E-Commerce Retail Market to Grow by USD 4.06 Trillion (2024-2028), Advent of Personalized Shopping Boosting the Market, with AI Impacting Market Trends – Technavio

NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global e-commerce retail market size is estimated to grow by USD 4.06 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 11.2% during the forecast period. Advent of personalized shopping is driving market growth, with a trend towards integration of AI. However, strict regulatory policies related to compliance and customer protection poses a challenge. Key market players include Alibaba Group Holding Ltd., Amazon.com Inc., Apple Inc., Best Buy Co. Inc., Blink Commerce Pvt. Ltd., Coupang Inc., eBay Inc., Etsy Inc., Flipkart Internet Pvt. Ltd., Inter IKEA Holding BV, Manash E-Commerce Pvt. Ltd., Nykaa E-Retail Ltd., Otto GmbH and Co. KG, Rakuten Group Inc., Reliance Retail Ltd., Shopify Inc., Snapdeal Ltd., Target Corp., The Kroger Co., and Walmart Inc..

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E-Commerce Retail Market Scope
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Base year	2023
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Forecast period	2024-2028
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Market growth 2024-2028	USD 4061.3 billion
Market structure	Fragmented
YoY growth 2022-2023 (%)	9.9
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 42%
Key countries	China, US, Canada, Japan, UK, Germany, South Korea, India, France, and Italy
Key companies profiled	Alibaba Group Holding Ltd., Amazon.com Inc., Apple Inc., Best Buy Co. Inc., Blink Commerce Pvt. Ltd., Coupang Inc., eBay Inc., Etsy Inc., Flipkart Internet Pvt. Ltd., Inter IKEA Holding BV, Manash E-Commerce Pvt. Ltd., Nykaa E-Retail Ltd., Otto GmbH and Co. KG, Rakuten Group Inc., Reliance Retail Ltd., Shopify Inc., Snapdeal Ltd., Target Corp., The Kroger Co., and Walmart Inc.

Market Driver

E-commerce retail market is thriving with trends like online shopping through smartphones, daily essentials, and luxury products’ sales on cross-border platforms. Mobile technologies and e-commerce platforms are essential for business-to-business (B2B) and consumer-to-consumer (C2C) transactions. Apparel and accessories, groceries, and computer devices are popular categories. Logistics and digital infrastructure are crucial for seamless order processing, payment integration, and delivery services. Data security, cybersecurity, and social media are vital for e-retailers dealing with online transactions. E-commerce technology includes artificial intelligence, machine learning, and data analytics for marketing strategies. Banks and financial institutions facilitate account balances, money transfer, and online trading. E-commerce platforms offer mobile applications and responsive websites for purchasing everyday basics and luxury items. E-commerce trends also include voice recognition, headless e-commerce, and digital devices. Augmented reality provides a personalized shopping experience, while payment gateways and digital wallets ensure security features. E-commerce technology continues to evolve with AI technologies, voice orders, and AR. However, e-commerce retailers must address cybercrime and digital fraud to maintain customer trust. 

The global e-commerce retail market is undergoing a notable shift with the integration of artificial intelligence (AI). This transformation is enhancing the shopping experience for consumers by providing personalized and efficient services. One significant development in this area is the introduction of AI assistants tailored for e-commerce. For instance, Amazon, a leading e-commerce company, launched an AI assistant named Rufus in August 2024, exclusively for its Indian customers. Rufus offers personalized product recommendations, shopping list suggestions, and product comparisons. Furthermore, it grants users access to customer feedback, enabling informed purchasing decisions based on others’ experiences. 

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Market Challenges

• E-commerce retail market is experiencing significant growth with the rise of online shopping, especially through smartphones. Daily essentials and luxury products are popular categories, while cross-border trade presents new opportunities and challenges. E-commerce platforms must address data security concerns, ensuring digital infrastructure and cybersecurity. Mobile technologies, including mobile applications and responsive websites, are essential for reaching consumers. B2B and C2C marketplaces, hybrid and pure, offer various business models. Apparel and accessories, groceries, and electronic devices are top-selling categories. Logistics and delivery services are crucial for seamless purchasing experiences. E-commerce technology includes AI, machine learning, and data analytics for effective marketing strategies. Banks and financial institutions facilitate online transactions, while digital payment methods and payment gateways ensure secure money transfer. Voice recognition and headless e-commerce are emerging trends. Convenience shopping through voice orders and AR is the future of retail e-commerce. However, challenges such as cybercrime and digital fraud require constant vigilance.
• The global e-commerce retail market encounters regulatory challenges, with policies in various regions impacting businesses significantly. In Japan, the Act on Specified Commercial Transactions (ASCT) requires e-commerce operators to disclose specific information to consumers, such as cancellation policies, and prohibits unsolicited emails. The Act on Regulation of Transmission of Specified Electronic Mail (ARTSEM) reinforces this prohibition. The Consumer Contract Act further restricts e-commerce businesses from including unfavorable terms in their service agreements. Compliance with these regulations, coupled with internet-related intellectual property laws, creates a complex legal landscape for e-commerce businesses in Japan.

