Market Trends of India E-Commerce Industry
Internet Plays a Significant Role in Market Growth
- As per IBEF, internet and smartphone usage has fueled most of the industry's expansion. Because of the 'Digital India' campaign, internet connections expanded dramatically to 850 million in 2022. According to TRAI, as of September 2022, rural internet subscribers were over 343.8 million in India and 507.8 million in its urban counterpart.
- According to TRAI, in 2022, India had over 1020.91 million wireless mobile subscribers. The majority of traffic that year came from a 4G data payload.
- Due to a lack of confidence and security concerns with internet payments, cash payments have traditionally been the favored payment method in India. However, digital payments are predicted to account for 80% of all transactions in India by 2025 due to a large young population with smartphone access. The Indian market has been adopting digital eWallets quicker than the United States, the United Kingdom, and China, according to ASSOCHAM (the Associated Chambers of Commerce and Industry).
- Presently, 5G is among the most invested technologies by several end-user industries in the market. 5G connectivity further opens up various use cases in increasing the efficiency of varied sectors. With the growing proliferation of technology in smartphones, consumers are increasingly expecting digital engagement and personalized experiences overall.
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Consumer Electronics is a Strong Contributor to the Market's Growth
- E-commerce companies recorded significant consumer electronics sales across platforms due to increased buying during the holiday season. Flipkart Group emerged as one of the prominent players with intensifying competition from Amazon throughout the festive season in the country.
- India's refrigerator, washing machine, and air conditioner markets held a significant market share, with washing machines leading. According to the India Cellular & Electronics Association (ICEA), India's laptop and tablet manufacturing industry could be worth USD 100 billion by 2025. Such a massive increase in the consumer electronics market may allow Indian e-commerce players to increase their online product line. It may open new online sites specific to the consumer electronic market.
- By creating an electronic components manufacturing base in India and boosting exports, IT companies focus on entering the Indian consumer electronics market. Consumer electronics companies are focusing on the smart wearables sector in India. According to FDI India, by 2025, the Indian Electronics Manufacturing Service (EMS) industry is estimated to have grown 6.5 times from USD 23.5 billion to USD 152 billion.
- India is expected to exhibit remarkable growth in the soundbar segment. Factors such as increasing disposable income and features, such as high-definition (HD) smart TVs with built-in Wi-Fi for connectivity to Netflix, Amazon Prime, and YouTube, among other online streaming channels, significantly increase consumer spending on these devices. Such trends may drive the studied market.
