The online retail market is anticipated to grow at a significant CAGR during the forecast period 2020-2027. The market is segmented by product and by distribution channel.

The E-Retail Market is Segmented by Product (home Appliances and Electronics, Clothing, Footwear and Accessories, Food and Personal Care, Furniture and Home Decor, and Other Products) and by Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The Report Offers Market Size and Forecasts in Value (USD ) for all the Above Segments.

In 2023, global retail e-commerce sales reached an estimated 5.8 trillion U.S. dollars. Projections indicate a 39 percent growth in this figure over the coming years, with expectations to surpass eight trillion dollars by 2027.

World players Among the key players on the world stage, the Chinese retail giant Alibaba holds the title of the largest e-commerce retailer globally, accounting for a 23 percent market share. Nevertheless, forecasts suggest that by 2027, Seattle-based e-commerce powerhouse Amazon will surpass Alibaba in estimated sales, reaching a staggering 1.2 trillion U.S. dollars in online sales.

Leading e-tailing countries The Chinese e-commerce market was the biggest worldwide in 2023, as internet sales constituted almost half of the country's retail transactions. Indonesia ranked second with the highest share of retail sales online (32 percent), closely trailed by the United Kingdom and South Korea, exceeding the 30 percent mark. That year, the up-and-coming e-commerce markets centered around Asia. The Philippines and India stood out as the swiftest-growing e-commerce markets based on online sales, anticipating a growth rate surpassing 20 percent.

According to Cognitive Market Research, the global Artificial Intelligence in Retail market size is USD 4951.2 million in 2023and will expand at a compound annual growth rate (CAGR) of 39.50% from 2023 to 2030.

Enhanced customer personalization to provide viable market output
Demand for online remains higher in Artificial Intelligence in the Retail market.
The machine learning and deep learning category held the highest Artificial Intelligence in Retail market revenue share in 2023.
North American Artificial Intelligence In Retail will continue to lead, whereas the Asia-Pacific Artificial Intelligence In Retail market will experience the most substantial growth until 2030.

Enhanced Customer Personalization to Provide Viable Market Output

A primary driver of Artificial Intelligence in the Retail market is the pursuit of enhanced customer personalization. A.I. algorithms analyze vast datasets of customer behaviors, preferences, and purchase history to deliver highly personalized shopping experiences. Retailers leverage this insight to offer tailored product recommendations, targeted marketing campaigns, and personalized promotions. The drive for superior customer personalization not only enhances customer satisfaction but also increases engagement and boosts sales. This focus on individualized interactions through A.I. applications is a key driver shaping the dynamic landscape of A.I. in the retail market.

January 2023 - Microsoft and digital start-up AiFi worked together to offer Smart Store Analytics. It is a cloud-based tracking solution that helps merchants with operational and shopper insights for intelligent, cashierless stores.

Source-techcrunch.com/2023/01/10/aifi-microsoft-smart-store-analytics/

Improved Operational Efficiency to Propel Market Growth

Another pivotal driver is the quest for improved operational efficiency within the retail sector. A.I. technologies streamline various aspects of retail operations, from inventory management and demand forecasting to supply chain optimization and cashier-less checkout systems. By automating routine tasks and leveraging predictive analytics, retailers can enhance efficiency, reduce costs, and minimize errors. The pursuit of improved operational efficiency is a key motivator for retailers to invest in AI solutions, enabling them to stay competitive, adapt to dynamic market conditions, and meet the evolving demands of modern consumers in the highly competitive artificial intelligence (AI) retail market.

January 2023 - The EY Retail Intelligence solution, which is based on Microsoft Cloud, was introduced by the Fintech business EY to give customers a safe and efficient shopping experience. In order to deliver insightful information, this solution makes use of Microsoft Cloud for Retail and its technologies, which include image recognition, analytics, and artificial intelligence (A.I.).

Source-www.ey.com/en_gl/news/2023/01/ey-announces-launch-of-retail-solution-that-builds-on-the-microsoft-cloud-to-help-achieve-seamless-consumer-shopping-experiences

Market Dynamics of the Artificial Intelligence in the Retail market

Data Security Concerns to Restrict Market Growth

A prominent restraint in Artificial Intelligence in the Retail market is the pervasive concern over data security. As retailers increasingly rely on A.I. to process vast amounts of customer data for personalized experiences, there is a growing apprehension regarding the protection of sensitive information. The potential for data breaches and cyberattacks poses a significant challenge, as retailers must navigate the delicate balance between utilizing customer data for AI-driven initiatives and safeguarding it against potential security threats. Addressing these concerns is crucial to building and maintaining consumer trust in A.I. applications within the retail sector.

Impact of COVID–19 on the Artificial Intelligence in the Retail market

The COVID-19 pandemic significantly influenced artificial intelligence in the retail market, accelerating the adoption of A.I. technologies across the industry. With lockdowns, social distancing measures, and a surge in online shopping, retailers turned to A.I. to navigate the challenges posed by the pandemic. AI-powered solutions played a crucial role in optimizing supply chain management, predicting shifts in consumer behavior, and enhancing e-commerce experiences. Retailers lever...