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Segment Overview 

This e-commerce retail market report extensively covers market segmentation by

1. Product 

• 1.1 Apparel and accessories
• 1.2 Groceries
• 1.3 Footwear
• 1.4 Personal and beauty care
• 1.5 Others

• 2.1 Business to business (B2B)
• 2.2 Business to consumer (B2C)
• 2.3 Consumer to consumer (C2C)

• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Apparel and accessories- The global e-commerce retail market for apparel and accessories is experiencing growth, driven by increasing affluence, the trend toward premiumization, and a shift toward organized retail. In India, the domestic lifestyle industry, including apparel, beauty, accessories, and footwear, is projected to reach USD210 billion by 2028. Gen Z shoppers, heavily influenced by social media trends, are a significant driver of this growth. They prefer online shopping and are willing to spend on the latest fashion trends and premium products. Ajio, the retail fashion arm of Reliance, has capitalized on this trend with the launch of Ajio Street in March 2023. This platform offers a wide range of clothing and accessories at affordable prices, with delivery charges waived and a hassle-free return process. The apparel and accessories segment in e-commerce is diverse, catering to various consumer preferences and price points, from affordable fast fashion to high-end luxury items. Digital marketing and social media influencers play a pivotal role in shaping consumer preferences and driving online sales. E-commerce platforms effectively use these tools to reach a wider audience and create personalized shopping experiences. With the rising influence of Gen Z shoppers, strategic initiatives by major players like Ajio, and the effective use of digital marketing, the apparel and accessories segment in the global e-commerce retail market is poised for substantial growth. The focus on affordability, convenience, and trend-driven products will continue to attract a diverse and expanding customer base.

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Research Analysis

E-commerce retail market is experiencing exponential growth, driven by the increasing popularity of online shopping for various products including daily essentials, luxury items, and computer devices such as smartphones, tablets, and computer devices. Mobile technologies play a significant role in this trend, with mobile applications and responsive websites enabling convenient purchasing on the go. Cross-border e-commerce is also on the rise, allowing consumers to buy from retailers around the world. E-commerce platforms provide inventory management, order processing, and payment integration, ensuring seamless transactions. Digital payment methods offer added security and convenience. Business-to-Business (B2B) and consumer-to-consumer (C2C) transactions are also common, expanding the reach of e-commerce. Internet penetration continues to increase, fueling the growth of electronic commerce (e-commerce). Voice orders and augmented reality are emerging trends, enhancing the shopping experience.

Market Research Overview

E-commerce retail market is experiencing exponential growth, driven by the increasing popularity of online shopping for daily essentials and luxury products. Smartphone devices have become the primary tool for accessing online platforms, leading to the rise of cross-border e-commerce. E-commerce platforms leverage mobile technologies and digital infrastructure to provide a seamless shopping experience. Business-to-Business (B2B) and Consumer-to-Consumer (C2C) transactions are growing, with hybrid marketplaces offering a blend of both. Apparel and accessories, groceries, and computer devices are popular categories. Logistics and delivery services ensure timely product delivery. Digital payment methods, payment gateways, and digital wallets prioritize data security and cybersecurity. Social media integration and voice recognition enhance the shopping experience. E-retailers use artificial intelligence, machine learning, and data analytics for inventory management, order processing, and marketing strategies. Banks and financial institutions facilitate online transactions, while e-commerce technology continues to evolve with headless e-commerce, augmented reality, and personalized shopping experiences. However, concerns over cybercrime and digital fraud persist, necessitating security features and headless architecture.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Apparel And Accessories
• Groceries
• Footwear
• Personal And Beauty Care
• Others
• Modality
• Business To Business (B2B)
• Business To Consumer (B2C)
• Consumer To Consumer (C2C)
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio