, 86% of people in the UK had mobile internet access. Forecasts further suggest that by 2025, 95% of the UK populace will be in possession of a smartphone.
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Which Emerging Trends Are Transforming the E-Commerce Market in 2025?
The rising efforts from both the government and corporations to boost e-commerce transactions form a dominant pattern in the e-commerce sector. As reported by Entracker in April 2022, the Indian Government initiated the trial phase of the Open Network for Digital Commerce (ONDC) with the aim of universalizing the e-commerce industry to aid small-scale retailers, an action anticipated to stimulate growth in the sector across the nation.
What Are the Main Segments in the E-Commerce Market?
The e-commercemarket covered in this report is segmented –
1) By Model Type: Business To Business (B2B), Business To Consumer (B2C)
2) By Payment Mode: Card Payments, Bank Transfers, Digital Wallets, Cash Payments, Other Payment Modes
3) By Application: Home Appliances, Clothing And Footwear, Books, Cosmetics, Baby Goods, Groceries, Other Applications
Subsegments:
1) By Business To Business (B2B): Wholesale Marketplaces, Supplier-Distributor Platforms, Procurement Services, B2B Subscription Services
2) By Business To Consumer (B2C): Online Retail Stores, Direct-To-Consumer Brands, Marketplaces, Online Service Platforms
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Which Top Companies are Driving Growth in the E-Commerce Market?
Major companies operating in the e-commerce market include Walmart Inc., Amazon.com Inc., Apple Inc., 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.
Which Regions Will Dominate the E-Commerce Market Through 2029?
North America was the largest region in the e-commerce market in 2024. 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.
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