India’s E-Commerce Sector Set for Remarkable Expansion
New Delhi: The e-commerce landscape in India is poised for an extraordinary metamorphosis, with projections indicating that the sector will surge nearly threefold, escalating from USD 125 billion in 2024 to an impressive USD 345 billion by 2030.
This remarkable growth is largely attributed to the burgeoning quick commerce movement and the seamless integration of artificial intelligence (AI), as unveiled in a comprehensive report released on Wednesday.
Titled ‘Smart Growth in a Fast Market,’ the report by the research consultancy Infisum forecasts that the e-commerce market will experience a compound annual growth rate (CAGR) of 18.4 percent through 2030.
The document elucidates that the sprawling dark store network across the nation is expected to expand significantly, potentially tripling from approximately 2,525 locations in 2025 to nearly 7,500 by 2030, all to satiate the escalating demand for rapid deliveries.
“India’s e-commerce sector is entering a transformative phase of growth and innovation,” the report asserts. “The market is projected to nearly triple from USD 125 billion in 2024 to USD 345 billion by 2030.”
Among the various segments within this ecosystem, quick commerce emerges as the most rapidly developing area. Valued at an estimated USD 65-70 billion by 2030, this segment is anticipated to contribute 45-50 percent of the incremental e-retail growth over the next five years, according to the report.
Within the competitive sphere of quick commerce, Blinkit commands a dominant presence, possessing a 44 percent market share after processing 900 million orders in FY26.
It is closely followed by Zepto and Swiggy Instamart, with respective market shares of 25 percent and 20 percent.
The report further identifies Generation Z as a pivotal force in this evolution, currently constituting nearly one-third of online consumers. It is expected to emerge as the preeminent digital spending cohort by 2030.
Interestingly, the growth narrative is transcending urban frontiers, with 66 percent of new direct-to-consumer (D2C) orders now emanating from Tier II and Tier III cities. This trend signifies a shift in market dynamics, bringing e-commerce to a wider audience.
By the decade’s conclusion, e-commerce is predicted to represent 10-12 percent of India’s total retail expenditure, contributing approximately 2.5 percent to the national GDP and servicing an estimated 420-440 million online shoppers.
On the technological frontier, advancements in AI and machine learning are projected to augment retail productivity by 35-37 percent by 2030.
Innovations such as conversational commerce, AI-driven shopping assistants, and virtual try-on experiences are fundamentally reshaping consumer engagement and purchasing behaviors.
Source link: Retail.economictimes.indiatimes.com.
