E-commerce market size India 2023, by segment

The e-commerce market in India is experiencing substantial growth, with the overall market size reaching 116 billion U.S. dollars in 2023. The segment with the highest market size was smartphones, valued at 35 billion U.S. dollars. This underscores the increasing significance of e-commerce in the Indian retail landscape, reflecting a shift in consumer behavior and preferences toward online shopping.

E-commerce sector growth

The e-commerce industry is experiencing fierce competition due to the presence of domestic and international companies. The e-commerce market size was estimated to be 123 billion U.S. dollars in 2024. This growth is fuelled by the increasing smartphone penetration, internet user base, and other favorable market conditions. Notably, the revenue growth of the e-commerce market has been consistently high, with over 15 percent as of 2024.

Direct-to-consumer (D2C) market trends

The e-commerce sector in India is witnessing a significant transformation. Especially, the D2C market is rapidly expanding and is expected to reach 100 billion U.S. dollars by 2025. One factor contributing to the D2C boom is the convenience of establishing online stores. Additionally, a great combination of major and mid-sized investors has supported India's D2C initiative. Over two billion U.S. dollars were invested in D2C brands.