Explore the Retail E-Commerce Market trends! Covers key players, growth rate 12% CAGR, market size $5780.56 Billion, and forecasts to 2034. Get insights now!

Internet sales have played an increasingly significant role in retailing. In 2024, e-commerce accounted for over 17 percent of retail sales worldwide. Forecasts indicate that by 2029, the online segment will make up close to over 21 percent of total global retail sales. Retail e-commerce Online shopping has grown steadily in popularity in recent years. In 2024, global e-commerce sales amounted to over seven trillion U.S. dollars, a figure expected to exceed 10.4 trillion U.S. dollars by 2028. Digital development in Latin America boomed during the COVID-19 pandemic, generating unprecedented e-commerce growth in various economies across the region. So much so that Brazil and Argentina appear to lead the world's fastest-growing online retail markets. This trend correlates strongly with the constantly improving online access, especially in "mobile-first" online communities, which have long struggled with traditioe-comernal fixed broadband connections due to financial or infrastructure constraints but enjoy the advantages of cheap mobile broadband connections. M-commerce on the rise The average order value of online shopping via smartphones and tablets still lags traditional e-commerce via desktop computers. However, e-retailers around the world have caught up in mobile e-commerce sales. Online shopping via smartphones is particularly prominent in Asia. By the end of 2021, Malaysia was the top digital market based on the percentage of the population that had purchased something by phone, with nearly 45 percent having made a weekly mobile purchase. South Korea, Taiwan, and the Philippines completed the top of the ranking.

In 2023, the international online retail sales value was worth over eight billion U.S. dollars in India. Cross-border online retail is likely to grow by 29 percent, until 2025. The bulk of online sales are made by retailers from the United States, China, and the United Kingdom.

The market size of the online retail industry in India amounted to 103 billion U.S. dollars in 2023 in India. The industry is likely to growth with a CAGR of 15 percent until the year 2027.

Growth of online retail industry in India

The rapid expansion in the size of online retail could be attributed to the increase in the market size of e-commerce, a favorable government policy of 100 percent FDI flows into e-commerce, and an increasing base of digital buyers in India. The market size of the e-commerce industry is estimated to reach 200 billion U.S. dollars by 2027, a massive jump from 2014. Additionally, the number of digital buyers in the country has been on the rise since 2014. Affordable mobile internet, mainly from Reliance’s Jio has been a catalyst for change and led to a drastic growth in the value of mobile retail e-commerce in 2020.

Consumer perception of online retail during coronavirus

The coronavirus (COVID-19) pandemic led to an increase in the share of consumers shopping online. Most consumers opted for online retail to socially distance, avoid queues in the supermarkets and other shops, and to minimize their time spent outside. Unsurprisingly, they preferred to shop for essentials which included food, personal hygiene, and household cleaning products during this time.

Online marketplaces have become increasingly popular shopping destinations in recent years, primarily thanks to wide product catalogs and shoppers perceiving marketplaces as offering low prices. Selling on marketplaces is also becoming more popular among independent retailers, as they offer a wide customer reach and relatively lower fixed costs, especially when compared to physical stores. The popularity of retail marketplaces over the globe has largely been driven by players like Amazon, Alibaba, JD.com along with a shift toward online shopping amongst customers that has encouraged smaller players to launch their own marketplaces and leverage on the benefits associated with the marketplace model. The report goes on to provide an overview of the marketplace model in retail, players in the retail marketplaces' space, trends (including technology trends, macroeconomic trends, industry trends, and regulatory trends), industry analysis (through the use of key use cases) and outlines companies engaging with retail marketplaces and mergers and acquisitions associated with retail marketplaces theme. Read More

The online retail market, valued at $6.27 billion in 2025, is projected to experience robust growth, fueled by a Compound Annual Growth Rate (CAGR) of 6.23% from 2025 to 2033. This expansion is driven by several key factors. Increasing internet and smartphone penetration globally, particularly in developing economies, provides access to a vastly expanding customer base. Convenience, wider product selection, and competitive pricing offered by online retailers are significant drivers. Furthermore, the rise of e-commerce platforms offering personalized experiences, seamless payment gateways, and efficient delivery services are contributing to market growth. The shift in consumer preferences towards online shopping, accelerated by the recent pandemic, solidifies the long-term growth trajectory of this sector. Significant segments within the market include home appliances and electronics, clothing, footwear, and accessories, food and personal care, and furniture and home décor. Leading players such as Amazon, eBay, Alibaba, and Walmart are constantly innovating to maintain their market share, leading to increased competition and further market dynamism. The geographic distribution of the online retail market reveals significant regional variations. North America and Europe currently hold substantial market shares, driven by high internet penetration and established e-commerce infrastructure. However, the Asia-Pacific region, particularly India and China, demonstrates immense growth potential due to its burgeoning middle class and rapidly expanding digital economy. While challenges remain, such as concerns over data security and cybersecurity, the overall trend points towards sustained and substantial growth for the online retail sector over the forecast period. Effective strategies for businesses will involve adapting to evolving consumer preferences, investing in technological advancements, and navigating the complexities of global logistics and regulations. This will ensure continued success in this dynamic and competitive marketplace. This insightful report provides a detailed analysis of the dynamic online retail market, projecting its trajectory from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this comprehensive study covers the historical period (2019-2024) and forecasts the market's growth from 2025 to 2033. We delve into key segments like home appliances & electronics, clothing, footwear & accessories, food & personal care, furniture & home décor, and other products, examining market size in millions and exploring the impact of major players including Amazon, eBay, Alibaba, and more. This report is essential for businesses seeking to understand the competitive landscape and capitalize on emerging trends in this multi-billion dollar industry. Recent developments include: In November 2023, Amazon inked a partnership with Meta. This strategic partnership will combine Meta's well-known social media platforms, Facebook and Instagram, with Amazon's enormous product selection to completely transform online shopping., In July 2023, eBay acquired Certilogo, an AI-powered apparel and fashion goods authentication provider.. Notable trends are: The Fashion and Apparel Sector Thrives in the Global E-Retail Boom.

