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.

The revenue in the e-commerce market in the United States was forecast to continuously increase between 2024 and 2029 by in total 657.8 billion U.S. dollars (+53.79 percent). After the tenth consecutive increasing year, the indicator is estimated to reach 1.9 trillion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the e-commerce market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and number of users. The Statista Market Insights cover a broad range of additional markets.

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.

Market Size and Growth: The global online tea sales market is projected to reach $XXX million by 2033, expanding at a CAGR of XX% during the forecast period 2025-2033. The rising demand for tea due to its perceived health benefits, the increasing popularity of e-commerce platforms, and the convenience of online shopping are key drivers of market growth. Mixed tea and single tea are the primary types of online tea sales, with leisure and health care being the dominant application areas. Key Trends and Challenges: The proliferation of online marketplaces and subscription services is fueling growth in the online tea market. Consumers are increasingly seeking premium and specialty teas, leading to the emergence of niche online retailers. However, challenges such as counterfeit products, supply chain disruptions, and price competition pose obstacles to market expansion. Moreover, the sustainability of tea production and packaging is becoming a growing concern for consumers, driving demand for eco-friendly and ethical tea options.

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...

According to recent industry calculations, Turkey's compound annual growth rate until 2029 is the highest among the top 20 e-commerce markets worldwide. The Turkish e-commerce market is currently valued at 3.4 trillion Turkish lira. India and Brazil are also among the fastest-growing e-commerce markets globally, with CAGRs of over 11 percent. Will the United States be the global e-commerce leader? By 2026, the American online retail market value is forecast to surpass the 1.5 trillion U.S. dollar mark. Although the forecasted growth is strong, the American e-commerce market is not the world's biggest. In fact, the Chinese e-commerce market surpassed a value of one trillion U.S. dollars back in 2021, and is forecast to approach two trillion U.S. dollars in 2027. Different KPIs lead to different insights The Chinese and American online shopping markets are neck-and-neck, depending on the KPI selected. For instance, the average revenue per user is a useful KPI to determine the penetration rate of e-commerce in a country. For the U.S., the ARPU stands at roughly 4,650 U.S. dollars as of 2025. In China, this value is much lower, at just over 1,3000 U.S. dollars.

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.

Retail Sales in the United States increased 0.20 percent in February of 2025 over the previous month. This dataset provides - U.S. December Retail Sales Increased More Than Forecast - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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E-Commerce Retail Market Size 2024-2028

The e-commerce retail market size is forecast to increase by USD 4,061.3 billion at a CAGR of 11.2% between 2023 and 2028. The market is witnessing significant growth, driven by the increasing use of digital devices for purchasing everyday basics and luxury items. Headless e-commerce architecture, which separates the front-end presentation layer from the back-end services, is gaining popularity for its flexibility and faster time-to-market. Market trends include the integration of artificial intelligence for personalized shopping experiences and the adoption of augmented reality for enhanced product visualization. Payment gateways and digital wallets are becoming essential features for seamless transactions, while security remains a top priority with the implementation of advanced security features. Strict regulatory policies related to compliance and customer protection further fuel market growth. Overall, the market is poised for continued expansion, driven by technological innovations and evolving consumer preferences.

What will be the Size of the Market During the Forecast Period?

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The market is experiencing significant growth, driven by the increasing popularity of online shopping for daily essentials and luxury products. Smartphones have become the primary device for accessing online platforms, making mobile technologies essential for retailers. Cross-border e-commerce is also gaining traction, enabling consumers to purchase items from different countries. Retail e-commerce includes business-to-business (B2B) and consumer-to-consumer (C2C) transactions. E-commerce platforms are integrating inventory management, order processing, payment integration, mobile applications, and responsive websites to enhance the shopping experience. Digital payment methods, including voice orders and augmented reality, are also becoming increasingly popular. The market's growth is influenced by factors such as internet penetration, convenience shopping, and the availability of computer, smartphone, and tablet devices. Data security is a critical concern for consumers and retailers, necessitating security measures to protect sensitive information. The market is expected to continue its growth trajectory, offering significant opportunities for businesses in the e-commerce sector.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

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

    China
    India
    Japan
    South Korea


  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  South America



  Middle East and Africa

By Product Insights

The apparel and accessories segment is estimated to witness significant growth during the forecast period. The market, particularly in sectors such as apparel and accessories, is witnessing significant growth due to several factors. Increasing consumer affluence, the trend toward premiumization, and the shift toward organized retail are key drivers of this expansion. In India, the domestic lifestyle industry, which encompasses apparel, beauty, accessories, and footwear, is projected to reach USD 210 billion by 2028. A significant factor fueling this growth is the Gen Z demographic, which is heavily influenced by social media trends and is increasingly turning to online platforms for shopping. This demographic's preference for the latest fashion trends and their willingness to invest in premium products make them a crucial segment for e-commerce retailers. Hybrid marketplaces, which combine elements of both pure marketplaces and traditional retail, are gaining popularity in the e-commerce retail landscape.

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The apparel and accessories segment accounted for USD 1,183.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia Pacific region is witnessing significant growth in the market due to innovative hybrid marketplaces and strategic partnerships that facilitate cross-border trade. In Japan, for instance, there is an increasing trend towards pure marketplaces that offer services to assist retailers in managing i

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Global Online Retail Services Market is estimated to see healthy growth, pegged at a CAGR of 10% during the forecast period 2023-2031.

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.

The In-Building Wireless Sales Market is projected to be valued at $XX billion in 2024, driven by factors such as increasing consumer awareness and the rising prevalence of industry-specific trends. The market is expected to grow at a CAGR of YY%, reaching approximately $ZZ billion by 2034.

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The size and share of the market is categorized based on Application (Travel & Tourism, Hotel Booking, Ridesharing, Restaurant, Others) and Product (Group-buying Platform, Online Shopping Platform, Business Circle Platform) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The Canada E-Commerce Market Report is Segmented by B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, and Furniture and Home) and B2B E-Commerce. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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The construction market is projected to be valued at $1.5 trillion in 2024, driven by factors such as increasing consumer awareness and the rising prevalence of industry-specific trends. The market is expected to grow at a CAGR of 4.5%, reaching approximately $2.2 trillion by 2034.

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Between 2023 and 2024, it is forecast that Amazon's share of total e-commerce sales in the United States will increase across all five featured product categories. Health and personal care will see the greatest growth, rising from 33.2 percent to 34.7 percent. The other categories include electronics, office items, clothing and home furnishings. With a market share projected to hit almost 50 percent in 2024, Amazon dominates the electronics online retail space in the United States.