According to Cognitive Market Research, the global ECommerce Platform Market size is USD 9.3 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031. Market Dynamics of ECommerce Platform Market

Key Drivers for ECommerce Platform Market

Rapid growth in online shopping drives the demand for comprehensive e-commerce platform solutions - The rapid growth in online shopping is a significant driver for the e-commerce platform market. As consumers increasingly turn to online retail for convenience, variety, and competitive pricing, businesses are compelled to enhance their digital presence. This surge in online shopping necessitates robust and scalable e-commerce platform solutions that can handle high traffic volumes, offer seamless user experiences, and support various payment methods. Comprehensive e-commerce platforms enable businesses to manage their online stores efficiently, integrate with other digital tools, and provide personalized shopping experiences.
Increasing mobile internet penetration boosts the adoption of mobile-friendly e-commerce platforms globally.

Key Restraints for ECommerce Platform Market

Increasing cybersecurity threats pose risks to consumer data and transactions, impacting trust and adoption.
Complex integrations with existing IT systems and diverse e-commerce platforms can hinder seamless operations and scalability.

Introduction of the ECommerce Platform Market

The Ecommerce Platform serves as a digital framework facilitating online transactions, encompassing both goods and services. Its market continues to surge, driven by factors such as rising internet penetration, mobile device adoption, and evolving consumer preferences towards convenient shopping experiences. With an array of offerings including payment solutions, management platforms, and end-to-end services, the sector caters to diverse e-commerce models like B2B and B2C. Amidst rapid digitization across industries such as Beauty & Personal Care, Fashion, and Consumer Electronics, the Ecommerce Platform's dynamic evolution underscores its pivotal role in shaping modern commerce.

Explore the Online Fashion Retail Market trends! Covers key players, growth rate 17.3% CAGR, market size $101.52 Billion, and forecasts to 2033. Get insights now!

The report covers UK Online Retail Debit Card Payment Market, Total Number of Retail Categories UK Online Retail Market.t, UK Online Retail Pet Care Market, UK Online Retail Consumer Electronics Market.

During the observed period, the number of consumers in Poland willing to buy offline, encouraged by information about products found on the internet (ROPO effect — Research Online, Purchase Offline) increased from 77 percent in 2015 to 98 percent in 2024.

Graph and download economic data for E-Commerce Retail Sales (ECOMSA) from Q4 1999 to Q4 2024 about e-commerce, retail trade, sales, retail, and USA.

Between financial year 2019 and 2023, the annual growth rate in GMV of online grocery was the highest at over 60 percent in India. This was because COVID-19 increased the adoption of e-grocery and consumers became habitual to the ease and convenience of online grocery shopping. The beauty and personal care category followed with a growth rate of over 50 percent for the same period.

Graph and download economic data for E-Commerce Retail Sales as a Percent of Total Sales (ECOMPCTSA) from Q4 1999 to Q4 2024 about e-commerce, retail trade, percent, sales, retail, and USA.

The Report Covers Global E-Commerce Industry Overview and Share. The Market is Segmented by B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), B2B E-Commerce, and Geography.

Online retail in the United Kingdom has been gaining ground in the past decade. With the onset of the coronavirus (COVID-19) crisis, the value of online retail sales in the United Kingdom is estimated to reach just below 120 billion British pounds in 2021. In 2022, the figure decreased to 106 billion British pounds.

What ranks high in UK e-commerce?
In the United Kingdom, clothing and household goods were the most popular retail items consumers purchased through the internet in 2020. Data published by the Office for National Statistics (UK) showed that other leisure activities and services such as booking holiday accommodations, travel arrangements and event tickets were other areas consumers depended on the internet to buy.

German e-commerce market

The UK might have the highest share of online sales in retail trade, but other European countries such as Germany and France have had impressive track records over the years as well. According to the forecasts provided by German E-commerce and Distance Selling Trade Association (bevh), the market volume of Germany’s e-commerce sector was projected to see over 90 billion euros in 2021.

According to the source, the online share of retail sales in the United Kingdom (UK) was estimated to be 26.5 percent by the end of 2022. This figure is down from 2021, where online sales accounted for 28.9 percent of the online retail industry.